Magna International Inc. (NYSE: MGA) shares were trading higher in Friday's premarket session after the auto supplier reported second-quarter results that topped Wall Street estimates and raised its full-year adjusted earnings outlook.
The company reported adjusted earnings of $1.86 per share, beating the consensus estimate of $1.61. That was up from $1.44 per share a year earlier.
Revenue increased to $10.98 billion from $10.63 billion a year ago, exceeding analysts' expectations of $10.70 billion. Adjusted EBIT rose 16% year over year to $677 million from $583 million.
Updated 2026 Outlook
Magna raised its full-year 2026 adjusted earnings guidance to a range of $6.70 to $7.30 per share, up from its prior forecast of $6.25 to $7.25 per share. Analysts were expecting full-year adjusted earnings of $6.71 per share.
The company, however, lowered its full-year sales outlook to between $41.3 billion and $42.5 billion from its previous range of $41.5 billion to $43.1 billion. Wall Street expects full-year revenue of about $42.51 billion.
Management Commentary
Chief Executive Officer Swamy Kotagiri said the company's second-quarter performance reflected solid execution and continued progress on its strategic priorities.
He said record second-quarter adjusted earnings per share, strong free cash flow and confidence in the business supported the decision to raise the company's 2026 earnings outlook.
Kotagiri added that Magna remains focused on profitable growth, expanding margins, generating cash and returning capital to shareholders while remaining agile in a changing global environment.
Cash Flow And Capital Allocation
Magna reported cash and cash equivalents of $1.43 billion as of June 30, down from $1.61 billion a year earlier.
Cash from operating activities increased 52% to $954 million, driven by higher net income and favorable working capital changes.
The company paid dividends of $133 million during the second quarter and $268 million during the first six months of the year.
It repurchased 7.4 million shares for $465 million during the quarter and 15 million shares for $905 million in the first half of 2026.
As of June 30, about 9.2 million shares remained available for repurchase under its current Normal Course Issuer Bid, which expires in early November.
MGA Price Action: Magna International shares were up 4.60% at $73.06 during premarket trading on Friday. The stock is trading at a new 52-week high, according to market data.
