Magna International (MG) Q1 2026 earnings summary

Executive summary

• Sales rose 3% year-over-year to $10.4 billion, despite a 7% decline in global light vehicle production, driven by currency strength and new program launches.

• Adjusted EBIT increased 58% to $558 million, with margin expanding 190 basis points to 5.4%, and Adjusted EPS surged 77% to $1.38, reflecting operational improvements.

• Net loss attributable to shareholders was $12 million, mainly due to a $485 million pre-tax impairment loss on assets held for sale from planned Lighting and Rooftop Systems divestitures.

• Robust cash flow generation with $677 million in operating cash flow and $372 million in free cash flow, both ahead of expectations.

• $575 million was returned to shareholders via $440 million in share repurchases and $135 million in dividends.

Financial highlights

• Q1 sales reached $10.4 billion, up 3% year-over-year; organic sales declined 2% due to lower vehicle production.

• Adjusted EBIT was $558 million, up 58% from last year; adjusted EBIT margin at 5.4%.

• Adjusted net income attributable to shareholders was $386 million, with adjusted EPS of $1.38, up 77% year-over-year.

• Free cash flow was $372 million, a record for Q1, driven by over $450 million in customer recoveries for EV programs.

• Cash from operations reached $677 million, a $600 million increase year-over-year.

Outlook and guidance

• 2026 full-year outlook reaffirmed: sales of $41.5–$43.1 billion, adjusted EBIT margin of 6.0%–6.6%, adjusted EPS of $6.25–$7.25, and free cash flow of $1.6–$1.8 billion.

• Sales outlook slightly lowered due to reduced North American and European production forecasts and divestitures, partially offset by FX benefits.

• Segment EBIT margin guidance: Body Exteriors & Structures and Seating at 8.2–8.8%, Power & Vision at 6.0–6.6%, Complete Vehicles at 2.0–2.6%.

• Expectation for margin expansion and continued strong shareholder returns.

• H1 EBIT expected to be just under 45% of full-year EBIT, with Q2 margins flat year-over-year.