Magna shares surge as auto parts maker forecasts strong annual profit on steady parts demand
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A worker loads production parts at a robot station at the Magna Electric Vehicle Structures Facility in St. Clair, Mich.Rebecca Cook/Reuters
Magna International MG-T forecast a strong annual profit on Friday, as the supplier leans on cost-saving measures and steady demand for its auto parts.
The automotive industry has been reeling from a pull-back in electric vehicle demand, partly due to stiff competition from Chinese EVs and U.S. President Donald Trump’s move to roll back tax credits.
Trump’s broad range of tariffs has also added to the strain for automakers, even as demand remains strong from automakers for parts catered to gas-powered vehicles and hybrid models.
Peer BorgWarner on Wednesday reported a higher fourth-quarter adjusted profit and revenue, helped by demand for its electrified powertrains and cost-cutting efforts.
Magna recorded a US$591-million charge related to its electronics unit in the fourth quarter, tied to lower-than-anticipated sales.
The company also disclosed ongoing discussions with Ford over rearview camera recalls, but said that it was unable to estimate its exposure to the incident.
For full-year 2026, it expects adjusted profit per share between US$6.25 and US$7.25, above analysts’ estimates of US$5.99, according to data compiled by LSEG.
On an adjusted basis, Magna earned a profit per share of US$2.18 for the quarter ended Dec. 31, compared with US$1.69 a year ago. Analysts on average expected US1.79 per share.
The company’s overall fourth-quarter revenue rose 2 per cent to US$10.85 billion from a year ago.
