Highlights(1)
Delivered strong first-quarter 2026 results, reflecting sales growth, disciplined execution, and improved operating performance.
- Sales increased 3% to $10.4 billion, despite a 7% decline in global light vehicle production
- Income from operations before income taxes was $87 million, including a $485 million loss on assets held for sale related to the announced dispositions of our Lighting and Rooftop Systems businesses within Power & Vision
- Adjusted EBIT increased 58% to $558 million, with Adjusted EBIT margin expanding 190 basis points to 5.4%
- Diluted loss per share was $0.04; Adjusted EPS increased 77% to $1.38
- Returned $575 million to shareholders through share repurchases and dividends
- 2026 Outlook largely unchanged
AURORA, Ontario, May 01, 2026 (GLOBE NEWSWIRE) — Magna International Inc. (TSX:MG, NYSE:MGA) today reported financial results for the first quarter ended March 31, 2026.
Please click HERE for full first quarter MD&A and Financial Statements.
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“We delivered a strong start to 2026, driven by disciplined execution, margin expansion and robust free cash flow generation. Our actions to further refine our portfolio, including the announced dispositions within Power & Vision, reinforce our focus on long-term value creation.
As we move forward, we are maintaining our positive 2026 outlook, and our priorities remain clear: expanding margins, generating strong free cash flow and returning capital to shareholders, while navigating a dynamic global environment.” – Swamy Kotagiri, Magna’s Chief Executive Officer |
| THREE MONTHS ENDED | ||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||
| Reported | ||||||||||
| Sales | $ | 10,381 | $ | 10,069 | ||||||
| Income from operations before income taxes | 87 | 225 | ||||||||
| Net (loss) income attributable to Magna International Inc. | (12 | ) | 146 | |||||||
| Diluted (loss) earnings per share | (0.04 | ) | 0.52 | |||||||
| Non-GAAP Financial Measures(1) | ||||||||||
| Adjusted EBIT | $ | 558 | $ | 354 | ||||||
| Adjusted EPS | 1.38 | 0.78 | ||||||||
| Free Cash Flow | 372 | (313 | ) | |||||||
| All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars | |
| (1) | Adjusted EBIT, Adjusted EPS, and Free Cash Flow are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release. |
THREE MONTHS ENDED MARCH 31, 2026
We posted sales of $10.4 billion for the first quarter of 2026, an increase of 3% over the first quarter of 2025. The higher sales largely reflects:
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. dollar sales by $520 million; and
- the launch of new programs during or subsequent to the first quarter of 2025, including complete vehicle programs with value-added contractual arrangements.
These factors were partially offset by:
- the end of production of certain programs;
- lower light vehicle production in North America, Europe and China;
- lower complete vehicle assembly volumes with full-cost contractual arrangements;
- lower engineering revenue, primarily in our Complete Vehicles segment; and
- net customer price concessions subsequent to the first quarter of 2025.
Adjusted EBIT increased to $558 million for the first quarter of 2026 compared to $354 million for the first quarter of 2025, primarily due to:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- higher equity income, including a favourable commercial item in our Power & Vision segment;
- lower warranty costs;
- net transactional foreign exchange gains in the first quarter of 2026, compared to net transactional foreign exchange losses in the first quarter of 2025;
- the net strengthening of foreign currencies against the U.S. dollar, which had a favourable impact on reported U.S. dollar Adjusted EBIT; and
- net commercial items, which had a favourable impact on a year-over-year basis.
These factors were partially offset by:
- higher net tariff costs;
- reduced earnings on lower local currency sales, including engineering revenue; and
- net unfavourable product mix.
Income from operations before income taxes was $87 million in the first quarter of 2026, down $138 million or 61% compared to the first quarter of 2025. Income from operations before income taxes includes Other expense, net(2) and Amortization of acquired intangible assets totaling $434 million and $79 million in the first quarters of 2026 and 2025, respectively. The most significant item in Other expense, net in the first quarter of 2026 was a loss on assets held for sale related to the announced dispositions of our Lighting and Rooftop business of $485 million (pre-tax). Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the first quarter of 2026 increased $217 million or 71% compared to the first quarter of 2025, largely reflecting the increase in Adjusted EBIT.
Net (loss) income attributable to Magna International Inc. was a loss of $12 million for the first quarter of 2026 compared to income of $146 million in the first quarter of 2025. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $386 million in the first quarter of 2026 compared to $219 million in the first quarter of 2025.
(2) Other expense, net is comprised of loss on assets held for sale, restructuring activities, and (gain) loss on investments, during the three months ended March 31, 2026 & 2025. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.
Diluted (loss) earnings per share was a loss of $0.04 in the first quarter of 2026, compared to earnings of $0.52 in the comparable period. Adjusted EPS was $1.38, compared to $0.78 for the first quarter of 2025, an increase of 77%. The increase in Adjusted EPS primarily reflects the impact of higher adjusted EBIT.
In the first quarter of 2026, we generated cash from operations of $677 million. Free Cash Flow was $372 million in the period, including balance sheet-related customer recoveries for contract adjustments associated with certain electric vehicle programs in North America.
RETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS
We paid dividends of $135 million and repurchased 7.6 million shares for $440 million for the three months ended March 31, 2026. As of March 31, 2026, there are 16.7 million remaining shares available for repurchase under our current Normal Course Issuer Bid authorization.
Our Board of Directors declared a first quarter dividend of $0.495 per Common Share. The dividend is payable on May 29, 2026 to shareholders of record as of the close of business on May 15, 2026.
SEGMENT SUMMARY
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($Millions) |
THREE MONTHS ENDED MARCH 31, | ||||||||||||||||||
| Sales | Adjusted EBIT | ||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||
| Body Exteriors & Structures | $ | 4,079 | $ | 3,966 | $ | 113 | $ | 274 | $ | 230 | $ | 44 | |||||||
| Power & Vision | 3,881 | 3,646 | 235 | 252 | 124 | 128 | |||||||||||||
| Seating Systems | 1,340 | 1,312 | 28 | 25 | (30 | ) | 55 | ||||||||||||
| Complete Vehicles | 1,224 | 1,276 | (52 | ) | 32 | ||||||||||||||