Martinrea International (MRE) AI Stock Analysis

• Market Cap: C$674.73M
• Dividend Yield: 1.93%
• Average Volume (3M): 131.91K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.35
• Revenue Growth: -7.25%
• EPS Growth: -143.07%
• Country: CA
• Employees: 17,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.67
• Shares Outstanding: 72,009,150
• 10 Day Avg. Volume: 109,962
• 30 Day Avg. Volume: 131,913
• PEG Ratio: -0.02
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 3.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.69
• Price Target Upside: 35.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.28
• Revenue Forecast (FY): C$4.95B

• Rating: 63 Neutral
• Price Target: C$10.50 ▲(12.06% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by improving but still inconsistent financial performance (thin margins, recent revenue softness, and weaker cash conversion), partially offset by an attractive valuation (low P/E and dividend). Technicals are a headwind with the stock trading below key moving averages, while the latest earnings call supports a moderately positive outlook with guidance for margin improvement but ongoing operational risks.

Positive Factors

Program-based OEM business

Martinrea's core model is long-term, platform-based supply to OEMs across metal forming and aluminum segments. That structure yields multi-year revenue visibility, engineering collaboration, and scale advantages on high-volume programs, supporting durable manufacturing economics and customer stickiness.

Improving cash generation

Consistent positive operating cash flow (since 2020) and materially improved free cash flow in 2025 provide the company with internal funding to invest in launches, reshoring, and deleveraging. Strong OCF supports capital allocation flexibility even if FCF conversion remains imperfect.

Visible new business awards

Recent wins and extensions totaling meaningful annualized sales and $1B in program extensions strengthen backlog and utilization. These contracts increase forward revenue certainty, support higher plant throughput, and can raise margins as fixed costs are absorbed across more program volume.

Negative Factors

Thin, volatile profitability

Net margins remain narrow, limiting the firm's ability to absorb cost shocks or invest from earnings. Historical swings (loss years and volatile margins) reflect the cyclical auto exposure and program timing, making sustained return generation and reinvestment less predictable over the medium term.

Weak cash conversion and leverage

While leverage has improved, substantial debt and low cash conversion mean internal cash is only gradually reducing leverage. Modest OCF-to-debt coverage constrains rapid deleveraging or large strategic investments, leaving the company exposed during cyclical downturns or prolonged industry weakness.

Operational and market headwinds

Recurring operational disruptions—cybersecurity incidents, supplier interruptions, and softer EV program volumes—directly hit production, receivables and margins. These structural supply-chain and market shifts can persist and raise the cost and complexity of program launches and on-time delivery.

Martinrea International Business Overview & Revenue Model

Company Description

Martinrea International Inc. designs, develops, manufactures, and sells metal parts, assemblies and modules, fluid management systems, and aluminum products primarily to the automotive industry in North America, Europe, and internationally. It offers engine blocks, transmissions, cases, housings, oil coolers, hoses, tube assemblies, oil fillers, tubes, indicators, oil pick-up screens and pipes, heater hose inlets and outlets, and electric motor housings; and front horizontal, rear suspension, and front vertical modules. It also provides evaporator system integrity monitors, DPS lines, EGR tubes, air-injection tubes, and exhaust manifold tubes; fuel filler necks, capless refueling systems, fuel tank/sender assemblies, vapor assemblies and canister hoses, fuel line feed/return assembly systems, and fuel lines and hoses; and air-conditioning lines, and heater core inlet and outlet assemblies. In addition, it offers frame rail assemblies, surface stampings, structural BIW components, suspension arms and links, engine cradles, centre and rear crossmembers, suspension twist axles, roof assemblies, door intrusion beams, bumpers, radiator support assemblies, trailer hitches, dash and plenum assemblies, wheelhouse assemblies, roll-formed rockers and headers, appliqués, battery trays and housings, aluminum and steel shock towers, control arms, and knuckles, as well as belt, upper reveal, roof ditch, D-line, and other exterior decorative moldings. Further, it provides brake lines and assemblies, power steering lines and assemblies, power steering oil fillers, and tubes and indicators; and graphene brake lines products. The company was formerly known as Royal Laser Tech Corporation and changed its name to Martinrea International Inc. in June 2002. Martinrea International Inc. was incorporated in 1987 and is headquartered in Vaughan, Canada.

How the Company Makes Money

Martinrea International generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and tier-one suppliers in the automotive industry. The company's key revenue streams include the production of metal stamped parts, fluid management systems, and various other automotive components. Significant partnerships with major automotive manufacturers, combined with their focus on innovation and efficiency, enable Martinrea to secure long-term contracts and maintain a steady flow of income. Additionally, the company benefits from the growing demand for lightweight materials and advanced manufacturing processes, positioning itself to capitalize on trends such as electric vehicle production and increased sustainability initiatives in the automotive sector.

Martinrea International Financial Statement Overview

Summary

Financials are improving but still uneven. Revenue has grown over the multi-year period but has been soft in 2024–2025, while profitability rebounded in 2025 (positive net income; EBIT margin ~5.6%, EBITDA margin ~12.1%) yet net margins remain thin (~2.2%) and results have been volatile. Leverage has improved (debt-to-equity ~0.74 in 2025), but free cash flow conversion is a key weakness (FCF to net income ~0.45) and operating cash flow coverage of debt is modest (~0.39).

Income Statement

Revenue has expanded strongly over the multi-year period (from ~$3.4B in 2020 to ~$4.8B in 2025), but the top line has been choppy recently (down in 2024 and again in 2025). Profitability improved meaningfully versus 2024’s loss, with 2025 returning to positive net income and stronger operating performance (EBIT margin ~5.6% and EBITDA margin ~12.1%). However, net margins remain thin (~2.2% in 2025) and results have shown volatility (losses in 2020 and 2024), which limits the score despite better operating momentum.

Balance Sheet

Leverage is moderate for the space and has improved, with debt-to-equity declining from ~1.07 (2021) to ~0.74 (2025) alongside rising equity. Returns recovered in 2025 (return on equity ~7.1%) after turning negative in 2024, but overall returns remain mid-range versus earlier peaks (e.g., ~10.5% in 2023). The balance sheet looks more stable than a few years ago, though debt remains sizable (~$1.12B in 2025) and profitability variability raises risk around sustaining balance-sheet returns.

Cash Flow

Operating cash flow has been consistently positive since 2020 and remains solid (~$430M in 2025), and free cash flow improved materially versus earlier years (notably negative in 2021). That said, cash conversion is a key weakness: free cash flow is meaningfully below net income in 2025 (free cash flow to net income ~0.45), and operating cash flow relative to debt is modest (coverage ~0.39), implying limited speed of deleveraging from internal cash generation. Free cash flow growth in 2025 is strong off a lower base, but the trend has been uneven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.82B	5.01B	5.34B	4.76B	3.78B
Gross Profit	623.65M	648.56M	675.40M	559.26M	345.62M
EBITDA	582.74M	475.17M	597.92M	516.59M	328.40M
Net Income	106.98M	-34.55M	153.66M	132.84M	35.88M
Balance Sheet
Total Assets	3.74B	3.82B	3.99B	4.14B	3.61B
Cash, Cash Equivalents and Short-Term Investments	174.14M	167.95M	186.80M	161.66M	153.29M
Total Debt	1.12B	1.22B	1.23B	1.34B	1.25B
Total Liabilities	2.23B	2.35B	2.52B	2.77B	2.44B
Stockholders Equity	1.51B	1.47B	1.47B	1.38B	1.17B
Cash Flow
Free Cash Flow	192.77M	150.54M	207.57M	53.96M	-118.73M
Operating Cash Flow	430.49M	433.29M	511.09M	437.78M	180.03M
Investing Cash Flow	-257.35M	-285.50M	-303.75M	-381.27M	-305.86M
Financing Cash Flow	-165.48M	-167.43M	-180.72M	-41.72M	129.93M

Martinrea International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRE, the sentiment is Negative. The current price of 9.37 is below the 20-day moving average (MA) of 10.31, below the 50-day MA of 10.27, and below the 200-day MA of 9.82, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRE.

Martinrea International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XTC	71 Outperform	C$284.56M	13.48	6.05%	6.21%	-3.53%	-17.19%
LNR	69 Neutral	C$5.15B	8.51	4.01%	1.32%	-5.33%	-57.58%
MG	66 Neutral	C$21.37B	17.79	6.73%	3.69%	0.66%	-0.61%
MRE	63 Neutral	C$674.73M	7.04	-2.64%	1.93%	-7.25%	-143.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BYD	58 Neutral	C$6.18B	116.16	1.91%	0.28%	4.24%	-60.60%
NFI	50 Neutral	C$2.25B	-9.31	-48.23%	―	14.40%	-1117.18%

Martinrea International Corporate Events

Martinrea Sets March 5 Date to Release Q4 and Full-Year 2025 Results

Martinrea International Inc. will release its financial results for the fourth quarter and full year ended December 31, 2025 on March 5, 2026, after markets close. The company will host a same-day conference call and webcast for investors, with live access and a 12-month archive, alongside a limited-time telephone rebroadcast for those unable to join in real time.

The planned disclosure and investor events underscore Martinrea’s continued emphasis on transparent communication with shareholders and analysts. The timing and format align with standard capital markets practices, providing stakeholders with structured opportunities to assess the company’s recent performance and outlook within the competitive automotive supply sector.

The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.