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Lear Corporation (NYSE: LEA) lifts 2026 outlook on higher Q2 profit and cash flow

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Lear Corporation reported second-quarter 2026 results and raised the midpoints of its full-year 2026 outlook. Net sales were $6.2 billion, up 3% year-over-year, with core operating earnings of $313 million, or 5.0% of sales. Net income attributable to Lear was $193 million and diluted EPS was $3.79; adjusted net income was $217 million and adjusted EPS $4.28, reflecting 24% and 23% year-over-year EPS growth.

Net cash provided by operating activities increased to $461 million and free cash flow to $288 million. Lear repurchased 735,873 shares for $100 million and paid $39 million in dividends, ending the quarter with $1.0 billion in cash and total liquidity of $3.0 billion.

Both Seating and E-Systems delivered higher earnings, with E-Systems adjusted margins improving to 5.8% of sales. For full-year 2026, Lear now forecasts net sales of $23,540-$24,010 million, core operating earnings of $1,080-$1,200 million, adjusted EBITDA of $1,700-$1,820 million, and free cash flow of $590-$690 million.

Positive

  • Earnings power improved, with Q2 2026 diluted EPS up 24% year-over-year to $3.79 and adjusted EPS up 23% to $4.28, supported by higher net income and share repurchases.
  • 2026 outlook was raised, with net sales now guided to $23,540-$24,010 million and free cash flow to $590-$690 million, alongside higher targets for core operating earnings and adjusted EBITDA.

Negative

  • None.

Filing Explained

The July 31 8-K furnishes guidance that rests on disruption-sensitive assumptions and non-firm customer production commitments.

This Form 8-K furnishes Lear’s July 31, 2026 results release as Exhibit 99.1 under Item 2, and the release is not treated as filed under Section 18 of the Exchange Act.

The full-year outlook is a forecast subject to stated assumptions, not a completed operating result: it excludes future tariff changes and company- or industry-wide production disruptions.

Lear also says its customer production-part contracts generally specify no quantity and may be terminated by customers at any time, so the core sales backlog does not represent firm orders.

For interpreting the reported cash figure, Lear defines free cash flow as net cash from operations less capital expenditures and says it should not replace GAAP cash-flow data.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales Q2 2026 $6,209.4 million Three months ended July 4, 2026 net sales vs $6,030.4 million in 2025
Net income attributable to Lear Q2 2026 $192.8 million Quarterly net income attributable to Lear vs $165.2 million a year earlier
Diluted EPS Q2 2026 $3.79 Diluted net income per share attributable to Lear in Q2 2026
Adjusted diluted EPS Q2 2026 $4.28 Adjusted earnings per share in Q2 2026 vs $3.47 in Q2 2025
Free cash flow Q2 2026 $288 million Second-quarter 2026 free cash flow, up from $171 million in 2025
Operating cash flow Q2 2026 $461 million Net cash provided by operating activities in the second quarter of 2026
2026 net sales outlook $23,540 million - $24,010 million Full-year 2026 net sales guidance range
Q2 2026 share repurchases $100 million 735,873 shares of common stock repurchased during the second quarter of 2026
core operating earnings financial
"Core operating earnings were $313 million, or 5.0% of sales"
Core operating earnings are the profit a company generates from its regular, day-to-day business activities after removing one-time events, non-operating gains or losses, and other unusual items. Think of it as household income from your job, excluding sporadic gifts or sell-offs; it shows the steady, repeatable earning power of the business. Investors use it to judge underlying health and compare performance across periods or peers without noise from exceptional items.
adjusted EBITDA financial
"“pretax income before equity income, interest, other expense, depreciation expense, amortization of intangible assets, restructuring costs and other special items” (adjusted EBITDA)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow represents net cash provided by (used in) operating activities less capital expenditures"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
content per vehicle financial
"Content per Vehicle 1 North America $ 633 Europe and Africa $ 517"
non-GAAP financial measures financial
"the Company has provided information regarding ... each, a non-GAAP financial measure"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Net sales $6,209.4 million Up 3% from $6,030.4 million in the second quarter of 2025
Net income attributable to Lear $192.8 million Increase of 17% from $165.2 million in the second quarter of 2025
Diluted earnings per share $3.79 Up from $3.06 a year earlier, a 24% year-over-year increase
Free cash flow $288 million Up 69% from $171 million in the second quarter of 2025
Guidance

For full-year 2026, Lear guides to net sales of $23,540-$24,010 million, core operating earnings of $1,080-$1,200 million, adjusted EBITDA of $1,700-$1,820 million, operating cash flow of $1,250-$1,350 million, capital spending of ≈$660 million, and free cash flow of $590-$690 million.

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FAQ

What were Lear (LEA)'s key financial results for Q2 2026?
Lear reported Q2 2026 net sales of $6.2 billion, up 3% from $6.0 billion a year earlier. Net income attributable to Lear was $193 million, with diluted EPS of $3.79 and adjusted EPS of $4.28, both markedly higher year-over-year.

How did Lear (LEA)'s cash flow perform in the second quarter of 2026?
Lear generated $461 million in net cash from operating activities in Q2 2026, up sharply from 2025. Free cash flow increased to $288 million, reflecting stronger operating performance and continued capital discipline compared with $171 million in the prior-year quarter.

What full-year 2026 guidance did Lear (LEA) provide?
For 2026, Lear now expects net sales of $23,540-$24,010 million and core operating earnings of $1,080-$1,200 million. Guidance also includes adjusted EBITDA of $1,700-$1,820 million and free cash flow of $590-$690 million, based on assumed lower global production.

How much stock did Lear (LEA) repurchase in Q2 2026?
Lear repurchased 735,873 shares of its common stock for a total of $100 million in Q2 2026. Remaining authorization was about $600 million, roughly 8% of market capitalization, with 63.6 million shares repurchased since 2011 for $6.1 billion.

How did Lear (LEA)'s Seating and E-Systems segments perform in Q2 2026?
In Q2 2026, Seating net sales were $4,624.1 million with adjusted margins of 6.7%. E-Systems net sales were $1,585.3 million, and adjusted margins improved to 5.8% from 4.9% a year earlier, reflecting better profitability in the E-Systems business.

What is Lear (LEA)'s liquidity position after Q2 2026?
Lear ended Q2 2026 with $1.0 billion in cash and cash equivalents and total liquidity of $3.0 billion. The balance sheet showed total assets of $15,650.5 million and equity of $5,324.7 million, providing financial flexibility for operations and capital returns.
0000842162false00008421622026-07-312026-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
______________________________________ 

FORM 8-K
______________________________________ 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 31, 2026
______________________________________ 

LEAR CORPORATION
(Exact name of Registrant as specified in its charter)
______________________________________ 
Delaware1-1131113-3386776
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification Number)

21557 Telegraph Road, Southfield, MI 48033
(Address of principal executive offices)

(248) 447-1500
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common stock, par value $0.01 LEANew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐




Section 2 - Financial Information

Item 2.02     Results of Operations and Financial Condition.

On July 31, 2026, Lear Corporation issued a press release reporting financial results for the second quarter of 2026 and updating its financial outlook for the full year 2026. A copy of the press release is furnished hereto as Exhibit 99.1 and incorporated by reference herein.

The information contained in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Section 9 - Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits. 
(d)    Exhibits
Exhibit
Number		Exhibit Description
99.1
Press release issued July 31, 2026, furnished herewith.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).
2




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Lear Corporation
July 31, 2026By:/s/ Jason M. Cardew
Name:Jason M. Cardew
Title:Senior Vice President and Chief Financial Officer



3

learlogoa.jpg
FOR IMMEDIATE RELEASE            


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

SOUTHFIELD, Mich., July 31, 2026 -- Lear Corporation (NYSE: LEA), 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.

Second Quarter 2026 Financial Highlights
•Revenue of $6.2 billion, an increase of 3%, compared to $6.0 billion in the second quarter of 2025
•Net income of $193 million and adjusted net income of $217 million, compared to $165 million and $188 million, respectively, in the second quarter of 2025
•Core operating earnings of $313 million, an increase of 7%, compared to $292 million in the second quarter of 2025
•Earnings per share of $3.79 and adjusted earnings per share of $4.28, compared to $3.06 and $3.47, respectively, in the second quarter of 2025
•Earnings per share increased 24% year-over-year and adjusted earnings per share increased 23% year-over-year, reflecting higher earnings and the benefit of our share repurchase program
•Net cash provided by operating activities increased 55% to $461 million and free cash flow increased 69% to $288 million, compared to $296 million and $171 million, respectively, in the second quarter of 2025
•Repurchased $100 million of shares and paid $39 million in dividends
•Cash and cash equivalents at quarter-end of $1.0 billion and total liquidity of $3.0 billion

Second Quarter 2026 Business Highlights
•Expanded our Seating leadership position through significant new and conquest awards with Audi for complete seats, ComfortFlex™ and FlexAir® 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 (ComfortFlexTM and ComfortMax Seat by LearTM)
•Continued to grow our core E-Systems 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
“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
(more)





Manufacturing Integration Center in Rochester Hills, Michigan, showcasing our industry-leading capabilities in automation and digital tools through IDEA by LearTM. 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.”

Second Quarter Financial Results
(in millions, except per share amounts)
20262025
Reported
Sales$6,209.4 $6,030.4 
Net income$192.8 $165.2 
Earnings per share$3.79 $3.06 
Adjusted(1)
Core operating earnings$313.2 $291.8 
Adjusted net income$217.4 $187.8 
Adjusted earnings per share$4.28 $3.47 

In the second quarter, global vehicle production was flat compared to a year ago, with North America flat, Europe down 2% and China down 4%. Global vehicle production was down approximately 1% on a Lear sales-weighted basis(2).

Sales in the second quarter were $6.2 billion, up 3% year-over-year. Sales excluding the impact of commodities, foreign exchange and tariff recoveries were up 1%, reflecting commercial recoveries and the addition of new business, partially offset by lower production on key Lear platforms.

Core operating earnings were $313 million, or 5.0% of sales, as compared to $292 million, or 4.8% of sales, in 2025. Earnings were impacted by the addition of new business and changes in foreign exchange rates, offset by lower production on key Lear platforms.

In the Seating segment, margins and adjusted margins were 6.2% and 6.7% of sales, respectively, a decrease from 6.4% and flat compared to 6.7%, respectively, in 2025. In the E-Systems segment, margins and adjusted margins were 5.4% and 5.8% of sales, respectively, an increase from 3.5% and 4.9%, respectively, in 2025.

Net income was $193 million, an increase of 17%, compared to $165 million in 2025. Adjusted net income was $217 million, an increase of 16%, compared to $188 million in 2025.

Earnings per share were $3.79 and adjusted earnings per share were $4.28, as compared to $3.06 and $3.47, respectively, a year ago. Earnings per share increased 24% year-over-year and adjusted earnings per share increased 23% year-over-year, reflecting higher earnings and the benefit of our share repurchase program.

2





In the second quarter of 2026, net cash provided by operating activities was $461 million, and free cash flow(1) was $288 million, increasing from $296 million and $171 million, respectively, in 2025.

(1) For more information regarding our non-GAAP financial measures, see “Non-GAAP Financial Information” below.

(2) The global and regional production changes are based on Mobility Global estimates. The production change on a Lear sales-weighted basis is calculated using Lear’s prior year regional sales mix and second quarter fiscal calendar. Management believes this provides a more meaningful comparison of the Company’s global revenue growth relative to global vehicle production.

Share Repurchase Program
During the second quarter of 2026, Lear repurchased 735,873 shares of our common stock for a total of $100 million. At the end of the second quarter, we had a remaining share repurchase authorization of approximately $600 million, which reflects approximately 8% of our total market capitalization at current market prices.

Since initiating the share repurchase program in 2011, we have repurchased 63.6 million shares of our common stock for a total of $6.1 billion at an average price of $95.72 per share. This represents a reduction of approximately 60% of our shares outstanding since the time we began the program.

2026 Financial Outlook
We have increased the midpoints and narrowed the ranges of our 2026 financial outlook across most metrics.

At the midpoint of our guidance range, we have assumed that global industry production will decrease approximately 2% from 2025 on a Lear sales-weighted basis. The industry volume assumptions underlying our 2026 financial outlook are derived from several sources, including internal estimates, customer production schedules and the most recent Mobility Global production estimates for our vehicle platforms.

Our outlook excludes any future impact of potential changes to tariffs or Company or industry-wide production disruptions.

Our 2026 financial outlook is summarized below:

Full Year 2026 Financial Outlook
Net Sales$23,540 million - $24,010 million
Core Operating Earnings$1,080 million - $1,200 million
Adjusted EBITDA$1,700 million - $1,820 million
Restructuring Costs≈$175 million
Operating Cash Flow$1,250 million - $1,350 million
Capital Spending≈$660 million
Free Cash Flow$590 million - $690 million

3





The financial outlook is based on full year average exchange rates of $1.16/Euro and 6.82 RMB/$.

Certain of the forward-looking financial measures above are provided on a non-GAAP basis. The Company does not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with GAAP because to do so would be potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.

Second Quarter 2026 Conference Call and Webcast Information
A conference call and webcast will be held to discuss Lear’s second quarter 2026 financial results and related matters on July 31, 2026, at 9:00 a.m. EDT. The webcast link for the conference call will be available through Lear’s investor relations webpage at ir.lear.com. In addition, the conference call can be accessed by dialing 1-877-883-0383 (domestic) or 1-412-902-6506 (international) with Conference I.D. 1239896. The webcast replay will be available two hours following the call.

Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included throughout this press release, the Company has provided information regarding “pretax income before equity income, interest, other expense, restructuring costs and other special items” (core operating earnings or adjusted segment earnings), “pretax income before equity income, interest, other expense, depreciation expense, amortization of intangible assets, restructuring costs and other special items” (adjusted EBITDA), “adjusted net income attributable to Lear” (adjusted net income), “adjusted diluted net income per share attributable to Lear” (adjusted earnings per share), and “free cash flow” (each, a non-GAAP financial measure). Other expense includes, among other things, non-income related taxes, foreign exchange gains and losses, gains and losses related to certain derivative instruments and hedging activities, gains and losses on certain disposals of assets and the non-service cost components of net periodic benefit cost. Adjusted net income and adjusted earnings per share represent net income attributable to Lear and diluted net income per share attributable to Lear, respectively, adjusted for restructuring costs and other special items, including the tax effect thereon. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures.

Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that core operating earnings, adjusted EBITDA, adjusted net income and adjusted earnings per share are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures provide improved comparability between fiscal periods. Management believes that free cash flow is useful to both management and investors in their analysis of the Company’s ability to service and repay its debt. Further, management uses these non-GAAP financial measures for planning and forecasting future periods.

4





Core operating earnings, adjusted EBITDA, adjusted net income, adjusted earnings per share and free cash flow should not be considered in isolation or as a substitute for net income attributable to Lear, diluted net income per share attributable to Lear, cash provided by (used in) operating activities or other income statement or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt and, therefore, does not reflect funds available for investment or other discretionary uses. Also, these non-GAAP financial measures, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words “may,” “designed to,” “outlook,” “believes,” “should,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “forecasts”, “targets” and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address operating performance, events or developments that the Company expects or anticipates may occur in the future are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, including the section entitled "Risk Factors," and its other Securities and Exchange Commission filings. Future operating results will be based on various factors, including actual industry production volumes, the impact of, and our ability to mitigate the effects of, U.S. or foreign policies regarding trade, including tariffs and export restrictions and any changes to tariffs or export restrictions, any resulting volume reductions or changes in vehicle production schedules by our customers, the duration and scope of any government shutdown and any other industry disruptions, supply chain disruptions, labor disruptions, unforeseen operational disruptions impacting our customers, commodity prices, changes in foreign exchange rates, the impact of restructuring actions and the Company's success in implementing its operating strategy.

Information in this press release relies on assumptions in the Company’s core sales backlog. The Company’s core sales backlog reflects anticipated net sales from formally awarded new programs less lost and discontinued programs and excludes the impact of non-core products winding down in our E-Systems business. The Company enters into contracts with its customers to provide production parts generally at the beginning of a vehicle’s life cycle. Typically, these contracts do not provide for a specified quantity of production, and many of these contracts may be terminated by the Company’s customers at any time. Therefore, these contracts do not represent firm orders. Further, the calculation of the core sales backlog does not reflect customer price reductions on existing or newly awarded programs. The core sales backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new programs, foreign exchange rates and the timing of major program launches.

5





The forward-looking statements in this press release are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.

About Lear Corporation
Lear Corporation (NYSE: LEA) is a global automotive leader in Seating and E-Systems. The company designs, manufactures, and delivers advanced technologies to the world’s major automakers. Building on more than 100 years of heritage, Lear is the largest U.S.-based automotive supplier, headquartered in Southfield, Michigan. Driven by a commitment to innovation, operational excellence, and sustainability, Lear’s global team of talented employees is shaping the future of mobility by developing solutions that enhance comfort, safety, and efficiency. More information is available at Lear.com.

CONTACTS:
Marianne Vidershain
Tim Brumbaugh
Vice President, Treasurer Vice President, Investor Relations
and Head of Investor Relations
 (248) 447-1329
(248) 447-5541



6





Lear Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited; in millions, except per share amounts)
Three Months Ended
July 4,
2026		June 28,
2025
Net sales$6,209.4 $6,030.4 
Cost of sales5,739.1 5,591.3 
Selling, general and administrative expenses197.5 186.3 
Amortization of intangible assets4.9 4.7 
Interest expense24.2 25.4 
Other expense, net2.8 5.2 
Consolidated income before income taxes and equity in net income of affiliates240.9 217.5 
Income taxes48.5 41.6 
Equity in net income of affiliates(19.3)(16.0)
Consolidated net income211.7 191.9 
Net income attributable to noncontrolling interests18.9 26.7 
Net income attributable to Lear$192.8 $165.2 
Diluted net income per share attributable to Lear$3.79 $3.06 
Weighted average number of diluted shares outstanding50.854.1
7






Lear Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited; in millions, except per share amounts)
Six Months Ended
July 4,
2026		June 28,
2025
Net sales$12,032.2 $11,590.7 
Cost of sales11,111.6 10,792.4 
Selling, general and administrative expenses387.8 358.7 
Amortization of intangible assets9.9 9.9 
Interest expense49.8 51.2 
Other expense, net15.5 25.6 
Consolidated income before income taxes and equity in net income of affiliates457.6 352.9 
Income taxes86.9 86.8 
Equity in net income of affiliates(33.7)(28.3)
Consolidated net income404.4 294.4 
Net income attributable to noncontrolling interests39.3 48.5 
Net income attributable to Lear$365.1 $245.9 
Diluted net income per share attributable to Lear$7.13 $4.54 
Weighted average number of diluted shares outstanding51.254.1
8






Lear Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
July 4,
2026		December 31,
2025
(Unaudited)(Audited)
ASSETS
Current:
Cash and cash equivalents$1,000.6 $1,033.0 
Accounts receivable4,210.8 3,902.8 
Inventories1,723.9 1,693.2 
Other1,450.1 1,034.0 
8,385.4 7,663.0 
Long-Term:
PP&E, net2,864.7 2,913.1 
Goodwill1,777.1 1,777.8 
Other2,623.3 2,489.2 
 7,265.1 7,180.1 
Total Assets$15,650.5 $14,843.1 
LIABILITIES AND EQUITY
Current:
Short-term borrowings$28.8 $27.9 
Accounts payable and drafts3,931.0 3,416.5 
Accrued liabilities2,418.4 2,219.0 
Current portion of long-term debt4.0 3.7 
6,382.2 5,667.1 
Long-Term:
Long-term debt2,713.4 2,711.5 
Other1,230.2 1,263.5 
3,943.6 3,975.0 
Equity5,324.7 5,201.0 
Total Liabilities and Equity$15,650.5 $14,843.1 
9






Lear Corporation and Subsidiaries
Consolidated Supplemental Data
(Unaudited; in millions, except content per vehicle and per share amounts)
Three Months Ended
July 4,
2026		June 28,
2025
Net Sales
North America$2,498.4 $2,519.3 
Europe and Africa2,326.4 2,163.2 
Asia1,125.4 1,144.6 
South America259.2 203.3 
Total$6,209.4 $6,030.4 
Content per Vehicle 1
North America$633 $637 
Europe and Africa$517 $474 
Free Cash Flow 2
Net cash provided by operating activities$460.5 $296.2 
Capital expenditures(172.7)(125.4)
Free cash flow$287.8 $170.8 
Core Operating Earnings 2
Net income attributable to Lear$192.8 $165.2 
Interest expense24.2 25.4 
Other expense, net2.8 5.2 
Income taxes48.5 41.6 
Equity in net income of affiliates(19.3)(16.0)
Net income attributable to noncontrolling interests18.9 26.7 
Restructuring costs and other special items -
Costs related to restructuring actions32.0 33.9 
Recoveries related to Fisker Inc.— (0.5)
Impairments (recoveries) related to Russian operations, net0.2 (0.1)
Other13.1 10.4 
Core operating earnings$313.2 $291.8 
10






Lear Corporation and Subsidiaries
Consolidated Supplemental Data
(continued)
(Unaudited; in millions, except content per vehicle and per share amounts)
Three Months Ended
July 4,
2026		June 28,
2025
Adjusted Net Income and Adjusted Earnings Per Share 2
Net income attributable to Lear$192.8 $165.2 
Restructuring costs and other special items -
Costs related to restructuring actions30.4 32.1 
Term loan refinancing— 0.5 
Recoveries related to Fisker Inc.— (0.5)
Impairments (recoveries) related to Russian operations, net0.2 (0.1)
Foreign exchange gains due to foreign exchange rate volatility related to Russia(0.2)— 
Other4.1 6.2 
Tax impact of special items and other net tax adjustments 3
(9.9)(15.6)
Adjusted net income$217.4 $187.8 
Weighted average number of diluted shares outstanding50.8 54.1 
Diluted net income per share attributable to Lear$3.79 $3.06 
Adjusted earnings per share$4.28 $3.47 
11






Lear Corporation and Subsidiaries
Consolidated Supplemental Data
(continued)
(Unaudited; in millions, except content per vehicle and per share amounts)
Six Months Ended
July 4,
2026		June 28,
2025
Net Sales
North America$4,722.0 $4,768.1 
Europe and Africa4,627.3 4,225.3 
Asia2,210.3 2,216.2 
South America472.6 381.1 
Total$12,032.2 $11,590.7 
Content per Vehicle 1
North America$601 $623 
Europe and Africa$503 $471 
Free Cash Flow 2
Net cash provided by operating activities$558.6 $168.5 
Capital expenditures(297.3)(229.4)
Free cash flow$261.3 $(60.9)
Core Operating Earnings 2
Net income attributable to Lear$365.1 $245.9 
Interest expense49.8 51.2 
Other expense, net15.5 25.6 
Income taxes86.9 86.8 
Equity in net income of affiliates(33.7)(28.3)
Net income attributable to noncontrolling interests39.3 48.5 
Restructuring costs and other special items -
Costs related to restructuring actions75.0 121.3 
Acquisition costs— 0.1 
Disposal costs— 0.6 
Recoveries related to Fisker Inc.— (0.9)
Impairments (recoveries) related to Russian operations, net0.4 (1.5)
Other12.2 12.9 
Core operating earnings$610.5 $562.2 
12






Lear Corporation and Subsidiaries
Consolidated Supplemental Data
(continued)
(Unaudited; in millions, except content per vehicle and per share amounts)
Six Months Ended
July 4,
2026		June 28,
2025
Adjusted Net Income Attributable to Lear 2
Net income attributable to Lear$365.1 $245.9 
Restructuring costs and other special items -
Costs related to restructuring actions73.4 119.8 
Acquisition costs— 0.1 
Loss related to disposal of non-core business0.4 3.3 
Disposal costs— 0.6 
Term loan refinancing— 0.5 
Recoveries related to Fisker Inc.— (0.9)
Impairments (recoveries) related to Russian operations, net0.4 (1.5)
Foreign exchange losses due to foreign exchange rate volatility related to Russia0.5 2.9 
Other4.3 10.6 
Tax impact of special items and other net tax adjustments 3
(27.2)(24.2)
Adjusted net income attributable to Lear$416.9 $357.1 
Weighted average number of diluted shares outstanding51.2 54.1 
Diluted net income per share attributable to Lear $7.13 $4.54 
Adjusted earnings per share$8.14 $6.60 
Diluted Shares Outstanding at End of Period 4
50,399,429 53,841,222 
1 Content per Vehicle for 2025 has been updated to reflect actual production levels.
2 See "Non-GAAP Financial Information" included in this press release.
3 Represents the tax effect of restructuring costs and other special items, as well as several discrete tax items. The identification of these tax items is judgmental in nature, and their calculation is based on various assumptions and estimates.
4 Calculated using stock price at end of quarter.
13






Lear Corporation and Subsidiaries
Segment Supplemental Data
(Unaudited; in millions, except margins)
Three Months Ended
July 4,
2026		June 28,
2025
Adjusted Segment Earnings
Seating
Net sales$4,624.1 $4,473.9 
Segment earnings$286.2 $284.5 
Restructuring costs and other special items -
Costs related to restructuring actions25.3 14.1 
Impairments (recoveries) related to Russian operations, net0.2 (0.1)
Other(0.2)0.4 
Adjusted segment earnings$311.5 $298.9 
Segment margins6.2 %6.4 %
Adjusted segment margins6.7 %6.7 %
E-Systems
Net sales$1,585.3 $1,556.5 
Segment earnings$85.1 $55.2 
Restructuring and other special items -
Costs related to restructuring actions5.6 18.1 
Recoveries related to Fisker Inc.— (0.5)
Other0.6 3.0 
Adjusted segment earnings$91.3 $75.8 
Segment margins5.4 %3.5 %
Adjusted segment margins5.8 %4.9 %



14






Lear Corporation and Subsidiaries
Segment Supplemental Data
(continued)
(Unaudited; in millions, except margins)
Six Months Ended
July 4,
2026		June 28,
2025
Adjusted Segment Earnings
Seating
Net sales$9,028.5 $8,625.0 
Segment earnings$563.6 $500.2 
Costs related to restructuring actions52.1 78.6 
Impairments (recoveries) related to Russian operations, net0.4 (1.5)
Other0.2 1.5 
Adjusted segment earnings$616.3 $578.8 
Segment margins6.2 %5.8 %
Adjusted segment margins6.8 %6.7 %
E-Systems
Net sales$3,003.7 $2,965.7 
Segment earnings$158.4 $110.7 
Costs related to restructuring actions18.4 34.9 
Recoveries related to Fisker Inc.— (0.9)
Other1.0 4.9 
Adjusted segment earnings$177.8 $149.6 
Segment margins5.3 %3.7 %
Adjusted segment margins5.9 %5.0 %
15

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