Magna International stock posts strong Q3 profit as sales fall

Published on 10/30/2026 at 20:57 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Magna International stock enters a stronger-margin quarter despite lower sales. The company lifted its free cash flow outlook and approved a new share buyback.

Magna expands margins amid lower sales

Third-quarter adjusted EPS rose 38 percent as adjusted EBIT margin widened.
Magna lowered its 2026 sales range but raised its free cash flow outlook.
A new share buyback program is expected to begin on November 9.

MGA, CA5592224011, Illustration mit AI erstellt.

Magna International reported stronger profitability for the third quarter ended September 30, 2026, despite lower sales. In a GlobeNewswire report carried by Fidelity published Friday, the automotive supplier said adjusted earnings per share increased 38 percent year over year to 1.83 US dollars.

Sales declined 4 percent to 10.1 billion US dollars, reflecting lower global light vehicle production, completed programs and the divestitures of Magna's Lighting and Rooftop Systems businesses. Net income attributable to Magna rose to 383 million US dollars from 305 million US dollars a year earlier, while reported diluted earnings per share reached 1.44 US dollars.

Margin gains offset softer revenue

Adjusted EBIT advanced 11 percent to 683 million US dollars. The adjusted EBIT margin expanded to 6.8 percent from 5.9 percent, supported by productivity improvements, favorable commercial items and tariff recoveries. Higher commodity costs and weaker organic sales partly offset those gains.

Magna generated 950 million US dollars in operating cash flow and 584 million US dollars in free cash flow during the quarter. Management also pointed to lower planned capital spending when raising its full-year free cash flow outlook.

Updated outlook and shareholder returns

Magna now expects 2026 sales of 41.2 billion to 42.0 billion US dollars, compared with its previous range of 41.3 billion to 42.5 billion US dollars. The adjusted EPS range was narrowed to 6.85 to 7.15 US dollars, keeping the midpoint unchanged, while the free cash flow outlook increased to 1.85 billion to 1.90 billion US dollars.

The board approved a new normal course issuer bid for up to 25.8 million common shares, representing 10 percent of the public float, subject to Toronto Stock Exchange approval. The program is expected to begin on November 9, 2026. Magna also declared a quarterly dividend of 0.495 US dollars per common share, payable November 27 to shareholders of record on November 13.

The real-time quote of Magna International stock was 56.85 euros on Lang & Schwarz at 20:47 CET on Friday, October 30, 2026.