Linamar Corporation LNR Earnings Miss Estimates by 3.4%

Linamar reported normalized Q3 earnings of C$2.59 per share, below the C$2.68 estimate. Sales rose 21%, and the company generated C$190.3 million in free cash flow.

Linamar Corporation (TSX: LNR) released its third-quarter 2026 results after markets closed on November 4. For the quarter ended September 30, normalized diluted EPS was C$2.59, 3.4% below the C$2.68 estimate. Sales grew, and the company reported record new business wins in key markets. But softer vehicle production, tariffs and weaker agricultural demand continued to weigh on results. For Canadian investors, the quarter shows a diversified manufacturer that is growing, though earnings momentum varies between its Mobility and Industrial businesses.

Recent earnings trend

Analyst coverage: 4 analyst(s) cover this name; upcoming EPS consensus is available.

Beat estimates in 2 of the last 4 comparable quarter(s).

Investor takeaway: The EPS miss was modest, but sales growth did not translate into similar earnings growth. Sales rose 21% to C$3.08 billion, while normalized net earnings increased 2.3% to C$153.5 million. Linamar generated C$190.3 million in free cash flow and reported C$2.1 billion in liquidity. Management maintained its outlook for record sales and earnings in 2026, while warning of tariff costs, weak agricultural demand and near-term pressure on Mobility margins. Visit the LNR stock page for more coverage.

C$2.59 normalized EPS, 3.4% below estimate

Linamar has beaten earnings estimates in two of its last four reported quarters. Revenue reached C$3.08 billion, up 21.0% from a year earlier, while normalized net earnings rose 2.3%. The company reported diluted EPS of C$2.51 on a non-normalized basis, compared with normalized diluted EPS of C$2.59.

Results and cash flow

Linamar’s normalized diluted EPS was C$2.59, 3.4% below the C$2.68 estimate and 3.2% above the C$2.51 reported a year earlier. Sales rose 21.0% to C$3.08 billion, while normalized net earnings increased 2.3% to C$153.5 million. On a non-normalized basis, diluted EPS was C$2.51 and net earnings were C$148.3 million. The company generated C$190.3 million in free cash flow and reported C$2.1 billion in liquidity. The recent earnings trend table shows results by quarter.

Segment performance

Industrial sales rose 22.8% to C$761.3 million, and normalized operating earnings increased 5.8% to C$65.3 million. Linamar linked the growth to demand for access equipment and market-share gains in some agricultural products, despite a weaker market.

Mobility sales rose 20.4% to C$2.31 billion. Linamar reported record new business wins over the past 12 months in Canada, the U.S. and China. However, normalized Mobility operating earnings fell to C$164.7 million from C$165.9 million. The company cited customer shutdowns, lower production volumes and product mix. Metal surcharge pass-throughs and foreign exchange increased reported sales but did not add as much to earnings, putting pressure on margins.

Outlook and analyst estimates

Management maintained its outlook for record sales and earnings in 2026 and expects further record results next year. It also warned of Q4 pressure from Industrial seasonality, tariffs, continued agricultural weakness and lower-than-normal Mobility margins.

The next-quarter EPS consensus is C$2.92, with estimates ranging from C$2.87 to C$3.00 from four analysts. The estimate has edged down from C$2.94 over the past 30 days. Year-ago EPS was C$2.51, so the consensus points to 16.2% growth. Revenue consensus is C$2.94 billion, implying 15.8% growth.

The average analyst price target is C$111.00, compared with the last close of C$87.61, an implied increase of 26.7%. The displayed consensus label is bullish based on the target comparison, not a formal rating.

The Wealth Awesome price forecast is based on a statistical model, not investment advice. Its 90-day mean is C$73.28. The 68% range is C$61.92–C$86.73, and the 95% range is C$52.32–C$102.64. These estimates are uncertain and are not price targets.