Click to enlarge.
Magna International (TSX: MG; NYSE: MGA) today reported relatively strong financial results for the second quarter ending 30 June 2026 and H1 2026. Income from operations before income taxes increased 21% to $599 million. Diluted earnings per share were $1.72; Adjusted EPS increased 29% to $1.86, a record for the second quarter. Magna also increased its full year forecast for Adjusted EBIT margin, Adjusted EPS and Free Cash Flow.*
“Our strong second-quarter results reflect solid operating performance, disciplined execution, and further progress against our strategic priorities. Supported by record second-quarter adjusted EPS, strong free cash flow, and confidence in our business and global team, we are raising our 2026 outlook. As we look ahead, we remain focused on delivering profitable growth, expanding margins, generating cash, and returning capital to shareholders, while remaining agile in a dynamic global environment,” said Swamy Kotagiri, Chief Executive Officer.
Magna Q2 2026 Results at a Glance
Magna posted sales of $11.0 billion for the second quarter of 2026, an increase of 3% over the second quarter of 2025. The higher sales largely reflects the launch of new programs during or subsequent to the second quarter of 2025, including complete vehicle programs with value-added contractual arrangements; and the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. dollar sales by $172 million.
These factors were partially offset by:
- The end of production of certain programs.
- Lower light vehicle production in North America, Europe and China.
- Lower Magna engineering revenue, primarily in our Complete Vehicles segment; and
- Net customer price concessions as compared to the prior year.
Adjusted EBIT increased 16% to $677 million for the second quarter of 2026 compared to $583 million for the second quarter of 2025, primarily due to: productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions; Net transactional foreign exchange gains in the second quarter of 2026, compared to net transactional foreign exchange losses in the second quarter of 2025; Earnings on higher organic sales; and recoveries for tariffs, net of costs incurred.
These factors were partially offset by:
- Net unfavorable impact of commercial items;
- Net unfavorable product mix; and
- Higher commodity costs, partially offset by higher scrap recoveries.
Income from operations before income taxes was $599 million in the second quarter of 2026, up $103 million or 21% compared to the second quarter of 2025. (Income from operations before income taxes includes Other expense, net and Amortization of acquired intangible assets totaling $41 million and $35 million in the second quarters of 2026 and 2025, respectively.)
Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the second quarter of 2026 increased $109 million or 21% compared to the second quarter of 2025, largely reflecting the increase in Adjusted EBIT.
- Net income attributable to Magna International Inc. was $469 million for the second quarter of 2026 compared to $379 million in the second 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 $508 million in the second quarter of 2026 compared to $407 million in the second quarter of 2025.
- Diluted earnings per share were $1.72 in the second quarter of 2026, an increase of 27% from the comparable period. Adjusted EPS at $1.86, a record for the second quarter, compared to $1.44 for the second quarter of last year, an increase of 29%. (The increase in Adjusted EPS primarily reflects the impact of higher Adjusted EBIT and a decrease in average diluted shares outstanding resulting from share repurchases over the past 12 months.
- In the second quarter of 2026, Magna generated cash from operations of $954 million, and Free Cash Flow of $617 million.
*AutoInformed on
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.
Magna International Posts Record Q2 Earnings per Share
Click to enlarge.
Magna International (TSX: MG; NYSE: MGA) today reported relatively strong financial results for the second quarter ending 30 June 2026 and H1 2026. Income from operations before income taxes increased 21% to $599 million. Diluted earnings per share were $1.72; Adjusted EPS increased 29% to $1.86, a record for the second quarter. Magna also increased its full year forecast for Adjusted EBIT margin, Adjusted EPS and Free Cash Flow.*
“Our strong second-quarter results reflect solid operating performance, disciplined execution, and further progress against our strategic priorities. Supported by record second-quarter adjusted EPS, strong free cash flow, and confidence in our business and global team, we are raising our 2026 outlook. As we look ahead, we remain focused on delivering profitable growth, expanding margins, generating cash, and returning capital to shareholders, while remaining agile in a dynamic global environment,” said Swamy Kotagiri, Chief Executive Officer.
Magna Q2 2026 Results at a Glance
Magna posted sales of $11.0 billion for the second quarter of 2026, an increase of 3% over the second quarter of 2025. The higher sales largely reflects the launch of new programs during or subsequent to the second quarter of 2025, including complete vehicle programs with value-added contractual arrangements; and the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. dollar sales by $172 million.
These factors were partially offset by:
Adjusted EBIT increased 16% to $677 million for the second quarter of 2026 compared to $583 million for the second quarter of 2025, primarily due to: productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions; Net transactional foreign exchange gains in the second quarter of 2026, compared to net transactional foreign exchange losses in the second quarter of 2025; Earnings on higher organic sales; and recoveries for tariffs, net of costs incurred.
These factors were partially offset by:
Income from operations before income taxes was $599 million in the second quarter of 2026, up $103 million or 21% compared to the second quarter of 2025. (Income from operations before income taxes includes Other expense, net and Amortization of acquired intangible assets totaling $41 million and $35 million in the second quarters of 2026 and 2025, respectively.)
Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the second quarter of 2026 increased $109 million or 21% compared to the second quarter of 2025, largely reflecting the increase in Adjusted EBIT.
*AutoInformed on
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.