LEA earnings analysis
What we found in LEA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Lear Corporation's Q1 2026 earnings report shows a robust revenue increase of 5% year-over-year, attributed mostly to higher production volumes and favorable FX rates. Diluted EPS saw significant growth, rising to $3.34 from $1.49 in Q1 2025. The company's Seating segment continues to perform strongly, while E-Systems showed modest growth, despite pressures from selling price reductions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenue increased by 5% to $5.82B from $5.56B in Q1 2025.
- Sharply Higher EPS
- Diluted EPS rose to $3.34 from $1.49 in the prior year.
- Seating Segment Growth
- Seating segment revenue grew 6% to $4.4B, influenced by new business and higher platform volumes.
- Improved Gross and Operating Margins
- Gross margin improved to 7.7% from 6.5% while operating margin rose to 4.4% from 3.0%.
- Decrease in Working Capital Usage
- Net cash provided by operating activities was $98M, reversing a cash use of $128M in Q1 2025.
- Increased Share Repurchase Activity
- Lear repurchased $75M of its common stock in Q1 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tariff Exposure
- Continued uncertainty and changes in tariffs could impact pricing and costs in 2026.
- Material Cost Volatility
- Material costs as a percentage of net sales remain high at 62.8%, any further increases could impact margins.
- Geopolitical Risks
- Geopolitical tensions affecting supply chains and commodity prices pose ongoing risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.34
- Gross margin
- 7.7%
- Operating margin
- 4.4%
- Segment
- Seating
- Segment
- E-Systems
What they said about what is next.
Management projects a decrease in global vehicle production by about 2% in 2026.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- Lear reported essentially flat full-year sales of $23,259.1 million in 2025 versus $23,306.0 million in 2024 while investing in automation and targeted acquisitions to support Seating and E-Systems growth. The company…
- 10-Q · May 6, 2025
- Lear reported net sales of $5,560.3 million and diluted EPS of $1.49 for the quarter ended March 29, 2025. Revenue and GAAP EPS declined year-over-year, working capital absorption drove operating cash used of $127.7…
- 10-K · February 14, 2025
- Lear positions itself as a global leader in Seating and E-Systems, pursuing growth via modular/thermal seating features and electrification-driven E-Systems, while investing in automation and targeted acquisitions.…
- 10-Q · October 24, 2024
- Lear reported Q3 net sales of $5,584.4 million (down from $5,781.0 million a year earlier) and diluted EPS of $2.41 (up from $2.25 in the prior-year quarter). Gross margin was roughly 7.3% and operating margin ~4.0%;…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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