$LNR.TO

CIBC Raises Linamar's Price Target to C$110.00 From C$105.00 Following Q1 Results

CIBC Capital Markets maintained its outperformer rating on the shares of Linamar (LNR.TO) and raised its price target to C$110.00 from C$105.00 on Wednesday, after the company reported first-quarter results.Q1 results were "well above expectations," and apart from the impact of Section 232 tariff changes, performance is "tracking ahead" of LNR's original outlook, said CIBC."Incremental tariff impacts drove a reduction in Industrial and consolidated margin guidance, though a stronger sales outlook in both segments drives our AOI forecast modestly higher, bringing our price target to $110 (from $105)," said CIBC. "We view this as likely a temporary impairment of earnings rather than a permanent one, and overall LNR's results point to a fundamentally healthy business that is executing well. Valuation remains attractive (3.8x CIBC 2026E EBITDA) and we stay Outperformer-rated."Strong Mobility sales growth was driven by recent acquisitions, launching activity, and volume growth on existing programs, stated CIBC. "Management continues to see many potential distressed M&A opportunities, particularly in Europe," noted CIBC.Industrial segment outperformance was primarily driven by continued share gains in Skyjack , where volumes were +66% Y/Y driven by innovation and demand from AI-related construction projects, said CIBC. "Ag continued to decline amid weak farmer sentiment, though the company noted pent-up demand, more balanced dealer inventory levels, and potential H2 catalysts from relief payments," further noted CIBC. "LNR expects modest growth in Access markets in 2026/2027, while N.A. Agricultural markets are expected to be down 15%-20% in 2026."Changes to Section 232 steel/aluminum tariffs are "negatively impacting" Industrial margins starting in the second quarter, but there is no impact to Mobility, said CIBC. CIBC has estimated a ~300bps headwind to segment margins, though this is uncertain and likely a moving target."Guidance reflects mitigation steps already in-place, but LNR continues to explore a variety of alternatives," added CIBC. "The focus is on low-cost, low-effort actions, and LNR is not looking at moving production."Price: $96.50, Change: $+5.84, Percent Change: +6.44%

Correction: Linamar Swings to a Fourth-Quarter Profit on Higher Sales

(Clarifying that operating earnings used in the second paragraph was not normalized and correcting sales figure for the fourth quarter of 2025 in the third paragraph)Linamar (LNR.TO) on Wednesday said it swung to a fourth-quarter profit on higher sales.The auto parts, mobility and agricultural equipment manufacturer said it earned $110.7 million in the period, or $1.85 per share, compared with a year-prior loss of $232.3 million, or $3.78.Sales rose to $2.52 billion from $2.38 billion.The company said most of its products are compliant with the CUSMA trade agreement and not subject to U.S. tariffs."2025 was a year of challenges with all our markets down and a world devolved into tariff actions and reactions. Despite that, Linamar's long term and diversified focus helped us achieve record earnings for the second consecutive year," executive chair Linda Hasenfratz said " ... Our outlook is positive for continued growth top and bottom line where headwinds are just providing wind in our sails."Linamar shares closed down $0.07 to $92.68 on the Toronto Stock Exchange.

Linamar Q1 Profit Jumps, Beats Estimates on Higher Sales; Says Tariffs Not Hurting Growth Outlook

Linamar (LNR.TO) on Wednesday said it swung to a 17% year-over-year jump in first-quarter net profit on higher sales, topping analysts' estimates.The auto parts, mobility and agricultural equipment manufacturer said it earned $195.8 million in the period, or $3.28 per share, up from a profit of $167.2 million, or $2.76, in the year-prior quarter. It exceeded FactSet analysts' estimates of $2.81.Sales rose 16% to $2.94 billion from $2.53 billion, exceeding estimates of $2.80 billion.The company said new 232 tariffs effective April 2026 will have more impact on the Industrial segment but are not impacting Linamar's overall business outlook to grow sales and earnings this year, and it is "actively working to further mitigate the impacts".Linamar also declared a dividend of $0.29 per share on payable on or after June 5 to shareholders of record on May 25."2026 has started with a bang for us at Linamar with record sales, earnings and new business wins, again proving tariffs don't define competitiveness. Despite a dynamic tariff environment, more than 90% of our revenue is not impacted by the US tariff regime, meaning we can continue to perform and win. Distressed acquisitions also continue to create opportunity for excellent strengthening of our technology at reasonable cost as evidenced by another acquisition announcement in the quarter," said Executive Chair Linda Hasenfratz. "Our outlook is positive for continued growth top and bottom line where challenges are regularly transformed into opportunity and we are firing on all cylinders."Linamar shares closed up $0.94 to $90.66 on the Toronto Stock Exchange.

Earnings Flash (LNR.TO) Linamar Posts Q1 Adjusted EPS $3.28 per Share, vs. FactSet Est of $2.81

Linamar Cites "Manageable Impact from Tariffs" in Q1, and Industrial Segment Sales and Market Share Growth

Linamar Q1 Normalized EPS Increased 18.8% to a Record $3.28

Linamar Q1 Sales Increased 16.1% to reach $2.94B

CIBC Provides its Q1/26 Auto Preview

CIBC Capital Markets released its "Q1/26 Auto Preview".Auto names have been volatile since the start of the Iran War, which has understandably turned the market's focus back to macro risks," noted CIBC."Shares have begun to price in more optimistic outcomes for the conflict, though we worry this could prove premature," said CIBC.CIBC does not believe the risk lies with Q1 results, which it said, do not appear to have been impacted by the war, and which should reflect industry sales and production that fell largely in line with expectations, it noted.CIBC does not expect the suppliers to change guidance with Q1 reporting, but noted "the longer the war endures, the greater the risks become"."We continue to view valuations as undemanding, but macro events will likely continue to create near-term volatility, and we acknowledge elevated risks that lower visibility," said CIBC.Resolutions to the Iran War and USMCA negotiations are "key catalysts for the sector", and would help return attention to positive fundamental developments, added CIBC.CIBC's estimates, ratings and price targets are unchanged, and it said that Linamar (LNR.TO) remains its "top autos pick".Price: $23.28, Change: $+0.25, Percent Change: +1.09%

TSX Closer: Index Closes Lower On Some Profit Taking and Global Growth Concerns

The Toronto Stock Exchange was down Thursday for only the second time in twelve sessions on some profit taking, but also on lingering concerns around what impact the war on Iran will have on markets, as National Bank revised down its global growth forecast for 2026.The S&P/TSX Composite Index closed down 103.76 points, or 0.3%, to 34,052.23, even with most sectors higher, led by Telecom, up 1.1%, and Energy, up 1%, while Base Metals was up 0.2%. The Battery Metals Index was down 1.4%The TSX had been buoyed by improved sentiment around the outlook for the Canadian economy, as shown by a largely enthusiastic response to news this week that the federal Liberal Party now had enough seats in Parliament to form a majority government, and now has a free hand to pushing through its economic agenda. Canadians will learn more about that on April 28 when the Liberals will provide a fiscal update and outline its economic plans.Reflecting the improved sentiment, both Linamar (LNR.TO) and Martinrea International (MRE.TO) have within the last day maintained their full-year 2026 outlooks following the amendment of Section 232 tariffs on steel, aluminum and copper imports into the United States, which came into effect on April 6.Still, National Bank of Canada says the Middle East crisis has been ongoing for too long to leave no mark on the global economy.National Bank noted nearly seven weeks have passed since the United States and Israel launched their war on Iran, and although hopes for a negotiated peace between the warring parties have been revived in recent days, the bank said it is unlikely that the global economy will emerge from the crisis completely unscathed. For even though tensions have eased somewhat, the Strait of Hormuz remains effectively closed to shipping. Too many essential raw materials have therefore been stuck in the Persian Gulf for too long for global growth not to be affected in some way, it added.Even if the strait could be reopened to shipping quickly, it would likely still take several weeks to restore the normal flow of these goods, National Bank said. Not only because of the time it takes for ships to make the journey between the Middle East and other parts of the world, but also because of the difficulties associated with restarting production, it added.National Bank said while the economic consequences of the conflict will vary greatly from one country to another, they will nonetheless be negative on a global scale. That is why the bank revised down its global growth forecast for 2026, to 3.1% from 3.4%. This downward revision reflects less favorable outlooks in Europe and in emerging Asian countries. For 2027, the bank still expects global GDP to grow by 3.3%.Of commodities, West Texas Intermediate crude oil rose on Thursday, but remained below the US$100 mark on hopes the United States and Iran will extend their ceasefire and resume talks to end war in the Middle East. WTI crude oil for May delivery closed up US$3.40 to settle at US$94.69 per barrel, while June Brent oil was up US$4.29 to US$99.22.Gold prices weakened by midafternoon Thursday, remaining rangebound below US$5,000 as high oil and gas prices threaten to boost inflation and interest rates. Gold for May delivery was down US$15.40 to US$4,808.20 per ounce.

Linamar Maintaining Its 2026 Outlook; Shares Dropped More Than 12% on Wednesday

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."

Linamar said Maintaining Its FY26 Guidance Following Recent Amendment of Section 232 Tariffs