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

Magna International (NYSE:MGA) (TSE:MG) issued its quarterly earnings data 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 firm had revenue of $10.74 billion during the quarter, compared to analysts’ expectations of $10.54 billion. Magna International had a return on equity of 11.88% and a net margin of 2.50%.Magna International’s revenue was up 2.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.69 earnings per share. 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 Trading Up 18.6%

Shares of Magna International stock traded up $10.76 during trading hours on Friday, reaching $68.58. 8,621,810 shares of the company’s stock were exchanged, compared to its average volume of 1,757,878. Magna International has a 52-week low of $30.39 and a 52-week high of $69.94. The company has a fifty day moving average of $54.22 and a 200-day moving average of $49.01. 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 firm has a market capitalization of $19.12 billion, a price-to-earnings ratio of 18.74 and a beta of 1.50.

Magna International Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be issued a $0.495 dividend. This is a boost from Magna International’s previous quarterly dividend of $0.49. The ex-dividend date is Friday, February 27th. This represents a $1.98 annualized dividend and a yield of 2.9%. Magna International’s payout ratio is presently 53.01%.

Analyst Ratings Changes

MGA has been the subject of several research reports. Wells Fargo & Company lifted their price target on Magna International from $50.00 to $58.00 and gave the stock an “equal weight” rating in a research note on Monday, January 12th. Scotiabank upped their price target on shares of Magna International from $52.00 to $57.00 and gave the company a “sector perform” rating in a report on Tuesday, January 27th. Barclays increased their price target on shares of Magna International from $52.00 to $58.00 and gave the company an “equal weight” rating in a research report on Friday, January 23rd. Evercore lifted their price objective on Magna International from $47.00 to $52.00 and gave the stock an “in-line” rating in a research report on Monday, November 24th. Finally, Citigroup upped their target price on Magna International from $49.00 to $55.00 and gave the company a “neutral” rating in a research note on Friday, November 14th. 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 company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $52.80.

Magna International News Roundup

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

• Positive Sentiment: Q4 beat — Magna reported adjusted EPS of $2.18 vs. consensus ~$1.81 and revenue of $10.74B vs. ~$10.54B, driven by improved adjusted EBIT and margin expansion; the print and conference materials provide the operational detail investors cheered. MarketBeat Q4 transcript
• Positive Sentiment: Raised FY2026 guidance — Magna updated EPS guidance to $6.25–$7.25 (vs. ~5.73 consensus) and revenue guidance of $41.9B–$43.5B, signaling confidence in top-line growth and margin progression for the year. GlobeNewswire – Q4 results & 2026 outlook
• Positive Sentiment: Dividend increase — the board raised the quarterly dividend to $0.495 (a 2.1% hike), continuing a long dividend-growth track record and supporting income-focused investor demand. Ex-dividend date and payment timing were announced with the increase. Seeking Alpha – Dividend raise
• Positive Sentiment: Strong cash generation — Magna reported ~$2.0B cash from operations and ~$1.3B free cash flow in Q4 and finished the year with ~$1.6B of cash, supporting the balance sheet and buyback/dividend flexibility. GlobeNewswire – cash flow details
• Neutral Sentiment: Sector reaction — auto-parts and OEM peers rallied following Magna’s print, so some of the stock’s move reflects a broader sector re-rating on improving auto demand/earnings. Investing.com – sector reaction
• Negative Sentiment: Large non-cash impairment — the quarter included a $615M non-cash impairment that pushed GAAP diluted EPS to ~$0.00 and kept reported net margin modest; investors should separate one-time items from underlying operating performance. GlobeNewswire – impairment & GAAP EPS

Hedge Funds Weigh In On Magna International

Institutional investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC boosted its stake in Magna International by 1.8% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 14,241 shares of the company’s stock worth $675,000 after buying an additional 246 shares during the last quarter. Ameriprise Financial Inc. boosted its position in shares of Magna International by 14.2% in the second quarter. Ameriprise Financial Inc. now owns 56,868 shares of the company’s stock worth $2,196,000 after acquiring an additional 7,073 shares during the last quarter. Public Employees Retirement System of Ohio grew its holdings in Magna International by 196.9% in the third quarter. Public Employees Retirement System of Ohio now owns 139,659 shares of the company’s stock valued at $6,620,000 after purchasing an additional 92,613 shares during the period. Van ECK Associates Corp grew its holdings in Magna International by 2.6% in the fourth quarter. Van ECK Associates Corp now owns 9,114 shares of the company’s stock valued at $486,000 after purchasing an additional 235 shares during the period. Finally, IFC & Insurance Marketing Inc. acquired a new position in Magna International during the fourth quarter worth approximately $49,000. 67.49% of the stock is currently owned by institutional investors and hedge funds.

Magna International Company Profile

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.