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TORONTO, Nov. 11, 2025 (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, 2025, and declared a quarterly cash dividend of $0.05 per share.
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THIRD-QUARTER HIGHLIGHTS
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- Total sales of $1,190.8 million, production sales of $1,159.2 million.
- Diluted net earnings per share of $0.49 and Adjusted Net Earnings per Share(1) of $0.52.
- Adjusted EBITDA(1) of $140.4 million, 11.8% of total sales.
- Adjusted Operating Income Margin(1) of 5.5%, up 20 basis points year over year.
- Free Cash Flow(1) (excluding principal payments of IFRS 16 lease liabilities) of $44.5 million was impacted by the delayed collection of certain receivables, which have since been collected, due to a cybersecurity incident at a key customer.
- Net Debt-to-Adjusted EBITDA(1) ratio, excluding the impact of IFRS 16, ended the third quarter at 1.50x, at our target of 1.50x or better.
- New business awards of approximately $30 million in annualized sales at mature volumes.
- Quarterly cash dividend of $0.05 per share declared.
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OVERVIEW
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Pat D’Eramo, Chief Executive Officer, stated: “We are very pleased with our performance in the third quarter. Adjusted Operating Income Margin(1) was higher year over year, as we continued to drive operating improvements and negotiated commercial recoveries from our customers, largely for volume shortfalls on electric vehicle programs. We generated positive results, notwithstanding the current environment as it relates to tariffs, and a production disruption at Jaguar Land Rover (JLR), one of our key customers. Production has resumed at JLR and should return to normal by the first quarter of 2026. We expect to conclude agreements on tariff relief with our customers covering the vast majority of our exposure before year end. As our results demonstrate, we are having a good year, as we continue to drive operating improvements on the shop floor and cost savings through our SG&A reduction program. As such, we are maintaining our 2025 outlook, which calls for total sales of $4.8 to $5.1 billion, Adjusted Operating Income Margin(1) of 5.3% to 5.8%, and Free Cash Flow(1) of $125 to $175 million. We expect further improvement in our Adjusted Operating Income Margin(1) in 2026, on a full-year basis.”
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He continued: “I am pleased to announce that we have been awarded new business representing approximately $30 million in annualized sales at mature volumes, consisting of $15 million in Lightweight Structures with General Motors and Toyota, $12 million in Propulsion Systems with Stellantis and Ford, and $3 million in our Flexible Manufacturing Group with Volvo Truck and Central Power. New business awards over the last four quarters total $170 million in annualized sales at mature volumes. In addition, we have recently won business on a number of program extensions with various customers totalling approximately $1 billion in annualized sales.”
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Peter Cirulis, Chief Financial Officer, stated: “We continue to execute well, both operationally and financially, effectively managing what is in our control. Sales for the third quarter, excluding tooling sales of $31.6 million, were $1,159.2 million. Adjusted Operating Income(1) was $65.0 million, and Adjusted Operating Income Margin(1) of 5.5% was up 20 basis points year over year. Free Cash Flow(1) (excluding principal payments of IFRS 16 lease liabilities) of $44.5 million was impacted by the delayed collection of certain receivables which have since been collected, due to the cybersecurity incident at JLR. We are confident in our ability to meet our 2025 outlook for Free Cash Flow(1), which is likely to approach the high end of the outlook range, aided by effective working capital management and reduced capital expenditures.”
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Rob Wildeboer, Executive Chairman, stated: “We are pleased with our results year to date, which demonstrate that we are exceptional operators. We invested in the business in the third quarter and paid down debt, maintaining our Net Debt-to-Adjusted EBITDA(1) at our target of 1.50x or better. Subsequent to the quarter, we acquired Lyseon North America, a single-plant operation in Tulsa, Oklahoma, engaged primarily in manufacturing parts and assemblies for school buses with International Motors (formerly Navistar). International is a great customer that we see opportunity to grow with, and we expect the deal to be accretive within a reasonable period of time. In addition, we invested $5.6 million in NanoXplore shares, to maintain our pro-rata interest in NanoXplore, as part of NanoXplore’s $25.7 million private placement financing. We believe the future is bright for NanoXplore, particularly considering the recent supply agreement signed with Chevron Phillips to supply graphene for use in drilling fluids. On behalf of the executive management team, we would like to thank our people for their hard work and flexibility in these dynamic times, as well as our shareholders and other stakeholders for their ongoing support.”
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RESULTS OF OPERATIONS
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All amounts in this press release are in Canadian dollars, unless otherwise stated; and all tabular amounts are in thousands of Canadian dollars, except earnings per share and number of shares.
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Additional information about the Company, including the Company’s Management Discussion and Analysis of Operating Results and Financial Position for the three and nine months ended September 30, 2025 (“MD&A”), the Company’s interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 (the “interim financial statements”) and the Company’s Annual Information Form for the year ended December 31, 2024 can be found on the Company’s profile at www.sedarplus.ca.
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OVERALL RESULTS
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Results of operations may include certain items which have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Company results. In addition to IFRS Accounting Standards (“IFRS”) measures, management uses non-IFRS measures in the Company’s disclosures that it believes provide the most appropriate basis on which to evaluate the Company’s results.
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The following tables set out certain highlights of the Company’s performance for the three and nine months ended September 30, 2025 and 2024. Refer to the Company’s interim financial statements for the three and nine months ended September 30, 2025 for a detailed account of the Company’s performance for the periods presented in the tables below.
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | $ Change | % Change | ||||||||||
| Sales | $ | 1,190,801 | $ | 1,237,493 | (46,692 | ) | (3.8 | %) | |||||
| Gross Margin | 169,972 | 163,350 | 6,622 | 4.1 | % | ||||||||
| Operating Income | 62,485 | 65,879 | (3,394 | ) | (5.2 | %) | |||||||
| Net Income for the period | 35,762 | 14,157 | 21,605 | 152.6 | % | ||||||||
| Net Earnings per Share – Basic and Diluted | $ | 0.49 | $ | 0.19 | 0.30 | 157.9 | % | ||||||
| Non-IFRS Measures* | |||||||||||||
| Adjusted Operating Income | $ | 64,996 | $ | 65,879 | (883 | ) | (1.3 | %) | |||||
| % of Sales | 5.5 | % | 5.3 | % | |||||||||
| Adjusted EBITDA | 140,400 | 154,129 | (13,729 | ) | (8.9 | %) | |||||||
| % of Sales | 11.8 | % | 12.5 | % | |||||||||
| Adjusted Net Income | 37,730 | 14,157 | 23,573 | 166.5 | % | ||||||||
| Adjusted Net Earnings per Share – Basic and Diluted | $ | 0.52 | $ | 0.19 | 0.33 | 173.7 | % | ||||||
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | $ Change | % Change | ||||||||||
| Sales | $ | 3,634,567 | $ | 3,863,199 | (228,632 | ) | (5.9 | %) | |||||
| Gross Margin | 506,106 | 519,517 | (13,411 | ) | (2.6 | %) | |||||||
| Operating Income | 179,928 | 215,019 | (35,091 | ) | (16.3 | %) | |||||||
| Net Income for the period | 91,327 | 98,786 | (7,459 | ) | (7.6 | %) | |||||||
| Net Earnings per Share – Basic and Diluted | $ | 1.25 | $ | 1.30 | (0.05 | ) | (3.8 | %) | |||||
| Non-IFRS Measures* | |||||||||||||
| Adjusted Operating Income | $ | 213,042 | $ | 226,629 | (13,587 | ) | (6.0 | %) | |||||
| % of Sales | 5.9 | % | 5.9 | % | |||||||||
| Adjusted EBITDA | 446,707 | 483,098 | (36,391 | ) | (7.5 | %) | |||||||
| % of Sales | 12.3 | % | 12.5 | % | |||||||||
| Adjusted Net Income | 115,005 | 106,637 | 8,368 | 7.8 | % | ||||||||
| Adjusted Net Earnings per Share – Basic and Diluted | $ | 1.58 | $ | 1.40 | 0.18 | 12.9 | % | ||||||
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*Non-IFRS Measures
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The Company prepares its interim financial statements in accordance with IFRS. However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted Net Income”, “Adjusted Net Earnings per Share (on a basic and diluted basis)”, “Adjusted Operating Income”, “Adjusted EBITDA”, “Free Cash Flow”, “Free Cash Flow (after IFRS 16 lease payments)”, and “Net Debt”.
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The following tables provide a reconciliation of IFRS “Net Income” to Non-IFRS “Adjusted Net Income”, “Adjusted Operating Income” and “Adjusted EBITDA”:
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | ||||
| Net Income | $ | 35,762 | $ | 14,157 | |
| Adjustments, after tax* | 1,968 | – | |||
| Adjusted Net Income | $ | 37,730 | $ | 14,157 | |
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | ||||
| Net Income | $ | 91,327 | $ | 98,786 | |
| Adjustments, after tax* | 23,678 | 7,851 | |||
| Adjusted Net Income | $ | 115,005 | $ | 106,637 | |
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*Adjustments are explained in the “Adjustments to Net Income” section of this Press Release
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | |||||
| Net Income | $ | 35,762 | $ | 14,157 | ||
| Income tax expense | 9,865 | 33,276 | ||||
| Other finance expense (income) | 245 | (1,084 | ) | |||
| Share of loss of equity investments | 662 | 690 | ||||
| Finance expense | 15,951 | 18,840 | ||||
| Adjustments, before tax* | 2,511 | – | ||||
| Adjusted Operating Income | $ | 64,996 | $ | 65,879 | ||
| Depreciation of property, plant and equipment and right-of-use assets | 73,049 | 84,904 | ||||
| Amortization of development costs | 2,179 | 3,084 | ||||
| Loss on disposal of property, plant and equipment | 176 | 262 | ||||
| Adjusted EBITDA | $ | 140,400 | $ | 154,129 | ||
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | |||||
| Net Income | $ | 91,327 | $ | 98,786 | ||
| Income tax expense | 32,984 | 63,725 | ||||
| Other finance expense (income) | 4,221 | (8,140 | ) | |||
| Share of loss of equity investments | 1,997 | 2,147 | ||||
| Finance expense | 49,399 | 58,501 | ||||
| Adjustments, before tax* | 33,114 | 11,610 | ||||
| Adjusted Operating Income | $ | 213,042 | $ | 226,629 | ||
| Depreciation of property, plant and equipment and right-of-use assets | 227,366 | 246,808 | ||||
| Amortization of development costs | 5,988 | 8,172 | ||||
| Loss on disposal of property, plant and equipment | 311 | 1,489 | ||||
| Adjusted EBITDA | $ | 446,707 | $ | 483,098 | ||
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*Adjustments are explained in the “Adjustments to Net Income” section of this Press Release
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SALES
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Three months ended September 30, 2025 to three months ended September 30, 2024 comparison
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | $ Change | % Change | ||||||||||
| North America | $ | 912,455 | $ | 960,256 | (47,801 | ) | (5.0 | %) | |||||
| Europe | 247,552 | 250,499 | (2,947 | ) | (1.2 | %) | |||||||
| Rest of the World | 34,866 | 33,638 | 1,228 | 3.7 | % | ||||||||
| Eliminations | (4,072 | ) | (6,900 | ) | 2,828 | 41.0 | % | ||||||
| Total Sales | $ | 1,190,801 | $ | 1,237,493 | (46,692 | ) | (3.8 | %) | |||||
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The Company’s consolidated sales for the third quarter of 2025 decreased by $46.7 million or 3.8% to $1,190.8 million as compared to $1,237.5 million for the third quarter of 2024. The total decrease in sales was driven by year-over-year decreases in the North America and Europe operating segments, partially offset by a year-over-year increase in the Rest of the World.
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Sales for the third quarter of 2025 in the Company’s North America operating segment decreased by $47.8 million or 5.0% to $912.5 million from $960.3 million for the third quarter of 2024. The decrease was due to a decrease in tooling sales of $37.1 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; lower year-over-year OEM production volumes on certain light vehicle platforms, including the Ford Escape and Maverick, and Mercedes’ electric vehicle platform (EVA2); and programs that ended production during or subsequent to the third quarter of 2024, specifically the Chevrolet Malibu, and an aluminum engine block for Stellantis. These negative factors were partially offset by higher year-over-year production volumes of certain platforms, including the Jeep Grand Cherokee and Wagoneer, General Motors’ electric vehicle platforms (BEV3/BET), General Motors’ Equinox/Terrain, the Ford Mustang Mach E, and a transmission for the ZF Group; and the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the third quarter of 2025 of $1.3 million.
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Sales for the third quarter of 2025 in the Company’s Europe operating segment decreased by $2.9 million or 1.2% to $247.6 million from $250.5 million for the third quarter of 2024. The decrease was due to a decrease in tooling sales of $3.4 million, which are typically dependent of the timing of tooling construction and final acceptance by the customer; lower year-over-year OEM production volumes on certain platforms, including Jaguar Land Rover, and an aluminum engine block for Ford; and programs that ended production during or subsequent to the third quarter of 2024, specifically the BMW Mini. These negative factors were partially offset by higher year-over-year OEM production volumes on certain platforms, including a transmission for the ZF Group, the Stellantis’ Fiat Mini platform, and Mercedes’ electric vehicle platform (EVA2); the launch and ramp up of new programs during or subsequent to the third quarter of 2024, including Volkswagen’s new electric vehicle platform (PPE), and a transmission for Audi; and the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the third quarter of 2025 of $14.5 million.
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Sales for the third quarter of 2025 in the Company’s Rest of the World operating segment increased by $1.2 million or 3.7% to $34.9 million from $33.6 million in the third quarter of 2024. The increase was largely driven by higher year-over-year production volumes with General Motors and Mercedes, and an increase in tooling sales of $0.6 million; partially offset by lower volumes with Jaguar Land Rover.
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Overall tooling sales decreased by $38.6 million (including outside segment sales eliminations) to $31.6 million for the third quarter of 2025 from $70.2 million for the third quarter of 2024.
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Nine months ended September 30, 2025 to nine months ended September 30, 2024 comparison
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | $ Change | % Change | ||||||||||
| North America | $ | 2,777,876 | $ | 2,908,778 | (130,902 | ) | (4.5 | %) | |||||
| Europe | 771,557 | 871,469 | (99,912 | ) | (11.5 | %) | |||||||
| Rest of the World | 100,433 | 102,600 | (2,167 | ) | (2.1 | %) | |||||||
| Eliminations | (15,299 | ) | (19,648 | ) | 4,349 | 22.1 | % | ||||||
| Total Sales | $ | 3,634,567 | $ | 3,863,199 | (228,632 | ) | (5.9 | %) | |||||
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The Company’s consolidated sales for the nine months ended September 30, 2025 decreased by $228.6 million or 5.9% to $3,634.6 million as compared to $3,863.2 million for the nine months ended September 30, 2024. The total decrease in sales was driven by year-over-year decreases across all operating segments.
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Sales for the nine months ended September 30, 2025 in the Company’s North America operating segment decreased by $130.9 million or 4.5% to $2,777.9 million from $2,908.8 million for the nine months ended September 30, 2024. The decrease was due generally to lower year-over-year OEM production volumes on certain light vehicle platforms, including the Jeep Grand Cherokee and Wagoneer, the Ford Escape and Maverick, Mercedes’ electric vehicle platform (EVA2), Nissan Pathfinder and Rogue, and General Motors’ large pick-up truck and SUV platforms; and programs that ended production during or subsequent to the corresponding period of 2024, specifically the Chevrolet Malibu, an aluminum engine block for Stellantis, and the Ford Edge. These negative factors were partially offset by higher year-over-year production volumes on certain platforms, including General Motors’ electric vehicle platforms (BEV3/BET), Ford Mustang Mach E, the Toyota Tacoma, General Motors’ Equinox/Terrain, the Lucid Air, and a transmission for the ZF Group; the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the nine months ended September 30, 2025 of $72.2 million; and an increase in tooling sales of $21.2 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer. Overall industry-wide OEM light vehicle production volumes during the nine months ended September 30, 2025 decreased in North America by approximately 1% year-over-year.
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Sales for the nine months ended September 30, 2025 in the Company’s Europe operating segment decreased by $99.9 million or 11.5% to $771.6 million from $871.5 million for the nine months ended September 30, 2024. The decrease was due to lower year-over-year OEM production volumes on certain platforms, including aluminum engine blocks for Ford and Mercedes, Jaguar Land Rover, and the Mercedes’ electric vehicle platform (EVA2); programs that ended production during or subsequent to the corresponding period of 2024, specifically the BMW Mini; and a decrease in tooling sales of $45.4 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer. These negative factors were partially offset by the launch and ramp up of new programs, including Volkswagen’s new electric vehicle platform (PPE), and a transmission for Audi; higher year-over-year production volumes of certain platforms, including a transmission for the ZF Group, and the Lucid Air; and the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the nine months ended September 30, 2025 of $33.2 million. Overall industry-wide OEM light vehicle production volumes during the nine months ended September 30, 2025 decreased in Europe by approximately 2% year-over-year.
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Sales for the nine months ended September 30, 2025 in the Company’s Rest of the World operating segment decreased by $2.2 million or 2.1% to $100.4 million from $102.6 million for the nine months ended September 30, 2024. The decrease was largely driven by a decrease in tooling sales of $2.1 million, and lower year-over-year production volumes with Jaguar Land Rover and Mercedes; partially offset by higher year-over-year production volumes with General Motors.
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Overall tooling sales decreased by $24.2 million (including outside segment sales eliminations) to $150.5 million for the nine months ended September 30, 2025 from $174.7 million for the nine months ended September 30, 2024.
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GROSS MARGIN
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Three months ended September 30, 2025 to three months ended September 30, 2024 comparison
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | $ Change | % Change | |||||||||
| Gross margin | $ | 169,972 | $ | 163,350 | 6,622 | 4.1 | % | |||||
| % of Sales | 14.3 | % | 13.2 | % | ||||||||
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The gross margin percentage for the third quarter of 2025 of 14.3% increased as a percentage of sales by 1.1% as compared to the gross margin percentage for the third quarter of 2024 of 13.2%. The increase in gross margin as a percentage of sales was generally due to:
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- a decrease in tooling sales which typically earn low margin for the Company;
- productivity and efficiency improvements at certain operating facilities and other improvements; and
- lower year-over-year depreciation expense due to impairment charges recorded during the fourth quarter of 2024.
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These factors were partially offset by:
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- overall lower production sales volume and corresponding contribution; and
- operational inefficiencies at certain operating facilities.
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Nine months ended September 30, 2025 to nine months September 30, 2024 comparison
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | $ Change | % Change | ||||||||||
| Gross margin | $ | 506,106 | $ | 519,517 | (13,411 | ) | (2.6 | %) | |||||
| % of Sales | 13.9 | % | 13.4 | % | |||||||||
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The gross margin percentage for the nine months ended September 30, 2025 of 13.9% increased as a percentage of sales by 0.5% as compared to the gross margin percentage for the nine months ended September 30, 2024 of 13.4%. The increase in gross margin as a percentage of sales was generally due to:
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- productivity and efficiency improvements at certain operating facilities and other improvements;
- a decrease in tooling sales which typically earn low margin for the Company; and
- lower year-over-year depreciation expense due to impairment charges recorded during the fourth quarter of 2024.
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These factors were partially offset by:
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- overall lower production sales volume and corresponding contribution; and
- operational inefficiencies at certain other operating facilities.
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Overall market related inflationary pressures on labour, material and energy costs, along with offsetting commercial settlements, were generally stable year-over-year.
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ADJUSTMENTS TO NET INCOME
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Adjusted Net Income excludes certain items as set out in the following tables and described in the notes thereto. Management uses Adjusted Net Income as a measurement of operating performance of the Company and believes that, in conjunction with IFRS measures, it provides useful information about the financial performance and condition of the Company.
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TABLE A
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Three months ended September 30, 2025 to three months ended September 30, 2024 comparison
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | $ Change | ||||||||
| NET INCOME | $ | 35,762 | $ | 14,157 | $ | 21,605 | ||||
| Adjustments: | ||||||||||
| Restructuring costs (1) | 2,511 | – | 2,511 | |||||||
| ADJUSTMENTS, BEFORE TAX | $ | 2,511 | $ | – | $ | 2,511 | ||||
| Tax impact of adjustments | (543 | ) | – | (543 | ) | |||||
| ADJUSTMENTS, AFTER TAX | $ | 1,968 | $ | – | $ | 1,968 | ||||
| ADJUSTED NET INCOME | $ | 37,730 | $ | 14,157 | $ | 23,573 | ||||
| Number of Shares Outstanding – Basic (‘000) | 72,788 | 74,629 | ||||||||
| Adjusted Basic Net Earnings Per Share | $ | 0.52 | $ | 0.19 | ||||||
| Number of Shares Outstanding – Diluted (‘000) | 72,788 | 74,630 | ||||||||
| Adjusted Diluted Net Earnings Per Share | $ | 0.52 | $ | 0.19 | ||||||
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TABLE B
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Nine months ended September 30, 2025 to nine months ended September 30, 2024 comparison
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | $ Change | |||||||||
| NET INCOME | $ | 91,327 | $ | 98,786 | $ | (7,459 | ) | ||||
| Adjustments: | |||||||||||
| Restructuring costs (1) | 33,114 | 11,610 | 21,504 | ||||||||
| ADJUSTMENTS, BEFORE TAX | $ | 33,114 | $ | 11,610 | $ | 21,504 | |||||
| Tax impact of adjustments | (9,436 | ) | (3,759 | ) | (5,677 | ) | |||||
| ADJUSTMENTS, AFTER TAX | $ | 23,678 | $ | 7,851 | $ | 15,827 | |||||
| ADJUSTED NET INCOME | $ | 115,005 | $ | 106,637 | $ | 8,368 | |||||
| Number of Shares Outstanding – Basic (‘000) | 72,788 | 76,191 | |||||||||
| Adjusted Basic Net Earnings Per Share | $ | 1.58 | $ | 1.40 | |||||||
| Number of Shares Outstanding – Diluted (‘000) | 72,788 | 76,194 | |||||||||
| Adjusted Diluted Net Earnings Per Share | $ | 1.58 | $ | 1.40 | |||||||
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(1) Restructuring costs
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Additions to the restructuring provision during the three and nine months ended September 30, 2025 totalled $2.5 million and $33.1 million, respectively, and represent employee-related severance resulting from the rightsizing of certain operations in Germany, Mexico, Canada, and the United States
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Additions to the restructuring provision during the nine months ended September 30, 2024 totalled $11.6 million and represent employee-related severance resulting from the rightsizing of certain operations in Germany, Mexico Canada, and the United States.
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NET INCOME
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Three months ended September 30, 2025 to three months ended September 30, 2024 comparison
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| Three months ended September 30, 2025 | Three months ended September 30, 2024 | $ Change | % Change | |||||||
| Net Income | $ | 35,762 | $ | 14,157 | 21,605 | 152.6 | % | |||
| Adjusted Net Income | 37,730 | 14,157 | 23,573 | 166.5 | % | |||||
| Net Earnings per Share | ||||||||||
| Basic and Diluted | $ | 0.49 | $ | 0.19 | ||||||
| Adjusted Net Earnings per Share | ||||||||||
| Basic and Diluted | $ | 0.52 | $ | 0.19 | ||||||
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Net Income, before adjustments, for the third quarter of 2025 increased by $21.6 million to $35.8 million or $0.49 per share, on a basic and diluted basis, from Net Income of $14.2 million or $0.19 per share, on a basic and diluted basis, for the third quarter of 2024. Excluding the adjustments explained in Table A under “Adjustments to Net Income”, Adjusted Net Income for the third quarter of 2025 increased by $23.6 million to $37.7 million or $0.52 per share, on a basic and diluted basis, from $14.2 million or $0.19 per share, on a basic and diluted basis, for the third quarter of 2024.
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Adjusted Net Income for the third quarter of 2025, as compared to the third quarter of 2024, was positively impacted by the following:
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- a higher gross margin as previously explained;
- a $2.9 million year-over-year decrease in finance expense as a result of decreased debt levels and lower borrowing rates on the Company’s revolving bank debt; and
- a lower effective tax rate (21.6% for the third quarter of 2025 compared to 70.2% for the third quarter of 2024). The Company’s effective tax rate is impacted by the IFRS accounting treatment of the fluctuations of the Mexican Peso against the U.S. dollar that does not impact cash.
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These factors were partially offset by a year-over-year increase in SG&A expense, as previously explained.
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Nine months ended September 30, 2025 to nine months ended September 30, 2024 comparison
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| Nine months ended September 30, 2025 | Nine months ended September 30, 2024 | $ Change | % Change | ||||||||
| Net Income | $ | 91,327 | $ | 98,786 | (7,459 | ) | (7.6 | %) | |||
| Adjusted Net Income | 115,005 | 106,637 | 8,368 | 7.8 | % | ||||||
| Net Earnings per Share | |||||||||||
| Basic and Diluted | $ | 1.25 | $ | 1.30 | |||||||
| Adjusted Net Earnings per Share | |||||||||||
| Basic and Diluted | $ | 1.58 | $ | 1.40 | |||||||
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Net Income, before adjustments, for the nine months ended September 30, 2025 decreased by $7.5 million to $91.3 million or $1.25 per share, on a basic and diluted basis, from Net Income of $98.8 million or $1.30 per share, on a basic and diluted basis, for the nine months ended September 30, 2024. Excluding the adjustments explained in Table B under “Adjustments to Net Income”, Adjusted Net Income for the nine months ended September 30, 2025 increased by $8.4 million to $115.0 million or $1.58 per share on a basic and diluted basis, from $106.6 million or $1.40 per share on a basic and diluted basis, for the nine months ended September 30, 2024.
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Adjusted Net Income for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, was positively impacted by the following:
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- a $9.1 million year-over-year decrease in finance expense as a result of decreased debt levels and lower borrowing rates on the Company’s revolving bank debt; and
- a lower effective tax rate (26.9% for the nine months ended September 30, 2025 compared to 38.8% for the nine months ended September 30, 2024). The Company’s effective tax rate is impacted by the IFRS accounting treatment of the fluctuations of the Mexican Peso against the U.S. dollar that does not impact cash.
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These factors were partially offset by the following:
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- lower gross margin from lower year-over-year sales volume;
- a net foreign exchange loss of $3.9 million for the nine months ended September 30, 2025 compared to a gain of $8.1 million for the nine months ended September 30, 2024; and
- a $1.1 million year-over-year increase in research and development costs driven generally by increased new product and process development activity.
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DIVIDEND
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A cash dividend of $0.05 per share has been declared by the Board of Directors payable to shareholders of record on December 31, 2025, on or about January 15, 2026.
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ABOUT MARTINREA
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Martinrea International Inc. is a leader in the development and production of quality metal parts, assemblies and modules, fluid management systems, and complex aluminum products focused primarily on the automotive sector. Martinrea currently operates in 57 locations in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa, and Japan. Martinrea’s vision is making lives better by being the best supplier we can be in the products we make and the services we provide. For more information on Martinrea, please visit www.martinrea.com. Follow Martinrea on X and Facebook.
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CONFERENCE CALL DETAILS
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A conference call to discuss the financial results will be held on Tuesday, November 11, 2025 at 5:30 p.m. Eastern Time. To participate, please dial 416-855-9085 (Toronto area) or 800-990-2777 (toll free Canada and US) and enter conference ID – 53112#. Please call 10 minutes prior to the start of the conference call.
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