By Adriano Marchese

Magna International shares jumped Friday morning after the company outlined growth targets with strong margins in a year with global vehicle prediction expected to stay muted.

Shares trading in Toronto rose 18% to 92.70 Canadian dollars ($68.10).

The Canadian auto-parts and mobility-technology supplier expects sales for 2026 to be $41.9 billion to $43.5 billion, implying a slight decline to growth of 3.6% from 2025 levels.

Sales are expected to get a lift from several new and replacement programs coming online, including new assembly work, new business wins, higher vehicle production in Europe, and favorable currency movements, said Chief Executive Swamy Kotagiri in an earnings call Friday.

Operating margins also are expected higher, ahead of Wall Street, with a range of 6% to 6.6% for the year, while adjusted earnings per share are expected to be $6.25 to $7.25, above analyst expectations of $5.98 a share.

"Underlying the margin expansion is related to efficiency gains, mix-related tailwinds--more internal combustion engines, trucks, SUVs--and any restructuring and impairment related tailwinds," Said Raymond James analyst Michael Glen.

Behind Magna's guidance is a global light vehicle production expectation of about 15 million vehicles in North America, 16.8 million in Europe and 32 million in China.

"We would view this [outlook] as a strong outcome given the muted production outlook," Glen added.

For the fourth quarter, Magna logged a net loss of $1 million, or zero per share, down from a profit of $203 million, or 71 cents a share, in the comparable quarter a year earlier, mainly due to a large writedown in its electronics unit.

Excluding one-off items and exceptional items, earnings were $2.18 a share, ahead of the $1.84 a share expected by analysts, according to FactSet.

Sales rose to $10.85 billion from $10.63 billion, also ahead of forecasts for the quarter, and despite a 1% decline in global light vehicle production.

On the tariff front, Magna said its tariff mitigation efforts offset most of the hit, helped by customers reimbursing earlier costs and other measures that softened the impact.

"Our net tariff costs were less than a 10 basis point margin headwind for the full year," Kotagiri said in the call.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 13, 2026 10:24 ET (15:24 GMT)

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