Magna’s Q1 Sales Rise 3% to $10.4B, Adjusted EBIT Jumps 58%
Magna posted first-quarter sales of $10.4 billion, a 3% increase, and boosted adjusted EBIT 58% to $558 million with a 190 bps margin expansion to 5.4%, despite a $485 million loss on assets held for sale. The company generated $372 million in free cash flow and returned $575 million to shareholders while maintaining its 2026 outlook.
1. First Quarter Sales and Operating Income
Magna posted sales of $10.4 billion, up 3% year-over-year, driven by foreign currency strength and new vehicle program launches. Income from operations before income taxes fell to $87 million, reflecting a $485 million pre-tax loss on assets held for sale.
2. Adjusted EBIT and Margin Expansion
Adjusted EBIT rose 58% to $558 million, with margins expanding 190 basis points to 5.4%, aided by productivity improvements, favorable foreign exchange, and higher equity income. Operational excellence initiatives and lower warranty costs also supported profitability gains.
3. Asset Dispositions and Net Loss
The first quarter included a $485 million loss on the sale of Lighting and Rooftop Systems within Power & Vision, contributing to a net loss of $12 million or $0.04 per share. Excluding disposals and amortization, pre-tax operating income grew 71%, and adjusted EPS increased 77% to $1.38.
4. Free Cash Flow Generation and Capital Returns
Free cash flow reached $372 million compared to a negative $313 million last year, boosted by customer recoveries on EV contracts. The company returned $575 million to shareholders through dividends and share repurchases while keeping its 2026 outlook unchanged.