Magna International shares fell about 3.75% to $60.21 after reporting a GAAP net loss for Q1 2026, driven by a $485 million loss tied to assets held for sale. Investors also reacted to a modest 2026 sales outlook cut to $41.5–$43.1 billion, despite adjusted EPS beating expectations at $1.38.
1) What’s moving the stock
Magna International (MGA) is trading lower after its May 1, 2026 first-quarter report highlighted a GAAP net loss and a reduced full-year sales outlook. The company posted a net loss attributable to Magna of $12 million (–$0.04 per share), versus a $146 million profit (+$0.52 per share) a year earlier, which is weighing on sentiment even as the quarter’s adjusted results were stronger. (rttnews.com)
2) The key negative: one-time loss tied to asset sales
The quarter included a $485 million loss on assets held for sale related to the announced dispositions of the Lighting and Rooftop Systems businesses within its Power & Vision segment. That charge was the main swing factor pushing reported earnings into a loss, and it is dominating the market’s read-through this morning. (rttnews.com)
3) Outlook change: sales trimmed, earnings framework held
For fiscal 2026, Magna maintained its adjusted EPS view of $6.25 to $7.25 and its adjusted EBIT margin target of 6.0% to 6.6%, but lowered its sales range to $41.5 billion to $43.1 billion from $41.9 billion to $43.5 billion. The combination of a revenue-range trim alongside stable profit targets is being interpreted as a more cautious demand/production setup for the rest of the year. (rttnews.com)
4) What the quarter showed underneath the headline
On an adjusted basis, Magna earned $1.38 per share, while sales rose about 3% to roughly $10.4 billion; the company also pointed to pressures from tariff costs during the quarter. Investors appear to be discounting the beat because reported results and the lowered sales band reinforce uncertainty around production schedules and broader auto supply-chain conditions. (investing.com)
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