By Robb M. Stewart

Magna International slightly lowered its full-year sales target after the auto-industry supplier scaled back assumptions modestly for light-vehicle production in North America and Europe.

The company, which produces a range of vehicle parts from electronics to seating and has over the years rolled 39 different models off its production lines, said it now expects 2026 sales of between $41.5 billion and $43.1 billion, whereas it had previously targeted $41.9 billion to $43.5 billion.

The guidance is based on a forecast of 14.9 million North American vehicles being produced for the year, rather than the 15 million it previously assumed, and 16.6 million units in Europe versus an earlier estimate of 16.8 million. Magna still assumes 32 million light vehicles will be produced in China in 2026.

Magna's expectations for underlying earnings, for free cash flow, and for capital spending of between $1.5 billion and $1.6 billion this year were affirmed.

The company recorded a 3.1% rise in sales for the first three months of 2026 to $10.38 billion, from $10.07 billion a year earlier. That was a touch ahead of the $10.36 billion analysts polled by FactSet expected.

Still, Magna swung to a net loss of $12 million, or 4 cents a share, from income last year of $146 million, or 52 cents a share. Operating income was held back by a loss on assets held for sale, part of the planned exit from its lighting and rooftop-systems businesses.

On an adjusted basis, per-share earnings came in at $1.38, beating the $1.02 analysts had penciled in.

Sales saw a $520 million lift from the strengthening of currencies against the U.S. dollar, and the company said it also benefited from the launch of new programs, including complete-vehicle programs with value-added contractual arrangements. However, that was partially offset by lower complete-vehicle-assembly volumes and a decline in light-vehicle production in North America, Europe and China.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 01, 2026 06:31 ET (10:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.