Magna posts higher Q3 earnings despite 4% sales decline

Magna International (NYSE:MGA) reported third-quarter 2026 net income of $383 million, up from $305 million a year earlier, despite a 4% decline in sales to $10.1 billion.

Diluted earnings per share increased to $1.44 from $1.08, while adjusted operating earnings rose 11% to $683 million, compared with the previous year's $616 million.

The company reported that adjusted operating margin expanded to 6.8% from 5.9%, reflecting improved operating performance despite lower quarterly sales.

Magna raised its 2026 free cash flow forecast to $1.85–$1.90 billion, narrowed its adjusted EPS guidance to $6.85–$7.15 and lowered its full-year sales outlook to $41.2–$42 billion.

The company returned $658 million to shareholders through dividends and share repurchases during the quarter, while its board approved a new programme covering up to approximately 25.8 million shares, subject to Toronto Stock Exchange approval.

The repurchase programme is expected to begin November 9, 2026, subject to regulatory approval.

Magna supplies automotive systems and components to vehicle manufacturers worldwide, with operations spanning vehicle engineering, body systems, powertrain, electronics, seating and complete vehicle manufacturing across 28 countries.