{"success":true,"data":{"pressRelease":{"id":"104755","rtpr_id":"nGNX4f7sq0","ticker":"MGA","exchange":"NYSE","all_tickers":["MGA","MG"],"title":"Magna Announces Strong Second Quarter Results; Raises Outlook for 2026","author":"Globe Newswire","published_at":"2026-07-31T09:00:00.388Z","article_body":"Highlights((1))\n\nDelivered strong second-quarter 2026 results, reflecting profitable sales\ngrowth, continued productivity improvements and disciplined execution.\n* Sales increased 3% to $11.0 billion, outperforming a 2% decline in global\nlight vehicle production\n* Income from operations before income taxes increased 21% to $599 million\n* Adjusted EBIT increased 16% to $677 million, with Adjusted EBIT margin\nexpanding 70 basis points to 6.2%\n* Diluted earnings per share were $1.72; Adjusted EPS increased 29% to $1.86,\na record for the second quarter\n* Returned $598 million to shareholders during the quarter through dividends\nand share repurchases\n* Raised full year Outlook for Adjusted EBIT margin, Adjusted EPS and Free\nCash Flow, with Sales updated to reflect foreign exchange impacts and\ndivestiture timing\nAURORA, Ontario, July 31, 2026 (GLOBE NEWSWIRE) -- Magna International Inc.\n(TSX: MG; NYSE: MGA) today reported financial results for the second quarter\nended June 30, 2026.\n\nPlease click HERE\n(https://www.globenewswire.com/Tracker?data=LAEuhDaX2b5f4XQp0hGWARfJ9fAbm5WwQ023K-vFgKg0RdTiaY3fUOuxKCxj2cIYs0iYUFb4nupRXqY2ev6T6DaBJsGacR986rvFyZiZxgQr0Rj48UYr6vt2inf5EeY8oYaus0tOnRn2EJe7CUtXjy6vKLbA5mWTh-LdLuIW5cw=) for\nfull second quarter MD&A and Financial Statements.\n\n “Our strong second-quarter results reflect solid operating performance, disciplined execution, and further progress against our strategic priorities. Supported by record second-quarter adjusted EPS, strong free cash flow, and confidence in our business and global team, we are raising our 2026 outlook. As we look ahead, we remain focused on delivering profitable growth, expanding margins, generating cash, and returning capital to shareholders, while remaining agile in a dynamic global environment.” - Swamy \n Kotagiri, Chief Executive Officer \n\n \n\n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n Reported \n Sales $ 10,980 $ 10,631 $ 21,361 $ 20,700 \n Income from operations before income taxes 599 496 686 721 \n Net income attributable to Magna \n International Inc. 469 379 457 525 \n Diluted earnings per share 1.72 1.35 1.65 1.86 \n \n Non-GAAP Financial Measures ((1)) \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n Adjusted EPS 1.86 1.44 3.24 2.22 \n Free Cash Flow 617 301 989 (12 ) \n\n \n\n All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars ((1))Adjusted EBIT, Adjusted EPS, and Free Cash Flow are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release. \n \n\nTHREE MONTHS ENDED JUNE 30, 2026\n\nWe posted sales of $11.0 billion for the second quarter of 2026, an increase\nof 3% over the second quarter of 2025. The higher sales largely reflects:\n* the launch of new programs during or subsequent to the second quarter of\n2025, including complete vehicle programs with value-added contractual\narrangements; and\n* the net strengthening of foreign currencies against the U.S. dollar, which\nincreased reported U.S. dollar sales by $172 million.\nThese factors were partially offset by:\n* the end of production of certain programs;\n* lower light vehicle production in North America, Europe and China;\n* lower engineering revenue, primarily in our Complete Vehicles segment; and\n* net customer price concessions as compared to the prior year.\nAdjusted EBIT increased 16% to $677 million for the second quarter of 2026\ncompared to $583 million for the second quarter of 2025, primarily due to:\n* productivity and efficiency improvements, including the benefit of\noperational excellence initiatives and prior restructuring actions;\n* net transactional foreign exchange gains in the second quarter of 2026,\ncompared to net transactional foreign exchange losses in the second quarter of\n2025;\n* earnings on higher organic sales; and\n* recoveries for tariffs, net of costs incurred.\nThese factors were partially offset by:\n* the net unfavourable impact of commercial items;\n* net unfavourable product mix; and\n* higher commodity costs, partially offset by higher scrap recoveries.\nIncome from operations before income taxes was $599 million in the second\nquarter of 2026, up $103 million or 21% compared to the second quarter of\n2025. Income from operations before income taxes includes Other expense,\nnet((2)) and Amortization of acquired intangible assets totaling $41 million\nand $35 million in the second quarters of 2026 and 2025, respectively.\nExcluding Other expense, net and Amortization of acquired intangible assets\nfrom both periods, income from operations before income taxes in the second\nquarter of 2026 increased $109 million or 21% compared to the second quarter\nof 2025, largely reflecting the increase in Adjusted EBIT.\n\nNet income attributable to Magna International Inc. was $469 million for the\nsecond quarter of 2026 compared to $379 million in the second quarter of 2025.\nExcluding Other expense, net, after tax and Amortization of acquired\nintangibles from both periods, net income attributable to Magna International\nInc. was $508 million in the second quarter of 2026 compared to $407 million\nin the second quarter of 2025.\n\nDiluted earnings per share were $1.72 in the second quarter of 2026, an\nincrease of 27% from the comparable period. Adjusted EPS were $1.86, a record\nfor the second quarter, compared to $1.44 for the second quarter of last year,\nan increase of 29%. The increase in Adjusted EPS primarily reflects the impact\nof higher Adjusted EBIT and a decrease in average diluted shares outstanding\nresulting from share repurchases over the past 12 months.\n\nIn the second quarter of 2026, we generated cash from operations of $954\nmillion, and Free Cash Flow of $617 million.\n\n((2) Other expense, net is comprised of restructuring activities, loss on\nassets held for sale, impacts related to Fisker, and gain on investment during\nthe three months ended June 30, 2026 & 2025. A reconciliation of these\nNon-GAAP financial measures is included in the back of this press release.)\n\nSIX MONTHS ENDED JUNE 30, 2026\n\nWe posted sales of $21.4 billion for the six months ended June 30, 2026, an\nincrease of 3% compared to $20.7 billion for the six months ended June 30,\n2025. The higher sales largely reflects:\n* the net strengthening of foreign currencies against the U.S. dollar, which\nincreased reported U.S. dollar sales by $692 million; and\n* the launch of new programs during or subsequent to the first half of 2025,\nincluding complete vehicle programs with value-added contractual arrangements.\nThese factors were partially offset by:\n* the end of production of certain programs;\n* lower light vehicle production in North America, Europe and China;\n* lower complete vehicle assembly volumes with full-cost contractual\narrangements;\n* lower engineering revenue, primarily in our Complete Vehicles segment; and\n* net customer price concessions subsequent to the second half of 2025.\nAdjusted EBIT increased 32% to $1.2 billion for the six months ended June 30,\n2026 compared to $937 million for the six months ended June 30, 2025 primarily\ndue to:\n* productivity and efficiency improvements, including the benefit of\noperational excellence initiatives and prior restructuring actions;\n* higher equity income, including favourable commercial items in our Power &\nVision segment;\n* net transactional foreign exchange gains in the first six months of 2026,\ncompared to net transactional foreign exchange losses in the first six months\nof 2025;\n* earnings on higher organic sales;\n* the net strengthening of foreign currencies against the U.S. dollar, which\nhad a favourable impact on reported U.S. dollar Adjusted EBIT; and\n* lower warranty costs.\nThese factors were partially offset by:\n* net unfavourable product mix;\n* lower income on lower engineering revenue;\n* higher incentive and stock-based compensation and employee profit sharing;\nand\n* the net unfavourable impact of commercial items.\nDuring the six months ended June 30, 2026, income from operations before\nincome taxes was $686 million, down $35 million or 5% from the prior year.\nIncome from operations before income taxes includes Other expense, net((2))\nand Amortization of acquired intangible assets totaling $475 million and $114\nmillion in the first six months of 2026 and 2025, respectively. Net income\nattributable to Magna International Inc. was $457 million in the six months\nended June 30, 2026, compared to $525 million in the prior year period.\nExcluding Other expense, net, after tax and Amortization of acquired\nintangibles from both periods, net income attributable to Magna International\nInc. was $894 million in the first six months of 2026 compared to $626 million\nin the prior year period.\n\nDiluted earnings per share were $1.65 during the six months ended June 30,\n2026, compared to $1.86 in the comparable period. Adjusted diluted earnings\nper share were $3.24, compared to $2.22 for the six months ended June 30,\n2025. The increase in Adjusted EPS primarily reflects the impact of higher\nadjusted EBIT and a decrease in average diluted shares outstanding resulting\nfrom share repurchases over the past 12 months.\n\nDuring the six months ended June 30, 2026, we generated cash from operations\nof $1.6 billion. Free Cash Flow was $989 million in the period, including\nbalance sheet-related customer recoveries for contract adjustments associated\nwith certain electric vehicle programs in North America.\n\nRETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS\n\nDuring the three and six months ended June 30, 2026, we paid dividends of $133\nmillion and $268 million, respectively. In addition, we repurchased 7.4\nmillion shares for $465 million and 15.0 million shares for $905 million,\nrespectively, for the three and six months ended June 30, 2026. As of June 30,\n2026, there are 9.2 million remaining shares available for repurchase under\nour current Normal Course Issuer Bid authorization, which runs through early\nNovember 2026.\n\nOur Board of Directors declared a second quarter dividend of $0.495 per Common\nShare. The dividend is payable on August 28, 2026 to shareholders of record as\nof the close of business on August 14, 2026.\n\nSEGMENT SUMMARY\n\n ($Millions) THREE MONTHS ENDED JUNE 30, \n Sales Adjusted \n EBIT \n 2026 2025 Change 2026 2025 Change \n Body Exteriors & Structures $ 4,421 $ 4,253 $ 168 $ 360 $ 347 $ 13 \n Power & Vision 4,093 3,857 236 245 162 83 \n Seating Systems 1,448 1,433 15 51 42 9 \n Complete Vehicles 1,160 1,226 (66 ) 37 28 9 \n Corporate and Other (142 ) (138 ) (4 ) (16 ) 4 (20 ) \n Total Reportable Segments $ 10,980 $ 10,631 $ 349 $ 677 $ 583 $ 94 \n\n \n\n THREE MONTHS ENDED JUNE 30, \n Adjust \n ed \n EBIT \n as a \n percen \n tage \n of \n sales \n 2026 2025 Change \n Body Exteriors & Structures 8.1 % 8.2 % (0.1 )% \n Power & Vision 6.0 % 4.2 % 1.8 % \n Seating Systems 3.5 % 2.9 % 0.6 % \n Complete Vehicles 3.2 % 2.3 % 0.9 % \n Consolidated Average 6.2 % 5.5 % 0.7 % \n\n \n\n ($Millions) SIX MONTHS ENDED JUNE 30, \n Sales Adjusted \n EBIT \n 2026 2025 Change 2026 2025 Change \n Body Exteriors & Structures $ 8,500 $ 8,219 $ 281 $ 634 $ 577 $ 57 \n Power & Vision 7,974 7,503 471 497 286 211 \n Seating Systems 2,788 2,745 43 76 12 64 \n Complete Vehicles 2,384 2,502 (118 ) 69 72 (3 ) \n Corporate and Other (285 ) (269 ) (16 ) (41 ) (10 ) (31 ) \n Total Reportable Segments $ 21,361 $ 20,700 $ 661 $ 1,235 $ 937 $ 298 \n\n \n\n SIX MONTHS ENDED JUNE 30, \n Adjust \n ed \n EBIT \n as a \n percen \n tage \n of \n sales \n 2026 2025 Change \n Body Exteriors & Structures 7.5 % 7.0 % 0.5 % \n Power & Vision 6.2 % 3.8 % 2.4 % \n Seating Systems 2.7 % 0.4 % 2.3 % \n Complete Vehicles 2.9 % 2.9 % — \n Consolidated Average 5.8 % 4.5 % 1.3 % \n\nFor further details on our segment results, please see our Management's\nDiscussion and Analysis of Results of Operations and Financial Position and\nour Interim Financial Statements.\n\n2026 OUTLOOK\n\nThe Company is updating its outlook for Full Year 2026. Compared to our\nprevious Outlook (May 2026), Sales have been updated primarily to reflect\nunfavourable foreign currency translation resulting from a stronger U.S.\ndollar and the earlier-than-expected completion of the Lighting and Rooftop\nSystems divestitures. Magna is increasing its Outlook for Adjusted EBIT\nMargin, Adjusted EPS, and Free Cash Flow, reflecting strong first-half results\nand expectations for continued solid execution through the remainder of the\nyear.\n\nUpdated 2026 Outlook:\n\n Current Previous \n Segment Sales \n Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles $16.6 - $17.1 billion $15.4 - $15.7 billion $5.4 - $5.6 billion $4.3 - $4.5 billion $16.6 - $17.2 billion $15.6 - $16.0 billion $5.4 - $5.7 billion $4.4 - $4.7 billion \n Total Sales $41.3 - $42.5 billion $41.5 - $43.1 billion \n \n Adjusted EBIT Margin ((3)) 6.3% - 6.6% 6.0% - 6.6% \n \n Adjusted EPS ((4)) $6.70 - $7.30 $6.25 - $7.25 \n \n Free Cash Flow ((5)) $1.75 - $1.85 billion $1.6 - $1.8 billion \n \n \n Macro Assumptions: \n \n Light Vehicle Production (millions of units) \n North America 15.0 14.9 \n Europe 16.8 16.6 \n China 31.2 32.0 \n \n Average Foreign exchange rates: \n 1 Canadian dollar equals U.S. $0.713 U.S. $0.730 \n 1 euro equals U.S. $1.153 U.S. $1.178 \n \n Other Key Assumptions : \n \n Capital Spending $1.5 - $1.6 billion $1.5 - $1.6 billion \n \n Equity Income (included in EBIT) $190 - $210 million $160 - $195 million \n \n Interest Expense, net Approx. $160 million Approx. $165 million \n \n Income Tax Rate ((6)) Approx. 23% Approx. 23% \n \n Weighted average diluted shares outstanding Approx. 270 million Approx. 270 million \n \n Notes: ((3) Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales. Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information.) ((4) Adjusted EPS represents Adjusted Net Income attributable to Magna divided by the Diluted weighted average number of Common Shares outstanding during the period.) ((5) Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information on Free Cash Flow.) ((6) \n The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation.) \n \n\nOur full year Outlook for 2026 is provided annually, with quarterly updates,\nand is intended to provide information about management's current expectations\nand plans and may not be appropriate for other purposes. Although considered\nreasonable by Magna as of the date of this document, the 2026 Outlook above\nand the underlying assumptions may prove to be inaccurate. Accordingly, our\nactual results could differ materially from our expectations as set forth\nherein. The risks identified in the “Forward-Looking Statements” section\nbelow represent the primary factors which we believe could cause actual\nresults to differ materially from our expectations.\n\nKEY DRIVERS OF OUR BUSINESS\n\nOur business and operating results are dependent on light vehicle production\nby our customers in three key regions – North America, Europe, and China.\nWhile we supply systems and components to many OEMs globally, we do not supply\nsystems and components for every vehicle, nor is the value of our content\nconsistent from one vehicle to the next. As a result, customer and program mix\nrelative to market trends, as well as the value of our content on specific\nvehicle production programs, are also important drivers of our results.\n\nOrdinarily, OEM production volumes are aligned with vehicle sales levels and\nthus affected by changes in such levels. Aside from vehicle sales levels,\nproduction volumes are typically impacted by a range of factors, including:\ngeopolitical factors, such as military conflicts and tariffs; supply chains,\nincluding disruption to supply of and/or increased costs of steel, aluminum,\nresin, and energy supplies, as well as semiconductor and memory (DRAM) chips;\nOEM, supplier or sub-supplier disruptions; relative currency values; commodity\nprices; labour disruptions, as well as the availability and relative cost of\nskilled labour; regulatory frameworks; and other factors.\n\nOverall vehicle sales levels are significantly affected by changes in consumer\nconfidence levels, which may in turn be impacted by consumer perceptions and\ngeneral trends related to the job, housing, and stock markets, as well as\nother macroeconomic and political factors. Other factors which typically\nimpact vehicle sales levels and thus production volumes include: vehicle\naffordability; interest rates and/or availability of credit; fuel and energy\nprices; relative currency values; and considerations applicable to EVs,\nincluding EV range, charging infrastructure, and electricity pricing.\n\nNON-GAAP FINANCIAL MEASURES RECONCILIATION\n\nIn addition to the financial results reported in accordance with U.S. GAAP,\nthis press release contains references to the Non-GAAP financial measures\nreconciled below. We believe the Non-GAAP financial measures used in this\npress release are useful to both management and investors in their analysis of\nthe Company’s financial position and results of operations, and to improve\ncomparability between fiscal periods. In particular, management believes that\nAdjusted EBIT and Adjusted diluted earnings per share are useful measures in\nassessing the Company’s financial performance by excluding certain items\nthat are not indicative of the Company's core operating performance.\nManagement also believes that Free Cash Flow is a useful measure in assessing\nthe Company’s ability to generate cash to maintain operations and repay its\ndebt. The presentation of Non-GAAP financial measures should not be considered\nin isolation, or as a substitute for the Company’s related financial results\nprepared in accordance with U.S. GAAP.\n\nThe following table reconciles Net income to Adjusted EBIT:\n\n Adjusted EBIT \n \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Net income $ 479 $ 394 $ 478 $ 547 \n Add: \n Amortization of acquired intangible assets 17 29 36 55 \n Interest expense, net 37 52 74 102 \n Other expense, net 24 6 439 59 \n Income taxes 120 102 208 174 \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n \n Adjusted EBIT as a percentage of sales (“Adjusted EBIT margin”) \n \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Sales $ 10,980 $ 10,631 $ 21,361 $ 20,700 \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n Adjusted EBIT as a percentage of sales 6.2 % 5.5 % 5.8 % 4.5 % \n \n\nNON-GAAP FINANCIAL MEASURES RECONCILIATION (CONTINUED)\n\n Adjusted EPS \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Net income attributable to Magna International Inc. $ 469 $ 379 $ 457 $ 525 \n Add (deduct): \n Amortization of acquired intangible assets 17 29 36 55 \n Tax effect on Amortization of acquired intangible assets (1 ) (5 ) (3 ) (10 ) \n Other expense, net 24 6 439 59 \n Tax effect on Other expense, net (1 ) (2 ) (35 ) (3 ) \n Adjusted net income attributable to Magna International Inc. $ 508 $ 407 $ 894 $ 626 \n \n Diluted weighted average number of Common Shares \n outstanding during the period (millions): 273.2 281.7 276.3 281.9 \n Adjusted EPS $ 1.86 $ 1.44 $ 3.24 $ 2.22 \n \n\nThe following table reconciles Cash provided from operating activities to Free\nCash Flow:\n\n Free Cash Flow \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Cash provided from operating activities $ 954 $ 627 $ 1,631 $ 704 \n Add (deduct): \n Fixed asset additions (269 ) (246 ) (488 ) (514 ) \n Increase in investment, other assets, and intangible assets (77 ) (94 ) (245 ) (242 ) \n Proceeds from disposition 9 14 91 40 \n Free Cash Flow $ 617 $ 301 $ 989 $ (12 ) \n \n\nCertain of the forward-looking financial measures above are provided on a\nNon-GAAP basis. We do not provide a reconciliation of such forward-looking\nmeasures to the most directly comparable financial measures calculated and\npresented in accordance with U.S. GAAP. To do so would be potentially\nmisleading and not practical given the difficulty of projecting items that are\nnot reflective of ongoing operations in any future period. The magnitude of\nthese items, however, may be significant.\n\nThis press release, together with our Management’s Discussion and Analysis\nof Results of Operations and Financial Position and our Interim Financial\nStatements, are available in the Investor Relations section of our website at\nwww.magna.com/company/investors and filed electronically through the System\nfor Electronic Document Analysis and Retrieval + (SEDAR+) which can be\naccessed at www.sedarplus.ca as well as on the United States Securities and\nExchange Commission’s Electronic Data Gathering, Analysis and Retrieval\nSystem (EDGAR), which can be accessed at www.sec.gov.\n\nWe will hold a conference call for interested analysts and shareholders to\ndiscuss our second quarter ended June 30, 2026 results on Friday, July 31,\n2026 at 8:00 a.m. ET. The conference call will be chaired by Swamy Kotagiri,\nChief Executive Officer. The number to use for this call from North America is\n1-800-715-9871. International callers should use 1-646-307-1963. Please call\nin at least 10 minutes prior to the call start time. We will also webcast the\nconference call at www.magna.com. The slide presentation accompanying the\nconference call as well as our financial review\n(https://www.globenewswire.com/Tracker?data=jFOgrE_rztfLAkxWMEmjcekNd66snwwOpYFUbbbqEPUxaKq-aBe9HHACLgpEqY_0cj0o-oLoeGRZYCkYgY9a-TqOCr_ey_hCGTPpemlhtJY_bYcyimBmsX7ZuJxERGR73l7ESjWX8akylaUJVu6mBUb_1UH1WvFeUNwedRPc4WW7EG3Nx-GGbIJUS6jEOLem)\nsummary will be available on our website Friday prior to the call.\n\nINVESTOR CONTACT\nLouis Tonelli, Vice-President, Investor Relations \nlouis.tonelli@magna.com │ 905.726.7035\n\nMEDIA CONTACT \nTracy Fuerst, Vice-President, Corporate Communications & Media Relations \ntracy.fuerst@magna.com │ 248.761.7004\n\nTELECONFERENCE CONTACT\nNancy Hansford, Executive Assistant, Investor Relations \nnancy.hansford@magna.com │ 905.726.7108\n\nABOUT MAGNA\nMagna is one of the world’s largest automotive suppliers and a trusted\npartner to automakers in the industry’s most critical markets – North\nAmerica, Europe, and China. With operations in 28 countries, we combine global\nscale with trusted reliability and proven execution. Backed by nearly seven\ndecades of experience, we bring together deep manufacturing expertise with\ninnovative vehicle systems to deliver performance, safety, and quality.\n\nFor further information about Magna (NYSE:MGA; TSX:MG), please\nvisit www.magna.com or follow us on social. \n\nFORWARD-LOOKING STATEMENTS\n\nCertain statements in this press release constitute \"forward-looking\ninformation\" or \"forward-looking statements\" (collectively, \"forward-looking\nstatements\"). Any such forward-looking statements are intended to provide\ninformation about management's current expectations and plans and may not be\nappropriate for other purposes. Forward-looking statements may include\nfinancial and other projections, as well as statements regarding our future\nplans, strategic objectives or economic performance, or the assumptions\nunderlying any of the foregoing, and other statements that are not recitations\nof historical fact. We use words such as \"may\", \"would\", \"could\", \"should\",\n\"will\", \"likely\", \"expect\", \"anticipate\", \"assume\", \"believe\", \"intend\",\n\"plan\", \"aim\", \"forecast\", \"outlook\", \"project\", \"potential\", \"estimate\",\n\"target\" and similar expressions suggesting future outcomes or events to\nidentify forward-looking statements. The following table identifies the\nmaterial forward-looking statements contained in this document, together with\nthe material potential risks that we currently believe could cause actual\nresults to differ materially from such forward-looking statements. Readers\nshould also consider all of the risk factors which follow below the table:\n\n Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement \n Light Vehicle Production * Light vehicle sales levels, including due to: \n * A decline in consumer confidence \n * Economic uncertainty \n * Elevated interest rates and availability of consumer credit \n * Deteriorating vehicle affordability \n * Tariffs and/or other actions that erode free trade agreements \n * Production deferrals, cancellations and volume reductions \n * Production and supply disruptions \n * Commodities prices \n * Availability and relative cost of skilled labour \n Total Sales Segment Sales * Same risks as for Light Vehicle Production above \n * Alignment of our product mix with production demand \n * Supply disruptions, including as a result of semiconductor and memory (DRAM) chip shortages \n * Customer concentration \n * Pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions \n * Shifts in market shares among OEMs, vehicles and/or vehicle segments \n * Shifts in consumer \"take rates\" for products we sell \n * Relative currency values \n Adjusted EBIT Margin Adjusted Diluted EPS Free Cash Flow * Same risks as for Total Sales and Segment Sales above \n * Execution of critical program launches \n * Operational underperformance \n * Product warranty/recall risks \n * Production inefficiencies \n * Unmitigated incremental tariff costs \n * Restructuring costs and/or impairment charges \n * Inflation \n * Ability to secure cost recoveries \n * Price concessions \n * Commodity cost volatility \n * Scrap steel price volatility \n Equity Income * Same risks as Adjusted EBIT Margin above \n * Risks related to conducting business through joint ventures \n * Risks of doing business in foreign markets \n * Legal and regulatory proceedings \n * Changes in law \n Share Repurchases Weighted Average Diluted Shares Outstanding * Same risks impacting Free Cash Flow above \n * Ability to repurchase shares for cancellation, including due to normal course issuer bid rules, trading blackouts, and other factors \n\nForward-looking statements are based on information currently available to us\nand are based on assumptions and analyses made by us in light of our\nexperience and our perception of historical trends, current conditions and\nexpected future developments, as well as other factors we believe are\nappropriate in the circumstances. While we believe we have a reasonable basis\nfor making any such forward-looking statements, they are not a guarantee of\nfuture performance or outcomes. In addition to the factors in the table above,\nwhether actual results and developments conform to our expectations and\npredictions is subject to a number of risks, assumptions, and uncertainties,\nmany of which are beyond our control, and the effects of which can be\ndifficult to predict, including, without limitation:\n\n Macroeconomic, Geopolitical and Other Risks * geopolitical crises and military conflicts; Pricing Risks * quote/pricing assumptions; \n * threats to free trade agreements; * customer pricing pressure/contractual arrangements; \n * international trade disputes; * commodity price volatility; \n * planning and forecasting challenges; * scrap steel/aluminum price volatility; \n * interest rates and availability of consumer credit; Warranty/Recall Risks * repair/replacement costs; \n Risks Related to the Automotive Industry * pace of EV adoption; * warranty provisions; \n * North American EV program deferrals, cancellations and volume reductions; * product liability; \n * economic cyclicality; IT Security/Cybersecurity Risks * IT/cybersecurity breach; \n * regional production volumes; * product cybersecurity breach; \n * deteriorating vehicle affordability; * risks related to the use of artificial intelligence; \n * intense competition; Merger and Acquisition Risks * inherent merger and acquisition risks; \n Strategic Risks * evolution of the vehicle; * acquisition integration and synergies; \n * evolving business risk profile; Other Business Risks * joint ventures; \n * technology and innovation; * intellectual property; \n * investments in mobility and technology companies; * risks of doing business in foreign markets; \n Customer-Related Risks * customer concentration; * tax risks; \n * market shifts; * relative foreign exchange rates; \n * evolving OEM competitive landscape; * returns on capital investments; \n * dependence on outsourcing; * financial flexibility; \n * consumer take rate shifts; * credit ratings changes; \n * nature of customer blanket purchase orders; * stock price fluctuation; \n * potential OEM production-related disruptions; Legal, Regulatory and Other Risks * legal and regulatory proceedings; and \n Supply Chain Risks * supply chain disruptions; * changes in laws. \n * regional energy supply and pricing; \n * financial condition of supply base; \n * supplier claims; \n Manufacturing/Operational Risks * product launch; \n * operational underperformance; \n * restructuring costs; \n * impairments; \n * skilled labour attraction/retention; \n\nIn evaluating forward-looking statements or forward-looking information, we\ncaution readers not to place undue reliance on any forward-looking statement.\nAdditionally, readers should specifically consider the various factors which\ncould cause actual events or results to differ materially from those indicated\nby such forward-looking statements, including the risks, assumptions and\nuncertainties above which are:\n* discussed under the “Industry Trends and Risks” heading of our\nManagement’s Discussion and Analysis; and\n* set out in our Annual Information Form filed with securities commissions in\nCanada, our annual report on Form 40-F filed with the United States Securities\nand Exchange Commission, and subsequent filings.\nReaders should also consider discussion of our risk mitigation activities with\nrespect to certain risk factors, which can be also found in our Annual\nInformation Form. Additional information about Magna, including our Annual\nInformation Form, is available through the System for Electronic Data Analysis\nand Retrieval + (SEDAR+) at www.sedarplus.ca, as well as on the United States\nSecurities and Exchange Commission’s Electronic Data Gathering, Analysis and\nRetrieval System (EDGAR), which can be accessed at www.sec.gov.\n\nA photo accompanying this announcement is available at\nhttps://www.globenewswire.com/NewsRoom/AttachmentNg/93181fb8-f6b5-4931-b5a4-d623b0eee5e7\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/a7a38de0-1b95-40c3-83d0-b7f23fd4d665)\nSwamy Kotagiri, Chief Executive Officer \n(https://www.globenewswire.com/NewsRoom/AttachmentNg/93181fb8-f6b5-4931-b5a4-d623b0eee5e7/en)\n“Our strong second-quarter results reflect solid operating performance,\ndisciplined execution, and further progress against our strategic priorities.\nSupported by record second-quarter adjusted EPS, strong free cash flow, and\nconfidence in our business and global team, we are raising our 2026 outlook.\nAs we look ahead, we remain focused on delivering profitable growth, expanding\nmargins, generating cash, and returning capital to shareholders, while\nremaining agile in a dynamic global environment.”\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX4f7sq0","title":"Magna Announces Strong Second Quarter Results; Raises Outlook for 2026","author":"Globe Newswire","ticker":"MGA","created":"2026-07-31T09:00:00.388Z","tickers":["MGA","MG"],"exchange":"NYSE","article_body":"Highlights((1))\n\nDelivered strong second-quarter 2026 results, reflecting profitable sales\ngrowth, continued productivity improvements and disciplined execution.\n* Sales increased 3% to $11.0 billion, outperforming a 2% decline in global\nlight vehicle production\n* Income from operations before income taxes increased 21% to $599 million\n* Adjusted EBIT increased 16% to $677 million, with Adjusted EBIT margin\nexpanding 70 basis points to 6.2%\n* Diluted earnings per share were $1.72; Adjusted EPS increased 29% to $1.86,\na record for the second quarter\n* Returned $598 million to shareholders during the quarter through dividends\nand share repurchases\n* Raised full year Outlook for Adjusted EBIT margin, Adjusted EPS and Free\nCash Flow, with Sales updated to reflect foreign exchange impacts and\ndivestiture timing\nAURORA, Ontario, July 31, 2026 (GLOBE NEWSWIRE) -- Magna International Inc.\n(TSX: MG; NYSE: MGA) today reported financial results for the second quarter\nended June 30, 2026.\n\nPlease click HERE\n(https://www.globenewswire.com/Tracker?data=LAEuhDaX2b5f4XQp0hGWARfJ9fAbm5WwQ023K-vFgKg0RdTiaY3fUOuxKCxj2cIYs0iYUFb4nupRXqY2ev6T6DaBJsGacR986rvFyZiZxgQr0Rj48UYr6vt2inf5EeY8oYaus0tOnRn2EJe7CUtXjy6vKLbA5mWTh-LdLuIW5cw=) for\nfull second quarter MD&A and Financial Statements.\n\n “Our strong second-quarter results reflect solid operating performance, disciplined execution, and further progress against our strategic priorities. Supported by record second-quarter adjusted EPS, strong free cash flow, and confidence in our business and global team, we are raising our 2026 outlook. As we look ahead, we remain focused on delivering profitable growth, expanding margins, generating cash, and returning capital to shareholders, while remaining agile in a dynamic global environment.” - Swamy \n Kotagiri, Chief Executive Officer \n\n \n\n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n Reported \n Sales $ 10,980 $ 10,631 $ 21,361 $ 20,700 \n Income from operations before income taxes 599 496 686 721 \n Net income attributable to Magna \n International Inc. 469 379 457 525 \n Diluted earnings per share 1.72 1.35 1.65 1.86 \n \n Non-GAAP Financial Measures ((1)) \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n Adjusted EPS 1.86 1.44 3.24 2.22 \n Free Cash Flow 617 301 989 (12 ) \n\n \n\n All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars ((1))Adjusted EBIT, Adjusted EPS, and Free Cash Flow are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release. \n \n\nTHREE MONTHS ENDED JUNE 30, 2026\n\nWe posted sales of $11.0 billion for the second quarter of 2026, an increase\nof 3% over the second quarter of 2025. The higher sales largely reflects:\n* the launch of new programs during or subsequent to the second quarter of\n2025, including complete vehicle programs with value-added contractual\narrangements; and\n* the net strengthening of foreign currencies against the U.S. dollar, which\nincreased reported U.S. dollar sales by $172 million.\nThese factors were partially offset by:\n* the end of production of certain programs;\n* lower light vehicle production in North America, Europe and China;\n* lower engineering revenue, primarily in our Complete Vehicles segment; and\n* net customer price concessions as compared to the prior year.\nAdjusted EBIT increased 16% to $677 million for the second quarter of 2026\ncompared to $583 million for the second quarter of 2025, primarily due to:\n* productivity and efficiency improvements, including the benefit of\noperational excellence initiatives and prior restructuring actions;\n* net transactional foreign exchange gains in the second quarter of 2026,\ncompared to net transactional foreign exchange losses in the second quarter of\n2025;\n* earnings on higher organic sales; and\n* recoveries for tariffs, net of costs incurred.\nThese factors were partially offset by:\n* the net unfavourable impact of commercial items;\n* net unfavourable product mix; and\n* higher commodity costs, partially offset by higher scrap recoveries.\nIncome from operations before income taxes was $599 million in the second\nquarter of 2026, up $103 million or 21% compared to the second quarter of\n2025. Income from operations before income taxes includes Other expense,\nnet((2)) and Amortization of acquired intangible assets totaling $41 million\nand $35 million in the second quarters of 2026 and 2025, respectively.\nExcluding Other expense, net and Amortization of acquired intangible assets\nfrom both periods, income from operations before income taxes in the second\nquarter of 2026 increased $109 million or 21% compared to the second quarter\nof 2025, largely reflecting the increase in Adjusted EBIT.\n\nNet income attributable to Magna International Inc. was $469 million for the\nsecond quarter of 2026 compared to $379 million in the second quarter of 2025.\nExcluding Other expense, net, after tax and Amortization of acquired\nintangibles from both periods, net income attributable to Magna International\nInc. was $508 million in the second quarter of 2026 compared to $407 million\nin the second quarter of 2025.\n\nDiluted earnings per share were $1.72 in the second quarter of 2026, an\nincrease of 27% from the comparable period. Adjusted EPS were $1.86, a record\nfor the second quarter, compared to $1.44 for the second quarter of last year,\nan increase of 29%. The increase in Adjusted EPS primarily reflects the impact\nof higher Adjusted EBIT and a decrease in average diluted shares outstanding\nresulting from share repurchases over the past 12 months.\n\nIn the second quarter of 2026, we generated cash from operations of $954\nmillion, and Free Cash Flow of $617 million.\n\n((2) Other expense, net is comprised of restructuring activities, loss on\nassets held for sale, impacts related to Fisker, and gain on investment during\nthe three months ended June 30, 2026 & 2025. A reconciliation of these\nNon-GAAP financial measures is included in the back of this press release.)\n\nSIX MONTHS ENDED JUNE 30, 2026\n\nWe posted sales of $21.4 billion for the six months ended June 30, 2026, an\nincrease of 3% compared to $20.7 billion for the six months ended June 30,\n2025. The higher sales largely reflects:\n* the net strengthening of foreign currencies against the U.S. dollar, which\nincreased reported U.S. dollar sales by $692 million; and\n* the launch of new programs during or subsequent to the first half of 2025,\nincluding complete vehicle programs with value-added contractual arrangements.\nThese factors were partially offset by:\n* the end of production of certain programs;\n* lower light vehicle production in North America, Europe and China;\n* lower complete vehicle assembly volumes with full-cost contractual\narrangements;\n* lower engineering revenue, primarily in our Complete Vehicles segment; and\n* net customer price concessions subsequent to the second half of 2025.\nAdjusted EBIT increased 32% to $1.2 billion for the six months ended June 30,\n2026 compared to $937 million for the six months ended June 30, 2025 primarily\ndue to:\n* productivity and efficiency improvements, including the benefit of\noperational excellence initiatives and prior restructuring actions;\n* higher equity income, including favourable commercial items in our Power &\nVision segment;\n* net transactional foreign exchange gains in the first six months of 2026,\ncompared to net transactional foreign exchange losses in the first six months\nof 2025;\n* earnings on higher organic sales;\n* the net strengthening of foreign currencies against the U.S. dollar, which\nhad a favourable impact on reported U.S. dollar Adjusted EBIT; and\n* lower warranty costs.\nThese factors were partially offset by:\n* net unfavourable product mix;\n* lower income on lower engineering revenue;\n* higher incentive and stock-based compensation and employee profit sharing;\nand\n* the net unfavourable impact of commercial items.\nDuring the six months ended June 30, 2026, income from operations before\nincome taxes was $686 million, down $35 million or 5% from the prior year.\nIncome from operations before income taxes includes Other expense, net((2))\nand Amortization of acquired intangible assets totaling $475 million and $114\nmillion in the first six months of 2026 and 2025, respectively. Net income\nattributable to Magna International Inc. was $457 million in the six months\nended June 30, 2026, compared to $525 million in the prior year period.\nExcluding Other expense, net, after tax and Amortization of acquired\nintangibles from both periods, net income attributable to Magna International\nInc. was $894 million in the first six months of 2026 compared to $626 million\nin the prior year period.\n\nDiluted earnings per share were $1.65 during the six months ended June 30,\n2026, compared to $1.86 in the comparable period. Adjusted diluted earnings\nper share were $3.24, compared to $2.22 for the six months ended June 30,\n2025. The increase in Adjusted EPS primarily reflects the impact of higher\nadjusted EBIT and a decrease in average diluted shares outstanding resulting\nfrom share repurchases over the past 12 months.\n\nDuring the six months ended June 30, 2026, we generated cash from operations\nof $1.6 billion. Free Cash Flow was $989 million in the period, including\nbalance sheet-related customer recoveries for contract adjustments associated\nwith certain electric vehicle programs in North America.\n\nRETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS\n\nDuring the three and six months ended June 30, 2026, we paid dividends of $133\nmillion and $268 million, respectively. In addition, we repurchased 7.4\nmillion shares for $465 million and 15.0 million shares for $905 million,\nrespectively, for the three and six months ended June 30, 2026. As of June 30,\n2026, there are 9.2 million remaining shares available for repurchase under\nour current Normal Course Issuer Bid authorization, which runs through early\nNovember 2026.\n\nOur Board of Directors declared a second quarter dividend of $0.495 per Common\nShare. The dividend is payable on August 28, 2026 to shareholders of record as\nof the close of business on August 14, 2026.\n\nSEGMENT SUMMARY\n\n ($Millions) THREE MONTHS ENDED JUNE 30, \n Sales Adjusted \n EBIT \n 2026 2025 Change 2026 2025 Change \n Body Exteriors & Structures $ 4,421 $ 4,253 $ 168 $ 360 $ 347 $ 13 \n Power & Vision 4,093 3,857 236 245 162 83 \n Seating Systems 1,448 1,433 15 51 42 9 \n Complete Vehicles 1,160 1,226 (66 ) 37 28 9 \n Corporate and Other (142 ) (138 ) (4 ) (16 ) 4 (20 ) \n Total Reportable Segments $ 10,980 $ 10,631 $ 349 $ 677 $ 583 $ 94 \n\n \n\n THREE MONTHS ENDED JUNE 30, \n Adjust \n ed \n EBIT \n as a \n percen \n tage \n of \n sales \n 2026 2025 Change \n Body Exteriors & Structures 8.1 % 8.2 % (0.1 )% \n Power & Vision 6.0 % 4.2 % 1.8 % \n Seating Systems 3.5 % 2.9 % 0.6 % \n Complete Vehicles 3.2 % 2.3 % 0.9 % \n Consolidated Average 6.2 % 5.5 % 0.7 % \n\n \n\n ($Millions) SIX MONTHS ENDED JUNE 30, \n Sales Adjusted \n EBIT \n 2026 2025 Change 2026 2025 Change \n Body Exteriors & Structures $ 8,500 $ 8,219 $ 281 $ 634 $ 577 $ 57 \n Power & Vision 7,974 7,503 471 497 286 211 \n Seating Systems 2,788 2,745 43 76 12 64 \n Complete Vehicles 2,384 2,502 (118 ) 69 72 (3 ) \n Corporate and Other (285 ) (269 ) (16 ) (41 ) (10 ) (31 ) \n Total Reportable Segments $ 21,361 $ 20,700 $ 661 $ 1,235 $ 937 $ 298 \n\n \n\n SIX MONTHS ENDED JUNE 30, \n Adjust \n ed \n EBIT \n as a \n percen \n tage \n of \n sales \n 2026 2025 Change \n Body Exteriors & Structures 7.5 % 7.0 % 0.5 % \n Power & Vision 6.2 % 3.8 % 2.4 % \n Seating Systems 2.7 % 0.4 % 2.3 % \n Complete Vehicles 2.9 % 2.9 % — \n Consolidated Average 5.8 % 4.5 % 1.3 % \n\nFor further details on our segment results, please see our Management's\nDiscussion and Analysis of Results of Operations and Financial Position and\nour Interim Financial Statements.\n\n2026 OUTLOOK\n\nThe Company is updating its outlook for Full Year 2026. Compared to our\nprevious Outlook (May 2026), Sales have been updated primarily to reflect\nunfavourable foreign currency translation resulting from a stronger U.S.\ndollar and the earlier-than-expected completion of the Lighting and Rooftop\nSystems divestitures. Magna is increasing its Outlook for Adjusted EBIT\nMargin, Adjusted EPS, and Free Cash Flow, reflecting strong first-half results\nand expectations for continued solid execution through the remainder of the\nyear.\n\nUpdated 2026 Outlook:\n\n Current Previous \n Segment Sales \n Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles $16.6 - $17.1 billion $15.4 - $15.7 billion $5.4 - $5.6 billion $4.3 - $4.5 billion $16.6 - $17.2 billion $15.6 - $16.0 billion $5.4 - $5.7 billion $4.4 - $4.7 billion \n Total Sales $41.3 - $42.5 billion $41.5 - $43.1 billion \n \n Adjusted EBIT Margin ((3)) 6.3% - 6.6% 6.0% - 6.6% \n \n Adjusted EPS ((4)) $6.70 - $7.30 $6.25 - $7.25 \n \n Free Cash Flow ((5)) $1.75 - $1.85 billion $1.6 - $1.8 billion \n \n \n Macro Assumptions: \n \n Light Vehicle Production (millions of units) \n North America 15.0 14.9 \n Europe 16.8 16.6 \n China 31.2 32.0 \n \n Average Foreign exchange rates: \n 1 Canadian dollar equals U.S. $0.713 U.S. $0.730 \n 1 euro equals U.S. $1.153 U.S. $1.178 \n \n Other Key Assumptions : \n \n Capital Spending $1.5 - $1.6 billion $1.5 - $1.6 billion \n \n Equity Income (included in EBIT) $190 - $210 million $160 - $195 million \n \n Interest Expense, net Approx. $160 million Approx. $165 million \n \n Income Tax Rate ((6)) Approx. 23% Approx. 23% \n \n Weighted average diluted shares outstanding Approx. 270 million Approx. 270 million \n \n Notes: ((3) Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales. Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information.) ((4) Adjusted EPS represents Adjusted Net Income attributable to Magna divided by the Diluted weighted average number of Common Shares outstanding during the period.) ((5) Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information on Free Cash Flow.) ((6) \n The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation.) \n \n\nOur full year Outlook for 2026 is provided annually, with quarterly updates,\nand is intended to provide information about management's current expectations\nand plans and may not be appropriate for other purposes. Although considered\nreasonable by Magna as of the date of this document, the 2026 Outlook above\nand the underlying assumptions may prove to be inaccurate. Accordingly, our\nactual results could differ materially from our expectations as set forth\nherein. The risks identified in the “Forward-Looking Statements” section\nbelow represent the primary factors which we believe could cause actual\nresults to differ materially from our expectations.\n\nKEY DRIVERS OF OUR BUSINESS\n\nOur business and operating results are dependent on light vehicle production\nby our customers in three key regions – North America, Europe, and China.\nWhile we supply systems and components to many OEMs globally, we do not supply\nsystems and components for every vehicle, nor is the value of our content\nconsistent from one vehicle to the next. As a result, customer and program mix\nrelative to market trends, as well as the value of our content on specific\nvehicle production programs, are also important drivers of our results.\n\nOrdinarily, OEM production volumes are aligned with vehicle sales levels and\nthus affected by changes in such levels. Aside from vehicle sales levels,\nproduction volumes are typically impacted by a range of factors, including:\ngeopolitical factors, such as military conflicts and tariffs; supply chains,\nincluding disruption to supply of and/or increased costs of steel, aluminum,\nresin, and energy supplies, as well as semiconductor and memory (DRAM) chips;\nOEM, supplier or sub-supplier disruptions; relative currency values; commodity\nprices; labour disruptions, as well as the availability and relative cost of\nskilled labour; regulatory frameworks; and other factors.\n\nOverall vehicle sales levels are significantly affected by changes in consumer\nconfidence levels, which may in turn be impacted by consumer perceptions and\ngeneral trends related to the job, housing, and stock markets, as well as\nother macroeconomic and political factors. Other factors which typically\nimpact vehicle sales levels and thus production volumes include: vehicle\naffordability; interest rates and/or availability of credit; fuel and energy\nprices; relative currency values; and considerations applicable to EVs,\nincluding EV range, charging infrastructure, and electricity pricing.\n\nNON-GAAP FINANCIAL MEASURES RECONCILIATION\n\nIn addition to the financial results reported in accordance with U.S. GAAP,\nthis press release contains references to the Non-GAAP financial measures\nreconciled below. We believe the Non-GAAP financial measures used in this\npress release are useful to both management and investors in their analysis of\nthe Company’s financial position and results of operations, and to improve\ncomparability between fiscal periods. In particular, management believes that\nAdjusted EBIT and Adjusted diluted earnings per share are useful measures in\nassessing the Company’s financial performance by excluding certain items\nthat are not indicative of the Company's core operating performance.\nManagement also believes that Free Cash Flow is a useful measure in assessing\nthe Company’s ability to generate cash to maintain operations and repay its\ndebt. The presentation of Non-GAAP financial measures should not be considered\nin isolation, or as a substitute for the Company’s related financial results\nprepared in accordance with U.S. GAAP.\n\nThe following table reconciles Net income to Adjusted EBIT:\n\n Adjusted EBIT \n \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Net income $ 479 $ 394 $ 478 $ 547 \n Add: \n Amortization of acquired intangible assets 17 29 36 55 \n Interest expense, net 37 52 74 102 \n Other expense, net 24 6 439 59 \n Income taxes 120 102 208 174 \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n \n Adjusted EBIT as a percentage of sales (“Adjusted EBIT margin”) \n \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Sales $ 10,980 $ 10,631 $ 21,361 $ 20,700 \n Adjusted EBIT $ 677 $ 583 $ 1,235 $ 937 \n Adjusted EBIT as a percentage of sales 6.2 % 5.5 % 5.8 % 4.5 % \n \n\nNON-GAAP FINANCIAL MEASURES RECONCILIATION (CONTINUED)\n\n Adjusted EPS \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Net income attributable to Magna International Inc. $ 469 $ 379 $ 457 $ 525 \n Add (deduct): \n Amortization of acquired intangible assets 17 29 36 55 \n Tax effect on Amortization of acquired intangible assets (1 ) (5 ) (3 ) (10 ) \n Other expense, net 24 6 439 59 \n Tax effect on Other expense, net (1 ) (2 ) (35 ) (3 ) \n Adjusted net income attributable to Magna International Inc. $ 508 $ 407 $ 894 $ 626 \n \n Diluted weighted average number of Common Shares \n outstanding during the period (millions): 273.2 281.7 276.3 281.9 \n Adjusted EPS $ 1.86 $ 1.44 $ 3.24 $ 2.22 \n \n\nThe following table reconciles Cash provided from operating activities to Free\nCash Flow:\n\n Free Cash Flow \n THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, \n 2026 2025 2026 2025 \n \n Cash provided from operating activities $ 954 $ 627 $ 1,631 $ 704 \n Add (deduct): \n Fixed asset additions (269 ) (246 ) (488 ) (514 ) \n Increase in investment, other assets, and intangible assets (77 ) (94 ) (245 ) (242 ) \n Proceeds from disposition 9 14 91 40 \n Free Cash Flow $ 617 $ 301 $ 989 $ (12 ) \n \n\nCertain of the forward-looking financial measures above are provided on a\nNon-GAAP basis. We do not provide a reconciliation of such forward-looking\nmeasures to the most directly comparable financial measures calculated and\npresented in accordance with U.S. GAAP. To do so would be potentially\nmisleading and not practical given the difficulty of projecting items that are\nnot reflective of ongoing operations in any future period. The magnitude of\nthese items, however, may be significant.\n\nThis press release, together with our Management’s Discussion and Analysis\nof Results of Operations and Financial Position and our Interim Financial\nStatements, are available in the Investor Relations section of our website at\nwww.magna.com/company/investors and filed electronically through the System\nfor Electronic Document Analysis and Retrieval + (SEDAR+) which can be\naccessed at www.sedarplus.ca as well as on the United States Securities and\nExchange Commission’s Electronic Data Gathering, Analysis and Retrieval\nSystem (EDGAR), which can be accessed at www.sec.gov.\n\nWe will hold a conference call for interested analysts and shareholders to\ndiscuss our second quarter ended June 30, 2026 results on Friday, July 31,\n2026 at 8:00 a.m. ET. The conference call will be chaired by Swamy Kotagiri,\nChief Executive Officer. The number to use for this call from North America is\n1-800-715-9871. International callers should use 1-646-307-1963. Please call\nin at least 10 minutes prior to the call start time. We will also webcast the\nconference call at www.magna.com. The slide presentation accompanying the\nconference call as well as our financial review\n(https://www.globenewswire.com/Tracker?data=jFOgrE_rztfLAkxWMEmjcekNd66snwwOpYFUbbbqEPUxaKq-aBe9HHACLgpEqY_0cj0o-oLoeGRZYCkYgY9a-TqOCr_ey_hCGTPpemlhtJY_bYcyimBmsX7ZuJxERGR73l7ESjWX8akylaUJVu6mBUb_1UH1WvFeUNwedRPc4WW7EG3Nx-GGbIJUS6jEOLem)\nsummary will be available on our website Friday prior to the call.\n\nINVESTOR CONTACT\nLouis Tonelli, Vice-President, Investor Relations \nlouis.tonelli@magna.com │ 905.726.7035\n\nMEDIA CONTACT \nTracy Fuerst, Vice-President, Corporate Communications & Media Relations \ntracy.fuerst@magna.com │ 248.761.7004\n\nTELECONFERENCE CONTACT\nNancy Hansford, Executive Assistant, Investor Relations \nnancy.hansford@magna.com │ 905.726.7108\n\nABOUT MAGNA\nMagna is one of the world’s largest automotive suppliers and a trusted\npartner to automakers in the industry’s most critical markets – North\nAmerica, Europe, and China. With operations in 28 countries, we combine global\nscale with trusted reliability and proven execution. Backed by nearly seven\ndecades of experience, we bring together deep manufacturing expertise with\ninnovative vehicle systems to deliver performance, safety, and quality.\n\nFor further information about Magna (NYSE:MGA; TSX:MG), please\nvisit www.magna.com or follow us on social. \n\nFORWARD-LOOKING STATEMENTS\n\nCertain statements in this press release constitute \"forward-looking\ninformation\" or \"forward-looking statements\" (collectively, \"forward-looking\nstatements\"). Any such forward-looking statements are intended to provide\ninformation about management's current expectations and plans and may not be\nappropriate for other purposes. Forward-looking statements may include\nfinancial and other projections, as well as statements regarding our future\nplans, strategic objectives or economic performance, or the assumptions\nunderlying any of the foregoing, and other statements that are not recitations\nof historical fact. We use words such as \"may\", \"would\", \"could\", \"should\",\n\"will\", \"likely\", \"expect\", \"anticipate\", \"assume\", \"believe\", \"intend\",\n\"plan\", \"aim\", \"forecast\", \"outlook\", \"project\", \"potential\", \"estimate\",\n\"target\" and similar expressions suggesting future outcomes or events to\nidentify forward-looking statements. The following table identifies the\nmaterial forward-looking statements contained in this document, together with\nthe material potential risks that we currently believe could cause actual\nresults to differ materially from such forward-looking statements. Readers\nshould also consider all of the risk factors which follow below the table:\n\n Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement \n Light Vehicle Production * Light vehicle sales levels, including due to: \n * A decline in consumer confidence \n * Economic uncertainty \n * Elevated interest rates and availability of consumer credit \n * Deteriorating vehicle affordability \n * Tariffs and/or other actions that erode free trade agreements \n * Production deferrals, cancellations and volume reductions \n * Production and supply disruptions \n * Commodities prices \n * Availability and relative cost of skilled labour \n Total Sales Segment Sales * Same risks as for Light Vehicle Production above \n * Alignment of our product mix with production demand \n * Supply disruptions, including as a result of semiconductor and memory (DRAM) chip shortages \n * Customer concentration \n * Pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions \n * Shifts in market shares among OEMs, vehicles and/or vehicle segments \n * Shifts in consumer \"take rates\" for products we sell \n * Relative currency values \n Adjusted EBIT Margin Adjusted Diluted EPS Free Cash Flow * Same risks as for Total Sales and Segment Sales above \n * Execution of critical program launches \n * Operational underperformance \n * Product warranty/recall risks \n * Production inefficiencies \n * Unmitigated incremental tariff costs \n * Restructuring costs and/or impairment charges \n * Inflation \n * Ability to secure cost recoveries \n * Price concessions \n * Commodity cost volatility \n * Scrap steel price volatility \n Equity Income * Same risks as Adjusted EBIT Margin above \n * Risks related to conducting business through joint ventures \n * Risks of doing business in foreign markets \n * Legal and regulatory proceedings \n * Changes in law \n Share Repurchases Weighted Average Diluted Shares Outstanding * Same risks impacting Free Cash Flow above \n * Ability to repurchase shares for cancellation, including due to normal course issuer bid rules, trading blackouts, and other factors \n\nForward-looking statements are based on information currently available to us\nand are based on assumptions and analyses made by us in light of our\nexperience and our perception of historical trends, current conditions and\nexpected future developments, as well as other factors we believe are\nappropriate in the circumstances. While we believe we have a reasonable basis\nfor making any such forward-looking statements, they are not a guarantee of\nfuture performance or outcomes. In addition to the factors in the table above,\nwhether actual results and developments conform to our expectations and\npredictions is subject to a number of risks, assumptions, and uncertainties,\nmany of which are beyond our control, and the effects of which can be\ndifficult to predict, including, without limitation:\n\n Macroeconomic, Geopolitical and Other Risks * geopolitical crises and military conflicts; Pricing Risks * quote/pricing assumptions; \n * threats to free trade agreements; * customer pricing pressure/contractual arrangements; \n * international trade disputes; * commodity price volatility; \n * planning and forecasting challenges; * scrap steel/aluminum price volatility; \n * interest rates and availability of consumer credit; Warranty/Recall Risks * repair/replacement costs; \n Risks Related to the Automotive Industry * pace of EV adoption; * warranty provisions; \n * North American EV program deferrals, cancellations and volume reductions; * product liability; \n * economic cyclicality; IT Security/Cybersecurity Risks * IT/cybersecurity breach; \n * regional production volumes; * product cybersecurity breach; \n * deteriorating vehicle affordability; * risks related to the use of artificial intelligence; \n * intense competition; Merger and Acquisition Risks * inherent merger and acquisition risks; \n Strategic Risks * evolution of the vehicle; * acquisition integration and synergies; \n * evolving business risk profile; Other Business Risks * joint ventures; \n * technology and innovation; * intellectual property; \n * investments in mobility and technology companies; * risks of doing business in foreign markets; \n Customer-Related Risks * customer concentration; * tax risks; \n * market shifts; * relative foreign exchange rates; \n * evolving OEM competitive landscape; * returns on capital investments; \n * dependence on outsourcing; * financial flexibility; \n * consumer take rate shifts; * credit ratings changes; \n * nature of customer blanket purchase orders; * stock price fluctuation; \n * potential OEM production-related disruptions; Legal, Regulatory and Other Risks * legal and regulatory proceedings; and \n Supply Chain Risks * supply chain disruptions; * changes in laws. \n * regional energy supply and pricing; \n * financial condition of supply base; \n * supplier claims; \n Manufacturing/Operational Risks * product launch; \n * operational underperformance; \n * restructuring costs; \n * impairments; \n * skilled labour attraction/retention; \n\nIn evaluating forward-looking statements or forward-looking information, we\ncaution readers not to place undue reliance on any forward-looking statement.\nAdditionally, readers should specifically consider the various factors which\ncould cause actual events or results to differ materially from those indicated\nby such forward-looking statements, including the risks, assumptions and\nuncertainties above which are:\n* discussed under the “Industry Trends and Risks” heading of our\nManagement’s Discussion and Analysis; and\n* set out in our Annual Information Form filed with securities commissions in\nCanada, our annual report on Form 40-F filed with the United States Securities\nand Exchange Commission, and subsequent filings.\nReaders should also consider discussion of our risk mitigation activities with\nrespect to certain risk factors, which can be also found in our Annual\nInformation Form. Additional information about Magna, including our Annual\nInformation Form, is available through the System for Electronic Data Analysis\nand Retrieval + (SEDAR+) at www.sedarplus.ca, as well as on the United States\nSecurities and Exchange Commission’s Electronic Data Gathering, Analysis and\nRetrieval System (EDGAR), which can be accessed at www.sec.gov.\n\nA photo accompanying this announcement is available at\nhttps://www.globenewswire.com/NewsRoom/AttachmentNg/93181fb8-f6b5-4931-b5a4-d623b0eee5e7\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/a7a38de0-1b95-40c3-83d0-b7f23fd4d665)\nSwamy Kotagiri, Chief Executive Officer \n(https://www.globenewswire.com/NewsRoom/AttachmentNg/93181fb8-f6b5-4931-b5a4-d623b0eee5e7/en)\n“Our strong second-quarter results reflect solid operating performance,\ndisciplined execution, and further progress against our strategic priorities.\nSupported by record second-quarter adjusted EPS, strong free cash flow, and\nconfidence in our business and global team, we are raising our 2026 outlook.\nAs we look ahead, we remain focused on delivering profitable growth, expanding\nmargins, generating cash, and returning capital to shareholders, while\nremaining agile in a dynamic global environment.”\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-07-31T09:00:00.652832829Z","server_sent_at_ms":1785488400652},"received_at":"2026-07-31T09:00:00.902Z","source_url":"https://www.globenewswire.com/news-release/2026/07/31/3336650/0/en/magna-announces-strong-second-quarter-results-raises-outlook-for-2026.html"},"analysis":{"id":"93769","press_release_id":"104755","analysis_json":{"industry":{"label":"Automobile Components","sector":"Consumer Discretionary"},"redFlags":["Total sales outlook lowered slightly due to unfavorable FX and divestitures","Light vehicle production declined in North America, Europe and China during the quarter"],"eventType":"earnings","narrative":"Magna reported Q2 sales of $11.0 billion, up 3% year-over-year, with Adjusted EPS rising 29% to a record $1.86 per share.\n\nAdjusted EBIT margin expanded 70 basis points to 6.2%, driving a strong free cash flow of $617 million for the quarter.\n\nThe company raised its full-year 2026 outlook, increasing Adjusted EPS guidance to $6.70-$7.30 and Free Cash Flow to $1.75-$1.85 billion, while slightly lowering sales expectations due to foreign exchange impacts.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record EPS and margin expansion drive guidance raise despite industry-wide volume headwinds."},"keyFigures":{"eps":1.86,"revenue":10980000000,"guidance":"FY2026 Adjusted EPS $6.70-$7.30 (raised from $6.25-$7.25); Adjusted EBIT Margin 6.3%-6.6%; Free Cash Flow $1.75-$1.85 billion","revenueYoy":"3%","customDimensions":{"adjusted_ebit":677000000,"free_cash_flow":617000000,"share_repurchases":465000000,"dividend_per_share":0.495,"adjusted_ebit_margin":"6.2%"}},"quotedText":"Our strong second-quarter results reflect solid operating performance, disciplined execution, and further progress against our strategic priorities.","namedEntities":{"people":[{"name":"Swamy Kotagiri","role":"Chief Executive Officer"},{"name":"Louis Tonelli","role":"Vice-President, Investor Relations"},{"name":"Tracy Fuerst","role":"Vice-President, Corporate Communications & Media Relations"}],"products":[],"companies":[{"name":"Magna International Inc.","ticker":"MGA"}],"dollarAmounts":[{"amount":"$11.0 billion","context":"Q2 2026 sales"},{"amount":"$677 million","context":"Q2 2026 Adjusted EBIT"},{"amount":"$617 million","context":"Q2 2026 Free Cash Flow"},{"amount":"$598 million","context":"Total capital returned to shareholders in Q2"},{"amount":"$465 million","context":"Share repurchases in Q2"},{"amount":"$1.75 - $1.85 billion","context":"FY2026 Free Cash Flow guidance"}]},"materialImpact":{"score":4,"reasoning":"Q2 results featured record Adjusted EPS (up 29% YoY), expanding margins (70 bps), and strong free cash flow generation. Management raised full-year guidance for Adjusted EPS, EBIT margin, and Free Cash Flow, signaling confidence despite softer global light vehicle production."},"tickerRelevance":{"others":[{"ticker":"MG","relevance":"other_exchange_listing"}],"primary":"MGA"},"globalImportance":45,"audienceRelevance":35,"eventTypeSecondary":["guidance_update","buyback"],"importanceComponents":{"tickerTier":"large-cap","eventGravity":"earnings_beat_and_raise","sectorWeight":"auto_supplier"}},"event_type":"earnings","event_type_secondary":["guidance_update","buyback"],"sentiment":"bullish","material_impact_score":4,"narrative":"Magna reported Q2 sales of $11.0 billion, up 3% year-over-year, with Adjusted EPS rising 29% to a record $1.86 per share.\n\nAdjusted EBIT margin expanded 70 basis points to 6.2%, driving a strong free cash flow of $617 million for the quarter.\n\nThe company raised its full-year 2026 outlook, increasing Adjusted EPS guidance to $6.70-$7.30 and Free Cash Flow to $1.75-$1.85 billion, while slightly lowering sales expectations due to foreign exchange impacts.","key_figures":{"eps":1.86,"revenue":10980000000,"guidance":"FY2026 Adjusted EPS $6.70-$7.30 (raised from $6.25-$7.25); Adjusted EBIT Margin 6.3%-6.6%; Free Cash Flow $1.75-$1.85 billion","revenueYoy":"3%","customDimensions":{"adjusted_ebit":677000000,"free_cash_flow":617000000,"share_repurchases":465000000,"dividend_per_share":0.495,"adjusted_ebit_margin":"6.2%"}},"named_entities":{"people":[{"name":"Swamy Kotagiri","role":"Chief Executive Officer"},{"name":"Louis Tonelli","role":"Vice-President, Investor Relations"},{"name":"Tracy Fuerst","role":"Vice-President, Corporate Communications & Media Relations"}],"products":[],"companies":[{"name":"Magna International Inc.","ticker":"MGA"}],"dollarAmounts":[{"amount":"$11.0 billion","context":"Q2 2026 sales"},{"amount":"$677 million","context":"Q2 2026 Adjusted EBIT"},{"amount":"$617 million","context":"Q2 2026 Free Cash Flow"},{"amount":"$598 million","context":"Total capital returned to shareholders in Q2"},{"amount":"$465 million","context":"Share repurchases in Q2"},{"amount":"$1.75 - $1.85 billion","context":"FY2026 Free Cash Flow guidance"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-31T09:07:19.294Z","global_importance":45,"audience_relevance":35,"importance_components":{"tickerTier":"large-cap","eventGravity":"earnings_beat_and_raise","sectorWeight":"auto_supplier"}},"durationMs":438468,"modelName":"glm-4.7"}}