Linamar Corporation · TSX:LNR
Linamar — Q1 2025 Earnings Presentation
38 slides from Linamar's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Earnings Call
Q1 2025 Earnings Call May 7, 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: 94232 © 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 Q1 2025 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: Q1 2025 Highlights & Strategic Updates
Q1 2025 Highlights & Strategic Updates Linda Hasenfratz EXECUTIVE CHAIR © Linamar Corporation 4
Slide 5: Consistent, Long-term Performance
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: Q1 2025 Executive Summary
Q1 2025 Executive Summary Q1 Solid Results Normalized earnings up overall and in both segments despite down markets in a Tough Market Solid cost reductions and enhanced operational efficiency drives Normalized OE margin to 10% Market share growth is tempering impact of softer markets in all business
Slide 7: Q1 2025 Financial Highlights
Q1 2025 — Financial Highlights Improved Margins and FCF Net Earnings & EPS Sales Margin1 Free Cash Flow1 (Normalized) 1 (Normalized) $2.5B $167.2M $2.76 $76.4M 6.6% 7.0% 4.8% 6.6% $115.7M vs. Q1 ‘24 vs. Q1 ‘24 vs. Q1 ‘24 vs. Q1 ‘24 1- Net Earnings (NE) – Normalized, Net Earnings (Loss) Per Share – D
Slide 8: U.S. Tariffs Implications
U.S. Tariffs Implications Impact to Linamar Steel & Aluminum ▪ Minimal direct impact to Linamar in both mobility and industrial businesses ▪ Will weigh on automakers and ultimately increase vehicle prices dampening demand and production Vehicle Tariffs ▪ No direct impact to Linamar ▪ Will weigh on a
Slide 9: Industry & Operations Updates
Industry & Operations Updates Jim Jarrell CEO & PRESIDENT © Linamar Corporation 9
Slide 10: 2025 Focus
2025 Focus Grow Revenue Grow Margin Grow Our Linamar Team © Linamar Corporation
Slide 11: Linamar Operations Update
Linamar Operations Update Keys to Continuous Improvements E RSHIP BEHAV Continuous Improvement efforts centered on our A D Plan • Execute • Edge • Comm IOU Stepping Stool of Success Philosophy and Balanced LEPassion • uni cat e• R Ca Scorecard System S re Cost Attack Team (CAT) Program Renewed Focus
Slide 12: Share Gains in Challenged Market
Capital Allocation Industrial Plans Segment / / Industry & Market Share Share Gains in Challenged Market Industry Access Volumes Skyjack Global Q1 2025 Unit Performance FY2025 FY2026 Expectations Expectations Skyjack total Global market North unit Q1 vs. Q1 Q1 vs. Q1 -6.7% 0.0% VS America -17.3% -34
Slide 13: Product Leadership & New Product Offerings
Industrial Segment / / Key Business Updates Product Leadership & New Product Offerings Skyjack Award – SJ3219 Key Product Introductions 2025 IAPA Award – Scissor Lifts & Vertical Skyjack’s new range of Hybrid-Electric Masts, Product of the Year rough terrain articulated booms have been developed to
Slide 14: Outperforming the Market Cycle
Industrial Segment / / Industry & Market Share Outperforming the Market Cycle Industry Large Ag. Volumes Linamar Agriculture Global YoY Unit Performance FY2025 Expectations Ag. Group total North -30.0% unit volume Q1 vs. Q1 -8.0% America Europe -5.0% Rest of World 0.0% Global Total -12.0% Source: In
Slide 15: Auto Industry Outlook
Capital Allocation Mobility SegmentPlans / Industry Auto Industry Outlook Industry LV Volumes Industry Outlook Commentary FY2025 FY2026 Expectations Expectation Outlook for both 2025 and 2026 revised downward as North America -9.3% 3.5% industry experts have now factored in the negative impact of ta
Slide 16: Continuing Content Gains in North America & Asia
Mobility / Content Per Vehicle Continuing Content Gains in North America & Asia Regional Content Per Vehicle Global CPV 1 $89.78 $84.25 Q1 ‘25 Q1 ‘24 %∆ North America $300.79 $296.52 +1.4% Europe $99.06 $104.28 -5.0% Asia Pacific $ 11.76 $ 10.89 +8.0% 1 - Global CPV includes only the markets that Li
Slide 17: Mobility Segment / Recognition
Mobility Segment / Recognition © Linamar Corporation
Slide 18: Winning Takeover Work
Mobility Segment / New Business Winning Takeover Work Rear Floor Assembly Steering Knuckles • Takeover of volume for • Major North American OEM asked electric version of top selling Linamar to takeover production commercial van in Europe for several knuckle programs from • Expands Linamar’s structur
Slide 19: Financial Update & Outlook
Financial Update & Outlook Dale Schneider CFO © Linamar Corporation 19
Slide 20: Improving Earnings Despite Down Markets
Industrial Segment / Q1 Financial Performance Key Factors: Industrial Improving Earnings Despite Down Revenue -13.1% vs Q1 ‘24 Markets • • • Revenue Normalized Operating Earnings 1 • (in Millions CAD) (in Millions CAD) -13.1% Normalized OE 200 +5.3% vs Q1 ‘24 $728.6 $633.4 +5.3% • 160 $120.2 $126.6
Slide 21: Execution Drives Margin Expansion
Mobility Segment / Q1 Financial Performance Key Factors: Mobility Execution Drives Margin Expansion Revenue -4.7% vs Q1 ‘24 • A sales decline from significant automotive market declines most notably in Europe and North America • Lower production for certain ending programs; and • Lower volumes prima
Slide 22: Balance Sheet Strength for Uncertain Times
Capital Allocation Leverage Plans / Consolidated and Liquidity Balance Sheet Strength for Uncertain Times Net Debt to EBITDA1 Total Liquidity2 Current Positioning (in Millions CAD) Cash Position Net Debt to Normalized EBITDA was 0.81x at Available cash on credit facilities the end of Q1 $1.8B Target
Slide 23: 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 NCIB Current Buyback Program Progress • Initiated in November 2024 • Ab
Slide 24: Outlook for Q2 2025 and FY 2025 & 2026
Outlook2 for Q2 ‘25 Outlook2 FY 2025 & 2026 FY2025 FY 2026 Mobility Q2 ‘25 vs. Q2 ‘24 FY2024 Actuals vs ‘24 vs ‘25 Sales Growth Flat Sales Growth (%) 5.7% Growth Growth Launch Book Nearly $2.8 Billion $492M $500 to $700 Million $500 to $700 Million Driving Incremental Sales Business Leaving (% of Co
Slide 25: © Linamar Corporation
© Linamar Corporation 25
Slide 26: Outlook for Q2 2025 and FY 2025 & 2026
Outlook2 for Q2 ‘25 Outlook2 FY 2025 & 2026 FY2025 FY 2026 Mobility Q2 ‘25 vs. Q2 ‘24 FY2024 Actuals vs ‘24 vs ‘25 Sales Growth Flat Sales Growth (%) 5.7% Growth Growth Launch Book Nearly $2.8 Billion $492M $500 to $700 Million $500 to $700 Million Driving Incremental Sales Business Leaving (% of Co
Slide 27: Investor Tech Day
Investor Tech Day Date: May 15, 2025 Time: 9:00am – 3:00pm ET Location: Guelph, Ontario Executive Management Presentations Updates from operating Group Presidents Showcasing the latest Technologies from each segment Institutional Investors are welcome to register by contacting: investor.relations@li
Slide 28: Q1 2025 Executive Summary
Q1 2025 Executive Summary Q1 Solid Results Normalized earnings up overall and in both segments despite down markets in a Tough Market Solid cost reductions and enhanced operational efficiency drives Normalized OE margin to 10% Market share growth is tempering impact of softer markets in all business
Slide 29: 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 30: Appendix
Appendix © Linamar Corporation
Slide 31: 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 32: Industrial Sales, Earnings, and Margins (in Millions CAD)
Appendix Industrial Sales, Earnings, and Margins (in Millions CAD) Q1 2025 Q1 2024 +/- +/- $ $ $ % Sales 633.4 728.6 (95.2) (13.1%) Operating Earnings 142.9 139.7 3.2 2.3% Foreign Exchange1 (Gain)/Loss (16.3) (19.5) 3.2 Other Items - - - Operating Earnings – Normalized2 126.6 120.2 6.4 5.3% Operatin
Slide 33: Mobility Sales, Earnings, and Margins (in Millions CAD)
Appendix Mobility Sales, Earnings, and Margins (in Millions CAD) Q1 2025 Q1 2024 +/- +/- $ $ $ % Sales $1,898.7 $1,993.3 (94.6) (4.7%) Operating Earnings 123.4 129.5 (6.1) (4.7%) Foreign Exchange1 (Gain)/Loss 2.0 (5.9) 7.9 Other Items - - Operating Earnings – Normalized2 125.4 123.6 1.8 1.5% Operati
Slide 34: Net Earnings (Loss) – Normalized (in Millions CAD)
Appendix Net Earnings (Loss) – Normalized1 (in Millions CAD) Q1 2025 Q1 2024 +/- +/- $ $ $ % Net Earnings (Loss) 177.7 178.5 (0.8) (0.4%) Foreign Exchange2 (Gain)/Loss (14.3) (25.4) 11.1 Foreign Exchange (Gain)/Loss on - 0.5 (0.5) Debt and Derivatives Other Items - - - Tax Impact including Other Ite
Slide 35: Net Earnings (Loss) per Share – Diluted – Normalized
Appendix Net Earnings (Loss) per Share – Diluted – Normalized1 Q1 2025 Q1 2024 +/- +/- $ $ $ % Net Earnings (Loss) per Share - 2.94 2.90 0.04 1.4% Diluted Foreign Exchange2 (Gain)/Loss (0.24) (0.41) 0.17 Foreign Exchange (Gain)/Loss on Debt - 0.01 (0.01) and Derivatives Other Items - - - Tax Impact
Slide 36: Free Cash Flow & Capital Investment (in Millions CAD)
Appendix Free Cash Flow1 & Capital Investment (in Millions CAD) Q1 2025 Q1 2024 (in millions of dollars) $ $ Cash generated from (used in) operating activities 164.3 150.1 Payments for purchases of property, plant and equipment (CapEx) (88.8) (189.8) Proceeds on disposal of property, plant and equip
Slide 37: 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 38: Kevin Hallahan
Kevin Hallahan VP, Investor Relations & Marketing Linamar Corporation kevin.hallahan@linamar.com 519-836-7550 https://www.linamar.com/investors/ © Linamar Corporation