Earnings call transcript: Magna tops Q3 2026 profit forecasts as margins widen

Magna International reported stronger-than-expected third-quarter profit for 2026, beating Wall Street’s estimates. Adjusted earnings per share came in at $1.83, surpassing the forecast of $1.58 by $0.25 a share, a 15.8% improvement. Revenue for the quarter was $10.1 billion, matching analysts' predictions. Despite a 4% decline in sales from the previous year, the company managed to improve profitability through better margins, lower interest expense, and stronger operating performance.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBIT) rose 11% to $683 million, with the margin expanding by 90 basis points to 6.8%. Free cash flow also remained robust at $584 million, driven by disciplined working capital management and reduced capital spending. The company narrowed its full-year margin outlook and raised free cash flow guidance, while cutting its sales expectations.

Magna's market capitalization stands at $16.89 billion, with a P/E ratio of 23.62, indicating a moderate valuation relative to its earnings. The stock closed at $63.82 in the regular session, down 1.36% from the previous close, and remained unchanged in after-hours trading.