Magna International Adjusted EBIT Rises 58% in First Quarter
The automotive supplier reported Adjusted EPS of 1.38 a share, a 77% increase from the same period last year.
Magna International Inc. (MGA), the automotive supplier, reported first-quarter sales of $10.4 billion, a 3% increase compared to the $10.1 billion recorded in the first quarter of 2025,. The growth occurred despite a 7% decline in global light vehicle production, which saw drops of 4% in North America, 4% in Europe, and 12% in China.
The company said the sales increase reflected the launch of new programs and the strengthening of currencies against the U.S. dollar. These gains were partially offset by lower complete vehicle assembly sales, the end of production for certain programs, and the decline in global vehicle production.
Adjusted EBIT rose 58% to $558 million, while the Adjusted EBIT margin expanded 190 basis points to 5.4%. The company attributed the increase to higher equity income, lower warranty costs, net transactional foreign exchange gains, and benefits from cost-savings initiatives and operational excellence. These factors were partially offset by higher net tariff costs and lower earnings on local currency sales, including engineering revenue.
Reported income from operations before income taxes fell to $87 million from $225 million in the prior-year period,. This decrease largely reflected a $485 million loss on assets held for sale related to the pending dispositions of the Lighting and Rooftop Systems businesses within the Power & Vision segment,.
Net loss attributable to Magna International Inc. was $12 million, compared to a net income of $146 million in the first quarter of 2025,. Diluted loss per share was $0.04, compared to diluted earnings per share of $0.52 last year,. Adjusted EPS rose 77% to 1.38 a share, a move the company attributed mainly to higher Adjusted EBIT.
Free cash flow for the quarter was $372 million, compared to a negative $313 million in the same period last year. The company returned $575 million to shareholders through dividends and share repurchases.
Magna maintains its positive 2026 outlook. The company said its priorities remain the generation of strong free cash flow, the expansion of margins, and the return of capital to shareholders.