Strong Growth in Mobility, Outstanding Free Cash Flow, and NCIB Renewal Marks a Solid Q3 for Linamar

Executive Summary

• Linamar reported $320.9 M of free cash flow in Q3 2025, up $51.3 M YoY, and liquidity of $2.2 B, a 54.9% increase versus Q3 2024.
• Normalized operating earnings rose 87.7% to $165.9 M with margins expanding to 8.6%; net earnings per diluted share (normalized) increased to $2.51 from $2.35 YoY.
• The company announced two acquisitions (Georg Fischer’s Leipzig casting facility and Aludyne’s North American assets) and received TSX approval to renew its normal‑course issuer bid (NCIB) for up to 3.85 M shares, while maintaining a quarterly dividend of $0.29 per share.

Key Details

• Financial Highlights – Q3 2025 vs. Q3 2024
• Sales: $2.542 B vs. $2.636 B (‑3.6%).
• Normalized operating earnings (Mobility): $165.9 M vs. $88.4 M (+87.7%).
• Normalized operating margin: 8.6% (high end of range).
• Net earnings (normalized) per diluted share: $2.51 vs. $2.35 YoY (+6.8%).
• Free Cash Flow & Liquidity
• Free cash flow: $320.9 M (up $51.3 M YoY).
• Liquidity (cash + available credit): $2.2 B (up $783.7 M, +54.9%).
• Segment Performance
• Industrial segment operating earnings fell to $61.7 M (down from $140.2 M YoY).
• Mobility segment operating earnings surged to $165.9 M (up from $88.4 M YoY).
• Shareholder Returns
• NCIB renewal approved; up to 3,850,534 shares may be repurchased between 17 Nov 2025 and 16 Nov 2026.
• Shares repurchased YTD: 1.1 M (total since Nov 2024: 1.8 M).
• Quarterly dividend declared: CDN$0.29 per share, payable 2 Dec 2025 to shareholders of record 21 Nov 2025.
• Acquisitions
• Georg Fischer’s Leipzig casting facility – adds casting capacity and structural capabilities.
• Aludyne’s North American assets – expands product portfolio and manufacturing footprint.
• Operational Outlook
• Management highlighted continued “cash is king” discipline, opportunistic acquisition strategy, and growth focus for 2026.
• Conference Calls
• Q3 2025 earnings webcast: 12 Nov 2025, 5:00 p.m. ET (details provided).
• Q4 2025 earnings webcast scheduled for 4 Mar 2026.

Notable Quotes

“Q3 was a solid quarter reflecting strong performance in the Mobility segment offsetting meaningful agricultural markets declines…adding strongly to our growing portfolio of innovative cast products.” – Executive Chair Linda Hasenfratz
“In challenging times, our team delivered with creativity…These 2 acquisitions bring valuable new technologies and position us for future success.” – CEO & President Jim Jarrell