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Linamar (LNR) AI Stock Analysis

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TSE:LNR

Linamar

(TSX:LNR)

Select Model
Rating:70Outperform
Price Target:CAD 102.00▲(9.94% Upside)
Action:reiterated
Date:11/05/26

The score is driven primarily by improving financial performance and strong free cash flow with controlled leverage, supported by an attractive low P/E valuation. Offsetting factors include a weaker technical trend (below key longer moving averages with negative MACD) and earnings-call guidance pointing to near-term EPS and margin pressure from mix, tariffs, and softer end-market conditions.

Positive Factors
Mobility growthMobility is showing durable operating momentum through record sales, earnings growth and market-share gains across regions. Its launch pipeline and recurring vehicle-program exposure can support continued volume growth and reinforce Linamar’s position with automotive customers over the next several quarters.
Negative Factors
Industrial tariff pressureTariff exposure is already reducing Industrial earnings despite sales growth, showing that revenue expansion may not translate into profit growth. Continued duty pressure can compress margins, require mitigation spending and constrain the segment’s contribution during the next several quarters.

Linamar (LNR) vs. iShares MSCI Canada ETF (EWC)

-10%0%10%20%30%40%50%TSE:LNR+26.14%EWC+26.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
CAD 3.94B
Dividend Yield
1.28%
Average Volume (3M)
177.03K
Price to Earnings (P/E)
8.1
Beta (1Y)
0.98
Revenue Growth
9.32%
EPS Growth
227.52%
Country
Canada
Employees
37,000
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Parts

Linamar Business Overview & Revenue Model

Company Description

Linamar Corporation and its subsidiaries are engaged in the design, development, and production of advanced engineered products across Canada, North America, Europe, and the Asia Pacific. The company operates through two primary segments: Mobility an...

How the Company Makes Money

Linamar makes money mainly by manufacturing and selling engineered products to business customers, with revenue primarily generated from (1) its Mobility segment and (2) its Industrial segment. 1) Mobility (automotive) revenue streams: - Sale of auto...

Linamar Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Mar 02, 2027
Earnings Call SentimentPositive

The call was positive overall. Linamar reported strong 21% sales growth, higher normalized earnings and EPS, substantial free cash flow, low leverage, record new business wins, market-share gains and strong Skyjack performance. Management maintained its full-year outlook for double-digit sales growth, EPS growth and record 2026 sales and earnings. These strengths outweighed the stated challenges from weaker Mobility and agricultural markets, unfavorable program mix, customer shutdowns, tariffs and expected Q4 earnings and margin pressure.

Positive Updates

Record Sales and Earnings Growth
Q3 sales were $3.1 billion, up 21% year-over-year. Normalized net earnings were $154 million, or 5% of sales, up 2.3%, while normalized EPS was $2.59, up 3.2%. The company expects to deliver record sales and record earnings for full-year 2026.

Negative Updates

Mobility Operating Earnings Decline
Q3 normalized Mobility operating earnings declined 0.7% to $164.7 million. Lower volumes, extended customer shutdowns, program mix and an unfavorable foreign exchange impact offset earnings from acquisitions and launching programs.

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.

Linamar Financial Statement Overview

Summary

Financials are solid and improving: TTM revenue growth is positive (+4.7%) with healthier profitability (operating profit ~9%, net margin ~6%) versus 2024. Cash generation is a standout with strong TTM operating cash flow (~$1.44B) and free cash flow (~$1.08B), supporting earnings quality. Balance sheet leverage is controlled (debt-to-equity ~0.33; improved vs 2024), though absolute debt is higher than earlier years and results show some cyclicality/volatility across periods.

Income Statement

74Positive

Balance Sheet

70Positive

Cash Flow

77Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.14B10.23B10.58B9.73B7.92B6.54B
Gross Profit1.62B1.52B1.50B1.32B974.81M937.65M
EBITDA1.66B1.52B1.54B1.29B1.01B1.04B
Net Income684.38M584.52M258.26M503.05M426.19M420.56M
Balance Sheet
Total Assets11.93B10.89B10.50B9.85B8.58B7.39B
Cash, Cash Equivalents and Short-Term Investments1.27B911.08M1.05B653.33M860.51M928.43M
Total Debt2.15B2.10B2.29B1.77B1.31B791.54M
Total Liabilities5.39B4.79B5.07B4.53B3.76B2.79B
Stockholders Equity6.54B6.10B5.43B5.32B4.81B4.60B
Cash Flow
Free Cash Flow1.08B909.04M593.68M-17.34M37.06M666.40M
Operating Cash Flow1.44B1.33B1.13B745.37M447.71M909.46M
Investing Cash Flow-786.24M-837.27M-1.12B-1.19B-715.74M-267.32M
Financing Cash Flow-461.04M-645.50M363.68M255.57M176.81M-572.77M

Linamar Technical Analysis

Technical Analysis SentimentNegative
Last Price92.78

Price Trends

50DMA95.27Negative
100DMA98.90Negative
200DMA94.57Negative

Market Momentum

MACD-1.93Negative
RSI42.57Neutral
STOCH60.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNR, the sentiment is Negative. The current price of 92.78 is above the 20-day moving average (MA) of 91.24, below the 50-day MA of 95.27, and below the 200-day MA of 94.57, indicating a bearish trend. The MACD of -1.93 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LNR.

Linamar Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

TSE:LNR against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:XTCTSE:XTC74OutperformCAD 298.40M12.556.04%5.15%0.52%5.03%
TSE:WPKTSE:WPK72OutperformCAD 2.63B14.1310.23%0.44%3.27%2.08%
TSE:LNRTSE:LNR70OutperformCAD 5.32B8.0710.96%1.28%9.32%227.52%
TSE:NFITSE:NFI68NeutralCAD 3.09B39.6710.42%―14.75%―
TSE:MRETSE:MRE65NeutralCAD 667.56M5.777.89%2.03%-2.65%―
TSE:MGTSE:MG62NeutralCAD 22.82B21.236.97%2.97%0.36%-14.27%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

0%25%50%75%TSE:LNRTSE:MGTSE:XTCTSE:MRETSE:NFITSE:WPKDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TSE:LNR and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:LNRLinamar Corp.92.7819.0025.76%
TSE:MGMagna International91.6623.7835.04%
TSE:XTCExco Technologies Limited8.162.1335.28%
TSE:MREMartinrea International Inc.9.86-0.12-1.15%
TSE:NFINFI Group26.3912.5790.96%
TSE:WPKWinpak Limited45.563.247.66%

Linamar Corporate Events

Business Operations and StrategyStock BuybackDividendsFinancial Disclosures

Linamar Reports Strong Sales Growth and Record New Business Wins

Positive
Nov 4, 2026

Linamar, a diversified Canadian manufacturer of automotive components, access equipment and agricultural products, reported 21% higher third-quarter sales of $3.08 billion. Normalized net earnings rose 2.3% to $153.5 million, while normalized earning...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 05, 2026