Overview

* Linamar Corp ( LIMAF ) Q2 revenue falls 9.8% yr/yr, missing analyst expectations, per LSEG data

* Normalized operating earnings for Mobility segment rose 19% in Q2

* Co repurchased 1.8 mln shares since Nov 2024 under NCIB program

Outlook

* Company remains positioned to capitalize on onshoring and distressed supplier opportunities

* Linamar ( LIMAF ) unaffected by US tariffs due to strategic positioning

Result Drivers

* MOBILITY SEGMENT - Normalized operating earnings rose 19.6% due to market share growth and successful launches in North America and Asia Pacific

* INDUSTRIAL SEGMENT - Despite lower sales, market share growth was achieved in key products and regions

* CASH MANAGEMENT - Free cash flow increased by $110.5 mln from the prior year due to careful cash management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss C$2.64 C$2.70

bln bln (4

Analysts

)

Q2 EPS C$2.12

Q2 Net C$126.90

Income mln

Q2 C$0.29

Dividend

Q2 C$206.20

Operatin mln

g

Earnings

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 Corp ( LIMAF ) is C$70.50, about 0.6% above its August 12 closing price of C$70.11

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 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.)