Why Is Magna International Stock Gaining On Friday?

Magna International, Inc. (NYSE:MGA) shares climbed on Friday after the auto supplier delivered a stronger-than-expected quarter, supported by new program launches and higher production on key platforms.

The company also outlined its outlook for the year ahead, pairing an earnings view above expectations with a reduced sales forecast.

Quarterly Metrics

The company reported fourth-quarter adjusted earnings per share of $2.18, beating the analyst consensus estimate of $1.79. Quarterly sales of $10.84 billion (+2% year over year) outpaced the Street view of $10.495 billion.

Quarterly revenues rose despite a 1% decline in global light vehicle production.

Magna International said that the higher sales largely reflect increased production on certain ongoing programs and the launch of new programs, including the Ford Expedition and Lincoln Navigator, Xiaomi YU7, and Jetour Zongheng G700.

Reported U.S. dollar sales also benefited from a net strengthening of foreign currencies against the U.S. dollar, which added $355 million. In addition, net customer recoveries helped largely offset higher tariff costs incurred during the year.

Adjusted EBIT increased 18% to $814 million, with Adjusted EBIT margin expanding 100 basis points to 7.5%

In the fourth quarter of 2025, Magna International generated cash from operations of $1.98 billion. Free Cash Flow was $1.35 billion in the period.

Dividend

The firm declared a fourth-quarter dividend of $0.495 per Common Share. This represents a 2% higher dividend. The dividend is payable on March 13, 

Outlook

Magna International forecast fiscal 2026 adjusted earnings of $6.25 to $7.25 per share, compared with analysts’ estimate of $5.99.

The company lowered its fiscal 2026 sales outlook to $41.9 billion to $43.5 billion from its prior forecast of $48.8 billion to $51.2 billion. Analysts were expecting $42.141 billion in sales.

The company projects an adjusted EBIT Margin of 6%-6.6%.

“With capital spending expected to remain below historical levels, we anticipate continued strong Free Cash Flow, which we intend to deploy using our long-standing capital allocation framework, including repurchasing the remaining shares available under our current buyback authorization, said Swamy Kotagiri, Magna’s Chief Executive Officer.

MGA Price Action: Magna International shares were up 20.56% at $69.70 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Photo by Grzegorz Czapski via Shutterstock