Q2 2026 Linamar Corp Earnings Call Transcript
Key Points
- Record sales of $3.1 billion, up 18.8% year-over-year, with normalized EPS up 9.6%.
- Mobility segment delivered record sales and earnings, with nearly 30% earnings growth and market share gains in every region.
- Skyjack volumes surged 46% in Q2, with industry outlook improved to nearly 14% growth for 2026.
- Strong new business wins, with Canadian plants already achieving 90% of last year's total wins and US plants matching 2025 levels halfway through the year.
- Robust balance sheet with net debt to EBITDA at 0.52x and free cash flow of nearly $240 million in Q2, supporting a 10% dividend increase.
- Industrial segment operating earnings declined 23.8% due to new 232 tariffs and weak agricultural markets.
- Agricultural markets remain challenging, with North American industry demand expected to decline approximately 15% in 2026.
- Tariffs are expected to continue pressuring industrial margins, with Q3 industrial earnings expected to decline double-digits year-over-year.
- Global light vehicle production outlook for 2026 was revised down to a 2.1% decline, with continued softness in key markets.
- Foreign exchange impacts, primarily from a weaker US dollar, negatively affected results in the quarter.
Good afternoon, ladies and gentlemen, and welcome to the Linamar Corporation second-quarter 2026 earnings call. (Operator Instructions) This call is being recorded on Wednesday, August 12, 2026.
I would now like to turn the conference over to Linda Hasenfratz, Executive Chair of Linamar. Please go ahead.
Thanks so much. Good afternoon, everyone, and welcome to our second-quarter conference call.
Before I begin, I will draw your attention to the disclaimer that we are currently broadcasting.
Joining me this afternoon, as usual, are Jim Jarrell, our CEO and President; and Dale Schneider, our CFO, both of whom will be addressing the call formally. Also available for questions are Mark Stoddart, Chris Merchant, and other members of our corporate IR, marketing, finance, and legal team.
Okay, I'll start off with some highlights as usual.
So a good place to start always is a quick reminder of the key value drivers that make Linamar such a great investment
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