Linamar (LNR) AI Stock Analysis

Company Guidance

For Q4, Linamar expects Mobility sales to grow, normalized operating earnings to be flat compared to Q4 last year, and margins contracting modestly below the normal range of 7% to 10%; Industrial sales are expected to show double-digit sales growth, normalized industrial operating earnings are expected to decline compared to Q4 last year, and operating margins are expected to contract and remain below the normal range of 14% to 18%. On a consolidated basis, Q4 is expected to deliver double-digit sales growth, normalized EPS to decline compared to Q4 last year, normalized net margins to contract modestly from the prior year, and positive free cash flow. For the full year 2026, Linamar continues to expect double-digit sales growth, growth in normalized EPS, a modest contraction to normalized net margins, CapEx to increase from the prior year while remaining below the normal range as a percent of sales, low leverage, strongly positive free cash flow generation, record sales, record earnings and strong free cash flow generation. For 2027, Linamar expects strong top line growth, some EPS growth and modest margin expansion, assuming reasonably flat mobility industry volumes with some downside risk, some recovery in agriculture, continued strength in access with modest access growth compared to 2026, and known tariff impacts. Industry expectations include global light vehicle production declining 1.7% in '26 and growing 0.9% in '27, and the Skyjack global market growing nearly 27% in '26 before growth moderates in '27 but remains positive across all regions.