Engineered products maker Linamar Q2 revenue misses estimates

Linamar

13/08/2025 21:09

Overview

Linamar Corp Q2 revenue falls 9.8% yr/yr, missing analyst expectations, per LSEG data

Normalized operating earnings for Mobility segment rose 19% in Q2

Co repurchased 1.8 mln shares since Nov 2024 under NCIB program

Outlook

Company remains positioned to capitalize on onshoring and distressed supplier opportunities

Linamar unaffected by US tariffs due to strategic positioning

Result Drivers

MOBILITY SEGMENT - Normalized operating earnings rose 19.6% due to market share growth and successful launches in North America and Asia Pacific

INDUSTRIAL SEGMENT - Despite lower sales, market share growth was achieved in key products and regions

CASH MANAGEMENT - Free cash flow increased by $110.5 mln from the prior year due to careful cash management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
C$2.64 bln
C$2.70 bln (4 Analysts)
Q2 EPS
C$2.12
Q2 Net Income
C$126.90 mln
Q2 Dividend
C$0.29
Q2 Operating Earnings
C$206.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Linamar Corp is C$70.50, about 0.6% above its August 12 closing price of C$70.11

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX7tPg1z

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)