Lear (LEA) Q2 2026 earnings summary

Executive summary

• Achieved record first-half revenue of $12 billion, with Q2 2026 sales up 3% year-over-year to $6.2 billion and core operating earnings rising 7% to $313 million.

• Adjusted EPS increased 23% to $4.28, with net income up 17% to $193 million and adjusted net income up 16% to $217 million.

• Strong cash generation enabled $100 million in Q2 share repurchases and $39 million in dividends, with quarter-end liquidity at $3.0 billion.

• Secured $2.9 billion in new business awards year-to-date, including major wins with Audi, Leapmotor, and Stellantis.

• Raised full-year 2026 guidance for revenue, core operating earnings, and free cash flow.

Financial highlights

• Q2 2026 revenue: $6.2 billion (+3% YoY); net income: $193 million (+17% YoY); adjusted net income: $217 million (+16% YoY).

• Core operating earnings: $313 million (+7% YoY); core operating margin: 5.0% (vs. 4.8% in 2025).

• Adjusted EPS: $4.28 (+23% YoY); EPS: $3.79 (+24% YoY).

• Net cash from operations: $461 million (+55% YoY); free cash flow: $288 million (+69% YoY).

• Gross margin for the quarter: 7.6%; for the six months: 7.7%.

Outlook and guidance

• Full-year 2026 net sales guidance: $23.54–$24.01 billion; core operating earnings: $1.08–$1.2 billion; free cash flow: $590–$690 million.

• Second-half sales expected at $11.7 billion, down sequentially due to seasonal shutdowns and production changes.

• Guidance assumes global industry production down ~2% YoY and excludes future tariff changes or major disruptions.

• Management expects $36 million in additional restructuring costs over the next twelve months.

• Capital spending for 2026 is estimated at $660 million.