Engineered products maker Linamar Q2 revenue misses estimates
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
Related Articles
What to Watch in Nvidia’s Q2 FY2026 Earnings: AI Growth, Margins, and Market Impact
TradingKey - NVIDIA Corporation (NASDAQ: NVDA) will report its Q2 FY2026 earnings on Wednesday, August 27, 2025, after the U.S. market closes. The earnings call is scheduled for 5:00 p.m. Eastern Time. With Nvidia being a bellwether in AI, gaming, and data center markets, and carrying significant...
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Ethereum Price Prediction: Will ETH Extend the Rally? What’s the Future Trend?
Ethereum's impressive 2025 rally has been largely fueled by inflows from spot ETFs and a surge in institutional holdings, signaling growing confidence in its role as a core asset in the crypto market. However, to officially confirm the start of a new bull cycle, ETH must break above the critical $4,
Bitcoin Price Forecast: Trends and Investment Outlook from 2025 to 2030
From $0.01 in 2009 to $120,000+ in 2025, Bitcoin has evolved from obscurity to a globally recognized financial asset. While institutions and governments increasingly embrace it, investors must remain vigilant against volatility, security risks, and scams.
