Magna International (MG) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 3% sales growth to $10.4 billion, with adjusted EBIT up 58% to $558 million and adjusted EPS up 77% to $1.38, despite a 7% decline in global light vehicle production.

• Net loss attributable to shareholders was $12 million, mainly due to $485 million in impairment losses on assets held for sale.

• Robust cash flow generation: $677 million from operations and $372 million in free cash flow, both significant improvements year-over-year.

• Portfolio streamlined through announced divestitures of Lighting and Rooftop Systems businesses, with closings expected in H2 2026.

• Continued recognition for ethical practices, marking the fifth consecutive year on Ethisphere’s list.

Financial highlights

• Sales reached $10.4 billion (+3% YoY); adjusted EBIT was $558 million (+58% YoY); adjusted EBIT margin expanded to 5.4% (+190 bps YoY).

• Adjusted net income was $386 million, up from $219 million year-over-year.

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

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

• Interest expense decreased by $13 million due to higher cash balances and lower borrowings.

Outlook and guidance

• 2026 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.

• 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.

• 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%.