Automotive supplier Lear Corporation cut its 2026 revenue and cash generation projections Friday, citing revised schedules for key vehicle platforms, even as third-quarter sales and earnings rose.
Sales are now projected at $23.35 billion to $23.75 billion for 2026. In July, Lear had forecast $23.54 billion to $24.01 billion. Free cash flow is now expected at $565 million to $665 million, down from a prior range of $590 million to $690 million. Lear's midpoint for full-year global industry vehicle production, weighted by the company's sales exposure, is 1% below the 2025 level; in July, the planning assumption was 2% below.
Lear kept its core operating earnings forecast at $1.08 billion to $1.20 billion and its adjusted EBITDA range at $1.70 billion to $1.82 billion. The company said revised schedules for key platforms prompted the changes to its sales and cash flow outlooks.
For the quarter ended Oct. 3, sales reached $5.773 billion, up 2% from a year earlier. Core operating earnings, a company-defined non-GAAP measure, rose 6% to $255.7 million. Net income attributable to Lear increased to $136.6 million from $108.2 million. Reported earnings per share were $2.74, compared with $2.02; adjusted earnings per share were $3.71, up from $2.79.
Lear said its estimates, based on Mobility Global data, showed worldwide vehicle production fell 2% year over year during the quarter. North American output declined 5%, China’s fell 7% and Europe’s rose 1%. Restructuring, IDEA by Lear savings and commercial recoveries helped support core operating earnings, Lear said. Lower volume on key platforms and higher engineering and launch expenses offset some of that support.
Cash from operations totaled $329.3 million, compared with $444.4 million a year earlier. Free cash flow was $158.4 million, down from $307 million. Lear repurchased $175 million of shares and paid $38 million in dividends during the quarter.
Lear scheduled a conference call to discuss the results for 9 a.m. EDT Friday.
