Toronto, Ontario -- After facing a winter of discontent, are Canada's automotive aftermarket companies regaining lost ground?
During the coldest months of the year, aftermarket companies faced brutal declines due to persistent headwinds and the pall they cast on investor sentiment. With the warmer weather, however, several major players have managed to reverse the months of decline over the course of a few weeks.
Linamar Rebounds
Linamar Corp., a Guelph-based precision parts manufacturer for the automotive and industrial markets, has seen its shares jumped from CAD 36.89 to about CAD 62.14 since May 1 — a rise of approximately 68.5 percent.
While the gains appear dramatic, the company is, in fact still regaining ground lost since the beginning of 2025. Earlier in the year, Linamar’s stock had faced precipitous declines as concerns about falling vehicle production and ongoing trade tensions with the U.S. reached their apex.
Some of its gains can be attributed to a better-than-expected performance revealed in its quarterly report for Q1 of 2025. While revenues fell seven percent year-over-year to $ 2.53 billion, the company’s normalized operating earnings grew 3.4 percent to $252 million. Normalized net earnings increased five percent to $167.2 million, while earnings-per-share rose 6.6 percent to $ 2.76. The company also improved its cash flow, generating $76.4 million free cash flow, and raised its quarterly dividend to $0.29-per-share
Despite the dramatic gains, the stock remains somewhat below its value in October, 2024.
Martinrea Holds Steady
Martinrea International, the Vaughan-based supplier of lightweight metal assemblies and propulsion systems, has seen its share price hold steady over the past month. Shares rose slightly from $7.30 on May 1 to $8.34 on June 9, a modest increase of 14.2 percent.
The company’s performance reflects cautious investor sentiment, shaped by ongoing pressure in global vehicle production and uncertain macroeconomic conditions. While no major financial updates were released during the period, Martinrea did announce a share buyback program at the end of May, authorizing the repurchase of up to ten percent of its public float. The move appeared to signal confidence from management but has yet to meaningfully shift market momentum.
Despite the bump in June, shares remain well below their value from early 2024.
AutoCanada Accelerates
AutoCanada, the Edmonton-based dealer group with operations across Canada and several U.S. locations, has seen shares climb from $16.05 on May 1 to $22.72 on June 9 — a 41.5 percent gain.
The company’s first-quarter results, released mid-May, exceeded market expectations with adjusted EBITDA of $43 million and a 12.8 percent increase in parts and service gross profit.
AutoCanada also completed the sale of certain U.S. assets and finalized a new credit facility, helping to improve liquidity and reduce leverage. Analysts reacted positively to the developments, though share price targets suggest expectations remain tempered.
Shares remain down slightly compared to their 52-week high, which was reached in July 2024.
