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

Magna International (NYSE:MGA) (TSE:MG) posted its quarterly earnings results on Friday. The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate 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%.During the same period last year, the firm posted $0.78 earnings per share. The company’s revenue 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 Stock Performance

Shares of MGA traded down $2.83 during mid-day trading on Friday, hitting $60.84. 4,090,099 shares of the company traded hands, compared to its average volume of 1,611,262. The stock has a market cap of $16.69 billion, a price-to-earnings ratio of 20.62 and a beta of 1.44. The stock has a 50-day moving average price of $58.59 and a two-hundred day moving average price of $54.25. Magna International has a 1 year low of $32.54 and a 1 year high of $69.94. 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 Announces Dividend

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

Magna International News Roundup

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

Institutional Investors Weigh In On Magna International

A number of hedge funds have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. grew its holdings in shares of Magna International by 7.8% in the fourth quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company’s stock worth $111,549,000 after acquiring an additional 151,819 shares during the period. Van ECK Associates Corp boosted its position in Magna International by 2.6% in the fourth quarter. Van ECK Associates Corp now owns 9,114 shares of the company’s stock worth $486,000 after purchasing an additional 235 shares during the last quarter. Syon Capital LLC boosted its position in Magna International by 10.0% in the fourth quarter. Syon Capital LLC now owns 5,939 shares of the company’s stock worth $317,000 after purchasing an additional 540 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of Magna International by 196.9% during the 3rd 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. Finally, Integrated Wealth Concepts LLC increased its position in shares of Magna International by 1.8% during the 3rd 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 during the last quarter. 67.49% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Zacks Research raised shares of Magna International from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 5th. JPMorgan Chase & Co. reduced their price target on shares of Magna International from $71.00 to $70.00 and set an “overweight” rating for the company in a research report on Thursday, April 23rd. Bank of America started coverage on shares of Magna International in a report on Wednesday, March 4th. They issued a “buy” rating for the company. Scotiabank raised Magna International from a “sector perform” rating to a “sector outperform” rating and upped their price objective for the company from $69.00 to $72.00 in a research report on Friday, April 24th. Finally, Citigroup increased their target price on Magna International from $55.00 to $58.00 and gave the company a “neutral” rating in a research note on Monday, March 23rd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Magna International currently has a consensus rating of “Hold” and an average price target of $62.40.

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.