Linamar’s third-quarter results put the Guelph-based manufacturer’s performance and expansion plans in focus. Its automotive and industrial operations face different paths to growth.
BNN Bloomberg spoke with Jim Jarrell, president and CEO of Linamar, about the quarterly results and the company’s priorities.
Key Takeaways
- Revenue exceeded $3.1 billion, up about 21 per cent, while earnings rose about two per cent.
- Acquisitions of distressed businesses over the past 24 months helped drive revenue growth.
- Extended customer shutdowns, program mix and slower production ramp-ups weighed on mobility results.
- Jarrell said customers would pay the proposed U.S. tariffs on mobility products, warning that higher costs could undermine vehicle affordability.
- Data centre construction continues to support demand for access equipment, including scissor lifts, booms and telehandlers.
Read the full transcript below:
ROGER: Well, Guelph-based Linamar is out with its third-quarter results and reporting record new business wins, reaffirming its growth outlook despite industry headwinds. Let’s get more now from Jim Jarrell, president and CEO of Linamar. Jim, thank you very much for joining us today.
JIM: Morning. Great to be here.
ROGER: Okay, you had strong revenue growth. What was driving that, considering everything that’s going on around you?
JIM: Yeah, well, I think one word we use here at Linamar is GRIT, which is our theme — major theme for 2026 — which basically stands for using our guts, our resilience, our integrity and our teamwork to grow our revenue, income and team. And really, one of the big drivers would have been some of the distressed acquisitions that we’ve done over the last 24 months that have really driven that, that revenue growth, which, you know, we’re over $3.1 billion, which is like about 21 per cent up, earnings up about two per cent, EPS up about three per cent, great cash flow in the, in the quarter, about $200 million. Great balance sheet for growth. Net debt to EBITDA about 0.5. Share buybacks, 1.4 million year to date. And as you started, record new business wins. Really, with the focus of these distressed times out there, where we’re taking these things and creating opportunities, so really, we’re really proud of the quarter. I think the overall mix of how we got the results, you know, you see us trading down a little bit this morning. Those overall results, I think, were mixed. The mix didn’t come in exactly probably how we thought it would. Mobility probably underperformed in, in a little bit where we overperformed in the industrial side with access and agriculture.
ROGER: Okay. Now, you did have a bit of a miss on 4.4 per cent, I believe, on normalized EPS, and net income was a miss from consensus. What was, what was driving that?
JIM: I think, again, it was the mobility side. You know, we had probably four different things that really hit us there: extended shutdowns in Q3, some of the program mixes of some of the programs we’ve been on, and some of the ramp-ups in the mobility side didn’t come out of the gate like we thought we would. So you put all the infrastructure in place, three shifts, all the capital, and those ramp-ups have not quite gotten there. So you’re not getting the conversion on the, on that side. But, you know, again, the outlook looks pretty strong going forward for those ramp-ups to come back and hit.
ROGER: All right. Now, in a bigger picture, concerns about January, the new tariffs coming in. How are you bracing for that? Are you looking that maybe there is an off-ramp?
JIM: I think we believe there’s an off-ramp, and quite frankly, on the mobility side, I mean, this is like disaster level, in my opinion. You know, if that happens, you know, who’s going to pay $250,000 for, you know, a truck or whatever? It just doesn’t make sense from our side. And with the latest change, maybe in the political headwinds, hopefully that gets people back to the table. We’re a big proponent of “get a deal done,” and I think the timing is great for that. And keep in mind, on the mobility side, you know, we’re not really the importer of record into the U.S. So really, the tariffs would be paid by our customers. But again, the affordability side, if that comes into play, it just, it just doesn’t make sense to unscramble this omelette that we have in, in Mexico, Canada and the U.S.
ROGER: Okay, and with the AI data centres, with the Democratic win, concerns they may stall. Any headwinds there for Skyjack and similar?
JIM: Yeah, I mean, what we’re looking at. I mean, the outlook still is pretty strong. It might be where those data centres go, but I think, you know, by 2030, I think the number is about $100 billion will be being spent on data centres. I think this year is around $56.6 billion, what we’ve sort of recorded, so we still see that pathway, and it has been an excellent place for some of our award-winning Skyjack products out there: scissor lifts, booms and telehandlers.
ROGER: Okay, Jim, we have to wrap it up there, but thank you very much for joining us.
JIM: Yeah, take care, guys.
ROGER: Jim Jarrell, president and CEO of Linamar.
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This BNN Bloomberg summary and transcript of the Nov. 5, 2026 interview with Jim Jarrell are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
