By Adriano Marchese

Magna International set new revenue and profit targets for 2026 after reporting a stronger-than-expected fourth quarter, even as global vehicle production declined.

The automotive-parts and mobility-technology supplier on Friday said it expects full-year revenue to be between $41.9 billion and $43.5 billion, compared with $42.01 billion in 2025 and the $42.18 billion expected by analysts polled on FactSet.

Magna has also set an expected adjusted earnings before interest and taxes margin of between 6% and 6.6% for the year, and adjusted earnings per share of $6.26 to $7.25, above analyst expectations of $5.98 a share.

Free cash flow is expected between $1.6 billion and $1.8 billion, with capital spending in the range of $1.5 billion and $1.6 billion.

Driving the guidance for the year, Magna said it expects about 15 million vehicles to be produced in North America, 16.8 million in Europe, and 32 million in China.

For the fourth quarter, Magna posted 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.

Magna says the quarter's results were weighed by a large writedown in its electronics unit due to weaker sales expectations, compared with a year earlier when results were boosted by canceled Fisker contracts.

Adjusted earnings were $2.18 a share. According to FactSet, analysts were expecting $1.84 a share.

Sales rose to $10.85 billion from $10.63 billion, topping analyst expectations for the period that expected a more modest rise to $10.73 billion. The rise came despite a 1% decline in global light vehicle production.

Magna credits the revenue jump to stronger production and new vehicle launches, favorable currency movements, and customer reimbursements for higher tariffs. It also points to increased vehicle assembly work, led by the new Mercedes-Benz G-Class.

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

(END) Dow Jones Newswires

Magna has also set an expected adjusted earnings per share for the year of $6.25 to $7.25, above analyst expectations of $5.98 a share. "Magna International Sets 2026 Targets; 4Q Tops Views," at 7:09 a.m. ET, incorrectly said the outlook range was $6.26 to $7.25.

(END) Dow Jones Newswires

February 13, 2026 10:17 ET (15:17 GMT)

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