Magna International Reports Strong Q4 Earnings

Autoparts supplier sees margin expansion, cash generation, and active capital return plan in 2026 outlook.

Published on Feb. 14, 2026

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Magna International (NYSE:MGA) reported strong fourth-quarter and full-year 2025 results, with margin expansion, robust cash generation, and an active capital return plan. Executives highlighted the resilience of Magna's business model and continued progress from operational excellence initiatives. The company expects relatively flat light-vehicle production in 2026 but forecasts adjusted EBIT margin expansion of 40 to 100 basis points.

Why it matters

As a major global automotive supplier, Magna's performance provides insights into the health of the broader auto industry. The company's margin expansion, cash generation, and capital return plans signal operational discipline and financial strength, which could bode well for its OEM customers and the industry overall.

The details

Magna reported Q4 2025 sales of $10.8 billion, up 2% year-over-year, despite a 1% decline in global light vehicle production. Adjusted EBIT margin expanded 100 basis points to 7.5%, and adjusted EBIT increased 18% to $814 million. For the full year, Magna saw sales of $42 billion, down slightly due to softer volumes, but adjusted EBIT margin rose 20 basis points to 5.6%. The company generated $3.6 billion in operating cash flow and $1.9 billion in free cash flow for 2025.

  • Magna reported Q4 and full-year 2025 results on February 14, 2026.
  • The company provided its 2026 outlook during the earnings call.

The players

Magna International

A leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components.

Swamy Kotagiri

CEO of Magna International.

Phil Fracassa

CFO of Magna International.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

Magna expects its EBIT in 2026 to be back-half weighted, with the first half representing just over 40% of full-year EBIT. The company also plans to repurchase the remaining shares available under its normal course issuer bid, with approximately 22 million shares available as of the call.

The takeaway

Magna's strong financial performance and operational discipline, including margin expansion, robust cash generation, and an active capital return plan, suggest the company is well-positioned to navigate the challenges facing the auto industry. The company's focus on operational excellence initiatives and new business opportunities point to its resilience and ability to adapt to changing market conditions.