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Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance

Lear Raises 2026 Outlook on Strong Q2, Cash Flow and Awards

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>Lear posted solid Q2 2026 results, lifting its full-year targets as stronger E-Systems margins and solid cash flow support ongoing buybacks. The company highlighted new awards with Audi and GM, plus a Leapmotor win in South America, underscoring momentum in its Seating and E-Systems backlog. If demand remains stable, LEA could see near-term upside from guidance upgrades and cash-flow generation.</p>
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    <h3>Key Points</h3>
    <ul><li>Q2 revenue $6.209B, up 3% YoY.</li><li>Net income $192.8M; adjusted $217.4M; EPS $3.79 / $4.28.</li><li>Raised 2026 guidance: net sales, core OI, EBITDA, and FCF.</li><li>Share repurchase: $100M in Q2; ~ $600M remaining.</li><li>Awards with Audi, Leapmotor in South America, GM Supplier of the Year signal growth.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>Lear Corporation (LEA)</strong>: Primary subject; raised guidance and highlighted awards, with stronger cash flow and buybacks.</li><li><strong>General Motors Company (GM)</strong>: Named Lear GM Supplier of the Year 2025; potential ongoing demand for wire and seating systems.</li><li><strong>Stellantis N.V. (STLA)</strong>: New awards for wire in North America; supports Lear’s E-Systems backlog in the region.</li><li><strong>Renault S.A. (RNLSY)</strong>: Partial conquest/replacement awards for low- and high-voltage wire in Europe; validates cross-region exposure.</li></ul>
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    <h3>Earnings</h3>
    <p>Earnings category; the article centers on Q2 results and an upgraded full-year outlook, plus cash-flow strength and strategic awards, which are key valuation and growth drivers for LEA.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Guidance raised for 2026 across net sales, core operating income, EBITDA, and free cash flow.</li><li>Share repurchase activity: $100M in Q2; approximately $600M remaining authorization (~8% of market cap).</li><li>Diverse awards cycle including Audi, Leapmotor, and GM supplier recognition support visibility and backlog.</li></ul>
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    <h3>Key Facts</h3>
    <ul><li>Q2 2026 net sales: $6,209.4 million; up 3% vs 2025.</li><li>Q2 2026 net income: $192.8 million; adjusted net income: $217.4 million; GAAP EPS $3.79; adjusted $4.28.</li><li>Core operating earnings: $313.2 million; margin 5.0% of sales (vs 4.8% in 2025).</li><li>Operating cash flow: $461 million; free cash flow: $288 million; cash &amp; equivalents $1.0 billion; total liquidity $3.0 billion.</li><li>2026 guidance midpoint raised: Net Sales $23.54B-$24.01B; Core OI $1.08B-$1.20B; Adjusted EBITDA $1.70B-$1.82B; Free Cash Flow $590M-$690M; Capex ~$660M.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>LEA likely to trend higher in the near-term on raised guidance and sizable buybacks, with potential longer-term upside from ongoing awards and margin expansion.</p>
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  <p><strong>SOUTHFIELD, Mich.</strong>, July 31, 2026 /PRNewswire/ -- Lear Corporation (NYSE: <strong>LEA</strong>), a global automotive technology leader in Seating and E-Systems, today reported results for the second quarter 2026 and raised the midpoints of its financial outlook for the full year 2026.</p>

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    <h2>Second Quarter 2026 Financial Highlights</h2>
    <ul>
      <li>Revenue of <strong>$6.2 billion</strong>, an increase of <strong>3%</strong>, compared to <strong>$6.0 billion</strong> in the second quarter of 2025</li>
      <li>Net income of <strong>$193 million</strong> and adjusted net income of <strong>$217 million</strong>, compared to <strong>$165 million</strong> and <strong>$188 million</strong>, respectively, in the second quarter of 2025</li>
      <li>Core operating earnings of <strong>$313 million</strong>, an increase of <strong>7%</strong>, compared to <strong>$292 million</strong> in the second quarter of 2025</li>
      <li>Earnings per share of <strong>$3.79</strong> and adjusted earnings per share of <strong>$4.28</strong>, compared to <strong>$3.06</strong> and <strong>$3.47</strong>, respectively, in the second quarter of 2025</li>
      <li>Earnings per share increased <strong>24%</strong> year-over-year and adjusted earnings per share increased <strong>23%</strong> year-over-year, reflecting higher earnings and the benefit of our share repurchase program</li>
      <li>Net cash provided by operating activities increased <strong>55%</strong> to <strong>$461 million</strong> and free cash flow increased <strong>69%</strong> to <strong>$288 million</strong>, compared to <strong>$296 million</strong> and <strong>$171 million</strong>, respectively, in the second quarter of 2025</li>
      <li>Repurchased <strong>$100 million</strong> of shares and paid <strong>$39 million</strong> in dividends</li>
      <li>Cash and cash equivalents at quarter-end of <strong>$1.0 billion</strong> and total liquidity of <strong>$3.0 billion</strong></li>
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    <h2>Second Quarter 2026 Business Highlights</h2>
    <ul>
      <li>Expanded our Seating leadership position through significant new and conquest awards with Audi for complete seats, <em> ComfortFlex™ </em>and <em>FlexAir®</em> in Europe and North America, a complete seat award with Leapmotor in South America (an important award with a Chinese automaker outside of China) and being named the 2025 General Motors Supplier of the Year as well as a 2026 Automotive News PACE Award finalist for our modular thermal comfort systems (<em>ComfortFlex™</em> and <em>ComfortMax Seat by Lear™</em>)</li>
      <li>Continued to grow our core <em>E-Systems</em> products with new awards for wire with a luxury Chinese automaker and BAIC in China, a replacement and partial conquest award for low- and high-voltage wire with Renault in Europe, new awards with Stellantis in North America, and being named the 2025 General Motors Supplier of the Year for Wire for the first time</li>
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    <h2>Leadership Commentary</h2>
    <p>“Lear continued its strong start to 2026 despite a dynamic operating environment, delivering improved year-over-year revenue and operating income in both segments - results that give us the confidence to raise our full-year guidance. We continue to win significant new business awards, including key new and conquest program awards with Audi, while accelerating our growth with Chinese automakers, including our award with Leapmotor in South America,” said Ray Scott, Lear's President and Chief Executive Officer. “We also opened our Advanced Manufacturing Integration Center in Rochester Hills, Michigan, showcasing our industry-leading capabilities in automation and digital tools through IDEA by Lear. Our innovations continue to be recognized as our modular thermal comfort systems were named as a finalist for the 2026 Automotive News PACE Awards. Our strong cash generation enabled us to further increase the pace of share repurchases, driving strong earnings per share growth while sustaining our dividend.”</p>
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    <h2>Context and Outlook</h2>
    <p> Lear is raising the midpoints of its financial outlook for the full year 2026, reflecting strong quarterly execution across its Seating and E-Systems segments and ongoing improvements in profitability and cash generation. The company continues to deploy capital toward share repurchases and sustaining its dividend, while expanding customer awards and partnerships across global automotive markets.</p>
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Lear posted solid Q2 2026 results, lifting its full-year targets as stronger E-Systems margins and solid cash flow support ongoing buybacks. The company highlighted new awards with Audi and GM, plus a Leapmotor win in South America, underscoring momentum in its Seating and E-Systems backlog. If demand remains stable, LEA could see near-term upside from guidance upgrades and cash-flow generation.

News insight

Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance

AI summary

Sentiment rationale

Key facts

Earnings