This article first appeared on GuruFocus.
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Revenue: $2.5 billion, down 3.6% year-over-year.
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Mobility Segment Sales: Increased by 7.1% to $1.9 billion.
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Industrial Segment Sales: Decreased by 26.3% to $619.7 million.
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Net Earnings: Normalized net earnings of $150.1 million, representing 5.9% of sales.
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Normalized EPS: $2.51, up 6.8% year-over-year.
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Mobility Segment Earnings: Increased by 87.7% to $165.9 million.
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Industrial Segment Earnings: Decreased by 56% to $61.7 million.
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Free Cash Flow: Over $320 million in the quarter.
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Cash Position: $1.2 billion as of September 30, 2025.
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Net Debt to EBITDA: 0.76x, improved from 1.1x last year.
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New Business Wins: $457 million in new business, with $195 million in body and chassis components.
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Acquisitions: Aludyne and GF Leipzig, contributing over $1 billion in sales.
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NCIB Program: Renewal for another 10% of outstanding shares.
Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Linamar Corp (LIMAF) reported exceptional earnings growth in its Mobility segment, with earnings up 88% and margins reaching the top end of their normal range.
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The company announced two significant acquisitions: Aludyne aluminum casting technologies in the U.S. and the GF Leipzig ductile iron casting facility in Germany, adding over $1 billion in sales.
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Linamar Corp (LIMAF) achieved strong free cash flow of over $320 million in the quarter, demonstrating effective capacity management.
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The company’s net debt to EBITDA ratio improved to 0.76x, showcasing a strong balance sheet and financial flexibility.
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Linamar Corp (LIMAF) renewed its NCIB program, allowing for the repurchase of up to 10% of outstanding shares, indicating a commitment to returning cash to shareholders.
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Sales in Linamar Corp (LIMAF)’s Industrial segment decreased by 26.3%, primarily due to a significant decline in the agricultural market.
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The company continues to face challenges from U.S. tariffs, particularly affecting certain industrial segment products.
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The agricultural business remains in a down cycle, with sales down 29% in volume, reflecting ongoing market challenges.
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Linamar Corp (LIMAF) anticipates continued softness in the industrial markets, which is expected to impact sales and earnings negatively.
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The company is experiencing some effects from external disruptions, such as the Novelis fire, Nexperia chip shortages, and the JLR cyberattack, which could impact future performance.
Q: Can you provide insights into the agricultural business outlook for 2026? Are you optimistic that this year will be the bottom of the cycle? A: Linda Hasenfratz, Executive Chairman of the Board, mentioned that agricultural cycles typically last two to three years, and this is the second year of a down market. It could go either way next year, with a better sense expected by March. Jim Jarrell, CEO, added that farmer sentiment remains strong, but dealer concerns about inventory levels and pending government incentives make it difficult to predict the market for 2026.
Q: Regarding the buyback, you indicated an intention to step up activity in the third quarter. What is your current thinking on resuming buyback activity? A: Linda Hasenfratz confirmed that the company prioritized M&A activity in the quarter but intends to resume buyback activity as soon as the blackout period is over.
Q: The Mobility segment margins have improved significantly. Are these margins sustainable, and are new launches margin-enhancing? A: Jim Jarrell stated that the improvement is due to successful launches, strong volumes on key programs, and operational efficiencies. The margins are expected to remain within the 7% to 10% range. Linda Hasenfratz added that a favorable product mix also contributed to the strong results.
Q: Can you elaborate on the Skyjack outperformance and market share gains? A: Jim Jarrell attributed the gains to technology and commercial strategies, particularly in scissor lifts in North America and booms in Europe. Linda Hasenfratz emphasized that while volume increased by 46%, this does not directly translate to sales due to product mix differences.
Q: What is Linamar’s approach to large-scale M&A, particularly in the Mobility segment? A: Linda Hasenfratz stated that while Linamar prefers a conservative balance sheet, they are open to larger acquisitions if they have a clear path to quickly reduce leverage. The company evaluates opportunities based on financial sense, technology fit, and management capacity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.