By Adriano Marchese

Magna International shares rose Friday as the parts-maker lifted its sales forecast on a stronger production outlook in North America and China, a bullish signal for the global auto sector.

The Canadian autoparts manufacturer said that it now expects company sales to be between $41.1 billion and $42.1 billion in 2025, up from a previous guidance of $40.4 billion to $42 billion.

Chief Executive Swamy Kotagiri said the new outlook reflects continued confidence in the company's ability to execute and deliver a solid fourth quarter to finish the year.

The confidence boost is coming largely from a rosier production outlook in its key growth markets. The company is forecasting stronger-than-expected activity in both North America and China, raising its production forecast to 15 million vehicles from 14.7 million, and to 31.5 million units from 30.8 million, respectively.

With Europe's production forecast expected to hold steady at 16.6 million, this upward revision in two of its main markets signals a more resilient global auto market than previously anticipated, giving Magna the confidence to lift its own financial targets.

The company also now expects adjusted net income of $1.45 billion to $1.55 billion, raising the bottom end of the guidance from $1.35 billion. Capital spending, meanwhile is projected to be $1.5 billion, below its previous range of $1.6 billion to $1.7 billion.

Magna, which supplies components and systems to nearly every major carmaker, early on Friday reported sales of $10.46 billion, up from $10.28 billion a year earlier, and better than the $10.32 billion expected by Wall Street, according to FactSet.

Net income fell to $305 million from $484 million. On a per-share basis, the decline was to $1.08 from $1.68. Income was lower primarily because the prior-year quarter included a one-time $196 million gain from cancelled Fisker agreements, which did not recur in 2025.

On an adjusted basis, which excludes one-off costs and exceptional items. was $1.33 a share, ahead of expectations of $1.25 a share from analysts.

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

(END) Dow Jones Newswires

October 31, 2025 10:13 ET (14:13 GMT)

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