Magna Q3 Earnings Surpass Expectations, Guidance Revised

Magna International MGA reported third-quarter 2025 adjusted earnings of $1.33 per share, which rose from the year-ago quarter’s $1.28, beating the Zacks Consensus Estimate of $1.24.

Net sales increased 2% year over year to $10.46 billion and surpassed the Zacks Consensus Estimate of $10.01 billion.

Magna International Inc. Price, Consensus and EPS Surprise

Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote

MGA’s Segmental Performance

The Body Exteriors & Structures segment’s revenues were $4.15 billion, up 3% year over year. This was due to higher light vehicle production and the launch of programs, divestitures and the net strengthening of foreign currencies against the U.S. dollar. The figure also topped the Zacks Consensus Estimate of $3.94 billion. The segment reported an adjusted EBIT of $305 million, up from $273 million recorded in the year-ago period. The metric also topped the Zacks Consensus Estimate of $267 million on enhanced productivity and efficiency and supply chain premiums in 2024.

The Power & Vision segment’s revenues remained flat year over year at $3.84 billion. The metric surpassed the Zacks Consensus Estimate of $3.80 billion. Segmental adjusted EBIT fell from $279 million to $236 million due to unfavorable product mix and higher tariffs and input production costs. The metric also missed the Zacks Consensus Estimate of $244 million. 

Revenues from the Seating Systems segment rose 10% year over year to $1.52 billion due to the launch of programs and the net strengthening of foreign currencies against the U.S. dollar. The metric also topped the Zacks Consensus Estimate of $1.33 billion. Segmental adjusted EBIT rose to $62 million from $51 million in the year-ago period due to improved earnings on higher sales and the benefit of government R&D incentives. The metric also topped the Zacks Consensus Estimate of $45.79 million.

The Complete Vehicles segment’s revenues decreased 6% year over year to $1.09 billion due to lower assembly volumes. The metric, however, outpaced the Zacks Consensus Estimate of $1.07 billion. The segment reported an adjusted EBIT of $29 million, up from $27 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $16.1 million due to productivity and efficiency improvements and favorable program mix.

MGA’s Financials

Magna had $1.33 billion in cash and cash equivalents as of Sept 30, 2025, up from $1.25 billion as of Dec. 31, 2024. As of Sept. 30, 2025, long-term debt was $4.97 billion, up from $4.13 billion as of Dec. 31, 2024.

In the reported quarter, cash provided from operating activities totaled $912 million, up from the year-ago figure of $727 million. 

The company declared its quarterly dividend of 48.50 cents per common share, which will be paid on Nov. 28, 2025, to shareholders of record as of Nov. 14, 2025.

Magna Updates 2025 Outlook

Magna now expects 2025 revenues in the band of $41.1-$42.1 billion, up from the previous target of $40.4-$42.0 billion. Adjusted EBIT margin is expected in the band of 5.4-5.6% compared with the previous estimate of 5.2-5.6%. Adjusted net income is estimated between $1.35 billion and $1.55 billion, up from the previous estimate of $1.45-$1.55 billion compared to the previous estimate of $1.35-$1.55 billion. Capex is estimated to be approximately $1.5 billion, down from $1.6-$1.7 billion.

Magna Zacks Rank & Key Picks

MGA carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 67 cents and $1.07, respectively, in the past 30 days.

The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for 2025 have improved 13 cents in the past 90 days. EPS estimates for 2026 have improved 2 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 3 cents and 8 cents, respectively, in the past seven days. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research