Magna International Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MGA?
Source: seekingalpha
- Strong Earnings Report: Magna International reported a Q4 non-GAAP EPS of $2.18, beating expectations by $0.38, which reflects the company's robust profitability and boosts investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $10.85 billion, a 2.4% year-over-year increase, surpassing market expectations by $310 million, indicating solid performance and an increase in market share within the automotive sector.
- Future Outlook: Magna anticipates sales between $41.9 billion and $43.5 billion for 2025, with an adjusted EBIT margin expected between 6.0% and 6.6%, demonstrating confidence in future growth and a strategic focus on continuous improvement.
- Capital Expenditure and Buyback Plans: Projected capital spending is between $1.5 billion and $1.6 billion, with free cash flow expected between $1.6 billion and $1.8 billion, alongside a plan to repurchase approximately 22 million shares, enhancing shareholder returns.
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Analyst Views on MGA
Wall Street analysts forecast MGA stock price to fall
11 Analyst Rating
3 Buy
8 Hold
0 Sell
Moderate Buy
Current: 57.820
Low
48.00
Averages
52.80
High
58.00
Current: 57.820
Low
48.00
Averages
52.80
High
58.00
About MGA
Magna International Inc. is a Canada-based mobility technology company. The Company is a supplier in automotive space, specializing in body and chassis, all-wheel drive/front-wheel-drive, transmissions, latches, mirrors and contract vehicle assembly. Its segments include Body Exteriors & Structures, Power & Vision, Seating Systems and Complete Vehicles. The Company's major product portfolio includes seating, mechatronics, electronics, body & chassis exteriors, mirrors, lighting, powertrain, and complete vehicle. Its products include battery enclosures, body-in-white solutions, chassis systems, ADAS and automated driving, control modules, active aerodynamics, exterior systems and modules, lighting, mechatronics, mirrors, electrified powertrain products, complete vehicle engineering and others. Its global network includes approximately 341 manufacturing operations and 106 product development, engineering and sales centers spanning 28 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Magna International Q4 Results Exceed Expectations
- Strong Performance: Magna International reported Q4 2025 sales of $10.8 billion, a 2% increase year-over-year despite a 1% decline in global light vehicle production, demonstrating robust performance in new programs like the Ford Expedition and Xiaomi YU7.
- Profitability Improvement: Adjusted earnings per share reached $2.18, up 29% year-over-year and exceeding market expectations by $0.38, reflecting the company's success in operational efficiency and cost management.
- Optimistic Outlook: Magna forecasts FY26 sales between $41.9 billion and $43.5 billion, surpassing the $42.2 billion market estimate, indicating strong confidence in future growth.
- Stable Cash Flow: Expected free cash flow for FY26 is projected to be between $1.6 billion and $1.8 billion, consistent with the $1.6 billion at the end of 2025, showcasing the company's financial stability.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
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Magna International Stock Hits Four-Year High Amid Strong Revenue Performance
- Strong Stock Performance: Magna International's stock soared to $69.94 on Friday, closing at $68.73 with an 18.87% increase, reflecting strong investor confidence in its performance and positive market reaction to its ongoing buyback program.
- Revenue Guidance Met: The company reported $42 billion in revenue for 2025, hitting the high end of its previous guidance, although this figure represents a 1.8% decline from $42.8 billion in 2024, indicating stability and adaptability in a competitive market.
- Net Income Decline: Attributable net income for 2025 was $829 million, down 17.8% from $1.009 billion in 2024, highlighting challenges in profitability that may affect future investor confidence.
- Optimistic Future Outlook: Magna International targets sales of $41.9 billion to $43.5 billion for 2026, with adjusted diluted earnings per share projected between $6.25 and $7.25, while also planning to repurchase 22 million shares to enhance company and shareholder value.
See More
U.S. Markets Closed with Mixed Results on Friday, Driven by Rivian Automotive's Gains and Pinterest's Decline
- U.S. Stock Market Performance: Stock indexes in the U.S. ended the day mixed on Friday.
- Index Movements: The S&P 500 rose by 0.10%, the Dow Jones increased by 0.05%, while the Nasdaq Composite fell by 0.22%.
See More
Magna International Releases 2026 Fiscal Outlook with Mixed Earnings and Sales Forecast
- Quarterly Performance Beats Expectations: Magna International reported fourth-quarter adjusted earnings per share of $2.18, surpassing the analyst consensus estimate of $1.79, with quarterly sales reaching $10.84 billion, a 2% year-over-year increase, demonstrating the company's resilience despite a 1% decline in global light vehicle production.
- Sales Forecast Downgrade: While the company forecasts fiscal 2026 adjusted earnings between $6.25 and $7.25 per share, exceeding analysts' estimate of $5.99, it has lowered its sales outlook from $48.8 billion to $51.2 billion down to $41.9 billion to $43.5 billion, reflecting uncertainty in market demand.
- Strong Cash Flow Performance: In the fourth quarter, Magna generated $1.98 billion in cash from operations and $1.35 billion in free cash flow, indicating the company's ability to maintain robust cash flow while capital spending remains below historical levels, supporting future shareholder buyback plans.
- Dividend Increase: The company declared a fourth-quarter dividend of $0.495 per common share, representing a 2% increase from the previous year, with payment scheduled for March 13, reflecting the company's ongoing commitment to shareholder returns.
See More
Update: Magna International Shares Rise After Q4 Adjusted Earnings, Sales Top Estimates
See More
Magna International Q4 Results Exceed Expectations
- Strong Performance: Magna International reported Q4 2025 sales of $10.8 billion, a 2% increase year-over-year despite a 1% decline in global light vehicle production, demonstrating robust performance in new programs like the Ford Expedition and Xiaomi YU7.
- Profitability Improvement: Adjusted earnings per share reached $2.18, up 29% year-over-year and exceeding market expectations by $0.38, reflecting the company's success in operational efficiency and cost management.
- Optimistic Outlook: Magna forecasts FY26 sales between $41.9 billion and $43.5 billion, surpassing the $42.2 billion market estimate, indicating strong confidence in future growth.
- Stable Cash Flow: Expected free cash flow for FY26 is projected to be between $1.6 billion and $1.8 billion, consistent with the $1.6 billion at the end of 2025, showcasing the company's financial stability.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Magna International Stock Hits Four-Year High Amid Strong Revenue Performance
- Strong Stock Performance: Magna International's stock soared to $69.94 on Friday, closing at $68.73 with an 18.87% increase, reflecting strong investor confidence in its performance and positive market reaction to its ongoing buyback program.
- Revenue Guidance Met: The company reported $42 billion in revenue for 2025, hitting the high end of its previous guidance, although this figure represents a 1.8% decline from $42.8 billion in 2024, indicating stability and adaptability in a competitive market.
- Net Income Decline: Attributable net income for 2025 was $829 million, down 17.8% from $1.009 billion in 2024, highlighting challenges in profitability that may affect future investor confidence.
- Optimistic Future Outlook: Magna International targets sales of $41.9 billion to $43.5 billion for 2026, with adjusted diluted earnings per share projected between $6.25 and $7.25, while also planning to repurchase 22 million shares to enhance company and shareholder value.
See More
U.S. Markets Closed with Mixed Results on Friday, Driven by Rivian Automotive's Gains and Pinterest's Decline
- U.S. Stock Market Performance: Stock indexes in the U.S. ended the day mixed on Friday.
- Index Movements: The S&P 500 rose by 0.10%, the Dow Jones increased by 0.05%, while the Nasdaq Composite fell by 0.22%.
See More
Magna International Releases 2026 Fiscal Outlook with Mixed Earnings and Sales Forecast
- Quarterly Performance Beats Expectations: Magna International reported fourth-quarter adjusted earnings per share of $2.18, surpassing the analyst consensus estimate of $1.79, with quarterly sales reaching $10.84 billion, a 2% year-over-year increase, demonstrating the company's resilience despite a 1% decline in global light vehicle production.
- Sales Forecast Downgrade: While the company forecasts fiscal 2026 adjusted earnings between $6.25 and $7.25 per share, exceeding analysts' estimate of $5.99, it has lowered its sales outlook from $48.8 billion to $51.2 billion down to $41.9 billion to $43.5 billion, reflecting uncertainty in market demand.
- Strong Cash Flow Performance: In the fourth quarter, Magna generated $1.98 billion in cash from operations and $1.35 billion in free cash flow, indicating the company's ability to maintain robust cash flow while capital spending remains below historical levels, supporting future shareholder buyback plans.
- Dividend Increase: The company declared a fourth-quarter dividend of $0.495 per common share, representing a 2% increase from the previous year, with payment scheduled for March 13, reflecting the company's ongoing commitment to shareholder returns.
See More
Update: Magna International Shares Rise After Q4 Adjusted Earnings, Sales Top Estimates
See More
