- TD Securities Maintains Buy Rating on Magna International (MGA)
May 14, 2026
Magna International Inc. (NYSE:MGA) is one of the
10 Best Electric Vehicle Supply Chain Stocks to Invest In.
On May 4, 2026, TD Securities analyst Brian Morrison raised the firm’s price target on Magna International Inc. (NYSE:MGA) to $76 from $75 while maintaining a Buy rating on the shares. The firm described the company’s Q1 results as solid and said Magna appears positioned to achieve the mid-to-high end of its guidance range. TD Securities also viewed the post-earnings share price weakness as a buying opportunity.
On May 1, 2026, Magna International Inc. (NYSE:MGA) reported Q1 adjusted EPS of $1.38, versus the consensus estimate of $1.01. Revenue totaled $10.38B, versus the consensus estimate of $10.27B. The company said it delivered a strong start to 2026 through disciplined execution, margin expansion, and strong free cash flow generation. Magna International Inc. (NYSE:MGA) also said recent portfolio refinement actions, including announced dispositions within its Power & Vision segment, support its focus on long-term value creation. The company added that its priorities remain centered on margin expansion, free cash flow generation, and shareholder returns while operating in a dynamic global environment.TD Securities Maintains Buy Rating on Magna International (MGA)
The company reaffirmed its FY26 adjusted EPS outlook of $6.25-$7.25, versus the consensus estimate of $6.70, and raised its FY26 revenue outlook to $41.9B-$43.5B from $41.5B-$43.1B. Consensus estimate stands at $42.42B. Magna International Inc. (NYSE:MGA) also maintained its FY26 adjusted EBIT margin outlook of 6%-6.6% and capital expenditure outlook of $1.5B-$1.6B.
Magna International Inc. (NYSE:MGA) operates as an automotive supplier across North America, Europe, the Asia Pacific, and other international markets.
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- Assessing Magna International (TSX:MG) Valuation After Board Changes Earnings Update And Capital Return Moves
May 9, 2026
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Magna International (TSX:MG) has had a busy stretch, with board changes at its 2026 annual meeting, first quarter earnings, updated full year guidance, a confirmed dividend, and progress on its share buyback program.
See our latest analysis for Magna International.
Despite a 2.1% 1 day share price decline to CA$83.64 and a softer 7 day share price return of 3.25%, Magna’s 30 day and year to date share price returns of 11.18% and 11.49% suggest momentum has been building. A 1 year total shareholder return of 81.48% contrasts with a weaker 5 year total shareholder return of 13.78%, highlighting how recent governance changes, revised guidance and the active buyback sit within a recovery from a tougher longer term period.
If these developments have you thinking about where growth and risk could show up next in the auto and manufacturing supply chain, it may be worth checking out 32 robotics and automation stocks
So with Magna trading at CA$83.64, an estimated intrinsic discount of about 35% and a modest gap to analyst targets, are you looking at an undervalued turnaround story, or a stock already pricing in the next leg of growth?
Most Popular Narrative: 5.9% Undervalued
With Magna International’s fair value narrative sitting at about CA$88.91 against a CA$83.64 last close, the story hinges on modest growth, margin repair and disciplined capital returns.
The company anticipates significant improvements in free cash flow due to the normalization of capital spending, particularly now that investments in battery enclosure assembly are behind them. Reduced CapEx will likely enhance free cash flow generation.
Read the complete narrative.
Want to see what is driving that cash flow reset and fair value gap? The narrative leans heavily on improving margins, steadier capex and a richer earnings profile.
Result: Fair Value of CA$88.91 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, you still need to weigh risks such as softer vehicle production and foreign exchange headwinds, which could pressure margins and challenge the current fair value story.
Find out about the key risks to this Magna International narrative.
Another View: Earnings Multiple Paints a Richer Picture
The fair value narrative points to a modest 5.9% undervaluation, but the current P/E of 24.9x tells a tougher story. It sits well above the North American Auto Components industry on 19.5x, the peer average on 15.3x, and the fair ratio of 13.4x that the market could move toward.
Story Continues
That gap suggests you are paying a premium today, even though other models see upside. The real question is whether Magna’s earnings delivery will justify staying at the higher end of those valuation ranges or pull the multiple closer to that fair ratio.
See what the numbers say about this price — find out in our valuation breakdown.TSX:MG P/E Ratio as at May 2026
Next Steps
Mixed signals so far, right, with both concerns and bright spots in the story. Take a moment to review the data yourself and weigh both sides with 3 key rewards and 3 important warning signs
Looking for more investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MG.TO.
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- Magna Announces 2026 Annual Meeting Results
May 4, 2026
Magna International Inc.
AURORA, Ontario, May 04, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today announced voting results from its 2026 annual meeting of shareholders held on May 4, 2026. A total of 218,968,145 Common Shares or 79.21% of our issued and outstanding Common Shares were represented in person or by proxy at the meeting. Shareholders voted in favour of each item of business, as follows:
a. Election of Directors
Nominee Votes FOR Nominee Votes FOR Mary S. Chan 98.60% Mary Lou Maher 99.62% Hon. V. Peter Harder 96.93% William A. Ruh 96.43% Jan R. Hauser 99.51% Peter Sklar 99.64% Seetarama S. Kotagiri (CEO) 99.64% Matthew Tsien 98.28% Jay K. Kunkel 99.61% Dr. Thomas Weber 98.51% Robert F. MacLellan 99.28% Lisa S. Westlake 98.28%
b. Other Items of Business
Item Votes FOR Reappointment of Deloitte 98.57% Say on Pay 89.66%
Based on the voting results, all 12 nominees were elected to the Board, Deloitte was reappointed as independent auditor, and the “Say on Pay” resolution was approved – in each case by a substantial majority. Detailed voting results are included as Appendix “A” to this press release.
Following the annual meeting, Magna’s Board confirmed:
Robert F. MacLellan as Board Chair; Mary Lou Maher as Audit Committee Chair; and Hon. V. Peter Harder as Governance, Nominating and Sustainability Committee Chair.
Additionally, with the retirement of Dr. Indira V. Samarasekera from the Board after 12 years, the Board made the following Committee Chair appointments, effective immediately:
William A. Ruh as Talent Oversight and Compensation Committee Chair; and Matthew Tsien as Technology Committee Chair.
INVESTOR CONTACT
Louis Tonelli, Vice-President, Investor Relations
louis.tonelli@magna.com │ 905.726.7035
MEDIA CONTACT
Tracy Fuerst, Vice-President, Corporate Communications & PR
tracy.fuerst@magna.com │ 248.761.7004
ABOUT MAGNA
Magna is one of the world’s largest automotive suppliers and a trusted partner to automakers in the industry’s most critical markets—North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle system technologies to deliver performance, safety, and quality.
For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.
Appendix “A”
VOTING RESULTS - 2026 ANNUAL MEETING OF SHAREHOLDERS
Resolution Votes For Votes Withheld/Against # % # % Elect Mary S. Chan as Director 209,236,245 98.60% 2,965,784 1.40% Elect Hon. V. Peter Harder as Director 205,688,562 96.93% 6,513,465 3.07% Elect Jan R. Hauser as Director 211,168,283 99.51% 1,033,744 0.49% Elect Seetarama S. Kotagiri (CEO) as Director 211,434,671 99.64% 767,357 0.36% Elect Jay K. Kunkel as Director 211,378,962 99.61% 823,066 0.39% Elect Robert F. MacLellan as Director 210,664,274 99.28% 1,537,753 0.72% Elect Mary Lou Maher as Director 211,399,399 99.62% 802,630 0.38% Elect William A. Ruh as Director 204,629,951 96.43% 7,572,076 3.57% Elect Peter Sklar as Director 211,428,877 99.64% 773,151 0.36% Elect Matthew Tsien as Director 208,555,817 98.28% 3,646,211 1.72% Elect Dr. Thomas Weber as Director 209,030,974 98.51% 3,171,033 1.49% Elect Lisa S. Westlake as Director 208,547,329 98.28% 3,654,699 1.72% Re-Appointment of Deloitte LLP as Auditor 215,827,447 98.57% 3,140,698 1.43% Advisory Resolution on Executive Compensation 190,258,324 89.66% 21,943,700 10.34%
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- Magna Beats Q1 Earnings Estimates, Revises 2026 Sales Outlook
May 4, 2026
Magna International Inc. MGA reported first-quarter 2026 adjusted earnings of $1.38 per share, which increased 76.9% year over year and beat the Zacks Consensus Estimate of $1.01 by 36.19%.
Net sales rose 3.1% year over year to $10.38 billion and topped the Zacks Consensus Estimate of $10.08 billion by 3.03%.
The quarter’s backdrop remained challenging, as global light vehicle production fell 7%, yet strong execution supported profitability gains and solid cash generation.
Magna International Inc. Price, Consensus and EPS SurpriseMagna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
MGA Sales Benefit From FX and New Program Launches
MGA’s top line reflected a mix of tailwinds and offsets. A stronger foreign currency environment against the U.S. dollar helped boost results. At the same time, growth was supported by new program launches compared to last year, including complete vehicle programs with higher value-added contracts.
These positives were partly offset by a few challenges. Some programs ended, vehicle production declined in North America, Europe and China, and volumes in complete vehicle assembly dropped under certain contracts. The company also saw lower engineering revenues in its Complete Vehicles segment. Customer price concessions added further pressure compared to last year.
Magna Widens Profitability Gap Despite Tariff Pressures
Magna’s margin profile improved meaningfully in the quarter. Adjusted EBIT increased 57.6% year over year to $558 million, and adjusted EBIT margin expanded 190 basis points to 5.4%, reflecting productivity and efficiency improvements and benefits from prior restructuring actions.
Higher equity income, lower warranty costs, net transactional foreign exchange gains (versus losses last year) and favorable net commercial items supported performance. These drivers were partly offset by higher net tariff costs, reduced earnings on lower local currency sales (including engineering revenue) and an unfavorable product mix.
MGA Segment Trends Show Broad-Based Improvement
Body Exteriors & Structures generated sales of $4.08 billion, up from $3.97 billion in the year-ago quarter, while adjusted EBIT rose to $274 million from $230 million. Power & Vision posted sales of $3.88 billion versus $3.65 billion a year ago, and adjusted EBIT jumped to $252 million from $124 million.
Seating Systems sales increased to $1.34 billion from $1.31 billion, with the segment swinging to adjusted EBIT of $25 million from a loss of $30 million a year ago. The Complete Vehicles segment was the main drag on revenues, with sales down to $1.22 billion from $1.28 billion, while adjusted EBIT declined to $32 million from $44 million.
Story Continues
Magna Free Cash Flow Turns Positive on Working Capital
Magna generated operating cash flow of $677 million in the quarter, up sharply from $77 million in the prior-year period. Free cash flow improved to $372 million from a negative $313 million a year ago, helped by stronger operating performance and working-capital dynamics.
On the investment side, fixed asset additions were $219 million, while investment in other assets and intangibles increased $168 million. Proceeds from normal course dispositions totaled $82 million. First-quarter free cash flow benefited from customer recoveries related to certain EV investments in North America.
MGA Balance Sheet Supports Capital Returns
Capital returns remained a key focus for MGA this quarter. The company returned $575 million to shareholders through buybacks and dividends, including $440 million in share repurchases and $135 million in dividends. It also declared a quarterly dividend of 49.50 cents per common share, payable on May 29, 2026, to shareholders on record as of May 15, 2026.
Liquidity metrics also remained supportive. Magna ended the quarter with $1.61 billion of cash and cash equivalents, while long-term debt stood at $4.64 billion.
Magna Updates 2026 Sales Outlook
Magna kept its 2026 outlook mostly unchanged, even as it moved ahead with portfolio changes. The company announced plans to sell its Lighting and Rooftop Systems businesses, with the deals expected to close in the second half of 2026, subject to usual conditions and regulatory approvals.
For 2026, MGA revised its total sales outlook. It now projects total sales of $41.5-$43.1 billion, down from previous guidance of $41.9-$43.5 billion. The company projects an adjusted EBIT margin of 6-6.6%, the same as previous estimates. Adjusted earnings are still expected in the range of $6.25-$7.25 per share, with free cash flow projected at $1.6-$1.8 billion and capital spending of $1.5-$1.6 billion.
MGA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
PHINIA Inc. PHIN reported first-quarter 2026 results on April 30. It posted adjusted earnings of $1.29 per share, which increased 37.2% year over year and came above the Zacks Consensus Estimate of 92 cents by 40.2%. Net sales were $878 million, increasing 10.3% from the year-ago quarter and topping the consensus mark of $840 million by 4.5%.
For 2026, PHINIA continues to expect net sales of $3.52-$3.72 billion, implying year-over-year growth of 1%-7%. Net earnings are projected at $165-$195 million, while adjusted EBITDA is expected in the $485-$525 million range, with a net earnings margin of 4.7%-5.2% and an adjusted EBITDA margin of 13.7%-14.3%. The company expects adjusted free cash flow of $200-$240 million and an adjusted tax rate of 30%-34%.
Autoliv, Inc. ALV reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter and above the Zacks Consensus Estimate of $2.63 billion by 4.52%.
Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.
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- Does Magna’s Q1 Earnings Beat and Cash Flow Strength Change The Bull Case For Magna (TSX:MG)?
May 2, 2026
Magna International Inc. reported past first-quarter 2026 results with sales of US$10,381 million, shifting from net income to a small net loss even as adjusted earnings and margins improved. The quarter also delivered an earnings surprise versus analyst expectations, robust free cash flow generation of US$372 million, and a reaffirmed A3 credit rating with a Stable outlook from Moody’s, underscoring resilient operating performance. We’ll now explore how Magna’s stronger adjusted earnings and cash flow profile may influence its existing investment narrative and outlook.
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Magna International Investment Narrative Recap
To own Magna, you need to believe it can convert its broad global auto footprint and growing content per vehicle into steadier earnings, despite cyclical production swings and cost pressures. The latest quarter showed stronger adjusted EBIT, margins and free cash flow, which supports the near term catalyst of margin improvement, but the shift to a small net loss keeps execution risk and exposure to softer vehicle production as central concerns rather than materially changing them.
The reaffirmed A3 credit rating with a Stable outlook from Moody’s is especially relevant here, as it signals confidence in Magna’s balance sheet and ability to fund electrified powertrain, ADAS and China growth programs while still returning cash through dividends and buybacks. That financial flexibility is important for supporting margin expansion efforts if volumes or mix remain choppy.
Yet behind this improved quarter, there is still a key risk investors should be aware of around...
Read the full narrative on Magna International (it's free!)
Magna International's narrative projects $44.2 billion revenue and $1.9 billion earnings by 2029.
Uncover how Magna International's forecasts yield a CA$88.91 fair value, a 8% upside to its current price.
Exploring Other PerspectivesTSX:MG 1-Year Stock Price Chart
The most optimistic analysts were already assuming Magna could lift margins to about 4.1 percent and earnings toward US$1.9 billion, but Q1’s strong adjusted EBIT and the ongoing risk of slower ADAS growth and tariff exposure show how quickly that optimistic path could be revised, so it is worth weighing those higher expectations against more cautious views before you decide what story you believe.
Explore 2 other fair value estimates on Magna International - why the stock might be worth just CA$88.91!
Story Continues
The Verdict Is Yours
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your Magna International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Magna International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Magna International's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MG.TO.
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- Magna International Inc (MGA) Q1 2026 Earnings Call Highlights: Strong Earnings Growth Amid ...
May 2, 2026
This article first appeared on GuruFocus.
Sales: $10.4 billion in Q1 2026, up 3% from last year. Adjusted EBIT: $558 million, an increase of 58% from last year. Adjusted EBIT Margin: Expanded 190 basis points to 5.4%. Adjusted EPS: $1.38, up 77% from last year. Operating Cash Flow: $677 million generated in Q1 2026. Free Cash Flow: $372 million, up $685 million from last year. Cash on Hand: $1.6 billion at the end of the quarter. Share Repurchases: $440 million in stock repurchases during the quarter. Dividends: $135 million returned to shareholders. Credit Rating: Moody's reaffirmed A3 rating with a Stable outlook. Leverage Ratio: 1.5 times rating agency leverage ratio. 2026 Outlook: Reaffirmed prior ranges for adjusted EBIT margin, adjusted EPS, and free cash flow.
Warning! GuruFocus has detected 7 Warning Signs with AMG. Is MGA fairly valued? Test your thesis with our free DCF calculator.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Magna International Inc (NYSE:MGA) reported a 58% increase in adjusted EBIT and a 77% rise in adjusted EPS, demonstrating strong earnings growth. The company generated $677 million in operating cash flow and $372 million in free cash flow, reflecting improved operating performance. Moody's reaffirmed Magna's A3 credit rating and improved the outlook to Stable, indicating financial stability. Magna secured additional commercial recoveries related to previous EV investments, enhancing financial results. The company announced margin accretive dispositions of its lighting and rooftop systems businesses, aligning with long-term growth and margin objectives.
Negative Points
Global light vehicle production declined 7% in the quarter, impacting Magna's sales growth. Sales in Complete Vehicles, excluding foreign currency, declined $172 million despite higher unit volumes. The situation in the Middle East introduces some uncertainty, posing potential risks to operations. Magna's exposure to resin costs is less protected, with sub-50% covered by pass-throughs, posing a risk to margins. The company took a $400 million impairment related to the divestiture of its lighting and rooftop systems businesses, impacting GAAP results.
Q & A Highlights
Q: Can you give us an update on your raw material exposure, particularly on the resin side, and its impact on margins? A: Philip Fracassa, CFO, explained that Magna is largely protected from raw material fluctuations like steel and aluminum through OEM resale programs. For resins, about 50% is covered by pass-throughs. The company saw minimal impact from raw materials in Q1 and expects to recover any cost increases over time.
Story Continues
Q: The production outlook came down, but you kept most segments the same except for Power & Vision. Why is that? A: Philip Fracassa noted that the production estimates were slightly revised down, but foreign currency assumptions were adjusted for a weaker US dollar, offsetting each other. The Power & Vision segment was adjusted due to the anticipated closing of lighting and rooftop systems.
Q: Can you provide more color on the favorable commercial item that impacted equity income? A: Philip Fracassa clarified that it was a recovery related to past EV investments, initially planned for Q2 but realized in Q1. It contributed about 60 basis points to the equity income improvement.
Q: Is the divestiture of the lighting and rooftop systems part of a broader strategy to prune smaller businesses? A: Seetarama Kotagiri, CEO, stated that portfolio management is an ongoing process at Magna. The divestitures align with strategic principles, focusing on market position and returns. This is not a one-time action but part of regular assessments.
Q: How do you view the risks in the second half of the year, particularly known unknowns versus unknown unknowns? A: Seetarama Kotagiri emphasized that known variables, like raw materials and transport, have scenario plans in place. The bigger concern is the unknown unknowns, which are harder to plan for. The company is focused on managing known risks effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Stocks Mostly Up Pre-Bell as Investors Await More Corporate Earnings
May 1, 2026
The benchmark US stock measures were mostly pointing higher before the open Friday as investors awai
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- Update: Magna Up Near 2% In US Premarket On Q1 Beat, Even With Pared Back FY Sales Forecast
May 1, 2026
(Adds RBC Capital Markets commentary in paragraphs 5 to 7 inclusive, and updates share price in head
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- Magna Announces Strong First Quarter Results; Maintains Positive Outlook for 2026
May 1, 2026
Magna International Inc.
Highlights(1)
Delivered strong first-quarter 2026 results, reflecting sales growth, disciplined execution, and improved operating performance.
Sales increased 3% to $10.4 billion, despite a 7% decline in global light vehicle production Income from operations before income taxes was $87 million, including a $485 million loss on assets held for sale related to the announced dispositions of our Lighting and Rooftop Systems businesses within Power & Vision Adjusted EBIT increased 58% to $558 million, with Adjusted EBIT margin expanding 190 basis points to 5.4% Diluted loss per share was $0.04; Adjusted EPS increased 77% to $1.38 Returned $575 million to shareholders through share repurchases and dividends 2026 Outlook largely unchanged
AURORA, Ontario, May 01, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the first quarter ended March 31, 2026.
Please click HERE for full first quarter MD&A and Financial Statements.
Swamy Kotagiri, Magna’s Chief Executive Officer “We delivered a strong start to 2026, driven by disciplined execution, margin expansion and robust free cash flow generation.Our actions to further refine our portfolio, including the announced dispositions within Power & Vision, reinforce our focus on long-term value creation.
As we move forward, we are maintaining our positive 2026 outlook, and our priorities remain clear: expanding margins, generating strong free cash flow and returning capital to shareholders, while navigating a dynamic global environment.”
- Swamy Kotagiri, Magna’s Chief Executive Officer
THREE MONTHS ENDED March 31, 2026 March 31, 2025 Reported Sales $ 10,381 $ 10,069 Income from operations before income taxes 87 225 Net (loss) income attributable to Magna International Inc. (12 ) 146 Diluted (loss) earnings per share (0.04 ) 0.52 Non-GAAP Financial Measures(1) Adjusted EBIT $ 558 $ 354 Adjusted EPS 1.38 0.78 Free Cash Flow 372 (313 )
All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars (1) Adjusted EBIT, Adjusted EPS, and Free Cash Flow are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release.
THREE MONTHS ENDED MARCH 31, 2026
Story Continues
We posted sales of $10.4 billion for the first quarter of 2026, an increase of 3% over the first quarter of 2025. The higher sales largely reflects:
the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. dollar sales by $520 million; and the launch of new programs during or subsequent to the first quarter of 2025, including complete vehicle programs with value-added contractual arrangements.
These factors were partially offset by:
the end of production of certain programs; lower light vehicle production in North America, Europe and China; lower complete vehicle assembly volumes with full-cost contractual arrangements; lower engineering revenue, primarily in our Complete Vehicles segment; and net customer price concessions subsequent to the first quarter of 2025.
Adjusted EBIT increased to $558 million for the first quarter of 2026 compared to $354 million for the first quarter of 2025, primarily due to:
productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions; higher equity income, including a favourable commercial item in our Power & Vision segment; lower warranty costs; net transactional foreign exchange gains in the first quarter of 2026, compared to net transactional foreign exchange losses in the first quarter of 2025; the net strengthening of foreign currencies against the U.S. dollar, which had a favourable impact on reported U.S. dollar Adjusted EBIT; and net commercial items, which had a favourable impact on a year-over-year basis.
These factors were partially offset by:
higher net tariff costs; reduced earnings on lower local currency sales, including engineering revenue; and net unfavourable product mix.
Income from operations before income taxes was $87 million in the first quarter of 2026, down $138 million or 61% compared to the first quarter of 2025. Income from operations before income taxes includes Other expense, net(2) and Amortization of acquired intangible assets totaling $434 million and $79 million in the first quarters of 2026 and 2025, respectively. The most significant item in Other expense, net in the first quarter of 2026 was a loss on assets held for sale related to the announced dispositions of our Lighting and Rooftop business of $485 million (pre-tax). Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the first quarter of 2026 increased $217 million or 71% compared to the first quarter of 2025, largely reflecting the increase in Adjusted EBIT.
Net (loss) income attributable to Magna International Inc. was a loss of $12 million for the first quarter of 2026 compared to income of $146 million in the first quarter of 2025. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $386 million in the first quarter of 2026 compared to $219 million in the first quarter of 2025.
(2)Other expense, net is comprised of loss on assets held for sale, restructuring activities, and (gain) loss on investments, during the three months ended March 31, 2026 & 2025. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.
Diluted (loss) earnings per share was a loss of $0.04 in the first quarter of 2026, compared to earnings of $0.52 in the comparable period. Adjusted EPS was $1.38, compared to $0.78 for the first quarter of 2025, an increase of 77%. The increase in Adjusted EPS primarily reflects the impact of higher adjusted EBIT.
In the first quarter of 2026, we generated cash from operations of $677 million. Free Cash Flow was $372 million in the period, including balance sheet-related customer recoveries for contract adjustments associated with certain electric vehicle programs in North America.
RETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS
We paid dividends of $135 million and repurchased 7.6 million shares for $440 million for the three months ended March 31, 2026. As of March 31, 2026, there are 16.7 million remaining shares available for repurchase under our current Normal Course Issuer Bid authorization.
Our Board of Directors declared a first quarter dividend of $0.495 per Common Share. The dividend is payable on May 29, 2026 to shareholders of record as of the close of business on May 15, 2026.
SEGMENT SUMMARY
($Millions) THREE MONTHS ENDED MARCH 31, Sales Adjusted EBIT 2026 2025 Change 2026 2025 Change Body Exteriors & Structures $ 4,079 $ 3,966 $ 113 $ 274 $ 230 $ 44 Power & Vision 3,881 3,646 235 252 124 128 Seating Systems 1,340 1,312 28 25 (30 ) 55 Complete Vehicles 1,224 1,276 (52 ) 32 44 (12 ) Corporate and Other (143 ) (131 ) (12 ) (25 ) (14 ) (11 ) Total Reportable Segments $ 10,381 $ 10,069 $ 312 $ 558 $ 354 $ 204
THREE MONTHS ENDED
MARCH 31, Adjusted EBIT as a
percentage of sales 2026 2025 Change Body Exteriors & Structures 6.7 % 5.8 % 0.9 % Power & Vision 6.5 % 3.4 % 3.1 % Seating Systems 1.9 % (2.3 )% 4.2 % Complete Vehicles 2.6 % 3.4 % (0.8 )% Consolidated Average 5.4 % 3.5 % 1.9 %
For further details on our segment results, please see our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements.
2026 OUTLOOK
Our full year Outlook for 2026 is provided annually, with quarterly updates. The following Outlook is an update to our previous Outlook in February 2026.
Updated 2026 Macro Assumptions
Current Previous Light Vehicle Production (millions of units) North America
Europe
China 14.9
16.6
32.0 15.0
16.8
32.0 Average Foreign exchange rates: 1 Canadian dollar equals
1 euro equals U.S. $0.730
U.S. $1.178 U.S. $0.720
U.S. $1.160
Updated 2026 Outlook
Current Previous Segment Sales Body Exteriors & Structures
Power & Vision
Seating Systems
Complete Vehicles $16.6 - $17.2 billion
$15.6 - $16.0 billion
$5.4 - $5.7 billion
$4.4 - $4.7 billion $16.6 - $17.2 billion
$15.9 - $16.3 billion
$5.4 - $5.7 billion
$4.4 - $4.7 billion Total Sales $41.5 - $43.1 billion $41.9 - $43.5 billion Adjusted EBIT Margin(3) 6.0% - 6.6% 6.0% - 6.6% Adjusted EPS(4) $6.25 - $7.25 $6.25 - $7.25 Free Cash Flow(5) $1.6 - $1.8 billion $1.6 - $1.8 billion Capital Spending $1.5 - $1.6 billion $1.5 - $1.6 billion Equity Income (included in EBIT) $160 - $195 million $160 - $195 million Interest Expense, net Approximately $165 million Approximately $180 million Income Tax Rate(6) Approximately 23% Approximately 23% Weighted average diluted shares outstanding Approximately 270 million Approximately 270 million Notes:
(3) Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales. Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information.
(4) Adjusted EPS represents Adjusted Net Income attributable to Magna divided by the Diluted weighted average number of Common Shares outstanding during the period.
(5) Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information on Free Cash Flow.
(6) The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation
Our Outlook is intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Although considered reasonable by Magna as of the date of this document, the 2026 Outlook above and the underlying assumptions may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth herein. The risks identified in the “Forward-Looking Statements” section below represent the primary factors which we believe could cause actual results to differ materially from our expectations.
KEY DRIVERS OF OUR BUSINESS
Our business and operating results are dependent on light vehicle production by our customers in three key regions – North America, Europe, and China. While we supply systems and components to many OEMs globally, we do not supply systems and components for every vehicle, nor is the value of our content consistent from one vehicle to the next. As a result, customer and program mix relative to market trends, as well as the value of our content on specific vehicle production programs, are also important drivers of our results.
Ordinarily, OEM production volumes are aligned with vehicle sales levels and thus affected by changes in such levels. Aside from vehicle sales levels, production volumes are typically impacted by a range of factors, including: geopolitical factors, such as military conflicts and tariffs; supply chains, including disruption to supply of and/or increased costs of steel, aluminum, resin, and energy supplies, as well as semiconductor and memory (DRAM) chips; OEM, supplier or sub-supplier disruptions; relative currency values; commodity prices; labour disruptions, as well as the availability and relative cost of skilled labour; regulatory frameworks; and other factors.
Overall vehicle sales levels are significantly affected by changes in consumer confidence levels, which may in turn be impacted by consumer perceptions and general trends related to the job, housing, and stock markets, as well as other macroeconomic and political factors. Other factors which typically impact vehicle sales levels and thus production volumes include: vehicle affordability; interest rates and/or availability of credit; fuel and energy prices; relative currency values; and considerations applicable to EVs, including EV range, charging infrastructure, and electricity pricing.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
In addition to the financial results reported in accordance with U.S. GAAP, this press release contains references to the Non-GAAP financial measures reconciled below. We believe the Non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations, and to improve comparability between fiscal periods. In particular, management believes that Adjusted EBIT and Adjusted diluted earnings per share are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company's core operating performance. Management also believes that Free Cash Flow is a useful measure in assessing the Company’s ability to generate cash to maintain operations and repay its debt. The presentation of Non-GAAP financial measures should not be considered in isolation, or as a substitute for the Company’s related financial results prepared in accordance with U.S. GAAP.
The following table reconciles Net income to Adjusted EBIT:
Adjusted EBIT For the three months ended March 31, 2026 2025 Net (Loss) Income $ (1 ) $ 153 Add: Amortization of acquired intangible assets 19 26 Interest expense, net 37 50 Other expense, net 415 53 Income taxes 88 72 Adjusted EBIT $ 558 $ 354 Adjusted EBIT as a percentage of sales ("Adjusted EBIT Margin") For the three months ended March 31, 2026 2025 Sales $ 10,381 $ 10,069 Adjusted EBIT $ 558 $ 354 Adjusted EBIT as a percentage of sales 5.4 % 3.5 %
NON-GAAP FINANCIAL MEASURES RECONCILIATION (CONTINUED)
Adjusted EPS For the three months ended March 31, 2026 2025 Net (loss) income attributable to Magna International Inc. $ (12 ) $ 146 Add (deduct): Amortization of acquired intangible assets 19 26 Tax effect on Amortization of acquired intangible assets (2 ) (5 ) Other expense, net 415 53 Tax effect on Other expense, net (34 ) (1 ) Adjusted net income attributable to Magna International Inc. $ 386 $ 219 Diluted weighted average number of common shares outstanding during the period (millions): 278.1 282.0 Adjusted Dilutive impact of stock option and share awards[i] 1.8 — Adjusted diluted weighted average number of common shares outstanding during the period (millions): 279.9 282.0 Adjusted EPS $ 1.38 $ 0.78
[i] During the first quarter of 2026, the Company generated Adjusted net Income attributable to Magna International Inc. while reporting a net loss attributable to Magna International Inc. As a result, certain stock-based compensation awards are dilutive for adjusted diluted earnings per share and are included in the adjusted diluted weighted average number of Common Shares outstanding. The dilutive impact was determined using the treasury stock method.
The following table reconciles Cash provided from operating activities to Free Cash Flow:
Free Cash Flow For the three months ended March 31, 2026 2025 Cash provided from operating activities $ 677 $ 77 Add (deduct): Fixed asset additions (219 ) (268 ) Increase in investment, other assets, and intangible assets (168 ) (148 ) Proceeds from disposition 82 26 Free Cash Flow $ 372 $ (313 )
Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. To do so would be potentially misleading and not practical given the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items, however, may be significant.
This press release, together with our Management’s Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements, are available in the Investor Relations section of our website at www.magna.com/company/investors and filed electronically through the System for Electronic Document Analysis and Retrieval + (SEDAR+) which can be accessed at www.sedarplus.ca as well as on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.
We will hold a conference call for interested analysts and shareholders to discuss our first quarter ended March 31, 2026 results on Friday, May 1, 2026 at 8:00 a.m. ET. The conference call will be chaired by Swamy Kotagiri, Chief Executive Officer. The number to use for this call from North America is 1-800-715-9871. International callers should use 1-646-307-1963. Please call in at least 10 minutes prior to the call start time. We will also webcast the conference call at www.magna.com. The slide presentation accompanying the conference call as well as our financial review summary will be available on our website Friday prior to the call.
INVESTOR CONTACT Louis Tonelli, Vice-President, Investor Relations
louis.tonelli@magna.com │ 905.726.7035
MEDIA CONTACT Tracy Fuerst, Vice-President, Corporate Communications & PR
tracy.fuerst@magna.com │ 248.761.7004
TELECONFERENCE CONTACT
Nancy Hansford, Executive Assistant, Investor Relations
nancy.hansford@magna.com │ 905.726.7108
ABOUT MAGNA
Magna is one of the world’s largest automotive suppliers and a trusted partner to automakers in the industry’s most critical markets—North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle system technologies to deliver performance, safety, and quality.
For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "assume", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "potential", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table:
Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement Light Vehicle Production Light vehicle sales levels, including due to:
A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour Total Sales
Segment Sales Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Supply disruptions, including as a result of semiconductor and memory (DRAM) chip shortages Customer concentration Pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions Shifts in market shares among OEMs, vehicles and/or vehicle segments Shifts in consumer "take rates" for products we sell Relative currency values Adjusted EBIT Margin
Adjusted Diluted EPS
Free Cash Flow Same risks as for Total Sales and Segment Sales above Execution of critical program launches Operational underperformance Product warranty/recall risks Production inefficiencies Unmitigated incremental tariff costs Restructuring costs and/or impairment charges Inflation Ability to secure planned cost recoveries from our customers and/or otherwise offset higher input costs Price concessions Commodity cost volatility Scrap steel price volatility Equity Income Same risks as Adjusted EBIT Margin above Risks related to conducting business through joint ventures Risks of doing business in foreign markets Legal and regulatory proceedings Changes in law Share Repurchases
Weighted Average Diluted Shares Outstanding Same risks impacting Free Cash Flow above Ability to repurchase shares for cancellation, including due to normal course issuer bid rules, trading blackouts, and other factors
Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions, and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:
Macroeconomic, Geopolitical and Other Risks
geopolitical crises and military conflicts; threats to free trade agreements; international trade disputes; planning and forecasting challenges; interest rates and availability of consumer credit;
Risks Related to the Automotive Industry
pace of EV adoption; North American EV program deferrals, cancellations and volume reductions; economic cyclicality; regional production volumes; deteriorating vehicle affordability; intense competition;
Strategic Risks
evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies;
Customer-Related Risks
customer concentration; market shifts; evolving OEM competitive landscape; dependence on outsourcing; consumer take rate shifts; nature of customer blanket purchase orders; potential OEM production-related disruptions;
Supply Chain Risks
supply chain disruptions; regional energy supply and pricing; financial condition of supply base; supplier claims;
Manufacturing/Operational Risks
product launch; operational underperformance; restructuring costs; impairments; skilled labour attraction/retention; Pricing Risks
quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity price volatility; scrap steel/aluminum price volatility;
Warranty/Recall Risks
repair/replacement costs; warranty provisions; product liability;
IT Security/Cybersecurity Risks
IT/cybersecurity breach; product cybersecurity breach; risks related to the use of artificial intelligence;
Merger and Acquisition Risks
inherent merger and acquisition risks; acquisition integration and synergies;
Other Business Risks
joint ventures; intellectual property; risks of doing business in foreign markets; tax risks; relative foreign exchange rates; returns on capital investments; financial flexibility; credit ratings changes; stock price fluctuation;
Legal, Regulatory and Other Risks
legal and regulatory proceedings; and changes in laws.
In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:
discussed under the “Industry Trends and Risks” heading of our Management’s Discussion and Analysis; and set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.
Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form. Additional information about Magna, including our Annual Information Form, is available through the System for Electronic Data Analysis and Retrieval + (SEDAR+) at www.sedarplus.ca, as well as on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aae520f0-3636-48b1-a055-ac61096619dc
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- Magna China Automation Push Puts Focus On Valuation Gap And Momentum
Apr 30, 2026
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Magna International opened its Kinshan, China Mechatronics facility to analysts, highlighting a push toward higher automation. The tour underscored closer collaboration with domestic Chinese automakers as part of the company's local production strategy. Management is emphasizing automation and local partnerships as key levers for cost efficiency within its China operations.
For investors watching TSX:MG, the focus on China comes at a time when the company is trading around CA$84.58 and has seen a 13.5% return over the past 30 days. Over 1 year, the stock is up 84.1%, while the 5 year return sits at a 12.6% decline, underscoring how recent performance contrasts with a weaker longer term picture.
The shift toward more automated production in China and deeper ties with domestic OEMs could influence Magna's cost structure and flexibility within one of the world's largest auto markets. Investors may want to watch how this operational push in Kinshan translates into efficiency gains and how it fits into the broader global supply chain decisions the company makes from this point forward.
Stay updated on the most important news stories for Magna International by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Magna International.TSX:MG Earnings & Revenue Growth as at Apr 2026
📰 Beyond the headline: 2 risks and 3 things going right for Magna International that every investor should see.
Quick Assessment
⚖️ Price vs Analyst Target: At CA$84.58, the share price is about 3.9% below the CA$87.99 analyst target, sitting close to consensus. ✅ Simply Wall St Valuation: Shares are flagged as trading 29.8% below estimated fair value, suggesting a valuation gap. ✅ Recent Momentum: A 30 day return of 13.5% shows strong short term momentum as the China automation story gains attention.
There is only one way to know the right time to buy, sell or hold Magna International. Head to Simply Wall St's company report for the latest analysis of Magna International's Fair Value..
Key Considerations
📊 The push into higher automation and closer ties with Chinese automakers could be important for margins and competitiveness in auto components. 📊 Watch how China related capex, utilization rates and any commentary on cost savings show up in future revenue, EPS and P/E movements. ⚠️ Recent insider selling and one off items affecting results are flagged risks that investors may want to weigh against the China growth story.
Story Continues
Dig Deeper
For the full picture including more risks and rewards, check out the complete Magna International analysis. Alternatively, you can check out the community page for Magna International to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MG.TO.
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