Q2 2026 Lear Corp Earnings Call Transcript
Key Points
- Record first-half revenue of over $12 billion, with Q2 sales up 3% to $6.2 billion and adjusted EPS up 23% to $4.28.
- Strong new business momentum, including significant Audi seating conquest wins and awards with Chinese automakers like Leapmotor, supporting future growth.
- E-Systems margins expanded 90 basis points year-over-year, driven by strong net performance and exceeding initial targets.
- IDEA by Lear initiatives are delivering tangible results, including automation savings, a lights-out pilot in Germany, and a new advanced manufacturing center.
- Raised full-year guidance for revenue, operating earnings, and free cash flow, and increased share repurchase target to at least $350 million.
- Global vehicle production is expected to decline nearly 2% on a Lear sales-weighted basis in 2026, with continued weakness in China.
- Second-half revenue is forecast to decline sequentially due to seasonal shutdowns, fewer production days, and GM full-size truck changeover.
- Wind-down of non-core E-Systems products and program roll-offs (e.g., Escape, Corsair) are weighing on growth and margins.
- Near-term growth is limited, with 2027 expected to see only modest revenue growth despite a robust backlog, due to platform headwinds.
- China market weakness and share shift to Chinese automakers pose risks, with domestic sales down 20% in the first half.
Good morning, everyone, and welcome to the Lear Corporation second quarter 2026 earnings conference call. (Operator Instructions) Please note, today's event is also 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 second 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 Harbor
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