LEA · Lear Corporation

Lear Corporation reported strong first quarter 2026 results, with revenue of $5.8 billion, up 5% year-over-year, driven by increased production on key platforms and new business wins. Net income more than doubled to $172 million from $81 million, while adjusted EPS grew 24% to $3.87, benefiting from higher earnings and share repurchases. Core operating earnings rose 10% to $297 million, with margin expansion in both Seating (6.9% adjusted) and E-Systems (6.1% adjusted) segments. The company generated $98 million in operating cash flow, a significant improvement from negative $128 million in the prior year, and free cash flow improved to negative $27 million from negative $232 million. Management highlighted strong new business awards, including wire harnesses for GM full-size SUVs and electronics with Audi, and noted that targeted investments in automation are supporting growth. The company reaffirmed its full-year 2026 outlook, expecting net sales of $23.2-$24.0 billion, core operating earnings of $1.03-$1.20 billion, and free cash flow of $550-$650 million. During the quarter, Lear repurchased $75 million in shares and paid $43 million in dividends, with $700 million remaining under its buyback authorization. The results reflect the company's ability to navigate a dynamic operating environment and deliver improved profitability and cash generation.