Magna International (NYSE:MGA) Issues Earnings Results

Magna International (NYSE:MGA) (TSE:MG) released its earnings results on Friday. The company reported $2.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.81 by $0.37, Briefing.com reports. The business had revenue of $10.74 billion during the quarter, compared to the consensus estimate of $10.54 billion. Magna International had a return on equity of 11.88% and a net margin of 2.50%.The business’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same period last year, the business posted $1.69 earnings per share. Magna International updated its FY 2026 guidance to 6.250-7.250 EPS.

Here are the key takeaways from Magna International’s conference call:

• Strong Q4 and FY2025 results — Q4 sales of $10.8B (+2%), Q4 adjusted EBIT margin 7.5% (+100bps), FY free cash flow $1.9B, leverage ~1.58x, a dividend increase and a board-approved plan to repurchase ~22M shares in 2026.
• 2026 guidance targets sales near flat to +3.5% (Magna-weighted ~+1.5% midpoint), adjusted EBIT margin of 6.0–6.6% (40–100bps expansion), adjusted EPS $6.25–$7.25, and free cash flow $1.6–$1.8B with CapEx below 4% of sales.
• Management attributes margin momentum to its Operational Excellence program — expecting an additional 35–40bps benefit in 2026 and ~200bps cumulative improvement over 2023–2026 via digital architecture, material‑flow optimization and scaled AI/automation initiatives.
• Tariff mitigation and commercial recoveries materially reduced net tariff headwinds (net <10bps in 2025) and produced >$400M of Q4 cash recoveries, but management says recoveries are timing‑dependent and roughly neutral to EBIT in 2026.
• Segment headwinds include discrete charges and warranty/recall work in Power & Vision (including rear‑camera matters) and anticipated near‑term declines in Complete Vehicles from program roll‑offs, though management expects P&V margins to normalize as those items are addressed.

Magna International Price Performance

Shares of MGA stock opened at $68.58 on Friday. The business’s fifty day moving average is $54.22 and its 200 day moving average is $49.06. The company has a quick ratio of 0.83, a current ratio of 1.18 and a debt-to-equity ratio of 0.38. The stock has a market cap of $19.12 billion, a price-to-earnings ratio of 23.25 and a beta of 1.50. Magna International has a twelve month low of $30.39 and a twelve month high of $69.94.

Magna International Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 27th will be paid a $0.495 dividend. The ex-dividend date of this dividend is Friday, February 27th. This is a positive change from Magna International’s previous quarterly dividend of $0.49. This represents a $1.98 annualized dividend and a yield of 2.9%. Magna International’s payout ratio is currently 67.12%.

Key Magna International News

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Q4 beat — Magna reported adjusted EPS of $2.18 vs. consensus ~$1.81 and revenue of $10.74B vs. ~$10.54B, driven by improved adjusted EBIT and margin expansion; the print and conference materials provide the operational detail investors cheered. MarketBeat Q4 transcript
• Positive Sentiment: Raised FY2026 guidance — Magna updated EPS guidance to $6.25–$7.25 (vs. ~5.73 consensus) and revenue guidance of $41.9B–$43.5B, signaling confidence in top-line growth and margin progression for the year. GlobeNewswire – Q4 results & 2026 outlook
• Positive Sentiment: Dividend increase — the board raised the quarterly dividend to $0.495 (a 2.1% hike), continuing a long dividend-growth track record and supporting income-focused investor demand. Ex-dividend date and payment timing were announced with the increase. Seeking Alpha – Dividend raise
• Positive Sentiment: Strong cash generation — Magna reported ~$2.0B cash from operations and ~$1.3B free cash flow in Q4 and finished the year with ~$1.6B of cash, supporting the balance sheet and buyback/dividend flexibility. GlobeNewswire – cash flow details
• Neutral Sentiment: Sector reaction — auto-parts and OEM peers rallied following Magna’s print, so some of the stock’s move reflects a broader sector re-rating on improving auto demand/earnings. Investing.com – sector reaction
• Negative Sentiment: Large non-cash impairment — the quarter included a $615M non-cash impairment that pushed GAAP diluted EPS to ~$0.00 and kept reported net margin modest; investors should separate one-time items from underlying operating performance. GlobeNewswire – impairment & GAAP EPS

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. BMO Capital Markets lifted their price target on Magna International from $49.00 to $52.00 and gave the company an “outperform” rating in a research report on Monday, November 3rd. Scotiabank upped their target price on Magna International from $52.00 to $57.00 and gave the stock a “sector perform” rating in a research note on Tuesday, January 27th. TD Securities boosted their price objective on shares of Magna International from $57.00 to $58.00 and gave the stock a “buy” rating in a report on Monday, November 3rd. Wells Fargo & Company lifted their target price on shares of Magna International from $50.00 to $58.00 and gave the stock an “equal weight” rating in a research report on Monday, January 12th. Finally, Canadian Imperial Bank of Commerce upped their price target on shares of Magna International from $50.00 to $56.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Three investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Magna International presently has a consensus rating of “Hold” and a consensus price target of $52.80.

Institutional Investors Weigh In On Magna International

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio lifted its holdings in shares of Magna International by 196.9% during the third quarter. Public Employees Retirement System of Ohio now owns 139,659 shares of the company’s stock valued at $6,620,000 after purchasing an additional 92,613 shares during the last quarter. Ameriprise Financial Inc. grew its stake in shares of Magna International by 14.2% in the second quarter. Ameriprise Financial Inc. now owns 56,868 shares of the company’s stock worth $2,196,000 after acquiring an additional 7,073 shares during the last quarter. Danske Bank A S bought a new position in shares of Magna International during the third quarter valued at $112,000. Integrated Wealth Concepts LLC raised its position in shares of Magna International by 19.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company’s stock worth $231,000 after purchasing an additional 1,123 shares during the last quarter. Finally, IFC & Insurance Marketing Inc. bought a new position in Magna International in the 4th quarter worth about $49,000. Hedge funds and other institutional investors own 67.49% of the company’s stock.

Magna International Company Profile

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.