Magna International (NYSE:MGA) Issues Earnings Results, Beats Estimates By $0.37 EPS

Magna International (NYSE:MGA) (TSE:MG) issued its quarterly earnings data on Friday. The company reported $1.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.01 by $0.37, Briefing.com reports. Magna International had a return on equity of 12.73% and a net margin of 1.99%.The business had revenue of $10.13 billion during the quarter, compared to analyst estimates of $10.14 billion. During the same period in the prior year, the company posted $0.78 EPS. The business’s revenue for the quarter was up 3.1% compared to the same quarter last year. Magna International updated its FY 2026 guidance to 6.250-7.250 EPS.

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

• Very strong Q1 results: Sales were $10.4B (+3%), adjusted EBIT rose 58% to $558M with margin up 190 bps to 5.4%, adjusted EPS was $1.38 (+77%), and the company generated $677M operating cash flow and $372M free cash flow with $1.6B cash on hand.
• Management reaffirmed its 2026 outlook (weighted sales growth ~1.5% over market at midpoint; adjusted EBIT margin 6.0%–6.6%; adjusted EPS $6.25–$7.25; FCF $1.6B–$1.8B) and expects EBIT to be back‑half weighted.
• Portfolio actions: Magna announced margin‑accretive dispositions of its lighting and rooftop systems businesses (expected to close in H2) that remove roughly $350M of sales with minimal reported earnings/FCF impact, while recording a >$400M GAAP impairment in Q1 (excluded from adjusted results).
• Cash and commercial recoveries materially boosted results — the quarter included >$450M of balance‑sheet customer recoveries for prior EV investments and a favorable Power & Vision equity settlement ( ~60 bps of margin benefit) that arrived earlier than planned.
• Operational excellence is driving margin upside: the company delivered ~80 bps of operational improvement in Q1 (above the 35–40 bps target), which management says could offer further upside if sustained, though they remain measured on cadence and sustainability.

Magna International Trading Down 4.4%

Magna International stock opened at $60.84 on Friday. Magna International has a 52 week low of $32.54 and a 52 week high of $69.94. The firm has a market capitalization of $16.69 billion, a PE ratio of 20.62 and a beta of 1.44. The business’s 50-day simple moving average is $58.59 and its 200-day simple moving average is $54.25. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.87 and a current ratio of 1.25.

Magna International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be paid a $0.495 dividend. The ex-dividend date is Friday, May 15th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 3.3%. Magna International’s payout ratio is presently 67.12%.

Institutional Investors Weigh In On Magna International

A number of institutional investors have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. grew its position in Magna International by 7.8% during the fourth quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company’s stock worth $111,549,000 after buying an additional 151,819 shares in the last quarter. State of Tennessee Department of Treasury grew its position in Magna International by 0.6% during the fourth quarter. State of Tennessee Department of Treasury now owns 157,482 shares of the company’s stock worth $8,095,000 after buying an additional 937 shares in the last quarter. Public Employees Retirement System of Ohio grew its position in 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 worth $6,620,000 after buying an additional 92,613 shares in the last quarter. Ameriprise Financial Inc. grew its position in Magna International by 14.2% during the second quarter. Ameriprise Financial Inc. now owns 56,868 shares of the company’s stock worth $2,196,000 after buying an additional 7,073 shares in the last quarter. Finally, Integrated Wealth Concepts LLC boosted its holdings in Magna International by 1.8% during the third quarter. Integrated Wealth Concepts LLC now owns 14,241 shares of the company’s stock valued at $675,000 after purchasing an additional 246 shares in the last quarter. 67.49% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Magna International

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

• Positive Sentiment: Adjusted performance beat expectations — Adjusted EPS of $1.38 topped consensus, Adjusted EBIT rose 58% and adjusted margin expanded materially, signaling underlying operational improvement. GlobeNewswire Q1 Release
• Positive Sentiment: Revenue and cash flow resilience — Sales grew ~3% to $10.4B despite a 7% global light-vehicle production decline, and free cash flow turned positive, supporting buybacks and the dividend. GlobeNewswire Q1 Release
• Neutral Sentiment: Full‑year outlook maintained but mixed vs. Street — Magna kept FY 2026 adjusted EPS guidance at $6.25–$7.25 and unchanged margin/free-cash flow ranges; the EPS band’s midpoint is close to consensus but the low end is below Street expectations, leaving interpretation mixed. GlobeNewswire Q1 Release
• Negative Sentiment: GAAP headline loss and one‑time charge weighed on sentiment — Magna reported a net loss attributable to the company (~$12M) driven by a $485M pre‑tax loss on assets held for sale tied to planned disposals in Power & Vision, which flagged near‑term GAAP volatility. GlobeNewswire Q1 Release
• Negative Sentiment: Softer production assumptions — Management nudged down North American and European light‑vehicle production assumptions versus prior guidance, implying potential near‑term volume pressure for auto suppliers like Magna. QuiverQuant Coverage
• Negative Sentiment: Analyst / price‑target pressure — At least one broker note reaffirmed a sector‑perform view with a sub‑current price target, which can add selling pressure after the report. MarketScreener: RBC Note

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on MGA. Citigroup increased their price objective on Magna International from $55.00 to $58.00 and gave the stock a “neutral” rating in a report on Monday, March 23rd. Bank of America initiated coverage on Magna International in a research note on Wednesday, March 4th. They set a “buy” rating for the company. Scotiabank upgraded Magna International from a “sector perform” rating to a “sector outperform” rating and lifted their target price for the stock from $69.00 to $72.00 in a report on Friday, April 24th. Wells Fargo & Company decreased their price target on Magna International from $69.00 to $59.00 and set an “equal weight” rating for the company in a research report on Tuesday, March 31st. Finally, Wall Street Zen raised Magna International from a “buy” rating to a “strong-buy” rating in a research report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $62.40.

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.