Canada's Martinrea Q1 sales fall on lower production

Martinrea International

30/04/2026 21:46

Overview

Canada auto parts supplier's Q1 revenue declined 3.7% yr/yr, missing analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Q1 sales decline driven by lower production volumes

Outlook

Martinrea reaffirms 2026 outlook for total sales of C$4.5 bln to C$4.9 bln

Company expects 2026 adjusted operating income margin of 5.5% to 6%

Martinrea anticipates 2026 free cash flow of C$125 mln to C$175 mln

Result Drivers

LOWER PRODUCTION VOLUMES - Co said Q1 sales decline was due to lower OEM production volumes on certain platforms and program wind-downs, especially in North America

PRODUCTIVITY IMPROVEMENTS - Gross margin percentage rose due to productivity and efficiency improvements and lower depreciation expense, partly offset by lower volumes and operational inefficiencies

COST CONTROL AND LOWER FINANCE EXPENSE - Adjusted net income benefited from lower SG&A expense, reduced finance costs, and a lower effective tax rate

Company press release: ID:nGNX71tCDc

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
C$1.13 bln
C$1.16 bln (5 Analysts)
Q1 Adjusted EPS
Beat
C$0.45
C$0.43 (5 Analysts)
Q1 EPS
C$0.39
Q1 Adjusted EBITDA
Miss
C$137.70 mln
C$139.60 mln (4 Analysts)
Q1 Dividend
C$0.05


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Martinrea International Inc is C$12.25, about 28.5% above its April 29 closing price of C$9.53

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)