Linamar Corp LIMAF

Q2 Earnings Estimate - August 8th

[Jonathan9]

Q2 is typically the strongest quarter. First full quarter with all recent acquisitions including Bourgault.

Based on commentary and investor presentations, expect $3.025 Billion CAD in sales. New record.

Expect continued improving margins lead by Industrial, in particular Macdon. Mobility showing gradual improvement.

Estimated EPS of $3.32 CAD, significantly above analyst forecasts.

Hoping to see increase in free cash flow to pay down debt for the purpose of additional acquisitions. Appears management is prioritizing investment and revenue growth over share buybacks.

Catalyst of lower interest rates from Bank of Canada, new programs launching and continued demand and market share growth.

No change to target price of $120.

[Jonathan9]

Industrial - both Terex (Genie) and Oshkosh (JLG) reported 6-7% sales growth in the Aerial division. Both mentioned continued strength in North American market for remaining 2024 and 2025. Expect positive look through for Skyjack.

[Jonathan9]

Agriculture - Ag sector is showing signs of weakness, but expect Macdon and Bourgault to Outperform.  Expect significant market share growth globally for Macdon. #1 draper header of choice for many farmers.  Many YouTube harvesting videos with new Macdon heads. Teaser video of most likely larger 60'+ draper heads coming soon. Macdon supplying draper heads for Case IH and New Holland

[Jonathan9]

FD261 - 61' flex draper header. https://youtu.be/DOhv93z7zx0?si=wLmu7GvbSezCktU4