Magna earnings: guidance and what to watch
Magna’s next results are expected on October 30, 2026. Watch whether margins and cash flow are following management’s plan.
What has Magna guided for 2026?
For 2026, management guides to US$41.3–42.5 billion in sales. It targets a 6.3%–6.6% adjusted EBIT margin. Adjusted EPS guidance is US$6.70–7.30. Free cash flow guidance is US$1.75–1.85 billion. The test is whether productivity and efficiency sustain margins after tariff and EV-program recoveries fade.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Total Sales | Year to Dec 2026 | 41.3 | 42.5 | Jul 31, 2026 |
| Adjusted EBIT Margin | Year to Dec 2026 | 6.3% | 6.6% | Jul 31, 2026 |
| Adjusted EPS (US$ per share) | Year to Dec 2026 | 6.70 | 7.30 | Jul 31, 2026 |
| Free Cash Flow | Year to Dec 2026 | 1.75 | 1.85 | Jul 31, 2026 |
What this means. The margin percentages show how much of each dollar of sales the company expects to keep as operating profit, rather than the total sales it expects.
What were Magna’s last eight quarters?
Q1 2026 offers a useful contrast because held-for-sale impairment charges affected reported income before income taxes and net income. Q2 cash was also strong, but first-half cash included customer recoveries. The specialist therefore asks whether margins and cash conversion persist in later quarters.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10,980 | 10,381 | 10,848 | 10,462 | 10,631 | 10,069 | 10,628 | 10,280 |
| Gross margin | 14.7% | 13.7% | 16.2% | 14.2% | 14.1% | 12.3% | 14.6% | 14.1% |
| Income before income taxes | 599 | 87 | 114 | 473 | 496 | 225 | 381 | 700 |
| Net income | 469 | -12 | -1 | 305 | 379 | 146 | 203 | 484 |
| EPS, diluted | 1.72 | -0.04 | 0.00 | 1.08 | 1.35 | 0.52 | 0.71 | 1.68 |
| = Free cash flow | 685 | 458 | 1,450 | 645 | 381 | -191 | 1,201 | 251 |
What should Magna watch on October 30, 2026?
The outcome turns on new programs ramping, Complete Vehicles utilization improving and recurring cash flow supporting investment and buybacks. Q3 results on October 30, 2026, will test margins, cash flow and recovery against guidance. The repurchase authorization expires November 6, 2026, while buybacks compete with investment and debt reduction for cash. Investor Day on November 11, 2026, centers on margins, investment, returns and time to scale for the non-automotive strategy.