Automotive supplier Lear posted higher second-quarter sales, profit and free cash flow, citing new business wins and stronger execution as it lifted the midpoints of most full-year targets.
Lear Corporation reported stronger second-quarter 2026 results and raised the midpoints of most elements of its full-year outlook. Revenue rose 3% year over year to $6.2 billion from $6.0 billion, while net income increased to $193 million from $165 million and adjusted net income rose to $217 million from $188 million. Core operating earnings climbed 7% to $313 million, and diluted earnings per share increased to $3.79 from $3.06, with adjusted EPS rising to $4.28 from $3.47. The company said sales excluding commodities, foreign exchange and tariff recoveries increased 1%, helped by commercial recoveries and new business, partly offset by lower production on key Lear platforms. Global vehicle production was flat in the quarter, with North America flat, Europe down 2% and China down 4%, while production was down about 1% on a Lear sales-weighted basis. Cash generation improved sharply, with operating cash flow up 55% to $461 million and free cash flow up 69% to $288 million. Lear repurchased $100 million of shares during the quarter and paid $39 million in dividends, ending the period with $1.0 billion in cash and cash equivalents and total liquidity of $3.0 billion. Lear highlighted new Seating awards with Audi in Europe and North America, a complete seat award with Leapmotor in South America, and additional E-Systems wire awards with automakers including BAIC, Renault and Stellantis. The company also said it opened its Advanced Manufacturing Integration Center in Rochester Hills, Michigan. For 2026, Lear now expects net sales of $23.54 billion to $24.01 billion, core operating earnings of $1.08 billion to $1.20 billion, adjusted EBITDA of $1.70 billion to $1.82 billion, operating cash flow of $1.25 billion to $1.35 billion and free cash flow of $590 million to $690 million. The outlook assumes global industry production will decline about 2% from 2025 on a Lear sales-weighted basis and excludes any future impact from potential tariff changes or companywide or industrywide production disruptions.