Is Linamar / LNR Halal?
Linamar Corporation (TSX: LNR) is a Guelph-based manufacturer of auto parts (Mobility segment) and Skyjack aerial work platforms plus agriculture equipment (Industrial segment), with 75 manufacturing locations across 19 countries. Manufacturing clears gate one, but ~37.6% debt-to-market-cap is over the ~33% ceiling — a FAIL on gate two, so it gets re-checked every quarter.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — PASS, with a flag
Linamar makes propulsion, structural, and chassis systems for vehicles (Mobility), Skyjack aerial work platforms and agriculture equipment (Industrial), plus medical devices. Manufacturing is a permissible business activity under AAOIFI-style screens, and no haram revenue segment is disclosed. One flag, stated plainly: on the 2026 earnings call, management said defence is becoming a relevant future platform — "a return to our roots" — and that it has made inroads with prime manufacturers; a company document references a Canadian defence supply contract. No defence revenue is disclosed in the financials, and no weapons production was found, so this is a stated ambition rather than current exposure — but any move into weapons manufacturing would change this gate. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-to-market-cap: ~37.6% (ceiling ~33%) — FAIL. At December 31, 2025, Linamar reported gross debt of CA$2,098.4 million in its audited FY2025 financial statements: CA$1,063.5 million of private placement notes, CA$637.2 million of bank borrowings, CA$320.2 million of lease liabilities, and CA$77.6 million of interest-free government borrowings — about CA$2.10 billion in total with leases included, consistent with the other screeners on this site. Against a market cap of roughly CA$5.57 billion on September 28, 2026 (CA$97.60 TSX close), the ratio is about 37.6% — over the ~33% ceiling. The company held CA$911.1 million of cash (about 16.3% of market cap, under its own ceiling).
Non-compliant income: ~0.25% (ceiling ~5%) — PASS. FY2025 revenue was CA$10,231.8 million against interest earned of CA$25.4 million — about 0.25%, well under the ~5% screen. Interest paid of CA$114.5 million far exceeds interest received, so Linamar is a net payer of financing costs. Gate two: FAIL.
What other screeners say
No verified current third-party rating was found for Linamar on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL rating here rests on this site's own screening methodology, not on a third-party endorsement.
The bottom line
This screener gives Linamar Corporation (TSX: LNR) a FAIL. Q2 2026 delivered record sales of CA$3.14 billion and net earnings of CA$183.1 million, with the quarterly dividend raised to CA$0.32 per share; gross debt of CA$2.10 billion against a CA$5.57 billion market cap keeps the debt ratio over the ceiling. Snapshot dated September 28, 2026; re-checked quarterly after earnings (Q3 2026 expected November 4, 2026) — debt paydown or a higher market cap could bring it back.
The purification angle: Linamar's interest income is small but non-zero (CA$25.4 million on CA$10.23 billion of FY2025 revenue, ~0.25%) — if you want to run dividend purification math, the purification calculator is here.
Frequently asked questions
Is Linamar stock halal?
This screener gives Linamar Corporation (TSX: LNR) a FAIL. Auto parts and aerial work platform manufacturing clears the business-activity screen, but the ratio math fails: about CA$2.10 billion of gross debt at December 31, 2025 against a market cap of about CA$5.57 billion on September 28, 2026 — roughly 37.6%, over the ~33% ceiling. Interest earned of CA$25.4 million on CA$10.23 billion of FY2025 revenue is about 0.25%, well under the ~5% screen, but the debt gate fails first.
What are Linamar's debt and market-cap figures?
Linamar reported gross debt of CA$2,098.4 million at December 31, 2025, per its audited FY2025 financial statements (CA$1,063.5 million of private placement notes + CA$637.2 million of bank borrowings + CA$320.2 million of lease liabilities + CA$77.6 million of interest-free government borrowings) — about CA$2.10 billion in total with leases included (the company also held CA$911.1 million of cash). Against a market cap of roughly CA$5.57 billion on September 28, 2026 (CA$97.60 close), the debt-to-market-cap ratio is about 37.6% — over the ~33% AAOIFI ceiling, measured with leases included, consistent with the other screeners on this site.
Does Linamar earn interest income?
Linamar disclosed interest earned of CA$25.4 million in FY2025 against revenue of CA$10,231.8 million — about 0.25%, well under the ~5% screen. Interest paid of CA$114.5 million far exceeds interest received, so Linamar is a net payer of financing costs.
Do any third-party screeners agree with this screener?
No verified current third-party rating was found for Linamar on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL rating here rests on this site's own screening methodology, not on a third-party endorsement.
What could change Linamar's halal screener?
The debt ratio sits at ~37.6% — over the ~33% ceiling. Debt paydown or a higher market cap could bring the ratio back under the ceiling. Separately, management stated in 2026 that defence is becoming a relevant future platform with inroads at prime manufacturers; no defence revenue is disclosed in the financials, but any move into weapons production would change the business screen. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.