Martinrea International Inc. Reports Year End and Fourth Quarter Results, Announces Dividend, and Issues 2026 and 2028 Outlook

Martinrea International Inc. Reports Year End and Fourth Quarter Results, Announces Dividend, and Issues 2026 and 2028 Outlook TORONTO, March 05, 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 fourth quarter and year ended December 31, 2025, and declared a quarterly cash dividend of $0.05 per share.

HIGHLIGHTS

Full Year 2025:

Fourth Quarter 2025:

OVERVIEW

Pat D’Eramo, Chief Executive Officer, stated: “Our Company had some notable achievements in 2025. We generated a record level of Free Cash Flow ( 1 ) and further strengthened our balance sheet. Our safety record continues to be world class, with a Total Recordable Injury Frequency of 0.71 – a 28% improvement over 2024, and notably better than the industry average. We won several quality awards from our customers. Our Advanced Manufacturing Team (AMT) made further progress with machine learning installations across our network, and we acquired a 10% equity stake in Polyalgorithm Machine Learning Inc. (PolyML), a provider of machine learning AI solutions used by Martinrea for adaptive welding and press health monitoring. In addition, we acquired the assets of Lyseon North America Inc., a manufacturer of metal parts and assemblies, primarily for school buses.”

He continued: “We are pleased with our performance in the fourth quarter, both operationally and financially, as we continue to execute on sales, operating improvements, and commercial recoveries with our customers, largely for volume shortfalls on EV programs. We are navigating the impact of tariffs on our business, and I am pleased to report that we have been successful in negotiating the recovery of the vast majority of our tariff costs through agreements with our OEM customers. For the full year of 2025, we met our outlook for sales and Adjusted Operating Income Margin ( 1 ), which came in at 5.6%, above the midpoint of our 5.3%-5.8% outlook range.”

Peter Cirulis, Chief Financial Officer, stated: “We are pleased with our Free Cash Flow ( 1 ) performance during 2025, which came in at $199.0 million (excluding principal payments of IFRS 16 lease liabilities), a new record for the Company, and above the high end of our 2025 outlook range of $125-$175 million. This reflects our strong operating performance and capital discipline, including the optimization and reuse of existing assets. Net Debt-to-Adjusted EBITDA (1) (excluding IFRS 16 impact) ended the year at 1.35x, well within our target of 1.5x or better. We achieved this while resuming our share buyback activity under our normal course issuer bid, repurchasing approximately 779,000 shares for $8.0 million in the fourth quarter. Looking at the fourth quarter, sales, excluding tooling sales of $60.6 million, were $1,126.7 million. Adjusted Operating Income Margin ( 1 ) of 4.6% was up 110 basis points year over year on production sales that were up about 7%, or 6% excluding approximately $14 million in sales from the acquisition of Lyseon North America Inc.”

Fred Di Tosto, President, stated: “I am pleased to announce that we have been awarded new business representing $210 million in annualized sales at mature volumes, consisting of approximately $180 million in Lightweight Structures with Stellantis, Toyota, General Motors, Audi and others, $20 million in Propulsion Systems with Stellantis and Ford, and $10 million in our Flexible Manufacturing Group with Volvo Truck and JCB. Over the last twelve months, we have been awarded new business worth approximately $340 million in annualized sales at mature volumes. Quoting activity is robust, and we have recently won several program extensions with a value of over $1 billion in annualized sales.”

Rob Wildeboer, Executive Chairman, stated: “Our financial performance in 2026 is expected to be broadly consistent with 2025, as the end of the Ford Escape program is expected to be offset by continued operating and other improvements. Our 2026 outlook calls for total sales of $4.5 to $4.9 billion, an Adjusted Operating Income Margin ( 1 ) of 5.5% to 6.0%, and continued solid Free Cash Flow ( 1 ), in a range of $125 to $175 million (excluding principal payments of IFRS 16 lease liabilities).”

He continued: “Looking further out, we see a lot of opportunity for our business, including inquiries from our customers asking us to look at taking over business from distressed suppliers. We also see opportunities from the rebalancing of global trade that should result in meaningful volumes being reshored to the U.S., increased quoting activity, and potential acquisitions. The cadence of our launches should contribute meaningful organic sales growth over the next few years. Based on our Board-approved budgets, we expect total sales of between $5.3 and $5.5 billion in 2028, assuming no major acquisitions. This should help drive Adjusted Operating Income Margin ( 1 ) to a range of 6.5% to 7.0%. To our shareholders and all our stakeholders, thank you for your continued 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 year ended December 31, 2025 (“MD&A”), the Company’s audited consolidated financial statements for the year ended December 31, 2025 (the “audited consolidated financial statements”) and the Company’s Annual Information Form for the year ended December 31, 2025 can be found 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 tables set out certain highlights of the Company’s performance for the three months and years ended December 31, 2025 and 2024. Refer to the Company’s consolidated financial statements for the year ended December 31, 2025 for a detailed account of the Company’s performance for the periods presented in the tables below.

*Adjusted Net Income and Adjusted Net Earnings per Share for the three months and year ended December 31, 2025 were positively impacted by an unusually low effective tax rate. This was driven primarily by the magnitude and pace of the appreciation of the Mexican Peso against the U.S. dollar, which is the functional currency of the Company’s Mexican operations. In situations where the local and functional currencies differ, IFRS, contrary to US GAAP, requires the tax value of assets and liabilities denominated in local currency to be revalued to the operations' functional currency at the reporting date, with the related foreign exchange movements impacting the tax expense for the period. These foreign exchange movements are non-cash in nature, do not impact cash taxes and tend to balance out over time. Including this, and other foreign exchange related items, the effective tax rate for the year ended December 31, 2025 was 17.3%. Excluding these foreign exchange items, the effective tax rate for the year would have been 32.6%. Using this normalized tax rate of 32.6%, Adjusted Net Earnings per Share would have been $0.37 for the three months ended December 31, 2025, and $1.83 for the year ended December 31, 2025.

**Non-IFRS Measures

The Company prepares its consolidated 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 (Loss)”, “Adjusted Net Earnings (Loss) 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 (Loss)” to Non-IFRS “Adjusted Net Income (Loss)”, “Adjusted Operating Income” and “Adjusted EBITDA”:

*Adjustments are explained in the "Adjustments to Net Income (Loss)" section of this Press Release

SALES

Three months ended December 31, 2025 to three months ended December 31, 2024 comparison

The Company’s consolidated sales for the fourth quarter of 2025 increased by $36.4 million or 3.2% to $1,187.3 million as compared to $1,150.9 million for the fourth quarter of 2024. The total increase in sales was driven by year-over-year increases in the North America and Europe operating segments, partially offset by a year-over-year decrease in the Rest of the World.

Sales for the fourth quarter of 2025 in the Company’s North America operating segment increased by $19.4 million or 2.2% to $900.5 million from $881.0 million for the fourth quarter of 2024. The operations acquired from Lyseon North America, Inc. ("Lyseon"), results for which were consolidated with those of the Company effective October 20, 2025, contributed $14.2 million of year-over-year sales to the North America operating segment. Excluding the acquired operations, fourth quarter sales in North America increased by $5.2 million or 0.6%. The increase was due to higher year-over-year OEM production volumes on certain light vehicle platforms, including the Jeep Grand Cherokee and Wagoneer, General Motors' electric vehicle platforms (BEV3/BET), General Motors' large pick-up truck and SUV platforms, Nissan Pathfinder and Rogue, and General Motors' Equinox/Terrain; the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the fourth quarter of 2025 of $12.3 million; and 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). These positive factors were partially offset by a decrease in tooling sales of $43.1 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, the Lucid Air, the Ford Mustang Mach E, and Mercedes' electric vehicle platform (EVA2); and programs that ended production during or subsequent to the fourth quarter of 2024, specifically the Chevrolet Malibu.

Sales for the fourth quarter of 2025 in the Company’s Europe operating segment increased by $19.3 million or 7.9% to $262.9 million from $243.6 million for the fourth quarter of 2024. The increase was due to a higher year-over-year OEM production volumes on certain platforms, including aluminum engine blocks for Ford and Mercedes, a transmission for the ZF Group, and the Stellantis' Fiat Mini platform; the impact of foreign exchange on the translation of Euro denominated production sales, which had a positive impact on overall sales for the fourth quarter of 2025 of $18.0 million; an increase in tooling sales of $7.7 million, which are typically dependent of the timing of tooling construction and final acceptance by the customer; and the launch and ramp up of new programs during or subsequent to the fourth quarter of 2024, including a transmission for Audi. These positive factors were partially offset by lower year-over-year OEM production volumes on certain platforms, including the Lucid Air, Jaguar Land Rover, and Mercedes' electric vehicle platform (EVA2).

Sales for the fourth quarter of 2025 in the Company’s Rest of the World operating segment decreased by $5.3 million or 16.7% to $26.5 million from $31.9 million in the fourth quarter of 2024. The decrease was largely driven by a decrease in tooling sales of $6.3 million, and lower year-over-year production volumes with General Motors and Mercedes; partially offset by higher volumes with BMW.

Overall tooling sales decreased by $41.7 million (including outside segment sales eliminations) to $60.6 million for the fourth quarter of 2025 from $102.3 million for the fourth quarter of 2024.

Year ended December 31, 2025 to year ended December 31, 2024 comparison

The Company’s consolidated sales for the year ended December 31, 2025 decreased by $192.3 million or 3.8% to $4,821.9 million as compared to $5,014.1 million for the year ended December 31, 2024. The total decrease in sales was driven by year-over-year decreases across all operating segments.

Sales for the year ended December 31, 2025 in the Company’s North America operating segment decreased by $111.5 million or 2.9% to $3,678.4 million from $3,789.8 million for the year ended December 31, 2024. The operations acquired from Lyseon, results for which were consolidated with those of the Company effective October 20, 2025, contributed $14.2 million of year-over-year sales to the North America operating segment. Excluding the acquired operations, sales for the year ended December 31, 2025 in North America decreased by $125.7 million or 3.3%. The decrease was due to 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; lower year-over-year OEM production volumes on certain light vehicle platforms, including the Ford Escape and Maverick, Mercedes' electric vehicle platform (EVA2), the Jeep Grand Cherokee and Wagoneer, Nissan Pathfinder and Rogue, and General Motors' large pick-up truck and SUV platforms; and a decrease in tooling sales of $21.9 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer. These negative factors were partially offset by higher year-over-year OEM production volumes on certain platforms, including General Motors' electric vehicle platforms (BEV3/BET), the Toyota Tacoma, Ford Mustang Mach E, General Motors' Equinox/Terrain, a transmission for the ZF Group, and the Lucid Air; the impact of foreign exchange on the translation of U.S. denominated production sales, which had a positive impact on overall sales for the year ended December 31, 2025 of $84.3 million; and 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). Overall industry-wide OEM light vehicle production volumes during the year ended December 31, 2025 decreased in North America by approximately 1% year-over-year.

Sales for the year ended December 31, 2025 in the Company’s Europe operating segment decreased by $80.6 million or 7.2% to $1,034.4 million from $1,115.0 million for the year ended December 31, 2024. The decrease was due to lower year-over-year OEM production volumes on certain platforms, including Jaguar Land Rover, aluminum engine blocks for Ford and Mercedes, and the Mercedes' electric vehicle platform (EVA2); a decrease in tooling sales of $37.6 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; and programs that ended production during or subsequent to the corresponding period of 2024, specifically the BMW Mini. 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 year ended December 31, 2025 of $51.7 million; higher year-over-year OEM production volumes of certain platforms, including a transmission for the ZF Group, the Lucid Air, and the Stellantis' Fiat Mini platform; and the launch and ramp up of new programs, including Volkswagen's new electric vehicle platform (PPE), and a transmission for Audi. Overall industry-wide OEM light vehicle production volumes during the year ended December 31, 2025 decreased in Europe by approximately 1% year-over-year.

Sales for the year ended December 31, 2025 in the Company’s Rest of the World operating segment decreased by $7.5 million or 5.6% to $127.0 million from $134.5 million for the year ended December 31, 2024. The decrease was largely driven by lower year-over-year production volumes with Jaguar Land Rover and Mercedes, and a decrease in tooling sales of $8.4 million; partially offset by higher year-over-year production volumes with General Motors and BMW.

Overall tooling sales decreased by $65.9 million (including outside segment sales eliminations) to $211.2 million for the year ended December 31, 2025 from $277.1 million for the year ended December 31, 2024.

GROSS MARGIN

Three months ended December 31, 2024 to three months ended December 31, 2023

The gross margin percentage for the fourth quarter of 2025 of 11.9% increased as a percentage of sales by 0.7% as compared to the gross margin percentage for the fourth quarter of 2024 of 11.2%. The increase in gross margin as a percentage of sales was generally due to:

These factors were partially offset by operational inefficiencies at certain other operating facilities.

Year ended December 31, 2025 to year ended December 31, 2024 comparison

The gross margin percentage for the year ended December 31, 2025 of 13.4% increased as a percentage of sales by 0.5% as compared to the gross margin percentage for the year ended December 31, 2024 of 12.9%. The increase in gross margin as a percentage of sales was generally due to:

These factors were partially offset by:

Overall market related inflationary pressures on labour, material and energy costs, along with offsetting commercial settlements, were generally stable year-over-year.

ADJUSTMENTS TO NET INCOME (LOSS)

Adjusted Net Income (Loss) excludes certain items as set out in the following tables and described in the notes thereto. Management uses Adjusted Net Income (Loss) 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 December 31, 2025 to three months ended December 31, 2024 comparison

TABLE B

Year ended December 31, 2025 to year ended December 31, 2024 comparison

NET INCOME (LOSS)

Three months ended December 31, 2025 to three months ended December 31, 2024 comparison

Net Income (Loss), before adjustments, for the fourth quarter of 2025 increased by $149.0 million to a Net Income of $15.7 million or $0.22 per share, on a basic and diluted basis, from a Net Loss of $133.3 million or ($1.82) per share, on a basic and diluted basis, for the fourth quarter of 2024. Excluding the adjustments explained in Table A under "Adjustments to Net Income (Loss)", Adjusted Net Income (Loss) for the fourth quarter of 2025 increased by $63.9 million to Adjusted Net Income of $48.3 million or $0.67 per share, on a basic and diluted basis, from an Adjusted Net Loss of ($15.6) million or ($0.21) per share, on a basic and diluted basis, for the fourth quarter of 2024.

Adjusted Net Income for the fourth quarter of 2025, as compared to the fourth quarter of 2024, was positively impacted by the following:

Year ended December 31, 2025 to year ended December 31, 2024 comparison

Net Income (Loss), before adjustments, for the year ended December 31, 2025 increased by $141.5 million to a Net Income of $107.0 million or $1.47 per share, on a basic and diluted basis, from a Net Loss of $34.5 million or ($0.46) per share, on a basic and diluted basis, for the year ended December 31, 2024. Excluding the adjustments explained in Table B under “Adjustments to Net Income (Loss)”, Adjusted Net Income for the year ended December 31, 2025 increased by $72.3 million to $163.3 million or $2.25 per share on a basic and diluted basis, from $91.0 million or $1.21 per share on a basic basis, and $1.20 on a diluted basis, for the year ended December 31, 2024.

Adjusted Net Income for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was positively impacted by the following:

DIVIDEND

A cash dividend of $0.05 per share has been declared by the Board of Directors payable to shareholders of record on March 31, 2026, on or about April 15, 2026.

ABOUT MARTINREA

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.

CONFERENCE CALL DETAILS

A conference call to discuss the financial results will be held on Thursday, March 5, 2026 at 5:00 p.m. Eastern Time. To participate, please dial 416-855-9085 (Toronto area) or 800-990-2777 (toll free Canada and US) and enter participant code 29412#. Please call 10 minutes prior to the start of the conference call.

The conference call will also be webcast live in listen‐only mode and archived for twelve months. The webcast and accompanying presentation can be accessed at: https://www.martinrea.com/investor-relations/events-presentations/.

There will also be a rebroadcast of the call available by dialing 289-819-1325 or toll free 800-660-6264 (Conference ID – 29412#). The rebroadcast will be available until June 3, 2026.

If you have any teleconferencing questions, please call Ganesh Iyer at 416-749-0314.

FORWARD-LOOKING INFORMATION

Special Note Regarding Forward-Looking Statements

This Press Release and the documents incorporated by reference therein contains forward-looking statements within the meaning of applicable Canadian securities laws including those related to the Company’s expectations as to, or its views or beliefs in or on, the impact of, or duration of, or factors affecting, or expected response to or growth of, improvements in, expansion of and/or guidance or outlook (including for 2026 and 2028) as to future results, revenue, sales, margin, gross margin, earnings, and earnings per share, adjusted earnings per share, free cash flow, volumes, adjusted net earnings per share, operating income margins, operating margins, adjusted operating income margins, leverage ratios, net debt to adjusted EBITDA (1), debt repayment, Adjusted EBITDA (1), operational improvements, trade and tariffs, inflation, the growth of the Company and pursuit of, and belief in, its strategies (including expected improvements in Global Trade, reshoring to North America, increased quoting activity and potential acquisitions), investments in technology and expectations of benefits, the strength, recovery and growth of the automotive industry and continuing challenges, as well as other forward-looking statements. The words “continue”, “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “views”, “intend”, “believe”, “plan” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, such as expected sales and industry production estimates, current foreign exchange rates, timing of product launches and operational improvement during the period, and current Board approved budgets. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, some of which are discussed in detail in the Company’s AIF and MD&A for the year ended December 31, 2025, and other public filings which can be found at www.sedarplus.ca:

These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol “MRE”.

For further information, please contact:

Peter Cirulis

Chief Financial Officer

Martinrea International Inc.

3210 Langstaff Road

Vaughan, Ontario L4K 5B2

Tel: 416-749-0314

Fax: 289-982-3001

___________________________________

1 The Company prepares its 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 (Loss)”, “Adjusted Net Earnings (Loss) 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 year ending December 31, 2025 and in this press release.

Commitments and contingencies (note 23)

Subsequent events (notes 12 and 27)

See accompanying notes to the consolidated financial statements.

On behalf of the Board:

See accompanying notes to the consolidated financial statements.

*As at December 31, 2025, $51,215 (December 31, 2024 - $78,547) of purchases of property, plant and equipment remain unpaid and are recorded in trade and other payables.

See accompanying notes to the consolidated financial statements.