LEA NYSE Russell 1000 Earnings call
Lear Corporation (LEA) · Q2 2026 results and valuation
Share price: $109.79 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 1 May 2026
Net income up 11.9% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+11.9%
Net income vs Q1 2026
Outlook given
Net income 192.8M vs 172.3M
Revenue +6.6%
Against the same quarter last year (Q2 2025) it is +16.7%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 56% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Lear expects Seating margins in the low to mid-6s and E-Systems in the low 4s.
Valuation
Is Lear Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.6% growth a year (3-year revenue growth), the model's fair value is $131.71 a share — the stock trades 17% below it. Today's price assumes 1.6% growth a year.
Current price
$109.79
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+1.6% for 10 yrs
Fair value / share
$131.71
Buy below
$98.78
Price vs fair value
Undervalued 17%
Price vs buy-below price
Overvalued 11%
Read between the lines
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Guidance
Volume results within the guidance range remain highly uncertain and are the largest variable.
Source quote
“And in terms of, you know, where we end up within the range that we are guiding to today, I think that is probably the biggest wild card...”
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Figure
Sales increased 3% to $6.2 billion, contributing to a record first half revenue of over $12 billion.
Source quote
“Sales increased 3% to $6.2 billion, driving record first half revenue of over $12 billion.”
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Fading
Seating execution in Europe and higher E-Systems margins remain positives even as optimistic commentary eases.
Source quote
“In Seating, we're doing a really good job of, particularly in Europe, around some... So from a sustainability and durability perspective, the margins in E-Systems are at a better place.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our Idea by Lear savings and efficiency gains are expected to accelerate in the second half to help us achieve our full-year net performance targets.”
“Ultimately, it was our industry-leading automation capabilities combined with our track record of quality and efficiency, that secured these wins.”
“We continue to execute on each of our four strategic priorities, extending our global leadership in Seating, expanding E-Systems margins, growing our competitive advantage in operational excellence through an Idea...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-04)
| Metric | Q2 2026period end 2026-07-04 | Q1 2026period end 2026-04-04 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.21B | 5.82B | +6.6% | 6.03B | +3.0% |
| Gross profit | 470.3M | 450.3M | +4.4% | 439.1M | +7.1% |
| Operating income | 267.9M | 255.0M | +5.1% | 248.1M | +8.0% |
| Net income | 192.8M | 172.3M | +11.9% | 165.2M | +16.7% |
| EPS | 3.79 | 3.34 | +13.5% | 3.06 | +23.9% |
| P/E today 11.3 | 12.2 | 11.9 | +0.3 | 11.0 | +1.2 |
Topics
Most discussed now
- Core operating earnings were $313 million compared to $292 million last year, driven primarily by strong net operating performance.
- Adjusted earnings per share were $4.28, compared to $3.47 a year ago, reflecting higher earnings and the benefit of Lear's...
- Total company margins expanded 20 basis points year over year while E-Systems margins expanded a significant 90 basis points.
- Lear continues to execute on each of its four strategic priorities, extending its global leadership in Seating, expanding E-Systems…
- Due to higher core operating earnings and an improvement in working capital.
Faded since Q1 2026
- Fading Free cash flow improved by $205 million in the quarter, allowing us to take advantage of the attractive stock price...
- Dropped Saying that Lear justs took business from that big competitor and wanted at a competitive price that it gets and...
- Dropped The operation turnaround led by Nick and the team down in Mexico have done a great job.
- Fading Operating cash flow improved significantly to $98 million for the first quarter.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement · SEC 8-K
- Results of operations · SEC 8-K