Automotive supplier Magna's Q1 sales and adjusted profit beat, helped by currency gains

Magna International

01/05/2026 10:13

Overview

Canada automotive supplier's Q1 sales rose 3% to $10.4 bln, beating analyst expectations

Adjusted EPS for Q1 rose 77% to $1.38, beating analyst expectations

Company returned $575 mln to shareholders via share repurchases and dividends

Outlook

Magna sees 2026 total sales between $41.5 bln and $43.1 bln, slightly lower than prior outlook

Company maintains 2026 adjusted EBIT margin outlook at 6.0%-6.6%

Magna keeps 2026 adjusted EPS guidance at $6.25-$7.25

Result Drivers

CURRENCY GAINS AND NEW PROGRAMS - Higher sales were driven by net strengthening of foreign currencies against the U.S. dollar and the launch of new programs, including complete vehicle programs with value-added contractual arrangements

OPERATIONAL IMPROVEMENTS - Adjusted EBIT rose due to productivity and efficiency improvements, operational excellence initiatives, prior restructuring actions, higher equity income, lower warranty costs, and net transactional foreign exchange gains

TARIFFS AND PRODUCT MIX - Gains were partially offset by higher net tariff costs, reduced earnings on lower local currency sales, and net unfavourable product mix

Company press release: ID:nGNE5gXp5b

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$10.40 bln
$10.26 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$1.38
$1.007 (13 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)