Linamar President & CEO Jim Jarrell said during the company’s Q4 earnings call that they’ve seen a reluctance from dealers to stock wholegoods as they are “still remaining cautious about their inventory levels given farmer buying intentions.
“This is impacted by the large federal stimulus package, which was expected in 2025 that did not materialize. It was announced very late in '25, but will only begin to flow now in early spring of '26.”
He added that the benefits of the stimulus package are only expected to help the working capital and operating lines required to support spring crop inputs.
According to Jarrell, while dealer inventories and credit lines have receded, they are still elevated.
Linamar is the parent company of MacDon, Salford and Bourgault, and all three brands tracked largely in line with the North American market in 2025, Jarrell said.
While the ag division was down 27%, the company reported marketshare improvements in key segments including combine drapers in the U.S. and Europe, tillage marketshare in the U.S. and air seeder marketshare in the U.S.
Jarrell said, “With a view to the coming year in the ag cycle overall, some peers have stated that '25 was a trough, while others are saying later '26 before the industry turns positive again in '27. We will continue to monitor global trade tensions, government bridge payments and channel inventories to react to those market signals. As always, our focus at Linamar Agriculture will be on maintaining market-leading positions, solutions that drive technology, productivity improvements and global growth.”
CFO Dale Schneider noted that agriculture equipment markets are expected to remain down year-over-year in 2026, with global volumes down mid-single digits. North America, however, is expected to experience a more pronounced double-digit decline, he said.
That said, Schneider said the rate of decline is moderating, and Linamar expects stabilization in the second half vs. 2025.
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