Linamar Corp

Latest Results (03.07.2026):

Linamar Corp — Q1 2026: Linamar reported record quarterly sales and earnings for the quarter ended March 31, 2026, with consolidated sales of $2.94 billion (up 16.1%), net earnings of $221.4 million (up 24.6%) and normalized net earnings of $195.8 million (up 17.1%). Normalized diluted EPS was a record $3.28 (up 18.8%) and diluted EPS was $3.71 (up 26.2%). The company generated strong free cash flow and maintained its quarterly dividend while continuing share repurchases.

Top-line and profitability

Sales: $2,939.4M (+16.1% YoY). Reported Operating Earnings: $319.4M (+19.9% YoY). Normalized Operating Earnings: $289.2M (+14.8% YoY). Gross margin was 15.4% (down from 15.9%); EBITDA was $490.7M (+15.3%) and EBITDA—Normalized $460.4M (+12.1%).

Earnings per share

Net earnings: $221.4M; Diluted EPS: $3.71 (Q1 2026 vs $2.94 in Q1 2025). Normalized net earnings: $195.8M and Normalized diluted EPS: $3.28 (up 18.8% YoY).

Mobility segment performance

Mobility sales reached a record $2,264.0M (+19.2% YoY). Mobility normalized operating earnings were $183.5M (+46.3% YoY) with normalized operating margin ~8.1%. Growth was driven by acquisitions (Q4 2025), program launches, higher volumes and operational improvements.

Industrial segment performance

Industrial sales were $675.4M (+6.6% YoY). Industrial normalized operating earnings fell to $105.7M from $126.6M (down 16.5%), pressured by weaker agricultural markets, FX impacts and moderate tariff effects, partially offset by access equipment strength.

Cash, liquidity and returns to shareholders

Free cash flow was $218.6M (vs $76.4M prior year). Cash & short-term deposits totaled $1,190.7M and available credit $805.6M, giving liquidity of ~$2.0B (+9.5% YoY). Linamar repurchased 695,799 shares to date under the current NCIB, returning $58.9M to shareholders, and declared a quarterly dividend of CDN$0.29 per share.

Tariffs and outlook

Management said >90% of revenue is US tariff‑free (USMCA compliant) and Q1 tariff impact was manageable, largely felt in Industrial. New Section 232 tariffs effective April 2026 are expected to affect Industrial more, but the company maintained its outlook to grow sales and earnings and is actively mitigating impacts.

Automotive content per vehicle (CPV)

North America CPV: $373.11 (+24.0% YoY) on higher North American automotive sales. Europe CPV: $107.64 (+10.2%). Asia Pacific CPV: $11.86 (+3.4%). Increases were driven by acquisitions, program launches and higher volumes, partly offset by EV program softness and FX.

Other notable items

Free cash flow and liquidity strengthened; SG&A rose to $164.1M but SG&A as a percent of sales declined. Normalized effective tax rate ~27.0% (vs 26.4% prior year). Management commentary is positive, citing record results, new business wins and ongoing acquisition activity.