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Linamar
(TSX:LNR)
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Rating:73Outperform
Price Target:
C$111.00
▲(12.94% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by improving financial performance and strong cash generation, supported by attractive valuation (low P/E). The latest earnings call reinforced confidence via reiterated double-digit growth guidance, strong liquidity, and continued capital returns, though near-term margin pressure (tariffs/Industrial softness, FX) is a meaningful risk. Technically, the stock shows short-term weakness versus key short moving averages despite a still-supportive longer-term trend.
Positive Factors
Mobility growth and market share gains
Strong Mobility growth, broad regional market-share gains and a robust launch pipeline support durable OEM program content. These factors can sustain revenue expansion through multi-year vehicle platforms rather than relying only on short-term demand.
Negative Factors
Industrial margin pressure from tariffs
Higher tariff exposure directly pressures Industrial profitability and may persist beyond a single quarter. Management expects continued tariff-driven contraction, creating a structural risk to margins until mitigation, pricing or supply-chain changes take effect.
Read all positive and negative factors
Positive Factors
Negative Factors
Mobility growth and market share gains
Strong Mobility growth, broad regional market-share gains and a robust launch pipeline support durable OEM program content. These factors can sustain revenue expansion through multi-year vehicle platforms rather than relying only on short-term demand.
Read all positive factors
Linamar (LNR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.90B
Dividend Yield1.19%
Average Volume (3M)155.03K
Price to Earnings (P/E)8.7
Beta (1Y)0.99
Revenue Growth9.32%
EPS Growth227.52%
CountryCA
Employees36,768
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)11.49
Shares Outstanding58,983,810
10 Day Avg. Volume138,457
30 Day Avg. Volume155,034
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.82
Price to Sales (P/S)0.49
P/FCF Ratio5.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$116.25Price Target Upside18.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)11.73
Revenue Forecast (FY)C$11.78B
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...
How the Company Makes Money
Linamar makes money by manufacturing and selling engineered components, modules, and finished equipment to original equipment manufacturers (OEMs) and other industrial customers, with revenue largely recognized from customer contracts tied to prod...
Linamar Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong, record-breaking top-line performance, robust Mobility results (including Skyjack), sizable new business wins (~$800M), excellent free cash flow (~$236M in Q2; ~500M YTD), a very healthy balance sheet (net debt/EBITDA 0.52x) and ongoing capital returns. Offsetting these positives are notable headwinds in the Industrial group from amended 232 metal-derivative tariffs, softness in Agriculture (especially North America), FX pressure and near-term margin uncertainty. Management conveyed confidence in mitigation plans, continued M&A and onshoring opportunities, and an unchanged full-year outlook for double-digit sales growth and EPS improvement, but they maintained conservative near-term assumptions for tariff impacts.Positive Updates
Record Quarterly Sales and Top-Line Growth
Reported record sales of $3.1 billion, up 18.8% year-over-year, driven by strength in Mobility, acquisitions and launches.
Negative Updates
Industrial Segment Earnings Pressure from Tariffs
Industrial sales increased 13.8% to $783.5 million, but normalized industrial operating earnings declined $24.6 million or 23.8% YoY to $78.7 million, primarily due to the amended Section 232 metal-derivative tariffs effective April 1 increasing duty exposure on select industrial products.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales and Top-Line Growth
Reported record sales of $3.1 billion, up 18.8% year-over-year, driven by strength in Mobility, acquisitions and launches.
Read all positive updates
Company Guidance
Linamar guided to continued double‑digit consolidated sales growth for Q3 and full‑year 2026 with growth in normalized earnings, a modest contraction in normalized net margin and positive free cash flow; for Q3 specifically Mobility is expected to deliver double‑digit sales and normalized earnings growth with margins "flat" to Q3/25 (Q3/25 Mobility margin was ~8.6%), while Industrial should see sales growth but a double‑digit decline in normalized operating earnings with margins below its typical 14–18% range (Q2 Industrial sales were $783.5M); full‑year 2026 guidance was reiterated: double‑digit sales growth, normalized EPS growth, a modest reduction in normalized net margins, and CapEx rising versus last year but remaining below Linamar’s normal range as a percent of sales. The company emphasized a very strong balance sheet and liquidity to support this plan: cash $1.3B, available credit $725.2M, total liquidity ~$2.0B, net debt/EBITDA 0.52x (target <1.5x), Q2 free cash flow $236.5M (YTD ~ $500M) and operating cash of $341.4M, while continuing capital returns (Q2 buybacks >$92M in quarter; ~$192M total returned since Nov‑24) and a 10% dividend increase to $0.32/sh; management also noted it will not provide segment‑level full‑year guidance due to elevated volatility.Linamar Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
77
Positive
| 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 | 1.52B | 1.27B | 986.06M | 1.02B |
| 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
Positive
98.28
Price Trends
102.02
Negative
99.36
Positive
92.43
Positive
Market Momentum
-1.05
Positive
47.86
Neutral
42.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNR, the sentiment is Positive. The current price of 98.28 is below the 20-day moving average (MA) of 101.03, below the 50-day MA of 102.02, and above the 200-day MA of 92.43, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 42.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LNR.
Linamar Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$2.53B | 13.59 | 10.41% | 0.46% | 0.26% | 1.01% | |
73 Outperform | C$5.90B | 8.70 | 10.96% | 1.19% | 9.32% | 227.52% | |
72 Outperform | C$24.33B | 24.28 | 6.14% | 2.97% | 1.59% | -35.21% | |
67 Neutral | C$298.40M | 12.25 | 6.04% | 5.28% | 0.52% | 5.03% | |
65 Neutral | C$719.34M | 6.01 | 7.89% | 1.95% | -2.65% | ― | |
63 Neutral | C$2.80B | 35.57 | 10.42% | 2.86% | 14.75% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:LNR
Linamar
99.96
22.97
29.84%
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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.