(Adds RBC Capital Markets commentary in paragraphs 5 to 7 inclusive, and updates share price in headline)
Magna International (MGA), a global automotive supplier, reported Q1 adjusted earnings Friday of US$1.38 per share, up from $0.78 a year earlier. Analysts polled by FactSet expected $1.02.
Sales for the quarter ended March 31 were $10.38 billion, compared with $10.07 billion a year earlier.
Analysts polled by FactSet expected $10.36 billion.
For 2026, the company continues to expect adjusted EPS of $6.25 to $7.25. Analysts are looking for $6.76.
Magna said it now expects full-year sales between $41.5 billion and $43.1 billion, compared with its prior outlook range of $41.9 billion to $43.5 billion. Analysts are looking for $42.65 billion.
RBC Capital Markets noted Magna reported Q1 Adjusted EBIT of $558 million, well above consensus of $422M. RBC said the beat was largely driven by P&V, though EBIT came in ahead of consensus across all segments.
RBC also noted management cut its 2026 P&V revenue guidance by $300M at the midpoint (with
no change to EBIT margins), potentially driven by S&P Global's recent production forecast cuts. The bank said this lowers the 2026 implied EBIT guidance by $25M to $2.665B (midpoint). But RBC added despite the modest guidance cut, its math implies that consensus EBIT for the remainder of 2026 could move higher. "As a result, we would expect a positive, albeit muted reaction to shares given the company did not raise guidance."
According to RBC, questions on the earnings call could include: Reasoning behind lowering P&V but not other segments; Factors that drove the Q1 margin performance; Updates to commodity inflation (e.g., DRAM) or freight costs in second half 2026; and any further updates or business wins with Chinese OEMs.