Q1 2026 Lear Corp Earnings Call Transcript
Key Points
- Lear Corp (LEA) reported a 5% increase in sales to $5.8 billion and a 10% growth in core operating earnings to $297 million for the first quarter of 2026.
- The company achieved a 24% increase in adjusted earnings per share, reaching $3.87, marking the highest quarterly EPS since Q1 2019.
- Lear Corp (LEA) secured significant new business awards, including a major E-Systems award with General Motors and a high-voltage power distribution unit with Audi.
- The company is accelerating growth with Chinese automakers, securing wire harness and seating awards that will generate substantial revenue.
- Lear Corp (LEA) improved free cash flow by $205 million in the quarter, enabling a $75 million share repurchase and setting a pace for over $300 million in buybacks for the year.
- Global vehicle production decreased by 3% on a calendar basis, with China experiencing a 5% decline.
- The company faced a $385 million reduction in revenue due to changes in US tariff policy, impacting the full-year revenue outlook.
- Despite strong first-quarter results, Lear Corp (LEA) maintained a cautious full-year outlook due to global macroeconomic uncertainties and potential impacts from geopolitical conflicts.
- The E-Systems segment experienced challenges with operational issues and volume reductions in North America, particularly in the EV market.
- Lear Corp (LEA) is facing increased commodity costs, including copper and steel, which could impact earnings despite pass-through agreements.
Good morning, everyone, and welcome to the Lear Corporation first-quarter 2026 earnings conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the floor over to Tim Brumbaugh, Vice President, Investor Relations. Please go ahead.
Thanks, Jamie. Good morning, everyone, and thank you for joining us for Lear's first-quarter 2026 earnings call. Presenting today are Ray Scott, Lear President and CEO; and Jason Cardew, Senior Vice President and CFO. Other members of Lear's senior management team have also joined us on the call.
Following prepared remarks, we will open the call for Q&A. You can find a copy of the presentation that accompanies these remarks at ir.lear.com.
Before Ray begins, I'd like to take this opportunity to remind you that, as we conduct this call, we will be making forward-looking statements to assist you in understanding Lear's expectations for the future. As detailed in our Safe
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