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Linamar (LNR) AI Stock Analysis
Linamar
(TSX:LNR)
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.
Linamar (LNR) vs. iShares MSCI Canada ETF (EWC)
- 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
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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
74PositiveBalance Sheet
70PositiveCash Flow
77Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.14B | 10.23B | 10.58B | 9.73B | 7.92B | 6.54B |
| Gross Profit | 1.62B | 1.52B | 1.50B | 1.32B | 974.81M | 937.65M |
| EBITDA | 1.66B | 1.52B | 1.54B | 1.29B | 1.01B | 1.04B |
| Net Income | 684.38M | 584.52M | 258.26M | 503.05M | 426.19M | 420.56M |
Balance Sheet | ||||||
| Total Assets | 11.93B | 10.89B | 10.50B | 9.85B | 8.58B | 7.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 911.08M | 1.05B | 653.33M | 860.51M | 928.43M |
| Total Debt | 2.15B | 2.10B | 2.29B | 1.77B | 1.31B | 791.54M |
| Total Liabilities | 5.39B | 4.79B | 5.07B | 4.53B | 3.76B | 2.79B |
| Stockholders Equity | 6.54B | 6.10B | 5.43B | 5.32B | 4.81B | 4.60B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 909.04M | 593.68M | -17.34M | 37.06M | 666.40M |
| Operating Cash Flow | 1.44B | 1.33B | 1.13B | 745.37M | 447.71M | 909.46M |
| Investing Cash Flow | -786.24M | -837.27M | -1.12B | -1.19B | -715.74M | -267.32M |
| Financing Cash Flow | -461.04M | -645.50M | 363.68M | 255.57M | 176.81M | -572.77M |
Linamar Technical Analysis
Price Trends
Market Momentum
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
TSE:XTC74Outperform
TSE:WPK72Outperform
TSE:LNR70Outperform
TSE:NFI68Neutral
TSE:MRE65Neutral
TSE:MG62Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 74Outperform | CAD 298.40M | 12.55 | 6.04% | 5.15% | 0.52% | 5.03% | |
| 72Outperform | CAD 2.63B | 14.13 | 10.23% | 0.44% | 3.27% | 2.08% | |
| 70Outperform | CAD 5.32B | 8.07 | 10.96% | 1.28% | 9.32% | 227.52% | |
| 68Neutral | CAD 3.09B | 39.67 | 10.42% | ― | 14.75% | ― | |
| 65Neutral | CAD 667.56M | 5.77 | 7.89% | 2.03% | -2.65% | ― | |
| 62Neutral | CAD 22.82B | 21.23 | 6.97% | 2.97% | 0.36% | -14.27% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:LNR | Linamar Corp. | 92.78 | 19.00 | 25.76% | |
| TSE:MG | Magna International | 91.66 | 23.78 | 35.04% | |
| TSE:XTC | Exco Technologies Limited | 8.16 | 2.13 | 35.28% | |
| TSE:MRE | Martinrea International Inc. | 9.86 | -0.12 | -1.15% | |
| TSE:NFI | NFI Group | 26.39 | 12.57 | 90.96% | |
| TSE:WPK | Winpak Limited | 45.56 | 3.24 | 7.66% |
Linamar Corporate Events
Linamar Reports Strong Sales Growth and Record New Business Wins
PositiveLinamar, 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...
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