Magna Reports 2% Sales Growth, 18% Adjusted EBIT Rise and 7% Dividend Hike
Magna delivered fourth-quarter sales of $10.8 billion, up 2%, while adjusted EBIT rose 18% to $814 million with margins expanding 100 basis points to 7.5%, for adjusted EPS of $2.18. The company generated $1.3 billion in free cash flow, raised its quarterly dividend 7% to $0.495 and guided 2026 sales to $41.9–$43.5 billion.
1. Fourth Quarter Financial Performance
Magna posted fourth-quarter sales of $10.8 billion, up 2% despite a 1% decline in global light vehicle production. Adjusted EBIT climbed 18% to $814 million, expanding margins by 100 basis points to 7.5%, while adjusted diluted EPS reached $2.18.
2. Cash Flow Generation and Dividend Hike
The company generated $2.0 billion in cash from operations and $1.3 billion in free cash flow, ending 2025 with $1.6 billion in cash. It increased its quarterly dividend by 7% to $0.495 per share, marking the 16th consecutive year of dividend growth.
3. 2026 Financial Outlook and Share Buyback
For 2026, Magna expects sales of $41.9 billion to $43.5 billion, adjusted EBIT margin of 6.0%–6.6% and adjusted diluted EPS of $6.25–$7.25. Capital expenditures are projected at $1.5 billion–$1.6 billion with free cash flow of $1.6 billion–$1.8 billion, and the company plans to repurchase the remaining ~22 million shares under its buyback authorization.