Magna International Inc. reported that its first-quarter sales edged higher and adjusted profit rose from a year ago, driven by strong demand in North America and Europe. The Ontario-based auto parts maker said net income attributable to the company was $1.2 billion, or $2.45 per diluted share, for the quarter ended March 31, up from $1.1 billion, or $2.30 per diluted share, a year earlier.
Revenue for the quarter was $10.5 billion, up from $10.3 billion in the same period last year. On an adjusted basis, Magna said it earned $2.60 per diluted share, up from $2.40 per diluted share in the first quarter of 2025.
Strong Performance Across Segments
The company attributed the growth to higher production volumes in North America and Europe, as well as cost-cutting measures that improved margins. Magna's body exteriors and structures segment saw sales increase 4% to $4.2 billion, while its powertrain and vision segment grew 3% to $3.8 billion.
"Our first-quarter results reflect the strength of our diversified portfolio and the dedication of our team," said Magna CEO Swamy Kotagiri in a statement. "We continue to navigate a challenging macroeconomic environment while investing in growth opportunities, particularly in electric vehicle components."
Outlook and Challenges
Looking ahead, Magna maintained its full-year 2026 sales outlook of $42.5 billion to $44.5 billion, but cautioned that supply chain disruptions and rising raw material costs could impact results. The company also noted that the ongoing conflict in Iran has led to higher energy costs, which could affect consumer demand and production costs.
Magna shares rose 1.5% to $78.50 on the Toronto Stock Exchange following the earnings release. The stock has gained 12% so far this year, outperforming the broader market.
