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Canada's Linamar Q3 sales rise on industrial demand, market-share gains

By Reuters News


Overview

  • Canada advanced manufacturing firm's Q3 sales rose 21%, beating analyst expectations

  • Normalized EPS for Q3 rose 3.2% but missed analyst expectations

  • Company repurchased over 1.4 mln shares under its buyback program


Outlook

  • Linamar expects to grow sales and earnings to record levels in 2026 and 2027

  • Company maintains outlook for record sales and earnings in 2026 despite tariff impacts

  • Company says over 90% of sales remain tariff free, limiting tariff impact on outlook


Result Drivers

  • INDUSTRIAL SEGMENT DEMAND - Co said industrial segment sales rose on strong global demand for access equipment and market share gains in agricultural products despite a weaker market

  • MOBILITY SEGMENT GROWTH - Co attributed mobility segment sales growth to market share gains in all regions and record new business wins in Canada, US and China

  • TARIFF IMPACT - Co said tariffs on some industrial products weighed on segment profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

C$3.08 bln

C$2.93 bln (4 Analysts)

Q3 Normalized EPS

Miss

C$2.59

C$2.72 (5 Analysts)

Q3 EPS

C$2.51

Q3 Net Income

C$148.30 mln

Q3 Operating Earnings

C$233.40 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 Corporation is C$107.50, about 19.3% above its November 3 closing price of C$90.13

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Germany's Schaeffler 9-month sales flat on China hit, EBIT margin rises

  • Nov 3 - Aptiv Q3 revenue rises on regional sales growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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