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Linamar Corp. (TSE:LNR)
TSX:LNR
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Linamar (LNR) AI Stock Analysis

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TSE:LNR

Linamar

(TSX:LNR)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
C$78.00
▲(5.85% Upside)
Linamar's overall stock score reflects a stable financial performance with strong cash flow generation and a balanced leverage profile. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate pricing. The mixed sentiment from the earnings call, with strengths in the Mobility segment but challenges in the Industrial segment, also influences the score.
Positive Factors
Strong Cash Flow Generation
Linamar's ability to generate substantial free cash flow indicates strong operational efficiency and financial health, providing flexibility for future investments and shareholder returns.
Mobility Segment Growth
The growth in the Mobility segment underscores Linamar's competitive positioning and ability to capitalize on market opportunities, supporting long-term revenue and profit expansion.
Market Share Gains
Gaining market share across various segments demonstrates Linamar's competitive strength and potential for sustained growth, even in challenging market conditions.
Negative Factors
Industrial Segment Challenges
Significant sales declines in the Industrial segment highlight vulnerabilities in Linamar's business model, potentially affecting overall revenue and profitability if not addressed.
Global Market Declines
Declining vehicle production in key markets poses a risk to Linamar's automotive segment, potentially impacting future sales and necessitating strategic adjustments.
Soft Agricultural Markets
A downturn in the agricultural market could further pressure Linamar's industrial segment, affecting revenue streams and necessitating diversification or innovation to mitigate impact.

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

Linamar Business Overview & Revenue Model

Company DescriptionLinamar Corporation (LNR) is a diversified manufacturing company based in Canada, primarily operating in the automotive, industrial, and agricultural sectors. It specializes in precision machining, assembly, and the development of complex components and systems. The company offers a wide range of products, including powertrain and driveline components, mobility solutions, and products for the agriculture and construction industries.
How the Company Makes MoneyLinamar generates revenue through several key streams, including the manufacture and sale of automotive components, which account for a significant portion of its earnings. The company partners with major automotive manufacturers, providing them with essential parts and systems that are integral to vehicle performance. Additionally, Linamar's industrial segment, which includes products for agricultural and construction equipment, contributes to its revenue through both direct sales and long-term contracts with clients. The company's focus on innovation and technology-driven solutions allows it to enhance its product offerings and maintain competitive pricing, further driving profitability. Strategic alliances and partnerships with other industry players also play a crucial role in expanding Linamar's market reach and enhancing its revenue potential.

Linamar Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strong performance in the Mobility segment and effective tariff management, contributing to significant free cash flow and market share gains. However, there are notable challenges in the industrial segment with significant sales declines and soft agricultural markets. The overall sentiment is mixed with strong positives in certain areas but ongoing challenges in others.
Q2-2025 Updates
Positive Updates
Strong Free Cash Flow
Achieved nearly $180 million in free cash flow, driven by strong earnings and careful management of CapEx and working capital.
Mobility Segment Growth
Mobility segment saw 20% operating earnings growth with margins back in the normal range of 6% to 8%.
Tariff Strategy Success
Minimal impact from U.S. tariffs due to a long-term strategy of producing products on the same continent as customers.
Market Share Gains
Achieved market share gains in every business, helping to offset soft markets.
Recognition as Supplier of the Year
Awarded Supplier of the Year by Ford Motor Company for crisis management during Hurricane Helene.
Negative Updates
Sales Decline
Overall sales were down 7% over last year, with a 22% decline in the industrial business.
Industrial Segment Challenges
Industrial sales decreased by 22.4%, primarily due to lower agricultural and access equipment sales.
Global Market Declines
Global vehicle production volumes decreased by 3.8% in North America and 2% in Europe.
Soft Agricultural Markets
The large ag industry is expected to decline by 30% year-over-year in North America.
Mobility Sales Decline
Mobility sales decreased by 0.4% over Q2 last year, due to downturns in European and North American automotive markets, including EVs.
Company Guidance
During the Linamar Second Quarter 2025 Earnings Conference Call, Linda Hasenfratz provided detailed guidance, highlighting several key metrics. The Mobility segment saw a 20% growth in operating earnings, with margins returning to the normal range of 6% to 8%, demonstrating the company's ability to generate strong cash flow, nearly $180 million in free cash flow, despite a 7% overall sales decline to $2.6 billion. The Mobility segment's sales remained flat, while the Industrial segment experienced a significant 22% decrease. The company's net debt-to-EBITDA ratio was 1.02, indicating a strong balance sheet. Linamar also repurchased shares under its NCIB program, spending nearly $100 million. Despite challenges, the company is optimistic about continued free cash flow generation and plans to be active in share repurchases in the upcoming quarter.

Linamar Financial Statement Overview

Summary
Linamar exhibits a stable financial position with strong cash flow generation and a balanced leverage profile. While revenue growth has slowed, the company maintains operational efficiency and a solid equity base. Continued focus on improving profitability and returns on equity could enhance financial performance.
Income Statement
75
Positive
Linamar's income statement shows a stable gross profit margin of around 14.5% in TTM, with a slight decline in revenue growth rate of -1.98%. The net profit margin remains modest at 2.48%, indicating profitability challenges. However, the company maintains a healthy EBIT and EBITDA margin, reflecting operational efficiency.
Balance Sheet
70
Positive
The balance sheet reveals a manageable debt-to-equity ratio of 0.39, indicating a balanced approach to leveraging. Return on equity is moderate at 4.59%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 53.85%, showcasing a solid equity base.
Cash Flow
80
Positive
Linamar's cash flow statement highlights a strong free cash flow growth rate of 17.45% in TTM, demonstrating effective cash generation. The operating cash flow to net income ratio is 4.39, indicating robust cash flow relative to net income. The free cash flow to net income ratio of 0.63 suggests efficient cash utilization.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.19B10.58B9.73B7.92B6.54B5.82B
Gross Profit1.49B1.50B1.32B974.81M937.65M802.56M
EBITDA1.52B1.52B1.27B986.06M1.02B894.10M
Net Income210.25M258.26M503.05M426.19M420.56M279.13M
Balance Sheet
Total Assets10.78B10.50B9.85B8.58B7.39B7.56B
Cash, Cash Equivalents and Short-Term Investments1.00B1.05B653.33M860.51M928.43M861.10M
Total Debt2.21B2.29B1.77B1.31B791.54M1.30B
Total Liabilities4.98B5.07B4.53B3.76B2.79B3.20B
Stockholders Equity5.80B5.43B5.32B4.81B4.60B4.35B
Cash Flow
Free Cash Flow835.58M593.68M-17.34M37.06M666.40M1.15B
Operating Cash Flow1.23B1.13B745.37M447.71M909.46M1.41B
Investing Cash Flow-357.23M-1.12B-1.19B-715.74M-267.32M-290.31M
Financing Cash Flow-633.07M363.68M255.57M176.81M-572.77M-593.41M

Linamar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price73.69
Price Trends
50DMA
74.49
Negative
100DMA
69.88
Positive
200DMA
61.56
Positive
Market Momentum
MACD
-0.61
Positive
RSI
50.48
Neutral
STOCH
74.55
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 73.69 is above the 20-day moving average (MA) of 73.59, below the 50-day MA of 74.49, and above the 200-day MA of 61.56, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.55 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$17.72B10.6410.06%4.24%-0.54%26.31%
68
Neutral
$4.29B20.453.61%1.47%-2.60%-64.22%
64
Neutral
$252.96M10.726.01%6.32%-3.50%-22.76%
62
Neutral
$738.07M-4.10%1.98%-8.84%-148.15%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
$1.04B-0.47%4.20%2.77%81.01%
44
Neutral
C$1.65B-26.25%9.12%-182.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LNR
Linamar
73.69
13.13
21.68%
TSE:MG
Magna International
63.93
8.33
14.98%
TSE:XTC
Exco Technologies
6.65
-1.51
-18.48%
TSE:MRE
Martinrea International
10.09
-0.76
-7.04%
TSE:NFI
NFI Group Inc
14.06
-2.29
-14.01%
TSE:CAS
Cascades
11.43
1.17
11.36%

Linamar Corporate Events

Business Operations and StrategyM&A Transactions
Linamar to Acquire Aludyne’s North American Assets, Boosting Structural Casting Capabilities
Positive
Oct 9, 2025

Linamar Corporation has announced a definitive agreement to acquire select assets of Aludyne Incorporated’s North American operations for $300 million USD, significantly expanding its manufacturing footprint in the U.S. This acquisition enhances Linamar’s capabilities in aluminum casting and precision machining, aligning with its strategic focus on propulsion-agnostic structural components. The integration of Aludyne’s assets is expected to strengthen Linamar’s local customer support and supply chain stability, while offering new collaborative opportunities for its Canadian operations. The transaction is anticipated to be accretive shortly after completion, reinforcing Linamar’s position in the global mobility market.

The most recent analyst rating on (TSE:LNR) stock is a Hold with a C$80.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

Business Operations and StrategyM&A Transactions
Linamar Acquires George Fischer’s Leipzig Facility to Boost Industrial Casting Capabilities
Positive
Oct 7, 2025

Linamar Corporation has announced the acquisition of George Fischer’s Leipzig Casting Facility for €45 million, enhancing its capabilities in large ductile iron castings for heavy industrial applications. This strategic acquisition is expected to drive revenue and income growth, diversify Linamar’s offerings, and strengthen its presence in the European market, benefiting stakeholders and aligning with the company’s growth strategy in the commercial vehicle sector.

The most recent analyst rating on (TSE:LNR) stock is a Buy with a C$84.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

Linamar Corp. Earnings Call: Mixed Sentiment and Strategic Wins
Sep 1, 2025

Linamar Corp. recently held its earnings call, revealing a mixed sentiment among its business segments. The company showcased robust performance in its Mobility segment and effective tariff management, leading to significant free cash flow and market share gains. However, challenges persist in the industrial segment, with notable sales declines and a soft agricultural market impacting overall results.

Linamar Corp. Reports Strong Q2 2025 Earnings
Aug 14, 2025

Linamar Corporation, a diversified advanced manufacturing company, operates in the Industrial and Mobility segments, providing solutions for vehicles, agriculture, and medical devices. Headquartered in Guelph, Ontario, Linamar is a global leader in manufacturing with over 34,000 employees across 19 countries.

Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Linamar Reports Strong Q2 2025 Financial Performance Amid Market Challenges
Positive
Aug 13, 2025

Linamar Corporation reported a significant increase in free cash flow for Q2 2025, reaching $177.6 million, attributed to effective cash management. The company’s liquidity also improved substantially, standing at $1.9 billion. Linamar has been actively returning cash to shareholders through share repurchases and maintaining dividends. Despite a decline in segment sales, Linamar achieved market share growth in its industrial segment, particularly in access and agriculture businesses. The mobility segment saw a 19.6% rise in normalized operating earnings, with margins returning to normal levels. The company remains unaffected by recent US tariffs due to its compliance with USMCA regulations, positioning it well for future opportunities.

The most recent analyst rating on (TSE:LNR) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

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: Oct 18, 2025