Auto supplier reported higher sales, profit and free cash flow in the quarter, while lifting guidance for adjusted EBIT margin, adjusted EPS and free cash flow despite foreign-exchange and divestiture impacts.
Magna International reported stronger second-quarter 2026 results and raised parts of its full-year outlook after sales rose 3% to $11.0 billion and adjusted EBIT increased 16% to $677 million, even as global light vehicle production declined 2%. Income from operations before income taxes rose 21% to $599 million, diluted earnings per share increased to $1.72, and adjusted EPS climbed 29% to a second-quarter record of $1.86. The automotive supplier said productivity and efficiency improvements, higher organic sales, transactional foreign-exchange gains and tariff recoveries supported profitability. Free cash flow was $617 million in the quarter and $989 million in the first half, with the six-month figure including balance sheet-related customer recoveries for contract adjustments tied to certain electric vehicle programs in North America. Magna returned $598 million to shareholders during the quarter through dividends and share repurchases, including $465 million used to buy back 7.4 million shares. The board also declared a quarterly dividend of $0.495 per common share, payable on Aug. 28, 2026, to shareholders of record on Aug. 14. For 2026, Magna updated its sales outlook mainly to reflect unfavorable foreign-currency translation from a stronger U.S. dollar and the earlier-than-expected completion of the Lighting and Rooftop Systems divestitures. It raised its adjusted EBIT margin outlook to 6.3%-6.6% from 6.0%-6.6%, adjusted EPS to $6.70-$7.30 from $6.25-$7.25, and free cash flow to $1.75 billion-$1.85 billion from $1.6 billion-$1.8 billion, while narrowing total sales guidance to $41.3 billion-$42.5 billion from $41.5 billion-$43.1 billion.