Magna International Inc. Q3 2026 Earnings Recap

Magna’s shares rose 1.3%, a roughly flat reaction. Q3 profitability and cash generation improved, but lower production in China and unfavorable program mix led the company to reduce its 2026 sales outlook.

Key Takeaways

• Sales were $10.1 billion, down about 4% year over year; excluding divestitures and currency, sales fell 2.1%, while Magna-weighted vehicle production declined 2.6%.
• Adjusted EBIT rose 11% and adjusted margin expanded 90 basis points to 6.8%; adjusted EPS increased 38% to $1.83.
• Operating cash flow was $950 million and free cash flow was $584 million. Magna raised its 2026 free cash flow outlook range.
• The company lowered its 2026 sales expectations, citing reduced vehicle production in China and unfavorable program mix, while maintaining the midpoint of its adjusted EPS outlook.
• Magna returned $658 million to shareholders in Q3, including $529 million in share repurchases, and approved a new authorization for up to 25.8 million shares.