Magna International Q4 EPS Beats 22%, Sales Top Estimates on New Launches
Magna International reported fourth-quarter adjusted EPS of $2.18 versus a $1.79 consensus and sales of $10.84 billion beating forecasts by $345 million, driven by new program launches and a $355 million FX tailwind. The company forecast fiscal 2026 EPS of $6.25–$7.25 above the $5.99 estimate while cutting sales guidance to $41.9–$43.5 billion.
1. Strong Fourth-Quarter Results
Magna delivered adjusted EPS of $2.18 in Q4, surpassing the $1.79 analyst estimate, alongside revenues of $10.84 billion versus the $10.495 billion forecast. The upside reflected higher production on ongoing platforms, new program launches—such as Ford Expedition, Lincoln Navigator, Xiaomi YU7 and Jetour Zongheng G700—and a $355 million net FX benefit.
2. Improved Profitability and Cash Generation
Adjusted EBIT rose 18% to $814 million, with margin expanding 100 basis points to 7.5%. The supplier generated $1.98 billion in operating cash flow and $1.35 billion in free cash flow, supporting its declaration of a $0.495 quarterly dividend, up 2%, payable March 13.
3. 2026 Outlook and Capital Allocation
For fiscal 2026, Magna sees adjusted EPS of $6.25–$7.25, above the $5.99 consensus, but trimmed its sales forecast to $41.9–$43.5 billion from $48.8–$51.2 billion. Management expects lower capital spending to sustain strong free cash flow and plans to repurchase remaining shares under its current buyback authorization.