Linamar (LNR.TO), which saw its shares drop more than 12% yesterday, after markets closed on Wednesday said it is maintaining its full-year FY26 guidance following the recent amendment of Section 232 tariffs.
The company said that, with respect to the revised Section 232 tariffs, the company expects no impact to its Mobility business, as those products are either exempt from tariffs or tariff-related costs are absorbed by the customers.
The company noted that, in contrast, some products in the Industrial business are experiencing "a more pronounced effect" compared to the previous 232 tariff regime, and said it is "actively evaluating the scope of this impact."
A statement noted the Linamar team is conducting a "thorough review of the recent changes to Section 232 tariffs and pursuing various mitigation strategies, including adjustments to sourcing, pricing, and other levers. It said: "Although this assessment is ongoing, Linamar's established processes and experience managing tariff environments positions it to respond effectively, further clarity will be provided during the upcoming Q1 2026 release scheduled for May 6, 2026."
It added: following the initial evaluation of the amendment to Section 232 tariffs, it is maintaining its 2026 projections for sales growth, normalized EPS growth, and free cash flow.
"In today's dynamic geo-political environment, it is more important than ever for us to remain focused on long term fundamentals and principles," said Linamar Executive Chair Linda Hasenfratz. "That goes for business and for governments. The US is our largest trading partner; we are deeply integrated with each other and are critically important to each other. Let's get a deal done on 232 tariffs and the continuation of USMCA, business will take care of the rest."