Highlights⁽¹⁾

Delivered strong third-quarter 2026 results, reflecting continued productivity improvements and disciplined execution.

• Sales decreased 4% to $10.1 billion, reflecting lower light vehicle production and impact of divestitures
• Income from operations before income taxes increased 17% to $552 million
• Adjusted EBIT increased 11% to $683 million, with Adjusted EBIT margin expanding 90 basis points to 6.8%
• Diluted earnings per share were $1.44; Adjusted EPS increased 38% to $1.83
• Returned $658 million to shareholders during the quarter through dividends and share repurchases
• Reaffirming midpoint of full year Outlook for Adjusted EPS and increasing Free Cash Flow Outlook
• Board approved new Normal Course Issuer Bid to repurchase up to 10% of public float over the next 12 months
  

AURORA, Ontario, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the third quarter ended September 30, 2026.

Please click HERE for full third quarter MD&A and Financial Statements. 

“Magna’s strong third-quarter results demonstrate that disciplined execution and operational improvements are driving higher earnings, margins and cash generation. Our year-to-date performance reinforces confidence in our Adjusted EPS outlook and supports a higher Free Cash Flow outlook, enabling us to return meaningful capital to shareholders and continue to invest for future growth. We remain focused on finishing 2026 strong and positioning Magna for success in 2027 and beyond. At our Investor Day on November 11, we look forward to sharing more about our strategic priorities and longer-term outlook.” - Swamy Kotagiri, Chief Executive Officer

THREE MONTHS ENDED SEPTEMBER 30, 2026

We posted sales of $10.1 billion for the third quarter of 2026, a decrease of 4% from the third quarter of 2025. The lower sales largely reflects:

• lower global light vehicle production, including lower vehicle production in North America and China of 5% and 7%, respectively, partially offset by 3% higher vehicle production in Europe;
• the end of production of certain programs;
• the divestitures of our Lighting and Rooftop Systems businesses during 2026;
• net customer price concessions as compared to the prior year;
• lower engineering revenue, primarily in our Complete Vehicles segment; and
• the net weakening of foreign currencies against the U.S. dollar.

These factors were partially offset by:

• the launch of new programs during or subsequent to the third quarter of 2025; and
• net favourable commercial items.

Adjusted EBIT increased 11% to $683 million for the third quarter of 2026 compared to $613 million for the third quarter of 2025, primarily due to:

• net favourable commercial items;
• productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions, net of customer price concessions; and
• recoveries for tariffs and lower tariff costs incurred.
  

These factors were partially offset by:

• reduced earnings on lower organic sales, and related product mix impacts;
• higher commodity costs, partially offset by higher scrap recoveries; and
• net transactional foreign exchange losses in the third quarter of 2026, compared to net transactional foreign exchange gains in the third quarter of 2025.
  

Income from operations before income taxes was $552 million in the third quarter of 2026, up $79 million or 17% compared to the third quarter of 2025. Income from operations before income taxes includes Other expense, net⁽²⁾ and Amortization of acquired intangible assets totaling $96 million and $75 million in the third quarters of 2026 and 2025, respectively. Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes in the third quarter of 2026 increased $100 million or 18% compared to the third quarter of 2025, largely reflecting the increase in Adjusted EBIT and lower interest expense.

Net income attributable to Magna International Inc. was $383 million for the third quarter of 2026 compared to $305 million in the third quarter of 2025. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $486 million in the third quarter of 2026 compared to $375 million in the third quarter of 2025.

Diluted earnings per share were $1.44 in the third quarter of 2026, an increase of 33% from the comparable period. Adjusted EPS were $1.83, compared to $1.33 for the third quarter of last year, an increase of 38%. The increase in Adjusted EPS primarily reflects the impact of higher Adjusted EBIT, lower interest expense and effective tax rate, and a decrease in average diluted shares outstanding resulting from share repurchases over the past 12 months.

In the third quarter of 2026, we generated cash from operations of $950 million, and Free Cash Flow of $584 million.

_{⁽²⁾ Other expense, net is comprised of restructuring activities, loss on assets held for sale, impacts related to Fisker, and gain on investment during the three months ended September 30, 2026 & 2025. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.}

NINE MONTHS ENDED SEPTEMBER 30, 2026

We posted sales of $31.4 billion for the nine months ended September 30, 2026, an increase of 1% compared to $31.2 billion for the nine months ended September 30, 2025. The higher sales largely reflects:

• the launch of new programs during or subsequent to the first nine months of 2025;
• the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $678 million; and
• net favourable commercial items.
  

These factors were partially offset by:

• the end of production of certain programs;
• lower global light vehicle production;
• lower complete vehicle assembly volumes with full-cost contractual arrangements;
• the divestitures of our Lighting and Rooftop Systems businesses during 2026;
• lower engineering revenue, primarily in our Complete Vehicles segment; and
• net customer price concessions subsequent to the first nine months of 2025.

Adjusted EBIT increased 24% to $1.9 billion for the nine months ended September 30, 2026 compared to $1.6 billion for the nine months ended September 30, 2025 primarily due to:

• productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions, net of customer price concessions;
• net favourable commercial items;
• higher equity income, including favourable commercial items during the first nine months of 2026;
• recoveries for tariffs and lower tariff costs incurred;
• higher net transactional foreign exchange gains in the first nine months of 2026, compared to the first nine months of 2025;
• the net strengthening of foreign currencies against the U.S. dollar, which had a favourable impact on reported U.S. Dollar Adjusted EBIT; and
• lower warranty costs.
  

These factors were partially offset by:

• higher commodity costs, partially offset by higher scrap recoveries;
• reduced earnings on lower organic sales;
• lower income on lower engineering revenue;
• higher employee profit sharing and incentive compensation; and
• higher professional fees.
  

During the nine months ended September 30, 2026, income from operations before income taxes was $1.2 billion, up $44 million or 4% over the prior year. Income from operations before income taxes includes Other expense, net⁽²⁾ and Amortization of acquired intangible assets totaling $571 million and $189 million in the first nine months of 2026 and 2025, respectively. Net income attributable to Magna International Inc. was $840 million in the nine months ended September 30, 2026, compared to $830 million in the prior year period. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $1.4 billion in the first nine months of 2026 compared to $1.0 billion in the prior year period.

Diluted earnings per share were $3.08 during the nine months ended September 30, 2026, compared to $2.94 in the comparable period. Adjusted diluted earnings per share were $5.06, compared to $3.55 for the nine months ended September 30, 2025. The increase in Adjusted EPS primarily reflects the impact of higher Adjusted EBIT, lower interest expense and effective tax rate, and a decrease in average diluted shares outstanding resulting from share repurchases over the past 12 months.

During the nine months ended September 30, 2026, we generated cash from operations of $2.6 billion. Free Cash Flow was $1.6 billion in the period, including balance sheet-related customer recoveries for contract adjustments associated with certain electric vehicle programs in North America.

RETURN OF CAPITAL TO SHAREHOLDERS

During the three and nine months ended September 30, 2026, we paid dividends of $129 million and $397 million, respectively. In addition, we repurchased 7.9 million shares for $529 million and 22.9 million shares for $1.434 billion, respectively, for the three and nine months ended September 30, 2026. There were 1.3 million remaining shares available for repurchase as of September 30, 2026, under our current Normal Course Issuer Bid (“NCIB”); the remaining shares were repurchased in October.

On October 29, our Board of Directors declared a third quarter dividend of $0.495 per Common Share. The dividend is payable on November 27, 2026, to shareholders of record as of the close of business on November 13, 2026.

OTHER MATTERS

Subject to the approval by the Toronto Stock Exchange, our Board of Directors approved a new NCIB to repurchase up to approximately 25.8 million of our Common Shares, representing 10% of our public float of Common Shares. This NCIB is expected to be effective on November 9, 2026 and will terminate no later than November 8, 2027.

SEGMENT SUMMARY