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Linamar (LNR) investor relations material
Linamar Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record normalized earnings and free cash flow in 2025, with normalized EPS up 5.6% to $10.36, supported by strong Mobility segment growth and strategic acquisitions (Aludyne, Leipzig), despite softer industrial and agricultural markets.
Diversified revenue streams, disciplined capital allocation, and a conservative balance sheet (net debt to EBITDA at 0.77) supported sustainable growth and risk mitigation.
Continued share repurchases and maintained quarterly dividend at $0.29 per share, returning significant cash to shareholders.
Liquidity increased to $2.1 billion, with a year-end cash position of $911.1 million.
Tariff impacts were manageable, with USMCA compliance and onshoring creating new opportunities.
Financial highlights
Q4 2025 sales reached $2.5 billion, up 5.9% year-over-year; full-year sales were $10.2 billion, down 3.3% due to industrial declines.
Q4 normalized net earnings were $136.4 million (5.4% of sales), up 22% year-over-year; Q4 EPS at $2.28, up 25.3%.
Full-year normalized net earnings were $622.1 million (6.1% of sales); normalized EPS at $10.36, up 5.6%.
Free cash flow for 2025 was $937.2 million, up $148.9 million year-over-year; Q4 cash flow at $362 million.
Net debt to EBITDA at 0.77x, with total liquidity at $2.1 billion and cash position at $911 million.
Outlook and guidance
FY 2026 guidance projects consolidated sales and EPS growth, normalized net margin expansion, and strongly positive free cash flow, led by the Mobility segment.
Q1 2026: double-digit sales and earnings growth in Mobility; Industrial segment to see lower sales and earnings due to weak ag and access markets.
Full-year 2026: Mobility growth expected despite a forecasted 0.4% global vehicle market decline; industrial markets to remain pressured but stabilize in the second half.
Capital expenditures to increase but remain below normal range as a percent of sales, within 6-8%.
Assumptions include full-year contributions from recent acquisitions and moderating ag market declines.
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