Linamar Corp. (TSE:LNR)
TSX:LNR
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Linamar
(TSX:LNR)
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Rating:70Outperform
Price Target:
C$95.00
▲(14.49% Upside)
Action:UpgradedDate:03/26/26
The score is driven mainly by solid financial performance (improving 2025 profitability and manageable leverage) and attractive valuation (low P/E). Earnings call signals support the outlook via continued Mobility strength, strong free cash flow, and balance-sheet flexibility, but the overall score is tempered by weaker near-term technical momentum and ongoing Industrial/Agriculture and tariff-related uncertainty.
Positive Factors
Mobility segment strength & new wins
A large pipeline of $1.5B in mobility wins and rising content-per-vehicle indicate durable revenue tailwinds and stronger per-unit economics. Higher CPV and new program wins support multi-year production ramps, sustaining volume-driven margin expansion and reduced reliance on cyclical industrial revenues.
Negative Factors
Industrial segment weakness
Material Industrial weakness erodes a meaningful revenue pillar and makes consolidated results more cyclical. Prolonged softness implies lower plant loading and margin pressure in industrial products, reducing diversification benefits and increasing reliance on Mobility to sustain growth and profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Mobility segment strength & new wins
A large pipeline of $1.5B in mobility wins and rising content-per-vehicle indicate durable revenue tailwinds and stronger per-unit economics. Higher CPV and new program wins support multi-year production ramps, sustaining volume-driven margin expansion and reduced reliance on cyclical industrial revenues.
Read all positive factors
Linamar (LNR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.93B
Dividend Yield1.32%
Average Volume (3M)94.25K
Price to Earnings (P/E)8.5
Beta (1Y)1.22
Revenue Growth-5.33%
EPS Growth-57.58%
CountryCA
Employees32,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.28
Shares Outstanding59,447,987
10 Day Avg. Volume76,957
30 Day Avg. Volume94,251
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$104.64Price Target Upside26.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)11.24
Revenue Forecast (FY)C$11.24B
Linamar Business Overview & Revenue Model
Company Description
Linamar Corporation, together with its subsidiaries, design, develop, and produce engineered products in Canada, North America, Europe, and the Asia Pacific. It operates through two segments, Mobility and Industrial. The Mobility segment engages i...
How the Company Makes Money
Linamar makes money mainly by manufacturing and supplying engineered components, systems, and modules to OEM customers under multi-year supply arrangements and ongoing production programs. Its core revenue stream is the sale of parts and assemblie...
Linamar Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized many material positives: record normalized earnings, robust mobility performance (double-digit sales and large YoY earnings growth), nearly $1 billion of free cash flow, a strong balance sheet (net debt/EBITDA ~0.8x), disciplined capital allocation (CapEx down 24%), successful strategic acquisitions (Aludyne, Leipzig) and $1.5 billion of new mobility wins. These strengths largely offset notable challenges in the Industrial and Agriculture end markets (double-digit declines and tariff exposure), localized margin pressure in Q4 and continued macro/ tariff uncertainty. Overall, operational execution, cash generation and strategic expansion were presented as dominant themes, outweighing the headwinds.Positive Updates
Record Earnings and EPS Growth
Full-year 2025 record normalized earnings of $622.1 million (6.1% of sales). Q4 normalized net earnings of $136.4 million (5.4% of sales), up 22% year-over-year. Normalized EPS: $2.28 in Q4 (up 25.3% YoY); full-year EPS $10.36 (up 5.6% YoY).
Negative Updates
Industrial Segment Weakness
Q4 Industrial sales declined 13.2% (to $553.1 million). Q4 normalized Industrial operating earnings decreased 25.7% YoY to $67.9 million. Full-year Industrial softness materially pressured consolidated top-line growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Earnings and EPS Growth
Full-year 2025 record normalized earnings of $622.1 million (6.1% of sales). Q4 normalized net earnings of $136.4 million (5.4% of sales), up 22% year-over-year. Normalized EPS: $2.28 in Q4 (up 25.3% YoY); full-year EPS $10.36 (up 5.6% YoY).
Read all positive updates
Company Guidance
Guidance was reiterated as unchanged from the prior call: for Q1 2026 Linamar expects double‑digit growth in Mobility sales and double‑digit growth in Mobility normalized operating earnings with margins expanding further into the company’s normal range, while Industrial is expected to show year‑over‑year declines (driven by double‑digit drops in both Ag and Access) with Industrial margins expected to be within the normal range; management is not providing full‑year segment guidance due to elevated volatility but still expects normalized earnings and margin growth for 2026, supported by Mobility even as the vehicle market is forecast to decline ~0.4% globally (North America ~‑2.2%, Europe ~‑0.4%, Asia ~flat); free cash flow is expected to remain strongly positive, CapEx will increase from 2025 but remain below the company’s normal range as a percent of sales, and the balance sheet provides flexibility (net debt/EBITDA ~0.8x vs. a <1.5x target, cash ~$911M, total liquidity ~$2.1B); the company will continue its NCIB (3.9M shares authorized; ~462k shares repurchased for ~$39M in the program, ~2.2M shares repurchased since Nov 2024, ~$139M returned).Linamar Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.23B | 10.58B | 9.73B | 7.92B | 6.54B |
| Gross Profit | 1.52B | 1.50B | 1.32B | 974.81M | 937.65M |
| EBITDA | 1.52B | 1.52B | 1.27B | 986.06M | 1.02B |
| Net Income | 584.52M | 258.26M | 503.05M | 426.19M | 420.56M |
Balance Sheet | |||||
| Total Assets | 10.89B | 10.50B | 9.85B | 8.58B | 7.39B |
| Cash, Cash Equivalents and Short-Term Investments | 911.08M | 1.05B | 653.33M | 860.51M | 928.43M |
| Total Debt | 2.10B | 2.29B | 1.77B | 1.31B | 791.54M |
| Total Liabilities | 4.79B | 5.07B | 4.53B | 3.76B | 2.79B |
| Stockholders Equity | 6.10B | 5.43B | 5.32B | 4.81B | 4.60B |
Cash Flow | |||||
| Free Cash Flow | 909.04M | 593.68M | -17.34M | 37.06M | 666.40M |
| Operating Cash Flow | 1.33B | 1.13B | 745.37M | 447.71M | 909.46M |
| Investing Cash Flow | -837.27M | -1.12B | -1.19B | -715.74M | -267.32M |
| Financing Cash Flow | -645.50M | 363.68M | 255.57M | 176.81M | -572.77M |
Linamar Technical Analysis
Positive
82.98
Price Trends
88.58
Negative
85.47
Positive
78.36
Positive
Market Momentum
-0.87
Negative
50.17
Neutral
38.13
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 82.98 is below the 20-day moving average (MA) of 85.69, below the 50-day MA of 88.58, and above the 200-day MA of 78.36, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 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$2.58B | 14.22 | 10.69% | 7.11% | 3.19% | -0.26% | |
70 Outperform | C$4.93B | 8.51 | 9.92% | 1.32% | -5.33% | -57.58% | |
69 Neutral | C$275.85M | 13.48 | 6.05% | 6.21% | -3.53% | -17.19% | |
66 Neutral | C$20.97B | 17.79 | 6.73% | 3.69% | 0.66% | -0.61% | |
63 Neutral | C$655.28M | 7.04 | 7.13% | 1.93% | -7.25% | -143.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | C$2.26B | -9.31 | -24.33% | ― | 14.40% | -1117.18% |
* Consumer Cyclical Sector Average
TSE:LNR
Linamar
82.98
35.52
74.84%
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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.