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
Drivers of the quarter
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
Q2 results beat estimates
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
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
MGA•
