Magna International (NYSE:MGA) Releases Earnings Results, Beats Estimates By $0.33 EPS

Key Points

• Magna beat quarterly expectations: Adjusted EPS was $1.86 versus the $1.53 consensus, while revenue increased 3.3% year over year. Adjusted EBIT rose 16% and margins expanded to 6.2%.
• 2026 guidance improved: The company raised adjusted EPS guidance to $6.70–$7.30, adjusted EBIT margin guidance to 6.3%–6.6%, and free-cash-flow guidance to approximately $1.75–$1.85 billion, though its sales outlook was reduced to $41.3–$42.5 billion.
• Cash returns strengthened, but risks remain: Q2 free cash flow more than doubled to $617 million, and Magna returned $598 million to shareholders. Management continues to face challenges from weaker vehicle production, China exposure, tariffs, commodity costs and customer pricing pressure.

Magna International (NYSE:MGA - Get Free Report) TSE: MG issued its quarterly earnings results on Friday. The company reported $1.86 earnings per share for the quarter, topping analysts' consensus estimates of $1.53 by $0.33, Briefing.com reports. Magna International had a return on equity of 14.01% and a net margin of 1.60%.Magna International's revenue for the quarter was up 3.3% on a year-over-year basis. During the same period in the previous year, the company posted $1.44 EPS. Magna International updated its FY 2026 guidance to 6.700-7.300 EPS.

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

• Strong Q2 performance: Sales rose 3% with weighted organic growth 3% above market, while adjusted EBIT increased 16%, margin expanded 70 basis points to 6.2%, and adjusted EPS reached a record $1.86, up 29% year over year.
• Magna raised its 2026 outlook, including adjusted EBIT margin of 6.3%–6.6%, adjusted EPS of $6.70–$7.30, and free cash flow of approximately $1.8 billion. Management cited strong first-half execution, operational excellence, and improved working capital performance.
• Cash generation and shareholder returns strengthened: Q2 free cash flow more than doubled to $617 million, while the company returned $598 million to shareholders and plans to repurchase its remaining roughly 9 million shares under the current authorization by early November.
• Management highlighted continued bookings and technology wins, including an 800-volt, two-speed e-drive program with Chery and a driver and occupant monitoring system with a European OEM; more than 90% of expected 2028 business is already booked.
• Risks remain from weaker China production, shifting market share toward Chinese OEMs, program end-of-production events, commodity inflation, trade-policy uncertainty, and modest unrecovered DRAM and tariff-related costs in the second half.

Magna International Stock Down 1.7%

NYSE MGA traded down $1.19 during trading on Friday, reaching $68.66. 2,480,298 shares of the company's stock were exchanged, compared to its average volume of 1,642,395. The company has a current ratio of 1.22, a quick ratio of 0.88 and a debt-to-equity ratio of 0.38. Magna International has a fifty-two week low of $40.51 and a fifty-two week high of $70.36. The company's fifty day simple moving average is $65.75 and its 200-day simple moving average is $60.97. The firm has a market capitalization of $18.36 billion, a PE ratio of 28.73, a P/E/G ratio of 0.94 and a beta of 1.44.

More Magna International News

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

• Positive Sentiment: Magna exceeded earnings expectations, reporting adjusted EPS of $1.86 versus the $1.53 consensus estimate, up from $1.44 a year earlier. Revenue rose 3% to $11.0 billion despite a 2% decline in global light-vehicle production. Magna Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Adjusted EBIT increased 16% to $677 million, expanding the adjusted EBIT margin to 6.2% from 5.5%. Management cited productivity improvements, restructuring benefits, stronger organic sales, favorable foreign-exchange impacts and tariff recoveries. Magna Announces Strong Second Quarter Results
• Positive Sentiment: Magna raised its full-year adjusted EPS outlook to $6.70–$7.30 from $6.25–$7.25, increased its adjusted EBIT-margin range to 6.3%–6.6%, and lifted free-cash-flow guidance to $1.75–$1.85 billion. It also returned $598 million through dividends and share repurchases.
• Neutral Sentiment: Shares recently reached a 52-week high, increasing the risk of profit-taking after the earnings release and potentially limiting the immediate upside from an otherwise strong quarter. Magna International Stock Hits 52-Week High
• Negative Sentiment: Management lowered its 2026 sales outlook to $41.3–$42.5 billion from $41.5–$43.1 billion, primarily reflecting unfavorable currency translation and the earlier completion of divestitures. The midpoint is also slightly below the $42.4 billion analyst consensus.
• Negative Sentiment: Underlying risks remain, including lower vehicle production in North America, Europe and China, customer price concessions, unfavorable product mix and higher commodity costs. Six-month GAAP net income declined year over year, partly because of elevated other expenses and amortization.

Institutional Trading of Magna International

A number of hedge funds have recently made changes to their positions in MGA. Russell Investments Group Ltd. boosted its holdings in shares of 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 purchasing an additional 151,819 shares during the period. State of Tennessee Department of Treasury increased its stake in Magna International by 0.6% in the 4th quarter. State of Tennessee Department of Treasury now owns 157,482 shares of the company's stock valued at $8,095,000 after buying an additional 937 shares during the period. Public Employees Retirement System of Ohio lifted its position in Magna International by 196.9% in the 3rd 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. lifted its position in Magna International by 14.2% in the 2nd 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 lifted its position in Magna International by 1.8% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 14,241 shares of the company's stock worth $675,000 after buying an additional 246 shares in the last quarter. 67.49% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on MGA shares. UBS Group raised their target price on shares of Magna International from $62.00 to $64.00 and gave the stock a "neutral" rating in a report on Thursday, July 9th. TD boosted their price target on shares of Magna International from $75.00 to $76.00 and gave the company a "buy" rating in a report on Monday, May 4th. Weiss Ratings upgraded shares of Magna International from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday. Citigroup raised their price objective on shares of Magna International from $58.00 to $75.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Finally, Zacks Research cut shares of Magna International from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $65.73.

About Magna International

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.

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