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Linamar Corporation recently announced its third-quarter 2025 results, reporting sales of C$2.54 billion and net income of C$169.17 million, with year-over-year earnings growth despite a slight dip in revenue; the company also declared a quarterly dividend and provided an update on its completed share buyback program.
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An interesting insight is that Linamar’s increased net income and the renewal of its share repurchase program come alongside ongoing efforts to expand its manufacturing footprint through acquisitions, even as overall sales tapered.
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We’ll explore how Linamar’s strong quarterly earnings strength and disciplined capital allocation decisions may influence its future investment narrative.
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To be a Linamar shareholder, you need to believe that the company can sustain margin improvement and earnings growth even as sales face pressure from ongoing market cycles in mobility and industrial sectors. The latest results, showing higher net income despite weaker sales, do not materially alter the biggest catalyst, successful acquisition integration and margin progress, nor do they eliminate the key risk of persistent automotive and agriculture market declines impacting revenue.
Among recent announcements, Linamar’s completion of a C$99.93 million share buyback stands out. By reducing the share count by nearly 2.9 percent, this program could boost earnings per share and provide ongoing support to the stock price, which may be significant if operational catalysts unfold as planned.
However, while earnings have strengthened, investors should be aware that even with solid financial discipline, sudden downturns in key end markets like North American automotive could still mean …
Read the full narrative on Linamar (it’s free!)
Linamar’s outlook anticipates CA$10.5 billion in revenue and CA$811.3 million in earnings by 2028. This is based on a -0.3% annual revenue decline and a CA$553 million earnings increase from current earnings of CA$258.3 million.
Uncover how Linamar’s forecasts yield a CA$63.67 fair value, a 20% downside to its current price.
Simply Wall St Community valuations for Linamar range widely from C$32.64 to C$149.01, based on four unique estimates. With margin gains highlighted in the recent results, you can see how opinions differ and may want to explore multiple viewpoints on the company’s potential.
Explore 4 other fair value estimates on Linamar – why the stock might be worth as much as 87% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LNR.TO.
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