Magna International (MG) Q3 2026 earnings summary

Executive summary

• Q3 sales fell 4% to $10.059B, while adjusted EBIT rose 11% to $683M, adjusted EBIT margin expanded 90 bps to 6.8%, and adjusted EPS increased 38% to $1.83.

• Adjusted profitability and free cash flow benefited from productivity, operational execution, commercial recoveries and restructuring benefits.

• FY26 adjusted EPS midpoint was reaffirmed, free cash flow guidance increased, and $658M was returned to shareholders in Q3.

Financial highlights

• Sales were $10.059B versus $10.462B; organic sales declined 2.1%.

• Adjusted EBIT was $683M versus $613M; adjusted net income was $486M versus $375M, and adjusted diluted EPS was $1.83 versus $1.33.

• Reported net income was $383M versus $305M, and diluted EPS was $1.44 versus $1.08.

• Cash from operations was $950M versus $912M; free cash flow was $584M, up $12M YoY.

Outlook and guidance

• FY26 sales outlook narrowed to $41.2B-$42.0B, reflecting lower expected China production and unfavorable program mix.

• Adjusted EBIT margin outlook narrowed to 6.3%-6.5%; adjusted EPS guidance is $6.85-$7.15, with its midpoint maintained.

• Free cash flow outlook increased to $1.85B-$1.90B; assumptions include $1.5B-$1.6B capital spending, $190M-$210M equity income and ~$160M net interest expense.

• FY26 growth is projected near flat overall and +1% excluding Complete Vehicles; Q4 adjusted EBIT margin at the FY midpoint implies ~7.3%.