Earnings Alerts

Martinrea International (MRE) Earnings: 2Q Adjusted EPS Surpasses Expectations with 13% Increase

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  • Martinrea’s adjusted EPS for Q2 was C$0.66, surpassing the C$0.58 of the previous year and estimates of C$0.48.
  • The company achieved an adjusted net income of C$47.8 million, which is a 7.6% increase year-over-year, exceeding the estimated C$30.4 million.
  • Sales amounted to C$1.28 billion, a slight -2% compared to the previous year, but above the estimated sales of C$1.25 billion.
  • North America sales were C$980.4 million, down by -0.4% year-over-year.
  • In Europe, sales were C$268.7 million, reflecting a -6.4% year-over-year decrease.
  • Sales in the rest of the world were C$31.8 million, falling short of the C$39.4 million estimate, marking a -14% decline year-over-year.
  • The company maintains its 2025 outlook with expected total sales of $4.8 to $5.1 billion, adjusted operating income margin of 5.3% to 5.8%, and free cash flow between $125 to $175 million.
  • Q2 margins improved notably from Q1, showing continued progress.
  • Operational advancements and strategic programs aim to counteract significant impacts, including those from tariffs on certain materials.
  • Analysts’ consensus is comprised of 4 buy ratings, 2 hold ratings, and 0 sell ratings.

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A look at Martinrea International Smart Scores

FactorScoreMagnitude
Value5
Dividend3
Growth2
Resilience3
Momentum4
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Martinrea International Inc. manufactures metal parts, assemblies, and systems primarily for the automotive and industrial sectors. The company also produces automotive fluid management systems, tubing, tooling, and other related products. With Smartkarma Smart Scores indicating a high value score of 5, Martinrea International is positioned well in terms of its valuation. A strong value score suggests that the company is priced attractively relative to its fundamentals, potentially offering investment opportunities for value-oriented investors in the long term.

In addition to its strong value score, Martinrea International receives a solid momentum score of 4, indicating positive price trends and market sentiment. While the growth score is comparatively lower at 2, reflecting modest growth prospects, the company demonstrates resilience with a score of 3. Moreover, a dividend score of 3 suggests a moderate dividend payout, providing investors with some income potential alongside potential capital appreciation. Overall, with a mix of high value, decent dividends, and positive market sentiment, Martinrea International shows promise for long-term investors seeking a balanced investment proposition.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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