Martinrea International (TSE:MRE)
TSX:MRE
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Martinrea International
(TSX:MRE)
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Rating:63Neutral
Price Target:
C$10.50
▲(9.95% Upside)
Action:ReiteratedDate:03/26/26
The score reflects improving but still uneven financial performance (thin margins, variable revenue and cash conversion), partially offset by attractive valuation (low P/E and a moderate dividend). Technical indicators are currently bearish and weigh on the near-term setup, while the latest earnings call supports a moderately positive outlook but acknowledges meaningful external and timing-related risks.
Positive Factors
Improving leverage and balance-sheet stability
Leverage reduction to ~1.35x net debt/adjusted‑EBITDA and lower debt-to-equity strengthen financial flexibility. This durable improvement reduces interest cost risk, supports covenant compliance and creates capacity to fund launches and targeted buybacks while maintaining investment grade-style liquidity.
Negative Factors
Thin and volatile profitability
Low net margins and historical earnings volatility limit the company's cushion against cyclical OEM demand swings. Sustaining consistent profitability is challenging given program timing and regional disparities, which constrains retained earnings and long-term return stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and balance-sheet stability
Leverage reduction to ~1.35x net debt/adjusted‑EBITDA and lower debt-to-equity strengthen financial flexibility. This durable improvement reduces interest cost risk, supports covenant compliance and creates capacity to fund launches and targeted buybacks while maintaining investment grade-style liquidity.
Read all positive factors
Martinrea International (MRE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$722.97M
Dividend Yield1.93%
Average Volume (3M)131.91K
Price to Earnings (P/E)7.0
Beta (1Y)1.34
Revenue Growth-3.83%
EPS GrowthN/A
CountryCA
Employees17,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.45
Shares Outstanding72,009,150
10 Day Avg. Volume109,962
30 Day Avg. Volume131,913
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.50
Price to Sales (P/S)0.16
P/FCF Ratio3.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.67Price Target Upside32.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.14
Revenue Forecast (FY)C$4.75B
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 off...
How the Company Makes Money
Martinrea primarily makes money by selling automotive components, modules, and assemblies to vehicle original equipment manufacturers (OEMs) under long-term, program-based supply arrangements. Revenue is largely generated from (1) the Metal Formin...
Martinrea International Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management reported record free cash flow, margin improvements, debt reduction, successful integration of an acquisition, targeted investments in machine learning (PolyML) and a strong new business pipeline with significant awards and booked 2028 sales. These operational and financial achievements were balanced against persistent external headwinds—tariffs/trade uncertainty, lumpy commercial recoveries related to EV shortfalls, regional weakness in Europe, and some near-term capital and program roll-off impacts. On balance, the positive operational execution, liquidity/credit improvements and visible backlog/bookings outweigh the challenges, though timing and lumpiness of recoveries remain risks.Positive Updates
World-Class Safety Performance
Total recordable injury frequency (TRIF) of 0.71 in 2025, materially better than the industry average (~3.0), demonstrating strong safety culture and operational discipline.
Negative Updates
Tariffs, Trade Uncertainty and Exposure
Ongoing industry trade uncertainty and Section 232 tariffs on steel and aluminum created exposure on some components. Management reports they recovered the vast majority of tariff costs via commercial settlements, but tariff risk remains a variable and requires ongoing negotiation and commercial recovery efforts.
Read all updates
Q4-2025 Updates
Positive
Negative
World-Class Safety Performance
Total recordable injury frequency (TRIF) of 0.71 in 2025, materially better than the industry average (~3.0), demonstrating strong safety culture and operational discipline.
Read all positive updates
Company Guidance
The company guided 2026 sales of $4.5B–$4.9B with an adjusted operating income margin of 5.5%–6.0% and free cash flow of $125M–$175M (assuming ~ $300M CapEx), noting the midpoint reflects a modest year‑over‑year change driven by the ~$200M wind‑down of the Ford Escape and lower tooling; key assumptions include tariff recoveries at 2025 levels, ongoing commercial recoveries for EV shortfalls, and continued benefits from automation/ML. Longer term, management expects 2028 sales of $5.3B–$5.5B and margins of 6.5%–7.0% (75% of 2028 production sales already booked), expects to deploy roughly $700M of capital over the next couple of years (≈$300M p.a. range) to support launches, and reiterated a target net debt/adjusted‑EBITDA ≤1.5x (ended 2025 at 1.35x). These targets build on 2025 results of just‑under $200M free cash flow (record), FY adjusted operating margin 5.6% (Q4 margin 4.6%), Q4 adjusted operating income $55.1M (up 37% YoY), CapEx $238M in 2025, Q4 free cash flow $108M before IFRS‑16 ($93.3M after), and recent Q4 share repurchases of $8M for ~779k shares.Martinrea International Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| 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
Positive
9.55
Price Trends
9.80
Negative
9.97
Negative
9.84
Negative
Market Momentum
-0.08
Negative
52.16
Neutral
41.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRE, the sentiment is Positive. The current price of 9.55 is above the 20-day moving average (MA) of 9.25, below the 50-day MA of 9.80, and below the 200-day MA of 9.84, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRE.
Martinrea International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$5.40B | 8.51 | 9.92% | 1.32% | -3.31% | 133.15% | |
69 Neutral | C$277.47M | 13.48 | 6.05% | 6.21% | -2.28% | -7.56% | |
66 Neutral | C$24.10B | 17.79 | 6.73% | 3.69% | 0.06% | -15.18% | |
63 Neutral | C$722.97M | 7.04 | 7.13% | 1.93% | -3.83% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | C$2.59B | -9.31 | -24.33% | ― | 18.00% | -5135.26% | |
52 Neutral | C$4.67B | 262.01 | 1.74% | 0.28% | 4.46% | -27.39% |
* Consumer Cyclical Sector Average
TSE:MRE
Martinrea International
10.04
2.83
39.31%
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Martinrea International Corporate Events
Financial Disclosures
Martinrea Sets March 5 Date to Release Q4 and Full-Year 2025 Results
Neutral
Feb 27, 2026
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 li...
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.