Lear Corporation (NYSE: LEA) reported financial results for the third quarter of 2026, showing year-over-year growth in revenue, core operating earnings, net income, and earnings per share. The company reported revenue of $5.8 billion, an increase of 2% compared to the prior year's third quarter. Net income increased 26% to $137 million, while adjusted net income increased 23% to $185 million. Earnings per share were $2.74, representing a 36% increase from $2.02 in the prior year.
Core operating earnings for the quarter were $256 million, or 4.4% of sales, compared to $241 million in the third quarter of 2025. The company noted that global vehicle production was down 2% year-over-year, with Lear's sales-weighted production down approximately 2%. Lear achieved a total company growth of 4 percentage points over the market, with 4 percentage points in Seating and 2 percentage points in E-Systems.
During the third quarter, Lear repurchased $175 million of common stock, achieving its full-year target of $350 million. The company also paid $38 million in dividends. At the end of the quarter, Lear had cash and cash equivalents of $889 million and total liquidity of $2.9 billion. The company reported net cash provided by operating activities of $329 million and free cash flow of $158 million.
In terms of business awards, Lear expanded its Seating leadership position through significant new complete seat awards. These include a key replacement program and a future program with a North American automaker, the largest complete seat award in India with Mahindra & Mahindra, an award with a Chinese luxury EV automaker, and awards with BYD in Indonesia and Thailand. In E-Systems, Lear secured a conquest award on a commercial and passenger van with a North American automaker in Europe and multiple conquest and new wire awards with customers in China.
Lear updated its full-year 2026 financial outlook. The company anticipates full-year global industry production will be approximately 1% lower than in 2025 on a Lear sales-weighted basis. The outlook includes net sales between $23.35 billion and $23.75 billion, core operating earnings between $1.08 billion and $1.20 billion, and adjusted EBITDA between $1.70 billion and $1.82 billion. The company also noted that it has expanded its share repurchase authorization to $1.5 billion, which has been extended through December 31, 2029.
