Magna International Posts Q1 2026 EPS Loss of $0.04

Posted on 1 May 2026 by Ken Zino
Ken Zino of AutoInformed.com on Magna International Posts Q1 2026 EPS Loss of $0.04

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Magna International Inc. (TSX: MG; NYSE: MGA) today posted financial results Q1 2026. Sales increased 3% to U.S.$10.4 billion, while the global parts supplier dealt with a 7% decline in global light vehicle production. Diluted loss per share was $0.04 as Adjusted EPS increased 77% to $1.38. The Magna Board of Directors declared a first quarter dividend of $0.495 per Common Share. The dividend is payable on 29 May 2026 to shareholders of record as of the close of business on 15 May 2026. In early trading on both exchanges Magna stock declined ~6%.*

“We delivered a strong start to 2026, driven by disciplined execution, margin expansion and robust free cash flow generation. Our actions to further refine our portfolio, including the announced dispositions within Power & Vision, reinforce our focus on long-term value creation,” said Swamy Kotagiri, Magna CEO.

[This is a good result in AutoInformed’s view given that Magna is managing its production volumes impacted by a large range of factors. Recently, Trump’s military conflicts and tariffs. Then there are global supply chain issues, including interference to supply of and/or  increased costs of steel, aluminum, resin, energy supplies and so forth. Critical parts include semiconductor and memory (DRAM) chips which are causing OEM, supplier or sub-supplier disruptions. Then there are commodity prices, labor disruptions, cost of skilled labor and political regulatory actions among other challenges – AutoCrat.]

“As we move forward, we are maintaining our positive 2026 outlook, and our priorities remain clear: expanding margins, generating strong free cash flow and returning capital to shareholders, while navigating a dynamic global environment,” said Kotagiri.

Magna Q1 2026 Earnings at a Glance**

  • Sales increased 3% to $10.4 billion, despite a 7% decline in global light vehicle production.
  • Income from operations before income taxes was $87 million, including a $485 million loss on assets held for sale related to the announced dispositions of the Lighting and Rooftop Systems businesses within Power & Vision.*
  • Adjusted EBIT increased 58% to $558 million, with Adjusted EBIT margin expanding 190 basis points to 5.4%.
  • Diluted loss per share was $0.04; Adjusted EPS increased 77% to $1.38.
  • Returned $575 million to shareholders through share repurchases and dividends.
  • 2026 Outlook largely unchanged.

Non-GAAP reconciliation click HERE.

The Full Q1 2026 Picture in Magna’s View

Magna posted sales of $10.4 billion for the first quarter of 2026, an increase of 3% over the first quarter of 2025. The higher sales largely reflects:

  • The net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. dollar sales by $520 million.
  • The launch of new programs during or subsequent to the first quarter of 2025, including complete vehicle programs with value-added contractual arrangements.

These factors were partially offset by:

  • The end of production of certain programs.
  • Lower light vehicle production in North America, Europe and China.
  • Lower complete vehicle assembly volumes with full-cost contractual arrangements.
  • Lower engineering revenue, primarily in our Complete Vehicles segment.
  • Net customer price concessions subsequent to the first quarter of 2025.

Adjusted EBIT increased to $558 million for the first quarter of 2026 compared to $354 million for the first quarter of 2025, primarily due to:

  • Productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions.
  • Higher equity income, including a favorable commercial item in our Power & Vision segment.
  • Lower warranty costs;,
  • Net transactional foreign exchange gains in the first quarter of 2026, compared to net transactional foreign exchange losses in the first quarter of 2025.
  • The net strengthening of foreign currencies against the U.S. dollar, which had a favorable impact on reported U.S. dollar Adjusted EBIT.
  • Net commercial items with favorable impact on a year-over-year basis.

These factors were partially offset by:

  • Higher net tariff costs.
  • Reduced earnings on lower local currency sales, including engineering revenue.
  • Net unfavorable product mix.

Income from operations before income taxes was $87 million in the first quarter of 2026, down $138 million or 61% compared to the first quarter of 2025. Income from operations before income taxes includes Other expense, net (2) and Amortization of acquired intangible assets totaling $434 million and $79 million in the first quarters of 2026 and 2025, respectively.

The most significant item in Other expense, net in the first quarter of 2026 was a loss on assets held for sale related to the announced dispositions of our Lighting and Rooftop business of $485 million (pre-tax). Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the first quarter of 2026 increased $217 million or 71% compared to the first quarter of 2025, largely reflecting the increase in Adjusted EBIT.

Net (loss) income attributable to Magna International Inc. was a loss of $12 million for the first quarter of 2026 compared to income of $146 million in the first quarter of 2025. Excluding Other expense, net, after tax and amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $386 million in the first quarter of 2026 compared to $219 million in the first quarter of 2025.

  • Diluted (loss) earnings per share was a loss of $0.04 in the first quarter of 2026, compared to earnings of $0.52 in the comparable period.
  • Adjusted EPS was $1.38, compared to $0.78 for the first quarter of 2025, an increase of 77%. The increase in Adjusted EPS primarily reflects the impact of higher adjusted EBIT.

In the first quarter of 2026, we generated cash from operations of $677 million. Free Cash Flow was $372 million in the period, including balance sheet-related customer recoveries for contract adjustments associated with certain electric vehicle programs in North America.

Return of Capital to Shareholders and Other Matters

We paid dividends of $135 million and repurchased 7.6 million shares for $440 million for the three months ended March 31, 2026. As of March 31, 2026, there are 16.7 million remaining shares available for repurchase under our current Normal Course Issuer Bid authorization. Non-GAAP reconciliation and discussion click HERE.

*AutoInformed on

**Inevitable Magna Footnotes

(3) Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales. Refer to the reconciliation of Non-GAAP financial measures.

(4) Adjusted EPS represents Adjusted Net Income attributable to Magna divided by the Diluted weighted average number of Common Shares outstanding during the period.

(5) Refer to the reconciliation of Non-GAAP financial measures for further information on Free Cash Flow.

(6) The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation.

Non-GAAP reconciliation and discussion click HERE.

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About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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One Response to Magna International Posts Q1 2026 EPS Loss of $0.04

  1. Magna International says:
    5 May 2026 at 2:37 pm

    Magna Announces 2026 Annual Meeting Results

    Aurora, Ontario, May 4, 2026 – Magna International Inc. (TSX: MG; NYSE: MGA) late yesterday announced voting results from its 2026 annual meeting of shareholders held on 4 May 2026. A total of 218,968,145 Common Shares or 79.21% of our issued and outstanding Common Shares were represented in person or by proxy at the meeting. Shareholders voted in favor of each item of business, as follows:

    Based on the voting results, all 12 nominees were elected to the Board, Deloitte was reappointed as
    independent auditor, and the “Say on Pay” resolution was approved – in each case by a substantial majority.
    Detailed voting results are included as Appendix “A” to this press release.

    Following the annual meeting, Magna’s Board confirmed:
    • Robert F. MacLellan as Board Chair.
    • Mary Lou Maher as Audit Committee Chair.
    • Hon. V. Peter Harder as Governance, Nominating and Sustainability Committee Chair.

    Additionally, with the retirement of Dr. Indira V. Samarasekera from the Board after 12 years, the Board
    made the following Committee Chair appointments effective immediately:
    • William A. Ruh as Talent Oversight and Compensation Committee Chair.
    • Matthew Tsien as Technology Committee Chair.

    Reply

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