Gasgoo News – Canadian automotive parts manufacturer Linamar Corp. recently announced its second-quarter financial results, revealing declines in both revenue and profitability.

Sales for the quarter stood at 2.6billion, down 72.6billion,down72.8 billion in the same period of 2024. Operating profit was 206million, adrop from the previous𝑦𝑒𝑎𝑟’𝑠 206million,adropfromthepreviousyear’s272 million. Adjusted net earnings also fell by 11%, reaching 168𝑚𝑖𝑙𝑙𝑖𝑜𝑛𝑣𝑒𝑟𝑠𝑢𝑠168millionversus188 million in Q2 2024. Additionally, adjusted earnings per share (EPS) declined to 2.81𝑓𝑟𝑜𝑚2.81from3.06 year-over-year.

The primary driver of Linamar’s weaker performance was subdued demand in its industrial segment, where revenue plunged 22.4% to 688.2𝑚𝑖𝑙𝑙𝑖𝑜𝑛.𝑇ℎ𝑖𝑠𝑑𝑒𝑐𝑙𝑖𝑛𝑒𝑜𝑓𝑓𝑠𝑒𝑡𝑡ℎ𝑒𝑝𝑜𝑠𝑖𝑡𝑖𝑣𝑒𝑖𝑚𝑝𝑎𝑐𝑡𝑜𝑓𝑖𝑚𝑝𝑟𝑜𝑣𝑒𝑑𝑚𝑎𝑟𝑔𝑖𝑛𝑠𝑖𝑛𝑡ℎ𝑒𝑐𝑜𝑚𝑝𝑎𝑛𝑦’𝑠𝑎𝑢𝑡𝑜𝑚𝑜𝑡𝑖𝑣𝑒𝑐𝑜𝑚𝑝𝑜𝑛𝑒𝑛𝑡𝑠𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠.𝑇ℎ𝑒𝑎𝑢𝑡𝑜𝑚𝑜𝑡𝑖𝑣𝑒𝑑𝑖𝑣𝑖𝑠𝑖𝑜𝑛’𝑠𝑠𝑎𝑙𝑒𝑠𝑟𝑒𝑚𝑎𝑖𝑛𝑒𝑑𝑟𝑒𝑙𝑎𝑡𝑖𝑣𝑒𝑙𝑦𝑠𝑡𝑎𝑏𝑙𝑒𝑎𝑡688.2million.Thisdeclineoffsetthepositiveimpactofimprovedmarginsinthecompany’sautomotivecomponentsbusiness.Theautomotivedivision’ssalesremainedrelativelystableat1.95 billion, down just 0.4% compared to the prior-year period.

Linda Hasenfratz, Executive Chair of Linamar, noted that while automakers face pressure to absorb billions in tariff-related costs—potentially leading to higher vehicle prices and reduced demand—Linamar’s profitability has not yet been significantly impacted.

“We’ve seen some minor effects in certain areas, but the magnitude remains limited,” Hasenfratz stated during a recent analyst call.

Hasenfratz stated that the tariff exemptions for compliant automotive components under the United States-Mexico-Canada Agreement (USMCA) not only shielded Linamar from most tariff impacts but also unlocked new growth opportunities—as automakers increasingly prioritize reshoring parts production from Asia and Europe to North America.

“Our North American facilities are seeing a steadily growing list of new business opportunities currently in the quoting phase,” Hasenfratz said. She added that whether these projects land in Canada, the U.S., or Mexico “will depend on where we have capacity, relevant expertise, and available teams to execute, as well as customer preferences.”

Linamar reported securing 328𝑚𝑖𝑙𝑙𝑖𝑜𝑛𝑖𝑛𝑛𝑒𝑤𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠∗∗𝑖𝑛𝑄2,𝑖𝑛𝑐𝑙𝑢𝑑𝑖𝑛𝑔𝑎𝑠𝑡𝑒𝑒𝑟𝑖𝑛𝑔𝑘𝑛𝑢𝑐𝑘𝑙𝑒𝑝𝑟𝑜𝑔𝑟𝑎𝑚𝑎𝑐𝑞𝑢𝑖𝑟𝑒𝑑𝑓𝑟𝑜𝑚𝑎𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟.𝐻𝑎𝑠𝑒𝑛𝑓𝑟𝑎𝑡𝑧𝑎𝑙𝑠𝑜𝑟𝑒𝑣𝑒𝑎𝑙𝑒𝑑𝑡ℎ𝑒𝑐𝑜𝑚𝑝𝑎𝑛𝑦𝑚𝑎𝑖𝑛𝑡𝑎𝑖𝑛𝑠𝑎𝑚𝑝𝑙𝑒∗𝑠¨𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑐𝑙𝑖𝑞𝑢𝑖𝑑𝑖𝑡𝑦∗¨𝑡𝑜𝑜𝑝𝑝𝑜𝑟𝑡𝑢𝑛𝑖𝑠𝑡𝑖𝑐𝑎𝑙𝑙𝑦𝑎𝑐𝑞𝑢𝑖𝑟𝑒𝑑𝑖𝑠𝑡𝑟𝑒𝑠𝑠𝑒𝑑𝑠𝑢𝑝𝑝𝑙𝑖𝑒𝑟𝑎𝑠𝑠𝑒𝑡𝑠.𝐴𝑠𝑜𝑓𝑄22025,𝐿𝑖𝑛𝑎𝑚𝑎𝑟ℎ𝑒𝑙𝑑∗∗𝑜𝑣𝑒𝑟328millioninnewbusiness∗∗inQ2,includingasteeringknuckleprogramacquiredfromacompetitor.Hasenfratzalsorevealedthecompanymaintainsample∗s¨trategicliquidity∗¨toopportunisticallyacquiredistressedsupplierassets.AsofQ22025,Linamarheld∗∗over1 billion in cash reserves and $900 million in available credit lines.

However, she emphasized a disciplined approach to acquisitions: “Any deal must be the right fit and profitable from Day One.”

In the 2025 Top 100 Global Automotive Suppliers ranking by Automotive News, Linamar secured the 49th position, with parts sales to automakers worldwide reaching $5.2 billion in 2024.