Magna posts $485m disposal hit on strong Q1 quarter

Magna International reported first-quarter sales up 3% to US$10.4bn and Adjusted EBIT up 58% to US$558m, with Adjusted EBIT margin expanding 190 basis points to 5.4%. The headline diluted loss per share of US$0.04 reflected a US$485m pre-tax loss on assets held for sale tied to the planned disposals of Magna’s Lighting and Rooftop Systems businesses.

The Canadian supplier has agreed to sell its European Lighting and Rooftop Systems businesses to Mutares, with AURELIUS Investment Lux Alpha SARL acquiring the Lighting operations in North America, South America and China. The transactions sit within Magna’s Power & Vision segment and are expected to close in the second half of 2026.

Adjusted EPS rose 77% to US$1.38 and free cash flow swung to a US$372m inflow from a US$313m outflow a year earlier. Magna returned US$575m to shareholders through repurchases and dividends.

The company trimmed the top end of its 2026 sales outlook to US$41.5–43.1bn from US$41.9–43.5bn, reflecting lower production assumptions in North America and Europe. Adjusted EBIT margin guidance of 6.0–6.6% and Adjusted EPS guidance of US$6.25–7.25 were unchanged.

In a statement, Swamy Kotagiri, Chief Executive at Magna, said: “We delivered a strong start to 2026, driven by disciplined execution, margin expansion and robust free cash flow generation. Our actions to further refine our portfolio, including the announced dispositions within Power & Vision, reinforce our focus on long-term value creation.”

Source: Magna