Overview

* Martinrea ( MRETF ) Q2 sales C$1.28 bln, beating analyst expectations

* Adjusted EPS for Q2 rises 13.8% yr/yr to C$0.66

* Co announces C$40 mln in new business awards

Outlook

* Martinrea ( MRETF ) maintains 2025 sales outlook of C$4.8 to C$5.1 bln

* Company expects 2025 adjusted operating income margin of 5.3% to 5.8%

* Martinrea ( MRETF ) projects 2025 free cash flow of C$125 to C$175 mln

Result Drivers

* INCREASED PRODUCTION - Vehicle production volumes rose as inventories returned to normal levels, boosting margins

* OPERATIONAL IMPROVEMENTS - Cost reductions and investments in machine learning enhanced productivity

* TARIFF MANAGEMENT - USMCA-compliant parts exempt from tariffs, while exposure to other tariffs remains manageable

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat C$1.28 C$1.24

bln bln (5

Analysts

)

Q2 EPS C$0.52

Q2 C$165.40

Adjusted mln

EBITDA

Q2 C$0.05

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 ( MRETF ) is C$11.63, about 28.5% above its August 11 closing price of C$8.31

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

Press Release:

(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.)