The strong earnings beat and cash flow generation support the stock. Monitor completion of Lighting & Rooftop disposals and any further portfolio optimization. Maintained guidance suggests steady performance ahead.
Price Chart
Executive Summary
Magna reported Q1 2026 adjusted EPS of $1.38, a 77% YoY increase and a 37% beat vs. consensus of $1.01, driven by operational improvements and margin expansion. Revenue grew 3% to $10.4B, adjusted EBIT margin expanded 190 bps to 5.4%, and free cash flow turned sharply positive to $372M. GAAP net loss of $12M included a $485M charge for Lighting and Rooftop disposals. 2026 guidance was maintained.
Key Financial Metrics
Key Facts
- Adjusted EPS $1.38 vs. consensus $1.01 (+36.6% beat), up 77% YoY from $0.78
- Sales $10.38B, +3% YoY despite 7% decline in global light vehicle production
- Adjusted EBIT $558M, +58% YoY; margin 5.4% vs. 3.5% (+190 bps)
- Free cash flow $372M, improved from -$313M YoY
- GAAP net loss $12M includes $485M loss on assets held for sale (Lighting & Rooftop)
- 2026 outlook maintained: sales $41.5-$43.1B, adj. EBIT margin 6.0%-6.6%, adj. EPS $6.25-$7.25
- Returned $575M to shareholders via dividends and buybacks in Q1
Financial Impact
Adjusted EPS beat consensus by $0.37, revenue in line with typical seasonality; strong operational beat
Risk Factors
- Higher net tariff costs and lower local currency sales partially offset gains
- Global light vehicle production declined 7% year-over-year
- Execution risk related to planned divestitures
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3285733 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 9w ago | 6-K | $68.60 $65.86 | ▼ −3.99% | ▼ −6.98% | $64.21 (−6.41%) |
Jul 31, 2026 9w ago | Press Release | $68.60 $65.86 | ▼ −3.99% | ▼ −6.98% | $64.21 (−6.41%) |
May 8, 2026 20w ago | 144 | $63.11 $66.09 | ▲ +4.72% | ▲ +4.70% | $64.21 (+1.74%) |
May 4, 2026 21w ago | Press Release | $60.05 $68.11 | ▲ +13.42% | ▲ +8.47% | $64.21 (+6.92%) |
May 1, 2026 22w ago | Press Release | $60.83 $65.15 | ▲ +7.10% | ▲ +1.82% | $64.21 (+5.55%) |
Apr 13, 2026 24w ago | Press Release | $57.82 $62.54 | ▲ +8.16% | ▲ +1.87% | $64.21 (+11.04%) |
Mar 27, 2026 26w ago | 6-K | $54.38 $62.28 | ▲ +14.53% | ▲ +1.79% | $64.21 (+18.07%) |
US Market Status
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