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

Magna International (NYSE:MGA) (TSE:MG) released its quarterly earnings results on Friday. The company reported $2.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.37, Briefing.com reports. The business had revenue of $10.74 billion during the quarter, compared to the consensus estimate of $10.54 billion. Magna International had a return on equity of 11.88% and a net margin of 2.50%.The business’s revenue was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.69 EPS. Magna International updated its FY 2026 guidance to 6.250-7.250 EPS.

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

• Strong Q4 and FY2025 results — Q4 sales of $10.8B (+2%), Q4 adjusted EBIT margin 7.5% (+100bps), FY free cash flow $1.9B, leverage ~1.58x, a dividend increase and a board-approved plan to repurchase ~22M shares in 2026.
• 2026 guidance targets sales near flat to +3.5% (Magna-weighted ~+1.5% midpoint), adjusted EBIT margin of 6.0–6.6% (40–100bps expansion), adjusted EPS $6.25–$7.25, and free cash flow $1.6–$1.8B with CapEx below 4% of sales.
• Management attributes margin momentum to its Operational Excellence program — expecting an additional 35–40bps benefit in 2026 and ~200bps cumulative improvement over 2023–2026 via digital architecture, material‑flow optimization and scaled AI/automation initiatives.
• Tariff mitigation and commercial recoveries materially reduced net tariff headwinds (net <10bps in 2025) and produced >$400M of Q4 cash recoveries, but management says recoveries are timing‑dependent and roughly neutral to EBIT in 2026.
• Segment headwinds include discrete charges and warranty/recall work in Power & Vision (including rear‑camera matters) and anticipated near‑term declines in Complete Vehicles from program roll‑offs, though management expects P&V margins to normalize as those items are addressed.

Magna International Stock Up 18.6%

Shares of MGA traded up $10.76 during midday trading on Friday, reaching $68.58. 7,594,152 shares of the company were exchanged, compared to its average volume of 1,894,604. Magna International has a 1-year low of $30.39 and a 1-year high of $69.94. The stock has a 50-day moving average price of $53.82 and a 200-day moving average price of $48.83. The company has a current ratio of 1.18, a quick ratio of 0.83 and a debt-to-equity ratio of 0.38. The company has a market cap of $19.12 billion, a price-to-earnings ratio of 18.74 and a beta of 1.50.

Analyst Ratings Changes

A number of research analysts have recently weighed in on MGA shares. TD Securities raised their price objective on shares of Magna International from $57.00 to $58.00 and gave the stock a “buy” rating in a research note on Monday, November 3rd. JPMorgan Chase & Co. upped their price objective on Magna International from $53.00 to $57.00 and gave the company an “overweight” rating in a research report on Monday, November 3rd. Morgan Stanley lifted their price objective on Magna International from $38.00 to $54.00 and gave the stock an “equal weight” rating in a research report on Monday, December 8th. UBS Group upped their target price on shares of Magna International from $49.00 to $61.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Finally, Scotiabank lifted their price target on shares of Magna International from $52.00 to $57.00 and gave the stock a “sector perform” rating in a report on Tuesday, January 27th. Three research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $52.80.

Hedge Funds Weigh In On Magna International

A number of institutional investors have recently added to or reduced their stakes in the company. IFC & Insurance Marketing Inc. acquired a new position in shares of Magna International in the 4th quarter valued at about $49,000. Danske Bank A S acquired a new position in Magna International in the third quarter valued at approximately $112,000. Parallel Advisors LLC grew its holdings in shares of Magna International by 22.7% during the fourth quarter. Parallel Advisors LLC now owns 3,024 shares of the company’s stock valued at $161,000 after purchasing an additional 560 shares during the last quarter. Integrated Wealth Concepts LLC raised its position in shares of Magna International by 19.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company’s stock worth $231,000 after purchasing an additional 1,123 shares during the period. Finally, Arkadios Wealth Advisors raised its position in shares of Magna International by 7.3% during the 4th quarter. Arkadios Wealth Advisors now owns 4,767 shares of the company’s stock worth $254,000 after purchasing an additional 324 shares during the period. Institutional investors and hedge funds own 67.49% of the company’s stock.

Key Magna International News

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

• Positive Sentiment: Q4 beat: Adjusted EPS of $2.18 topped estimates and revenue rose ~2% y/y, showing better-than-expected operating performance. Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook
• Positive Sentiment: Upgraded guidance: FY2026 EPS narrowed to $6.25–$7.25 (above consensus) and revenue guidance of ~$41.9B–$43.5B, signaling management confidence in margins and cash flow. Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook
• Positive Sentiment: Dividend raise: Board increased the quarterly dividend to $0.495, continuing 16 years of dividend growth — supports income-oriented investors. Magna International Inc. raises dividend by 2.1% to $0.495
• Positive Sentiment: Strong cash generation: Q4 produced ~$2.0B cash from operations and ~$1.3B free cash flow, strengthening the balance sheet and funding for buybacks/dividends. Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook
• Neutral Sentiment: Top-line growth modest: Sales up ~2% while global light vehicle production declined ~1% — revenue progress but still tied to auto production cycles. Magna International outperforms in Q4 despite sluggish vehicle sales
• Neutral Sentiment: Adjusted operating metrics improved (Adjusted EBIT +18%, margin +100bps to 7.5%), which validates margin recovery but is already reflected in guidance. Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook
• Negative Sentiment: Large non-cash impairment: The quarter included $615M of non-cash impairment charges, which pushed GAAP diluted EPS to $0.00 — a reminder to focus on adjusted results. Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook

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.