Magna International (NYSE:MGA) Issues Earnings Results

Magna International (NYSE:MGA) (TSE:MG) announced its quarterly earnings data on Friday. The company reported $1.86 earnings per share for the quarter, topping the consensus estimate of $1.53 by $0.33, Briefing.com reports. The company had revenue of $10.84 billion during the quarter, compared to analyst estimates of $10.63 billion. Magna International had a net margin of 1.60% and a return on equity of 14.01%. The firm’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same period last year, the business earned $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 Trading Down 1.7%

Shares of MGA stock opened at $68.66 on Friday. The stock has a 50-day simple moving average of $65.83 and a 200 day simple moving average of $61.03. 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 capitalization of $18.36 billion, a P/E ratio of 28.73, a P/E/G ratio of 0.95 and a beta of 1.44. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38.

Magna International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be paid a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Friday, August 14th. Magna International’s payout ratio is currently 82.85%.

Hedge Funds Weigh In On Magna International

Several large investors have recently made changes to their positions in MGA. IFC & Insurance Marketing Inc. acquired a new position in shares of Magna International in the 4th quarter worth approximately $49,000. Atlas Capital Advisors Inc. bought a new stake in Magna International during the fourth quarter worth approximately $67,000. Danske Bank A S bought a new stake in Magna International during the third quarter worth approximately $112,000. Parallel Advisors LLC grew its position in Magna International by 22.7% in the fourth quarter. Parallel Advisors LLC now owns 3,024 shares of the company’s stock worth $161,000 after buying an additional 560 shares during the last quarter. Finally, Integrated Wealth Concepts LLC increased its holdings in shares of Magna International by 19.8% in the first quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company’s stock valued at $231,000 after buying an additional 1,123 shares in the last quarter. Institutional investors own 67.49% of the company’s stock.

Magna International News Roundup

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

• Positive Sentiment: Q2 results exceeded expectations. Adjusted EPS was a record $1.86, versus the $1.53 consensus estimate and $1.44 a year earlier. Sales rose 3% to $11.0 billion despite a 2% decline in global light-vehicle production. Magna Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved sharply. Adjusted EBIT increased 16% to $677 million, while the adjusted EBIT margin expanded to 6.2% from 5.5%. Management cited productivity initiatives, restructuring benefits, higher organic sales, favorable foreign-exchange impacts and tariff recoveries. Magna Announces Strong Second Quarter Results
• Positive Sentiment: Full-year profitability and cash-flow targets were raised. Magna now expects 2026 adjusted EPS of $6.70-$7.30, up from $6.25-$7.25, adjusted EBIT margin of 6.3%-6.6%, and free cash flow of $1.75-$1.85 billion. The company also returned $598 million to shareholders in Q2 through dividends and share repurchases. Magna Q2 2026 Financial Review
• Neutral Sentiment: Revenue guidance was reduced to $41.3-$42.5 billion from $41.5-$43.1 billion, primarily because of unfavorable currency translation and the earlier completion of divestitures. The reduction does not reflect weaker operating expectations, but it could temper investor enthusiasm.
• Negative Sentiment: Magna continues to face lower production in North America, Europe and China, unfavorable product mix, customer price concessions and higher commodity costs. Six-month reported net income and GAAP EPS also declined year over year, partly because of substantially higher other expenses and amortization.

Wall Street Analyst Weigh In

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