Lear Q2 FY26: Revenue +3%, operating income +8%; tariff reversals reshape H1 results

Filed July 31, 2026 · Period ending July 4, 2026 · Compared to 10-Q Jul 25, 2025 · ~2 min read

Key Changes

• high

  Tariff offset credits and Supreme Court IEEPA ruling reversed $195M of 2025 tariff costs, reducing both H1 2026 sales and cost of sales. $110M auto-parts tariffs now recoverable via customer credits; $85M IEEPA tariffs subject to government refund.

  MD&A: Tariff Recovery verify on EDGAR →
• high

  U.S. declined to extend USMCA for 16 years at July 1, 2026 review, triggering rolling annual renewals through 2036. Agreement remains in force but faces annual extension uncertainty.

  MD&A: USMCA Review verify on EDGAR →
• medium

  Share repurchases increased to $175M in H1 2026 from $48M in H1 2025, reflecting higher capital return. Restructuring costs declined to $69M from $118M year-over-year.

  MD&A: Capital Allocation verify on EDGAR →