Linamar (TSE:LNR) reported fourth-quarter and full-year 2025 results that executives described as a “record year of record earnings” despite soft conditions across its industrial end markets and elevated global volatility tied to tariffs and geopolitical uncertainty.
Quarterly results highlighted by mobility strength
Executive Chair Linda Hasenfratz said fourth-quarter sales were CAD 2.5 billion, up 5.9% year over year, driven by strength in the company’s larger mobility segment, partially offset by weaker industrial markets. Mobility sales rose 13% in the quarter, while industrial sales fell 13%, reflecting declines in both agriculture and access equipment.
CFO Dale Schneider said mobility sales increased CAD 223.6 million, or 12.9%, to CAD 2.0 billion, citing contributions from Linamar Structures acquisitions, favorable foreign exchange versus last year, program launches, and higher volumes on programs where the company has substantial content. Those tailwinds were partly offset by lower production on ending programs and reduced volumes on certain EV programs due to “softer volume demand.”
Mobility’s normalized operating earnings rose 47.3% year over year to CAD 132.1 million. Schneider noted executive management bonuses were reinstated in Q4 2025, while no bonuses were awarded in Q4 2024 due to impairment losses in that period.
Industrial markets soft, but Skyjack and share gains stood out
Industrial segment sales decreased 13.2%, or CAD 84.0 million, to CAD 553.1 million in Q4, driven by softer demand in access equipment and agriculture, partially offset by favorable FX and market share gains, particularly in scissor lifts globally.
Normalized industrial operating earnings in the quarter declined CAD 23.5 million, or 25.7%, to CAD 67.9 million. Schneider said the quarter also included a “moderate” tariff impact on certain industrial products.
CEO Jim Jarrell emphasized Skyjack’s operational performance in a weak access market, saying the business grew Q4 unit volumes by 15.9% in a global market that was down 1.5%. For the full year, Skyjack unit volumes rose 12.1% versus a global market decline of 19%, which management attributed to market share gains—especially in scissor lifts globally and booms in Europe. Jarrell also said Skyjack was recognized by United as “Supplier of the Year” and that the company launched its SJ28 all-electric telescopic boom targeted for China and Southeast Asia.
In agriculture, Jarrell said 2025 was challenging globally, citing trade issues in North America, elevated dealer inventories and tighter credit, and the delayed rollout of a federal stimulus package that was announced late in 2025 and is expected to begin flowing in early spring 2026. He said Linamar’s ag divisions (MacDon, Sulky, and Bourgault) tracked largely in line with the North American market, down 27%, while reporting market share improvements in several segments.
Full-year 2025: record earnings and nearly CAD 1 billion of free cash flow
For the full year, Hasenfratz reported sales of CAD 10.2 billion, described as “moderately softer than 2024” due to industrial segment declines. Despite that, Linamar delivered record earnings of CAD 622.1 million, or 6.1% of sales, and EPS of CAD 10.36, up 5.6%. She also said the company generated “almost CAD 1 billion” of free cash flow in 2025.
Management highlighted mobility segment earnings growth of 47% in the quarter and 34% for the year. Hasenfratz said Linamar’s programmable and flexible equipment base has enabled it to reallocate equipment from under-capacity programs to new launches, contributing to capital spending discipline. She said 2025 CapEx was down 24% despite a “significant backlog of launches.”
On leverage, Hasenfratz said net debt to EBITDA was 0.77 in 2025, below the company’s stated target of under 1.5x, even with investments including the Aludyne acquisition. Schneider added that net debt to EBITDA was 0.8x at quarter-end, improved from 1.0x a year earlier. Linamar ended Q4 with CAD 911.1 million in cash and CAD 2.1 billion of liquidity, according to Schneider.
Tariffs, onshoring opportunities, and acquisitions
Hasenfratz said Linamar’s tariff exposure remains manageable, with Section 232 metal derivative tariffs described as the only area of “reasonable impact,” largely affecting industrial businesses. She said newly established Section 122 and Section 306 tariffs to replace the IEEPA tariff deemed illegal had “little to no impact” on Linamar. She attributed the limited impact to the company’s strategy of producing in the same continent as customers, USMCA compliance for products shipped from Canada and Mexico into the U.S., and the fact that in automotive, customers are generally the importer of record.
At the same time, Hasenfratz said she is concerned about the broader cost burden tariffs place on automaker customers and the potential impact on vehicle pricing and demand. She also said the environment is prompting customers to look at onshoring parts and systems sourced from Asia or Europe, driving a “significant list” of opportunities and wins for Linamar’s North American plants. Jarrell referenced a “Make Canada, Mexico, and America Great Again” sales initiative and said the company secured $1.5 billion in new mobility business wins.
Management also discussed acquisition activity and pipeline. Hasenfratz and Jarrell pointed to stress in the supply base—particularly in the U.S. and Europe—as a source of acquisition opportunities, with Jarrell calling out Europe as a notable area of distress. Executives said integration of Aludyne has gone well. In Q&A, management said Aludyne is “going to plan and probably a little bit better than planned,” citing increased quoting and new business opportunities tied to structural casting and the benefit of having U.S. facilities.
Capital allocation and 2026 outlook
Schneider said Linamar’s normal course issuer bid (NCIB) launched in Q3 2025 expires on Nov. 16 and authorizes the purchase and cancellation of 3.9 million shares. To date under the program, the company has repurchased about 462,000 shares for nearly CAD 39 million. Schneider said total cash returned to shareholders since November 2024 is nearly CAD 139 million, representing about 2.2 million shares purchased and cancelled. Management reiterated a capital allocation approach prioritizing a strong balance sheet, investing in growth, and returning excess cash to shareholders.
For 2026, Schneider said guidance is unchanged from the prior call, though the company is not providing full-year segment-level guidance due to volatility and geopolitical uncertainty. For Q1, Linamar expects:
- Mobility: double-digit sales growth and double-digit normalized operating earnings growth, with margin expansion continuing into its normal range.
- Industrial: lower year-over-year sales and normalized operating earnings, driven by double-digit declines in ag and access end markets, with margins expected to be within the normal range.
For the full year, management expects growth in normalized earnings and margins supported by mobility launches and full-year contributions from Aludyne’s North American operations and the Leipzig casting facility, even as global vehicle production is forecast to decline 0.4% in 2026, with North America down roughly 2.2%. In industrial markets, Schneider said agricultural equipment volumes are expected to be down mid-single digits globally, with a more pronounced double-digit decline in North America, though the rate of decline is expected to moderate with stabilization in the second half versus 2025. Access equipment markets are expected to be relatively stable, with modest global declines partially offset by low single-digit growth in North America and Europe.
Jarrell also flagged longer-term diversification initiatives, describing defense, robotics, and power/energy as emerging platforms. He said the company’s approach in these areas is primarily organic, including partnerships—such as a strategic partnership with Regen Resource Recovery to commercialize battery-grade graphite—rather than acquisition-led expansion.
About Linamar (TSE:LNR)
Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company’s Industrial segment operates the Skyjack and MacDon brands, It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. The Mobility segment features vertically integrated operations to combine expertise in light metal casting, forging, machining and assembly of components and systems for electric and traditional vehicle applications. In addition, McLaren Engineering and eLIN Product Solutions Group provide design, development, and testing services for the Mobility segment.
