Magna International (NYSE:MGA) Announces Earnings Results, Beats Expectations By $0.33 EPS

Magna International (NYSE:MGA) (TSE:MG) released its quarterly earnings data on Friday. The company reported $1.86 earnings per share (EPS) for the quarter, beating 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%.During the same quarter in the previous year, the business earned $1.44 earnings per share. The company’s revenue was up 3.3% compared to the same quarter last year. 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%

Shares of NYSE MGA traded down $1.19 during mid-day trading on Friday, reaching $68.66. 2,480,298 shares of the company traded hands, compared to its average volume of 1,642,395. The company’s fifty day moving average is $65.75 and its two-hundred day moving average is $60.97. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.88 and a current ratio of 1.22. Magna International has a fifty-two week low of $40.51 and a fifty-two week high of $70.36. The stock has a market cap of $18.36 billion, a PE ratio of 28.73, a price-to-earnings-growth ratio of 0.94 and a beta of 1.44.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on MGA shares. Weiss Ratings raised Magna International from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday. JPMorgan Chase & Co. lowered their price target on Magna International from $71.00 to $70.00 and set an “overweight” rating for the company in a research note on Thursday, April 23rd. Scotiabank increased their price objective on Magna International from $72.00 to $74.00 and gave the stock a “sector outperform” rating in a report on Monday, July 20th. Citigroup raised their price objective on shares of Magna International from $58.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, Zacks Research cut shares of Magna International from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Magna International presently has an average rating of “Hold” and a consensus price target of $65.73.

Magna International News Summary

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.

Hedge Funds Weigh In On Magna International

A number of institutional investors have recently made changes to their positions in the business. IFC & Insurance Marketing Inc. bought a new position in shares of Magna International in the fourth quarter worth about $49,000. Atlas Capital Advisors Inc. bought a new stake in Magna International during the 4th quarter valued at approximately $67,000. Danske Bank A S bought a new stake in Magna International during the 3rd quarter valued at approximately $112,000. Parallel Advisors LLC raised its stake in Magna International by 22.7% during the 4th 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. Finally, Arkadios Wealth Advisors boosted its holdings in Magna International by 7.3% in the 4th quarter. Arkadios Wealth Advisors now owns 4,767 shares of the company’s stock valued at $254,000 after purchasing an additional 324 shares during the period. 67.49% of the stock is currently owned by institutional investors.

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.