Research · Sep 3, 2026
[MGA] Magna International Thesis 2026: NVIDIA and Xiaopeng Wins Signal EV Technology Pivot
Magna International Inc. FY25 revenue $42.75B (-0.2%); op income $2.15B (+1.5%); NI $844M; EPS $2.99. Q4: Seating +8% YoY; Body Exteriors + Structures positive growth + meaningful margin expansion; Power & Vision margin expansion; Complete Vehicles -10% (programs ending offset by Xiaopeng + GAC Chinese OEM wins). FY operating cash flow $3.6B + FCF $1.9B (record). Hit annual bookings target; 90% of 2028 business secured. NVIDIA collaboration + thermal sensing technology award. Unified digital architecture covering 80% of divisions. AI solutions for scheduling + quality control. 151 customer awards. Operating excellence margin benefits +35-40bp expected FY26. FY26 guide: weighted sales growth over market 1.5% midpoint; sales near flat to +3.5%; adj EBIT margin 6.0%-6.6% (+40-100bp); back-half weighted EBIT; adj EPS $6.25-$7.25 (+108-142% vs $2.99 FY25); FCF $1.6-$1.8B; plan to repurchase remaining ~22M shares under NCIB.