Lear margins expand in Seating and E-Systems Q1

Lear Corporation reported first-quarter sales up 5% to US$5.8bn and core operating earnings up 10% to US$297m, with Adjusted earnings per share rising 24% to US$3.87, its highest first-quarter level since 2019. Both segments delivered higher margins despite a 3% drop in global vehicle production.

In Lear’s Seating segment, sales rose 6% to US$4.4bn and segment margin widened to 6.3% from 5.2% a year earlier. E-Systems sales were broadly flat at US$1.4bn, but margin expanded to 5.2% from 3.9% on improved operational execution.

New business wins highlighted by Lear included wire harness awards on General Motors’ full-size SUVs and pickup trucks, plus E-Systems deals with SAIC, Geely and Dongfeng in China and a high-voltage power distribution module with Audi. Seating wins included ComfortFlex awards with Audi and BMW, and a ComfortMax Seat with Geely.

Lear reaffirmed its full-year 2026 outlook of net sales of US$23.21–24.01bn and core operating earnings of US$1.03–1.20bn, with free cash flow guided to US$550–650m. The forecast assumes global production around 2% below 2025 on a Lear sales-weighted basis. The supplier repurchased US$75m of shares and paid US$43m in dividends during the quarter.

In a statement, Ray Scott, President and Chief Executive at Lear, said: “Lear started 2026 strong in a dynamic operating environment, delivering the highest quarterly adjusted earnings per share since 2019 and improved year-over-year margins in both segments.”

Source: Lear