Linamar Corporation · TSX:LNR
Linamar — Q4 2024 Earnings Presentation
37 slides from Linamar's earnings presentation, Mar 5, 2025
Slide 1: Q4 2024 Earnings Call
Q4 2024 Earnings Call March 5, 2025 Linda Hasenfratz EXECUTIVE CHAIR Jim Jarrell CEO & PRESIDENT Dale Schneider CFO For Audio Only Dial In North America: (+1) 800 549-8228 International: (+1) 289 819-1520 Conference ID: 82850 © Linamar Corporation
Slide 2: Forward-looking Information, Risk, and Uncertainties
Forward-looking Information, Risk, and Uncertainties Certain information regarding Linamar set forth in this presentation and oral summary, including management’s assessment of the Company’s future plans and operations may constitute forward-looking statements. This information is based on current e
Slide 3: Agenda
Agenda Q4 & FY2024 Highlights & Strategic Updates Linda Hasenfratz EXECUTIVE CHAIR Industry & Operations Update Jim Jarrell PRESIDENT & CEO Financial Review & Outlook Dale Schneider CHIEF FINANCIAL OFFICER Q&A All © Linamar Corporation 3
Slide 4: Q4 & FY2024 Highlights & Strategic Updates
Q4 & FY2024 Highlights & Strategic Updates Linda Hasenfratz EXECUTIVE CHAIR © Linamar Corporation 4
Slide 5: Linamar Value Creation Drivers
Linamar Value Creation Drivers Consistent, Long-term Performance Consistent, Sustainable Flexibility to Growth Driving from Mitigate Risk Capital Asset Profile enables us Diversity to redeploy under-utilized equipment Diversified revenue streams, to changing market needs, broad product synergistic b
Slide 6: Q4 & FY 2024 Executive Summary
Q4 & FY 2024 Executive Summary 2024 Linamar Nearly $800M in FCF generated in 2024 Delivered Another Year of Double-Digit Earnings Growth and Outstanding Free Margin Expansion despite all Markets being down Cash Flow Strong finish to the year for New Business Wins with Launch book now back to $3.5B C
Slide 7: Q4 2024 — Financial Highlights
Q4 2024 — Financial Highlights Strong Q4 Free Cash Flow Net Earnings & EPS Sales Margin1 Free Cash Flow1 (Normalized) 1 (Normalized) $2.4B $111.8M $1.82 $490.8M 4.7% 3.2% 8.5% 8.1% $407.7M vs. Q4 ‘23 vs. Q4 ‘23 vs. Q4 ‘23 vs. Q4 ‘23 1- Net Earnings (NE) – Normalized, Net Earnings (Loss) Per Share –
Slide 8: Q4 2024 Unusual Items
Capital Allocation Q4 2024 UnusualPlans Items Q4 One-time Impairments Mobility: European Goodwill Mobility: EV & General Automotive $ 385.5M Write-down $ 2.4M Gain European mobility operations face continued Several individual positive and negative items had an deteriorating market conditions that h
Slide 9: FY 2024 — Financial Highlights
FY 2024 — Financial Highlights Record Annual Sales and Double-Digit Earnings Growth Net Earnings & EPS Sales Margin1 Free Cash Flow1 (Normalized) 1 (Normalized) $10.6B $604.4M $9.81 $788.3M 5.7% 8.7% 11.7% 11.7% $753.7M vs. FY ‘23 vs. FY ‘23 vs. FY ‘23 vs. FY ‘23 1- Net Earnings (NE) – Normalized, N
Slide 10: U.S. Tariff Commentary
U.S. Tariff Commentary An Industry-wide Solution Is Needed At Linamar we are: Stressing importance to not panic, staying focused on facts and not on the rhetoric Keeping a long-term perspective that important strategic decisions deserve Highly engaged with all levels of governments and industry grou
Slide 11: Industry & Operations Updates
Industry & Operations Updates Jim Jarrell CEO & PRESIDENT © Linamar Corporation 11
Slide 12: Grow Revenue, Grow Margin, Grow Our Linamar Team
GROW REVENUE GROWTH GROW MARGIN GROW OUR Update and email Jim and Linda this LINAMAR TEAM slide © Linamar Corporation
Slide 13: Share Gains in Challenged Market
Capital Allocation Industrial Plans Segment / / Industry & Market Share Share Gains in Challenged Market Industry Access Volumes Skyjack Global FY2024 Unit Performance FY2024 FY2025 Actuals Expectation Skyjack total Global market North unit YTD YTD 0.3% -6.2% VS America -8.4% -11.7% Europe 6.3% 0.0%
Slide 14: New Product Launches in Global Markets
Industrial Segment / / Key Business Updates New Product Launches in Global Markets China Market Development Key Product Introductions China now actively developing new China market Global extension of E-Drive scissor models focused product with localized development and testing continues with Q4 ‘24
Slide 15: Product Performance That Outpaced the Market in 2024
Industrial Segment / / Industry & Market Share Product Performance That Outpaced the Market in 2024 Industry Large Ag Volumes Linamar Agriculture Global YoY Unit Performance FY2024 FY2025 Actuals Forecast Ag. Group total Global market North unit volume YTD YTD -15% -25% VS America 1% -17% Europe -15
Slide 16: Award Winning Agriculture Innovation
Capital Allocation Industrial Plans Segment / / Key Business Updates Award Winning Agriculture Innovation Ag Operating Performance Industry Recognition Despite current levels of crop Linamar’s Agriculture Brands received 5 total 2025 AE50 Awards for top commodity prices and higher innovative agricul
Slide 17: CPV Growth Above Market
Capital Allocation Mobility Segment Plans / Industry & Market Share CPV Growth Above Market Industry LV Volumes Linamar’s FY2024 Global CPV FY2024 FY2025 Actual Expectation $84.11 North America -1.1% -2.2% $75.22 +11.8% Increase in Global Europe -3.9% -3.0% Content Per Vehicle Asia +0.5% +0.6% -0.7%
Slide 18: Global EV Production Outlook
Mobility Segment / Electric Vehicle Adoption Global EV Production Outlook 2024 Forecast from 2031 Forecast from Maintaining Flexibility is Critical 1 Year Ago vs. Actual 1 Year Ago vs. Current Projection • 85% of Assets are Flexible 2024 2031 16 60 • Offer Customers Scalable -2.0M Solutions 15 15.2
Slide 19: Mobility Innovation
Mobility Segment / Innovation Highlight Mobility Innovation Disconnect Technology Innovation for driveline differentials applications In-house product design and developed by Linamar’s McLaren Engineering division Functionality that reduces parasitic losses in AWD applications by ‘disconnecting’ the
Slide 20: Financial Update & Outlook
Financial Update & Outlook Dale Schneider CFO © Linamar Corporation 20
Slide 21: 2024 Industrial Sales Exceed $3.0B
Industrial Segment / Q4 Financial Performance Key Factors: Industrial 2024 Industrial Sales Exceed $3.0B Revenue +4.9% vs Q4 ‘23 • • Revenue Normalized Operating Earnings 1 (in Millions CAD) (in Millions CAD) • +16.9% +9.5% Normalized OE 600 $3,093.6 $516.2 -9.1% vs Q4 ‘23 $2,646.3 500 $471.4 • 400
Slide 22: YoY Double Digit Earnings Growth
Mobility Segment / Q4 Financial Performance Key Factors: Mobility YoY Double Digit Earnings Growth Revenue -5.8% vs Q4‘23 • A sales decline from significant automotive market declines most notably Revenue Normalized Operating Earnings 1 in Europe and North America (in Millions CAD) (in Millions CAD)
Slide 23: A Strong Balance Sheet for Uncertain Times
Capital Allocation Leverage Plans / Consolidated and Liquidity A Strong Balance Sheet for Uncertain Times Net Debt to EBITDA 1 Total Liquidity2 Current Positioning (in Millions CAD) Cash Position • Net Debt to Normalized EBITDA was Available cash on credit facilities 0.79x at the end of Q4 $1.8B • C
Slide 24: Capital Allocation Strategy and NCIB Progress
Capital Allocation Strategy • Ensure Balance Sheet at Optimal Levels • Continued Investment in Innovation and Growth (Organic & In- organic) • Excess liquidity beyond that for share buybacks, dividends and further debt repayment Current Buyback Program NCIB • Initiated in November 2024 Progress • Ab
Slide 25: Outlook Q1 '25 and FY 2025
Outlook Q1 ‘25 Outlook FY 2025 Industrial vs. Q1 ‘24 FY2024 Actuals FY2025 vs ‘24 Sales Growth Decline Sales Growth 16.9% Decline Normalized OE Growth Decline Normalized OE Growth (%) 9.5% Double Digit Decline 1 Normalized OE Margin % Flat Normalized Operating Margin (%) 16.7% Contraction Within Nor
Slide 26: © Linamar Corporation
© Linamar Corporation 26
Slide 27: Q4 & FY 2024 Executive Summary
Q4 & FY 2024 Executive Summary 2024 Linamar Nearly $800M in FCF generated in 2024 Delivered Another Year of Double-Digit Earnings Growth and Outstanding Free Margin Expansion despite all Markets being down Cash Flow Strong finish to the year for New Business Wins with Launch book now back to $3.5B C
Slide 28: Kevin Hallahan
Kevin Hallahan Vice President, Investor Relations & Marketing Linamar Corporation kevin.hallahan@linamar.com 519-836-7550 https://www.linamar.com/investors/ © Linamar Corporation
Slide 29: Appendix
Appendix © Linamar Corporation
Slide 30: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures The Company uses certain non-GAAP and other financial measures to provide useful information to both management, investors, and other stakeholders in assessing the financial performance and financial condition of the Company. Certain expenses and income that must
Slide 31: Industrial Sales, Earnings, and Margins (in Millions CAD)
Appendix Industrial Sales, Earnings, and Margins (in Millions CAD) Q4 2024 Q4 2023 +/- +/- FY 2024 FY 2023 +/- +/- $ $ $ % $ $ $ % Sales 637.1 607.4 29.7 4.9% 3,093.6 2,646.3 447.3 16.9% Operating 152.9 85.8 67.1 78.2% 589.2 460.9 128.3 27.8% Earnings Foreign Exchange1 (61.5) 14.7 (76.2) (88.8) 10.5
Slide 32: Mobility Sales, Earnings, and Margins (in Millions CAD)
Appendix Mobility Sales, Earnings, and Margins (in Millions CAD) Q4 2024 Q4 2023 +/- +/- FY 2024 FY 2023 +/- +/- $ $ $ % $ $ $ % Sales 1,738.6 1,846.5 (107.9) (5.8%) 7,488.4 7,087.3 401.2 5.7% Operating Earnings (302.4) 83.8 (386.2) - 22.1 313.9 (291.8) (93.0%) Foreign Exchange1 9.0 7.6 1.4 22.5 8.7
Slide 33: Net Earnings (Loss) – Normalized (in Millions CAD)
Appendix Net Earnings (Loss) – Normalized1 (in Millions CAD) Q4 2024 Q4 2023 +/- +/- FY 2024 FY 2023 +/- +/- $ $ $ % $ $ $ % Net Earnings (232.3) 104.4 (336.7) - 258.3 503.1 (244.8) (48.7%) (Loss) Foreign Exchange (52.5) 22.3 (74.8) (66.3) 19.2 (85.5) (Gain)/Loss2 Foreign Exchange (Gain)/Loss on - 2
Slide 34: Net Earnings (Loss) per Share – Diluted – Normalized
Appendix Net Earnings (Loss) per Share – Diluted – Normalized1 Q4 2024 Q4 2023 +/- +/- FY 2024 FY 2023 +/- +/- $ $ $ % $ $ $ % Net Earnings (Loss) (3.78) 1.69 (5.47) - 4.19 8.17 (3.98) (48.7%) per Share - Diluted Foreign Exchange2 (0.86) 0.36 (1.22) (1.08) 0.31 (1.39) (Gain)/Loss Foreign Exchange (G
Slide 35: Free Cash Flow & Capital Investment (in Millions CAD)
Appendix Free Cash Flow1 & Capital Investment (in Millions CAD) Q4 2024 Q4 2023 FY 2024 FY 2023 (in millions of dollars) $ $ $ $ Free Cash Flow Cash generated from (used in) operating activities 497.6 276.4 1,254.0 793.6 Payments for purchases of property, plant and (66.3) (194.7) (532.6) (762.7) eq
Slide 36: Linamar's Powerful Balanced & Diversified Business Model
Appendix Linamar’s Powerful Balanced & Diversified Business Model INDUSTRIAL SEGMENT focused on North America, Cash for Continued Brand generates cash and shares brand Investment Management management knowledge. Strong Profit Consistent Free Strong, Stable Sustainable MOBILITY SEGMENT Margins Cash F
Slide 37: Kevin Hallahan
Kevin Hallahan VP, Investor Relations & Marketing Linamar Corporation kevin.hallahan@linamar.com 519-836-7550 https://www.linamar.com/investors/ © Linamar Corporation