Linamar (LNR) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 21.0% to $3.08B; normalized net earnings increased 2.3% to $153.5M and normalized diluted EPS rose 3.2% to $2.59.

• Industrial earnings growth and diversification helped offset soft mobility volumes and market pressure.

• Record new-business wins across Canada, the U.S. and China, more than 90% of sales unaffected by tariffs, and a maintained FY2026 outlook support continued growth.

Financial highlights

• Q3 normalized operating earnings increased 1.1% to $230.0M; reported operating earnings were $233.4M versus $250.9M, and reported net earnings were $148.3M versus $169.2M.

• Normalized net earnings were $153.5M, or 5.0% of sales; normalized diluted EPS was $2.59. Reported diluted EPS was $2.51 versus $2.82.

• Q3 free cash flow was $190.3M versus $320.9M a year earlier; 9M free cash flow was $645.3M versus $574.8M.

• 9M normalized net earnings rose 9.6% to $532.3M and normalized diluted EPS rose 10.9% to $8.96.

• Q3 met prior guidance for double-digit consolidated sales growth, normalized EPS growth, modest normalized net-margin contraction and positive free cash flow.

Outlook and guidance

• FY2026 outlook remains double-digit sales and normalized EPS growth, modest normalized net-margin contraction, strongly positive FCF and CapEx below 6%-8% of sales.

• Q4 consolidated sales are expected to grow at a double-digit rate; normalized EPS is expected to decline YoY, normalized net margin to contract modestly and FCF to remain positive.

• Q4 Mobility sales are expected to grow, with normalized operating earnings flat YoY and margins modestly below the 7%-10% normal range.

• Q4 Industrial sales are expected to grow at a double-digit rate, while earnings and margins are expected to decline YoY and remain below the 14%-18% normal range.

• FY2027 outlook calls for sales and normalized EPS growth, modest margin expansion and strongly positive FCF; assumptions include reasonably flat Mobility volumes and some Agriculture recovery.