Canada's Magna Q2 sales and adjusted EPS beat estimates, raises outlook

Magna International

31/07/2026 10:08

Overview
Canada automotive supplier's Q2 sales rose 3%, beating analyst expectations
Adjusted EPS for Q2 reached a record, beating analyst expectations
Company raised 2026 outlook for adjusted EBIT margin, adjusted EPS and free cash flow

Outlook
Magna raises 2026 outlook for Adjusted EBIT margin to 6.3%-6.6%
Company lifts 2026 Adjusted EPS forecast to $6.70-$7.30
Magna expects 2026 Free Cash Flow of $1.75-$1.85 bln

Result Drivers
NEW PROGRAM LAUNCHES - Higher sales were largely driven by the launch of new programs, including complete vehicle programs with value-added contractual arrangements
PRODUCTIVITY IMPROVEMENTS - Adjusted EBIT rose primarily due to productivity and efficiency improvements, including operational excellence initiatives and prior restructuring actions
FOREIGN EXCHANGE GAINS - Net transactional foreign exchange gains and the net strengthening of foreign currencies against the U.S. dollar contributed to higher reported sales and Adjusted EBIT

Company press release: ID:nGNX4f7sq0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$11 bln
$10.69 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$1.86
$1.50 (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 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
July 30 - Stellantis CEO warns turnaround will take time after weak quarter
July 30 - PHINIA Q2 sales rise 5.6%, beat estimates
July 30 - Aumovio cuts outlook as BMW settlement weighs on earnings

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.)