FIRST-QUARTER HIGHLIGHTS
Total sales of $1,125.4 million, production sales of $1,082.2 million.
Diluted Net Earnings per Share of $0.39 and Adjusted Net Earnings per Share(1) of $0.45.
Adjusted EBITDA(1) of $137.7 million, 12.2% of total sales.
Adjusted Operating Income Margin(1) of 5.5%, up 20 basis points year over year and 90 basis points quarter-over-quarter.
Free Cash Flow(1) (excluding principal payments of IFRS 16 lease liabilities) was ($35.2) million, reflecting a normal seasonal build in non-cash working capital.
Net Debt to Adjusted EBITDA(1) ratio, excluding the impact of IFRS 16, ended the first quarter at 1.60x.
New business awards worth approximately $90 million in annualized sales at mature volumes; new business awards over the last 12 months total approximately $370 million in annualized sales.
Quarterly cash dividend of $0.05 per share declared.
2026 outlook reaffirmed.
OVERVIEW
Pat D'Eramo, Chief Executive Officer, stated: "We are very pleased with our performance in the first quarter. Adjusted Operating Income Margin(1) was higher year over year on lower production sales, as we continued to drive operating improvements across the organization. Our first-quarter performance was a notable improvement over the fourth quarter, with Adjusted Operating Income Margin(1) almost a full percentage point higher. We continue to monitor and address the impact of tariffs on our business, including the recent amendments to Section 232 tariffs impacting derivative steel and aluminum products. The vast majority of parts we export to the U.S. are USMCA-compliant and therefore exempt from tariffs. While the section 232 amendments affect some inputs we receive from our Tier 2 suppliers, the impact is modest and expected to be absorbed by our customers."
He continued: "I am excited to announce that we have recently launched a lean consultancy business named TruNorth Kaizen. This business leverages the expertise and skill set we have built up over the years through our Martinrea Operating System and makes it available to external parties to help improve their operations. The acquisition of Lyseon North America, which we now call Martinrea Tulsa, started as a consulting engagement. Knowing we were on to something, we formally launched TruNorth, and have since won a contract with a supplier of aerospace components, and more recently, a significant job with a large U.S. aerospace/defence company that we believe could ultimately lead to manufacturing opportunities in the rapidly growing industry."
________________________________
1 The Company prepares its interim financial statements in accordance with IFRS Accounting Standards ("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, included anywhere in this press release, 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". The relevant IFRS financial measure, as applicable, and a reconciliation of certain non-IFRS financial measures to measures determined in accordance with IFRS are contained in the Company's Management Discussion and Analysis for the three months ended March 31, 2026 and in this press release.
Fred Di Tosto, President, stated: "I am pleased to announce that we have been awarded new business representing approximately $90 million in annualized sales at mature volumes, consisting of various structural components in our Lightweight Structures commercial group with General Motors and BMW. New business awards over the last 12 months total $370 million in annualized sales, with approximately $150 million reflecting takeover business we have secured from financially challenged or underperforming suppliers. In addition, we have recently won business on several program extensions with various customers exceeding well over $1 billion in annualized sales. We are experiencing strong momentum in quoting activity at the moment."
Peter Cirulis, Chief Financial Officer, stated: "Our first quarter results reflected solid margin performance on lower production sales, and demonstrates continued execution progress, consistent with our full-year objectives. Sales (excluding tooling sales of $43.2 million) were $1,082.2 million. Adjusted Operating Income(1) was $61.6 million, and Adjusted Operating Income Margin(1) of 5.5% was up 20 basis points year over year and 90 basis points quarter-over-quarter. Free Cash Flow(1) (excluding principal payments of IFRS 16 lease liabilities) of ($35.2) million reflected a normal seasonal build in working capital. Net Debt to Adjusted EBITDA(1) (excluding IFRS 16 lease liabilities) ended the quarter at 1.60x. Effective January 1, 2026, we adopted amendments to IFRS 9 and IFRS 7. This resulted in a $43.7 million reduction to opening cash and cash equivalents, with a modest impact on our Net Debt to EBITDA ratio (excluding IFRS 16 lease liabilities) which would have been 1.53x excluding the impact of the amendments. There is no change to the underlying economics of the business. Overall, we are well-positioned to deliver on our 2026 outlook, which calls for total sales of $4.5 to $4.9 billion, Adjusted Operating Income Margin(1) of 5.5% to 6%, and Free Cash Flow(1) of $125 to $175 million."
Rob Wildeboer, Executive Chairman, stated: "We continue to execute well, both operationally and financially. We are managing what's in our control, and mitigating what isn't through a focus on continuous improvement, cost reduction, leveraging investments in automation and machine learning, and commercial settlements with our customers. We take a balanced approach to capital allocation which includes investing in the business, maintaining a strong balance sheet, and returning capital to shareholders through dividends and share repurchases. We believe our shares represent an attractive investment opportunity, particularly at the current valuation. As such, we repurchased 1.1 million shares under our normal course issuer bid during the first quarter, representing 1.5% of total shares outstanding, for $11.0 million. Given our view on valuation and our expectation that we will reach a positive outcome on trade negotiations, we intend, subject to TSX acceptance, to renew our normal course issuer bid when it expires in May 2026. At the same time, we expect to maintain leverage within our target of 1.5x Net Debt-to-Adjusted EBITDA(1) (excluding IFRS-16 lease liabilities) on a full-year basis. On behalf of the executive management team, we would like to thank our people for their hard work and commitment, as well as our shareholders and other stakeholders for their ongoing support."
RESULTS OF OPERATIONS
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.
Additional information about the Company, including the Company's Management Discussion and Analysis of Operating Results and Financial Position for the three months ended March 31, 2026 ("MD&A"), the Company's interim condensed consolidated financial statements for the three months ended March 31, 2026 (the "interim financial statements") and the Company's Annual Information Form for the year ended December 31, 2025 can be found on the Company's profile at www.sedarplus.ca.
OVERALL RESULTS
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.
The following table sets out certain highlights of the Company's performance for the three months ended March 31, 2026 and 2025. Refer to the Company's interim financial statements for the three months ended March 31, 2026 for a detailed account of the Company's performance for the periods presented in the table below.
Three months endedMarch 31, 2026
Three months endedMarch 31, 2025
$ Change
% Change
Sales
$
1,125,429
$
1,168,231
(42,802
)
(3.7
%)
Gross Margin
149,228
151,599
(2,371
)
(1.6
%)
Operating Income
55,426
45,105
10,321
22.9
%
Net Income for the period
27,854
17,474
10,380
59.4
%
Net Earnings per Share - Basic and Diluted
$
0.39
$
0.24
0.15
62.5
%
Non-IFRS Measures*
Adjusted Operating Income
$
61,622
$
61,942
(320
)
(0.5
%)
% of Sales
5.5
%
5.3
%
Adjusted EBITDA
137,730
140,921
(3,191
)
(2.3
%)
% of Sales
12.2
%
12.1
%
Adjusted Net Income
32,469
29,520
2,949
10.0
%
Adjusted Net Earnings per Share - Basic and Diluted
$
0.45
$
0.41
0.04
9.8
%
*Non-IFRS Measures
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".
The following tables provide a reconciliation of IFRS "Net Income" to Non-IFRS "Adjusted Net Income", "Adjusted Operating Income" and "Adjusted EBITDA":
Three months endedMarch 31, 2026
Three months endedMarch 31, 2025
Net Income
$
27,854
$
17,474
Adjustments, after tax*
4,615
12,046
Adjusted Net Income
$
32,469
$
29,520
*Adjustments are explained in the "Adjustments to Net Income" section of this Press Release
Three months ended March 31, 2026
Three months ended March 31, 2025
Net Income
$
27,854
$
17,474
Income tax expense
11,833
7,915
Other finance expense
942
2,231
Share of loss of equity investments
986
797
Finance expense
13,811
16,688
Adjustments, before tax*
6,196
16,837
Adjusted Operating Income
$
61,622
$
61,942
Depreciation of property, plant and equipment and right-of-use assets
73,888
77,135
Amortization of development costs
2,194
1,795
Loss on disposal of property, plant and equipment
26
49
Adjusted EBITDA
$
137,730
$
140,921
*Adjustments are explained in the "Adjustments to Net Income" section of this Press Release
SALES
Three months ended March 31, 2026 to three months ended March 31, 2025 comparison
Three months ended March 31, 2026
Three months ended March 31, 2025
$ Change
% Change
North America
$
847,966
$
885,060
(37,094
)
(4.2
%)
Europe
252,268
255,338
(3,070
)
(1.2
%)
Rest of the World
29,055
33,749
(4,694
)
(13.9
%)
Eliminations
(3,860
)
(5,916
)
2,056
34.8
%
Total Sales
$
1,125,429
$
1,168,231
(42,802
)
(3.7
%)
The Company's consolidated sales for the first quarter of 2026 decreased by $42.8 million or 3.7% to $1,125.4 million as compared to $1,168.2 million for the first quarter of 2025. The total decrease in sales was driven by year-over-year decreases across all operating segments.
Sales for the first quarter of 2026 in the Company's North America operating segment decreased by $37.1 million or 4.2% to $848.0 million from $885.1 million for the first quarter of 2025. The operations acquired from Lyseon North America Inc., results for which were consolidated with those of the Company effective October 20, 2025, contributed $15.3 million of year-over-year sales to the North America operating segment. Excluding the acquired operations, first quarter sales in North America decreased by $52.4 million or 5.9%. The decrease was due to programs that ended production during or subsequent to the first quarter of 2025, specifically the Ford Escape; lower year-over-year OEM production volumes on certain light vehicle platforms, including General Motors' electric vehicle platforms (BEV3/BET), General Motors' large pick-up truck and SUV platforms, the Lucid Air, the Ford Mustang Mach E, and Mercedes' electric vehicle platform (EVA2); and the impact of foreign exchange on the translation of U.S. denominated production sales, which had a negative impact on overall sales for the first quarter of 2026 of $26.5 million. These negative factors were partially offset by higher year-over-year OEM production volumes on certain platforms, including the Jeep Grand Cherokee and Wagoneer, General Motors' Equinox/Terrain, Nissan Pathfinder and Rogue, and a transmission for the ZF Group; the launch and ramp up of new programs, including Volvo's new electric vehicle platform (EX90), and General Motors' new electric vehicle platform (Chevrolet Bolt); and an increase in tooling sales of $8.8 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer. Overall first quarter industry-wide OEM light vehicle production volumes in North America decreased by approximately 2% year-over-year.
Sales for the first quarter of 2026 in the Company's Europe operating segment decreased by $3.1 million or 1.2% to $252.3 million from $255.3 million for the first quarter of 2025. The decrease was due to lower year-over-year OEM production volumes on certain platforms, including the Lucid Air, Volkswagen's new electric vehicle platform (PPE), an aluminum engine block for Mercedes, Jaguar Land Rover, Mercedes' electric vehicle platform (EVA2), and a transmission for the ZF Group; and a decrease in tooling sales of $3.8 million, which are typically dependent of the timing of tooling construction and final acceptance by the customer. These negative factors were partially offset by the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the first quarter of 2026 of $19.1 million; and higher year-over-year OEM production volumes on certain platforms, including an aluminum engine block for Ford. Overall first quarter industry-wide OEM light vehicle production volumes in Europe decreased by approximately 1% year-over-year.
Sales for the first quarter of 2026 in the Company's Rest of the World operating segment decreased by $4.7 million or 13.9% to $29.1 million from $33.7 million for the first quarter of 2025. The decrease was largely driven by a decrease in tooling sales of $5.2 million, and lower year-over-year production volumes with Mercedes, BMW, and General Motors; partially offset by higher year-over-year production volumes with Jaguar Land Rover.
Overall tooling sales increased by $0.6 million (including outside segment sales eliminations) to $43.2 million for the first quarter of 2026 from $42.6 million for the first quarter of 2025.
GROSS MARGIN
Three months ended March 31, 2026 to three months ended March 31, 2025 comparison
Three months ended March 31, 2026
Three months ended March 31, 2025
$ Change
% Change
Gross margin
$
149,228
$
151,599
(2,371
)
(1.6
%)
% of Sales
13.3
%
13.0
%
The gross margin percentage for the first quarter of 2026 of 13.3% increased as a percentage of sales by 0.3% as compared to the gross margin percentage for the first quarter of 2025 of 13.0%. The increase in gross margin as a percentage of sales was generally due to:
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 2025.
These factors were partially offset by:
overall lower production sales volume and corresponding contribution; and
operational inefficiencies at certain other operating facilities.
ADJUSTMENTS TO NET INCOME
Adjusted Net Income excludes certain items as set out in the following table 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.
TABLE A
Three months ended March 31, 2026 to three months ended March 31, 2025 comparison
Three months ended March 31, 2026
Three months ended March 31, 2025
$ Change
NET INCOME
$
27,854
$
17,474
$
10,380
Adjustments:
Restructuring costs (1)
6,196
16,837
(10,641
)
ADJUSTMENTS, BEFORE TAX
$
6,196
$
16,837
$
(10,641
)
Tax impact of adjustments
(1,581
)
(4,791
)
3,210
ADJUSTMENTS, AFTER TAX
$
4,615
$
12,046
