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Canada's Martinrea Q3 results beat estimates on operating improvements

By Reuters News


Overview

  • Canada automotive supplier's Q3 revenue beat analyst expectations

  • Q3 adjusted EPS beat analyst expectations

  • Adjusted EBITDA for Q3 beat analyst estimates


Outlook

  • Martinrea reaffirms 2026 outlook for total sales of C$4.5 bln to C$4.9 bln

  • Company expects 2026 adjusted operating income margin of 5.5% to 6.0%

  • Martinrea forecasts 2026 free cash flow of C$125 mln to C$175 mln


Result Drivers

  • OPERATING IMPROVEMENTS - Co said operating improvements and commercial recoveries offset lower vehicle production volumes and higher aluminum costs

  • NEW BUSINESS AWARDS - Co secured about C$160 mln in new annualized sales awards in Q3, including contracts with Ford, Mercedes-Benz, BMW, Caterpillar, John Deere, Volvo Truck, General Dynamics, and General Motors

  • COST DISCIPLINE AND PORTFOLIO SIMPLIFICATION - Co said cost discipline and portfolio simplification, including asset sales and restructuring in Europe, are aimed at improving margins and future profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

C$1.18 bln

C$1.15 bln (3 Analysts)

Q3 Adjusted EPS

Beat

C$0.52

C$0.48 (5 Analysts)

Q3 EPS

C$0.38

Q3 Adjusted EBITDA

Beat

C$144.90 mln

C$143 mln (4 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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 Martinrea International Inc. is C$12.00, about 21.5% above its November 11 closing price of C$9.88

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Nov 12 - Stellantis CEO warns on rising costs, confirms Leapmotor cooperation on e-cars in Italy

  • Nov 10 - Supply chain snags hit production at three BMW plants

  • Nov 10 - TransDigm tops Q4 revenue, adjusted profit estimates


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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