Martinrea International Inc. Reports Third Quarter Results and Declares Dividend
Key Highlights
- ➤Q3 sales $1,181.9 million, down 0.7% year over year
- ➤Adjusted EBITDA $144.9 million, up 3.2% year over year
- ➤New business awards total approximately $160 million in annualized sales
- ➤Europe restructuring planned, including workforce reductions and operational reviews
- ➤2026 outlook reaffirmed: $4.5-$4.9 billion sales and $125-$175 million free cash flow
Expert Statements
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“We are pleased with our performance in the third quarter, with Adjusted Operating Income and Adjusted EBITDA, improving year over year, both on an absolute and a percentage of sales basis.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“We continue to drive operating improvements across the organization, which is offsetting current industry dynamics, allowing us to generate solid margins.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“We are managing what’s in our control, and pursuing growth opportunities in a prudent and profitable manner.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“In automotive, we are seeing opportunities from program extensions and takeover work from financially troubled or underperforming suppliers, as well as from OEMs localizing production to North America.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“Outside of automotive, we are off to a great start with our TruNorth Kaizen consulting business, having recently expanded the scope of our contract with Raytheon to help accelerate throughput on the Tomahawk cruise missile.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“We believe that the relationships we forge through TruNorth could eventually lead to opportunities to participate as a tier 1 supplier supporting prime defence contractors in the United States.”
Pat D’Eramo, Chief Executive Officer of Martinrea International Inc.
“We are also seeing strong growth in our Industrial business, both with traditional customers and products, and from diversifying into new sectors, including power generation and storage for data centres.”
Fred Di Tosto, President of Martinrea International Inc.
“I am pleased to announce that we have been awarded new business representing approximately $160 million in annualized sales at mature volumes, consisting of approximately $95 million in various structural components in our Lightweight Structures commercial group with Ford, Mercedes-Benz, and BMW; approximately $10 million in our Propulsion Systems commercial group with Stellantis; and approximately $55 million in our Flexible Manufacturing Group with Caterpillar, John Deere, Volvo Truck, General Dynamics, and General Motors.”
Fred Di Tosto, President of Martinrea International Inc.
“This includes an award for Caterpillar worth $50 million in annualized sales for energy storage units used in data centres, and a smaller contract with General Dynamics to supply components for armoured vehicles.”
Fred Di Tosto, President of Martinrea International Inc.
“New business awards during the last twelve months total approximately $565 million in annualized sales, representing our highest level of award activity in several years.”
Fred Di Tosto, President of Martinrea International Inc.
“While Adjusted Operating Income in Europe was positive in the third quarter, and expected break even on a full-year basis in 2026 subject to obtaining certain volume-related recoveries from our customers in the fourth quarter, it has become apparent that more structural changes are needed to return the operating segment to historical levels of profitability.”
Fred Di Tosto, President of Martinrea International Inc.
“We are therefore planning deep restructuring activity for Europe.”
Fred Di Tosto, President of Martinrea International Inc.
“These actions are expected to include workforce reductions, centralization of certain administrative activities, vertical integration opportunities, and a review of underperforming operations.”
Fred Di Tosto, President of Martinrea International Inc.
“With these measures, we expect these actions to contribute to improved financial results in Europe beginning in 2027.”
Peter Cirulis, Chief Financial Officer of Martinrea International Inc.
“Operationally, the third quarter played out largely as expected, with our financial results up year over year, and consistent with our full-year 2026 outlook.”
Peter Cirulis, Chief Financial Officer of Martinrea International Inc.
“Sales (excluding tooling sales of $83.1 million) were $1,098.8 million, Operating Income was $64.2 million, and Adjusted Operating Income was $66.7 million.”
Peter Cirulis, Chief Financial Officer of Martinrea International Inc.
“Adjusted Operating Income Margin of 5.6% was up 10 basis points year over year, as operating improvements and commercial recoveries offset the flow-through impact of lower vehicle production volumes and higher aluminum costs.”
Peter Cirulis, Chief Financial Officer of Martinrea International Inc.
“We are reaffirming our 2026 outlook, which calls for total sales of $4.5 to $4.9 billion, Adjusted Operating Income Margin of 5.5% to 6.0%, and Free Cash Flow of $125 to $175 million.”
Rob Wildeboer, Executive Chairman of Martinrea International Inc.
“Our third quarter results demonstrate that operational improvements and cost discipline are offsetting lower industry volumes and cost pressures.”
Rob Wildeboer, Executive Chairman of Martinrea International Inc.
“At the same time, we are simplifying the portfolio, strengthening the balance sheet, and directing capital toward higher-return opportunities in North America, including in industrial markets and defence, while returning capital to shareholders through dividends and share repurchases.”
Rob Wildeboer, Executive Chairman of Martinrea International Inc.
“Collectively, these asset dispositions will generate approximately $107 million of consideration net of transaction costs, with approximately $60 million expected to be collected this calendar year and the remainder paid out over the next three years, strengthening our balance sheet.”
Rob Wildeboer, Executive Chairman of Martinrea International Inc.
“We repurchased approximately 941,000 shares under our normal course issuer bid during the third quarter for $9.3 million.”
TORONTO, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Martinrea International Inc. (TSX : MRE), a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems, today announced the release of its financial results for the third quarter ended September 30, 2026, and declared a quarterly cash dividend of $0.05 per share.
THIRD-QUARTER HIGHLIGHTS * Total sales of $1,181.9 million, production sales of $1,098.8 million. * Diluted net earnings per share of $0.38 and Adjusted Net Earnings per Share(()(1)()) of $0.52. * Adjusted EBITDA(()(1)()) of $144.9 million, 12.3% of total sales. * Adjusted Operating Income Margin(()(1)()) of 5.6%. * Free Cash Flow(()(1)()) (excluding principal payments of IFRS 16 lease liabilities) of $58.5 million. * Net Debt-to-Adjusted EBITDA(()(1)) ratio, excluding the impact of IFRS 16, ended the third quarter at 1.56x, down from 1.63x at the end of the second quarter. * New business awards worth approximately $160 million in annualized sales at mature volumes; new business awards over the last 12 months total approximately $565 million in annualized sales. * Quarterly cash dividend of $0.05 per share declared. * 2026 outlook reaffirmed. OVERVIEW
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