Despite record sales, Linamar Corporation's recent earnings fell short of expectations, raising questions about future growth.
Linamar Corporation (LNR.TO) reported its Q2 2026 earnings on August 12, 2026, showing a slight miss in earnings per share (EPS) compared to analyst estimates. The company posted a normalized EPS of $3.08, missing the consensus estimate of $3.12 by 1.3%. While the results highlighted strong revenue growth and operational resilience, they also pointed out challenges in some segments.
Recent earnings trend
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Linamar Corporation
LNR.TO
LNR.TO
Linamar Corporation
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Market cap
$6.27B
P/E
10.1x
Div. yield
1.38%
Div. / share
$1.45
52W high
$108.29
52W low
$68.86
1W change
-0.54%
Beta
1.32
Analyst Price Targets
Based on analyst covering LNR
Wall Street analysts forecast LNR stock price to rise 2.7% over the next 12 months.
Consensus
NeutralBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$110.00
+2.7% Upside
Current Price
C$107.07
Last close
Analyst ratings and price targets are updated periodically. Not financial advice.
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Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on LNR's historical volatility
30-Day Vol
32.8%
Annualized
90-Day Vol
39.3%
Annualized
Trend (90d)
+46.1%
Annualized drift
90d Mean
C$126.25
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$113.12 | C$101.02 – C$126.66 |
| 60 trading days | C$119.50 | C$101.84 – C$140.23 |
| 90 trading days | C$126.25 | C$103.80 – C$153.57 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 3 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 3 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-06-30 | 2026-08-12 | 3.0800 | 3.1200 | -1.3% |
| 2026-03-31 | 2026-05-06 | 3.2800 | 2.8100 | +16.7% |
| 2025-12-31 | 2026-03-04 | 2.2800 | 1.9900 | +14.6% |
| 2025-09-30 | 2025-11-12 | 2.5100 | 2.4100 | +4.1% |
| 2025-06-30 | 2025-08-13 | 2.8100 | 2.7500 | +2.2% |
| 2025-03-31 | 2025-05-07 | 2.7600 | 2.4400 | +13.1% |
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Investor takeaway: Investors should note Linamar's solid revenue growth and improved cash flow despite the EPS miss. The company's diverse operations and focus on the mobility segment suggest potential for continued growth, although external pressures like tariffs and market conditions could pose risks.
Normalized EPS Misses by 1.3%, Revenue Surges 18.8%
Linamar's Q2 revenue hit a record $3.14 billion, reflecting an 18.8% year-over-year increase, while normalized EPS grew 9.6% despite missing estimates.
Bull case
Linamar's mobility segment saw record sales and earnings, showing strong demand and gains in market share. The company also generated robust free cash flow, enabling increased dividends and share buybacks. With a healthy balance sheet and strategic business wins, Linamar is well-positioned for future growth.
Bear case
The industrial segment faced significant challenges from tariffs and declining agricultural markets, which could affect overall profitability. Additionally, the recent EPS miss raises concerns about the company's ability to meet future expectations in a changing market landscape.
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