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what it is
Magna makes the parts, systems, and some full vehicles that go into cars and trucks.
how it gets paid
Last year Mga made $42.8B in revenue. Body Exteriors & Structures was the main engine at $12.0B, or 28% of sales.
what just happened
$2.18 beat the $1.75 estimate by 24.6%, while sales ran more than $400M above plan.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
50/100 earnings predictability — expect surprises
9.6x trailing p/e — the market's not buying it — or you found a deal
3.7% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 75/100 — average
What they do
Magna makes the parts, systems, and some full vehicles that go into cars and trucks.
Magna is wired into 341 plants and 106 engineering sites across 28 countries. Your carmaker does not swap that overnight. GM, Mercedes, Ford, and BMW were 52% of 2024 sales. OEMs (the carmakers) build around the supplier, so leaving means retooling the line and risking downtime.
How they make money
$42.8B
annual revenue
Body Exteriors & Structures
$12.0B
+4.0%
Power & Vision
$10.2B
+5.0%
Seating Systems
$8.6B
+2.5%
Complete Vehicles
$6.3B
+8.0%
eDrive & Propulsion
$5.7B
+18.0%
The products that matter
builds vehicle systems and modules
Automotive systems and components
$42.8B revenue · essentially the full business
It's the whole story in this snapshot: a $42.8B supplier business that grew just 0.1% last year. If growth re-accelerates, that matters. If it does not, you are mostly underwriting execution on thin margins.
scale business
Key numbers
$7.55
fy2027 eps est
$44B
fy2027 rev est
9.6x
trailing p/e
3.7%
dividend yield
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $4.7B (21% of capital)
- net profit margin 5.2% — keeps 5 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
A+ — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in MGA 3 years ago → it's now worth $13,080.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
$2.18 beat the $1.75 estimate by 24.6%, while sales ran more than $400M above plan.
Quarterly sales rose 2.1% vs. prior year even with a 1% drop in global light-vehicle production. Magna also offset the end of Jaguar I-Pace and E-Pace programs.
$42.8B
revenue
$2.18
eps
10.5%
margin
the number that mattered
$2.18 was the point. Magna beat the $1.75 estimate by 24.6%, which says the business still has room to surprise the Street.
-
magna international closed out 2025 with stronger-than-expected results.
-
fourth-quarter sales were more than $400 million higher than our estimate and increased 2.1% compared to the previous-year tally.
-
the growth was in spite of a 1% decline in global light-vehicle production.the advance was driven by higher production of certain programs and the launch of new products, including for the ford expedition and lincoln navigator. favorable foreign exchange rates, as well as net customer recoveries to recoup higher tariff costs, also provided a boost to the top line.
-
these catalysts more than offset the end of production of certain programs, including the jaguar i-pace and e-pace, and lower engineering revenue.
-
december-quarter share earnings of $2.18 were $0.43 higher than our estimate and jumped 29% compared to the prior-year figure.
source: company earnings report, 2026
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What could go wrong
the #1 risk is global light-vehicle production staying weak while Magna's margins stay thin.
med
vehicle production risk
Magna sells into automaker production schedules. If global light-vehicle output stays soft, a $42.8B revenue base has less room to grow than the bull case wants.
The latest quarter already happened against a 1% decline in global light-vehicle production. Magna outgrew that once. You do not want that backdrop becoming the norm.
med
thin profit cushion
A 4.8% net margin is not fragile, but it is not forgiving either. Cost creep, launch issues, or pricing pressure do not have to be dramatic to matter here.
Magna keeps less than a nickel of every revenue dollar. That means even modest operating misses can hit earnings faster than revenue suggests.
med
launch timing and roll-off risk
Recent strength came from higher production on certain programs and new launches, while other programs ended. That works both ways.
If new launches slow or major programs roll off without enough replacement volume, flat revenue can stay flat for longer than investors expect.
med
supply chain and manufacturing execution
This is a global manufacturing business. Delays, parts shortages, or plant inefficiencies can show up quickly when you are shipping at $42.8B scale.
The A+ balance sheet helps. It does not erase execution risk in a business where operating margin is 10.0% and net margin is 4.8%.
Together, these risks touch essentially the entire $42.8B revenue base. With only a 4.8% net margin, Magna does not need a catastrophe to disappoint you.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter's production-versus-sales gap
The last quarter was good because Magna grew sales 2.1% while industry production fell 1%. You want to see that relative outperformance happen again.
margin
net margin holding above the current 4.8%
This is the cushion. If revenue stays sluggish and margin slips, EPS gets hit quickly.
estimate trend
whether $6.75 and $7.55 EPS estimates keep moving up
The street still expects earnings growth. Cuts would tell you the recent beat was a quarter, not a turn.
risk
program launches replacing program roll-offs
Supplier stories live on wins, ramps, and exits. If new business stops offsetting ended programs, growth gets harder fast.
Analyst rankings
short-term outlook
top 20%
Momentum score 2. In human-speak, analysts expect above-average price performance over the next 12 months.
risk profile
average
Stability score 3. This is neither a bunker stock nor a chaos stock — just a typical cyclical industrial name.
chart momentum
top 20%
Technical score 2. The tape has been better than the underlying growth profile would suggest.
earnings predictability
50 / 100
Earnings predictability is average. Translation: expect beats and misses, not clockwork.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 170 buyers vs. 117 sellers in 4q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$30
$80
$55
current price
$55
target midpoint · 0% from current · 3-5yr high: $110 (+70% · 17% ann'l return)
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