Record Sales and Earnings for Mobility Segment, Strong Cash Flow as Linamar Continues to Find Opportunity in Challenging Times
GUELPH, Ontario, Aug. 12, 2026 (GLOBE NEWSWIRE) -- (TSX: LNR)
Record Sales and Solid Earnings Performance from Our Diversified Strategy
- Sales increased 18.8% to reach a record of $3.14 billion;
- Normalized Earnings per Share1 increased 9.6% to $3.08 for the quarter; and
- Normalized Net Earnings1 increased 8.7% to $183.0 million for the quarter.
Excellent Mobility Segment Sales and Normalized Operating Earnings Growth to Record Levels
- Sales increased 20.5% to a record of $2.36 billion for the quarter;
- Normalized Operating Earnings1 increased 28.6% to a record of $194.0 million for the quarter;
- Normalized Operating Earnings margins at 8.2% for the quarter; and
- Market share growth in every region.
Continued Strong Free Cash Flow and Liquidity
- $236.5 million of Free Cash Flow1 generated in Q2 2026, up $58.9 million from the prior year; and
- Liquidity1 remains strong at $2.0 billion, up $76.7 million or 4.0% from Q2 2025.
Returning Cash to Shareholders
- Linamar has repurchased 1,025,677 shares to date as part of its current normal course issuer bid and has returned $92.2 million to shareholders as a result; and
- Linamar is increasing its dividends to shareholders to $0.32 per share quarterly.
Industrial Segment Sales and Market Share Growth
- Sales increased by 13.8% to $783.5 million for the quarter, driven by strong market demand for access equipment; and
- Global market share growth in the key agricultural equipment products of windrowers, air seeders, and tillage equipment.
Tariffs Impacting Only Industrial Results in Q2
- More than 90% of Linamar sales are tariff free.
- Auto parts that are USMCA compliant continue to be tariff free into the US and are the majority of our sales.
- Most Industrial segment products shipping to the US are also USMCA compliant and tariff free.
- 232 metal derivative tariffs are impacting some Industrial products and detracting from bottom line growth in that segment.
- Linamar outlook to grow sales and earnings to record levels in 2026 remain solid despite the impact of these tariffs.
| | Three Months Ended | Six Months Ended | ||
| June 30 | June 30 | |||
| (in millions of dollars, except per share figures) | 2026 | 2025 | 2026 | 2025 |
| $ | $ | $ | $ | |
| Sales | 3,138.8 | 2,642.7 | 6,078.2 | 5,174.8 |
| Operating Earnings (Loss) | ||||
| Industrial | 92.7 | 53.8 | 226.3 | 196.7 |
| Mobility | 186.4 | 152.4 | 372.2 | 275.8 |
| Operating Earnings (Loss) | 279.1 | 206.2 | 598.5 | 472.5 |
| Net Earnings (Loss) | 183.1 | 126.9 | 404.5 | 304.6 |
| Net Earnings (Loss) per Share – Diluted | 3.08 | 2.12 | 6.79 | 5.06 |
| Operating Earnings (Loss) – Normalized1 | ||||
| Industrial | 78.7 | 103.3 | 184.4 | 229.9 |
| Mobility | 194.0 | 150.9 | 377.6 | 276.3 |
| Operating Earnings (Loss) – Normalized | 272.7 | 254.2 | 562.0 | 506.2 |
| Net Earnings (Loss) – Normalized1 | 183.0 | 168.4 | 378.8 | 335.6 |
| Net Earnings (Loss) per Share – Diluted – Normalized1 | 3.08 | 2.81 | 6.36 | 5.57 |
“Q2 was another strong quarter for us despite a challenging environment with record sales overall and notably record sales and earnings in our important Mobility segment,” said Executive Chair Linda Hasenfratz. “New business wins are tracking ahead of target as we continue to win in a dynamic marketplace and our outlook is positive for continued growth top and bottom line this year and next.”
“These results are proof that diversification, innovation and disciplined execution create opportunity in any environment. While others focus on uncertainty, our Linamar team remained focused on winning market share, generating strong cash flow and delivering record performance. We continue to grow because we never stop investing in our people, our customers and the future of our business,” stated CEO and President Jim Jarrell. “As we have been saying – the time we are in is a businessperson’s nightmare but an entrepreneur’s dream!! Linamar has an entrepreneurial mindset!!”
DIVIDENDS
The Board of Directors today declared an eligible dividend in respect to the quarter ended June 30, 2026 of CDN$0.32 per share on the common shares of the Company, payable on or after September 10, 2026 to shareholders of record on August 24, 2026.
NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses certain non-GAAP and other financial measures to provide useful information to both management, investors, and other stakeholders in assessing the financial performance and financial condition of the Company.
Certain expenses and income that must be recognized under GAAP are not necessarily reflective of the Company’s underlying operational performance. For this reason, management uses certain non-GAAP and other financial measures when analyzing operational performance on a consistent basis.
These Non-GAAP and other financial measures do not have a standardized meaning prescribed by GAAP and therefore they are unlikely to be comparable to similarly titled measures presented by other publicly traded companies, and they should not be construed as an alternative to other financial measures determined in accordance with GAAP. Please see the “Non-GAAP and Other Financial Measures” section of the Company’s MD&A for further information.
All normalized non-GAAP financial measures areas reconciled as follows:
| | Three Months Ended | Six Months Ended | ||||||||||||||
| June 30 | June 30 | |||||||||||||||
| (in millions of dollars, except per share figures) | 2026 | 2025 | +/- | +/- | 2026 | 2025 | +/- | +/- | ||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||
| Operating Earnings (Loss) – Normalized | ||||||||||||||||
| Operating Earnings (Loss) | 279.1 | 206.2 | 72.9 | 35.4 | % | 598.5 | 472.5 | 126.0 | 26.7 | % | ||||||
| Foreign exchange (gain) loss | (6.4 | ) | 48.0 | (54.4 | ) | (36.5 | ) | 33.7 | (70.2 | ) | ||||||
| Other items | - | - | - | - | - | - | ||||||||||
| Operating Earnings (Loss) – Normalized | 272.7 | 254.2 | 18.5 | 7.3 | % | 562.0 | 506.2 | 55.8 | 11.0 | % | ||||||
| Net Earnings (Loss) – Normalized | ||||||||||||||||
| Net Earnings (Loss) | 183.1 | 126.9 | 56.2 | 44.3 | % | 404.5 | 304.6 | 99.9 | 32.8 | % | ||||||
| Foreign exchange (gain) loss | (6.4 | ) | 48.0 | (54.4 | ) | (36.5 | ) | 33.7 | (70.2 | ) | ||||||
| Foreign exchange (gain) loss on debt and derivatives | - | 0.1 | (0.1 | ) | - | 0.2 | (0.2 | ) | ||||||||
| Other items | - | - | - | - | - | - | ||||||||||
| Tax impact including Other Items | 6.3 | (6.6 | ) | 12.9 | 10.8 | (2.9 | ) | 13.7 | ||||||||
| Net Earnings (Loss) – Normalized | 183.0 | 168.4 | 14.6 | 8.7 | % | 378.8 | 335.6 | 43.2 | 12.9 | % | ||||||
| Effective tax rate | 28.5 | % | 30.5 | % | 27.1 | % | 28.2 | % | ||||||||
| Effective tax rate - Normalized | 26.7 | % | 27.0 | % | 26.9 | % | 26.7 | % | ||||||||
| Net Earnings (Loss) per Share – Diluted – Normalized | ||||||||||||||||
| Net Earnings (Loss) per Share – Diluted | 3.08 | 2.12 | 0.96 | 45.3 | % | 6.79 | 5.06 | 1.73 | 34.2 | % | ||||||
| Foreign exchange (gain) loss | (0.11 | ) | 0.80 | (0.91 | ) | (0.61 | ) | 0.56 | (1.17 | ) | ||||||
| Foreign exchange (gain) loss on debt and derivatives | - | - | - | - | - | - | ||||||||||
| Other items | - | - | - | - | - | - | ||||||||||
| Tax impact including Other Items | 0.11 | (0.11 | ) | 0.22 | 0.18 | (0.05 | ) | 0.23 | ||||||||
| Net Earnings (Loss) per Share – Diluted – Normalized | 3.08 | 2.81 | 0.27 | 9.6 | % | 6.36 | 5.57 | 0.79 | 14.2 | % | ||||||
All normalized non-GAAP financial measures areas impacting segments reconciled as follows:
| Three Months Ended | Six Months Ended | |||||||||
| June 30 | June 30 | |||||||||
| 2026 | 2026 | |||||||||
| Industrial | Mobility | Linamar | Industrial | Mobility | Linamar | |||||
| (in millions of dollars) | $ | $ | $ | $ | $ | $ | ||||
| Operating Earnings (Loss) – Normalized | ||||||||||
| Operating Earnings (Loss) | 92.7 | 186.4 | 279.1 | 226.3 | 372.2 | 598.5 | ||||
| Foreign exchange (gain) loss | (14.0 | ) | 7.6 | (6.4 | ) | (41.9 | ) | 5.4 | (36.5 | ) |
| Other items | - | - | - | - | - | - | ||||
| Operating Earnings (Loss) – Normalized | 78.7 | 194.0 | 272.7 | 184.4 | 377.6 | 562.0 | ||||
| Three Months Ended | Six Months Ended | ||||||
| June 30 | June 30 | ||||||
| 2025 | 2025 | ||||||
| Industrial | Mobility | Linamar | Industrial | Mobility | Linamar | ||
| (in millions of dollars) | $ | $ | $ | $ | $ | $ | |
| Operating Earnings (Loss) – Normalized | |||||||
| Operating Earnings (Loss) | 53.8 | 152.4 | 206.2 | 196.7 | 275.8 | 472.5 | |
| Foreign exchange (gain) loss | 49.5 | (1.5 | ) | 48.0 | 33.2 | 0.5 | 33.7 |
| Other items | - | - | - | - | - | - | |
| Operating Earnings (Loss) – Normalized | 103.3 | 150.9 | 254.2 | 229.9 | 276.3 | 506.2 | |
Other Non-GAAP Financial Measures
Free Cash Flow
Free Cash Flow is a non-GAAP financial measure and the Company believes it is useful in assessing the Company’s ability to generate cash. Free Cash Flow is calculated as Cash from Operating Activities, the most directly comparable measure as presented in the Company’s consolidated statements of cash flows, adjusted for payments for purchase of property, plant and equipment, and proceeds on disposal of property, plant and equipment.
Liquidity
Liquidity is a non-GAAP financial measure and the Company believes it is useful in assessing the Company’s ability to satisfy its financial obligations as they come due. Liquidity is calculated as Cash, the most directly comparable measure as presented in the Company’s consolidated statements of financial position, adjusted for the Company’s available credit.
Other non-GAAP financial measures are reconciled as follows:
| Three Months Ended | Six Months Ended | |||||||
| June 30 | June 30 | |||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| (in millions of dollars) | $ | $ | $ | $ | ||||
| Free Cash Flow | ||||||||
| Cash generated from (used in) operating activities | 341.4 | 305.3 | 623.0 | 469.6 | ||||
| Payments for purchase of property, plant and equipment | (110.8 | ) | (133.2 | ) | (174.4 | ) | (222.0 | ) |
| Proceeds on disposal of property, plant and equipment | 5.9 | 5.5 | 6.4 | 6.3 | ||||
| Free Cash Flow | 236.5 | 177.6 | 455.0 | 253.9 | ||||
| Liquidity | ||||||||
| Cash and cash equivalents | 1,270.4 | 1,004.3 | ||||||
| Available credit | 725.2 | 914.6 | ||||||
| Liquidity | 1,995.6 | 1,918.9 | ||||||
FORWARD LOOKING INFORMATION, RISK AND UNCERTAINTIES
Certain information provided by Linamar in this press release, MD&A, the consolidated financial statements and other documents published throughout the year which are not recitation of historical facts may constitute forward-looking statements. The words “may”, “would”, “could”, “will”, “likely”, “estimate”, “believe”, “expect”, “plan”, “forecast” and similar expressions are intended to identify forward-looking statements. Readers are cautioned that such statements are only predictions, and the actual events or results may differ materially. In evaluating such forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements.
Such forward-looking information may involve important risks and uncertainties that could materially alter results in the future from those expressed or implied in any forward-looking statements made by, or on behalf of, Linamar. Some of the factors and risks and uncertainties that cause results to differ from current expectations include, but are not limited to, international trade policies including tariffs; changes in the competitive environment in which Linamar operates, OEM outsourcing and insourcing; sources and availability of raw materials; labour markets and dependence on key personnel; dependence on certain customers and product programs; technological change in the sectors in which the Company operates and by Linamar’s competitors; delays in or operational issues with product launches; foreign currency risk; long-term contracts that are not guaranteed; acquisition and expansion risk; foreign business risk; public health threats; cyclicality and seasonality; legal proceedings and insurance coverage; credit risk; weather; emission standards; capital and liquidity risk; tax laws; securities laws compliance and corporate governance standards; fluctuations in interest rates; environmental emissions and safety regulations; trade and labour disruptions; world political events; pricing concessions to customers; and governmental, environmental and regulatory policies.
The foregoing is not an exhaustive list of the factors that may affect Linamar’s forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on Linamar’s forward-looking statements. Linamar assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
CONFERENCE CALL INFORMATION
Q2 2026 Release Information
Linamar will hold a webcast call on August 12, 2026 at 5:00 p.m. ET to discuss its second-quarter results. The event will be simulcast and can be accessed at the following https://www.linamar.com/events/q2-2026-earnings-call/ and can also be navigated to on the Company’s website. For those who wish to listen to an audio-only call-in option, the numbers for this call are (+1) 800 549 8228 (North America) or (+1) 289 819 1520 (International) Conference ID 51830, with a call-in required 15 minutes prior to the start of the webcast. The conference call will be chaired by Linda Hasenfratz, Linamar’s Executive Chair. A copy of the Company’s quarterly financial statements, including the Management’s Discussion & Analysis, will be available on the Company’s website after 4:00 p.m. ET on August 12, 2026, and at www.sedar.com by the start of business August 13, 2026. The webcast replay will be available at https://www.linamar.com/events/q2-2026-earnings-call/ after the call. A taped replay of the conference call will also be made available starting at 8:00 p.m. ET on August 12, 2026, for seven days. The number for the replay is (+1) 888 660 6264 or (+1) 289 819 1325, Passcode: 51830 #. In addition, a recording of the call will be posted at https://www.linamar.com/events/q2-2026-earnings-call/.
Q3 2026 Release Information
Linamar will hold a webcast call on November 4, 2026 at 5:00 p.m. ET to discuss its third-quarter results. The event will be simulcast and can be accessed at the following https://www.linamar.com/events/q3-2026-earnings-call/ and can also be navigated to on the Company’s website. For those who wish to listen to an audio-only call-in option, the numbers for this call are (+1) 833 769 6440 (North America) or (+1) 833 461 5787 (International) Meeting ID 362 714 346, with a call-in required 15 minutes prior to the start of the webcast. The conference call will be chaired by Linda Hasenfratz, Linamar’s Executive Chair. A copy of the Company’s quarterly financial statements, including the Management’s Discussion & Analysis, will be available on the Company’s website after 4:00 p.m. ET on November 4, 2026, and at www.sedar.com by the start of business November 5, 2026. The webcast replay will be available at https://www.linamar.com/events/q3-2026-earnings-call/ after the call. A taped replay of the conference call will also be made available starting at 8:00 p.m. ET on November 4, 2026, for seven days. The number for the replay is (+1) 888 660 6264 or (+1) 289 819 1325, Passcode: 362 714 346. In addition, a recording of the call will be posted at https://www.linamar.com/events/q3-2026-earnings-call/.
Linamar Corporation (TSX:LNR) is a diversified advanced manufacturing company where the intersection of leading edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. At the heart of Linamar is the technologies we deliver; casting, forging, metal forming, machining and assembly and fully engineered products. We serve a broad variety of industries, from our On and Off Highway Mobility business to our Agricultural and Access businesses to new areas of expansion in MedTech, Water, Power, Defense and Robotics. We proudly market our global, class leading products under the brands Linamar, Skyjack, MacDon, Salford, Bourgault and McLaren Engineering. Linamar has over 37,000 employees in 87 manufacturing locations, 18 R&D centers and 31 sales offices in 19 countries in North and South America, Europe and Asia, which generated sales of more than $10.2 billion in 2025. For more information about Linamar Corporation and its industry-leading products and services, visit www.linamar.com or follow us on our social media channels.
For further information regarding this release please contact Linda Hasenfratz at (519) 836-7550.
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1 Operating Earnings (Loss) – Normalized, Net Earnings (Loss) – Normalized, Net Earnings (Loss) per Share – Diluted – Normalized, Free Cash Flow, and Liquidity are non-GAAP financial measures. Content Per Vehicle (CPV) is a supplementary financial measure. Please see “Non-GAAP and Other Financial Measures” section of this press release and separately released MD&A.
