Abstract

Magna International will release its fourth-quarter fiscal 2025 results Pre-Market on February 13, 2026; this preview summarizes consensus expectations for revenue, EBIT, and adjusted EPS, recent margin trends, segment dynamics, and the neutral institutional stance observed in early-2026 rating updates.

Market Forecast

Consensus expectations for Magna International’s fourth quarter point to revenue of 10.53 billion US dollars, EBIT of 0.73 billion US dollars, and adjusted EPS of 1.79, with year-over-year growth of 1.75%, 16.80%, and 17.74%, respectively. Guidance for gross profit margin and net profit margin is not disclosed; however, the direction of estimates implies a focus on operating efficiency and mix that is consistent with EBIT and EPS growth expectations on modest top-line expansion.

The main business is expected to remain anchored by Body Exteriors and Structures alongside Power and Vision, with program timing and content per vehicle shaping the near-term revenue cadence. Power and Vision, at 3.85 billion US dollars last quarter, is viewed as the most promising segment for incremental margin contribution in the current quarter as higher-value content ramps; specific year-over-year segment revenue growth for the quarter is not disclosed.

Last Quarter Review

Magna International’s previous quarter delivered revenue of 10.46 billion US dollars, a gross profit margin of 14.23%, GAAP net profit attributable to the parent company of 0.31 billion US dollars, a net profit margin of 2.92%, and adjusted EPS of 1.33; year-over-year growth registered at 1.77% for revenue and 3.91% for adjusted EPS. A key financial highlight was EBIT of 0.61 billion US dollars, up 3.20% year-over-year, while net profit declined quarter-on-quarter by 19.53%, reflecting a combination of cost timing and program ramp dynamics.

Main business highlights showed Body Exteriors and Structures at 4.15 billion US dollars (39.64% of revenue), Power and Vision at 3.85 billion US dollars (36.84%), Seating Systems at 1.52 billion US dollars (14.53%), and Complete Vehicle Assembly at 1.09 billion US dollars (10.37%); segment-level year-over-year revenue growth was not disclosed.

Current Quarter Outlook

Core Operations: Body Exteriors and Structures

Body Exteriors and Structures remains the largest revenue contributor, accounting for 4.15 billion US dollars last quarter and 39.64% of total revenue. The quarter’s operational focus centers on program execution, cost control, and content mix, all of which tie into anticipated EBIT and EPS growth outpacing revenue. With consensus calling for 1.75% year-over-year revenue growth and significantly higher EBIT and EPS growth, incremental efficiency from manufacturing processes and timely launches is integral to delivering margin leverage without explicit gross margin guidance. The sustainability of margin momentum hinges on the alignment of volume realization with the cost curve, as tooling amortization and input costs can weigh on near-term profitability if program timing slips. In this context, Body Exteriors and Structures’ scale provides the avenue for operating leverage, but it also magnifies the sensitivity to variance in production schedules and customer-led changeovers. The key internal benchmark this quarter is whether unit volumes and the mix of lightweight structural content translate into higher conversion of gross profit to EBIT, thereby validating the projected increase in earnings per share despite modest top-line growth. A secondary internal metric is scrap and rework rates across key facilities; limiting these non-value-added costs supports the implied margin resilience embedded in the 16.80% and 17.74% year-over-year growth expectations for EBIT and EPS, respectively.

Most Promising Segment: Power and Vision

Power and Vision, at 3.85 billion US dollars and 36.84% of last quarter’s revenue, is positioned to contribute the most incremental operating uplift in the quarter under review. The forecast profile for the company—EBIT up 16.80% and EPS up 17.74% year-over-year on a 1.75% revenue increase—suggests a mix shift toward higher-value modules and systems, with Power and Vision’s content driving unit economics. The segment’s profitability is sensitive to ramp quality, software-hardware integration costs, and warranty accruals; delivering on planned quality gates and calibration milestones improves conversion from gross profit margin to EBIT. The current quarter’s test is whether program content increases per vehicle and the transition of development expenditures into production-level cost structures support the expected earnings trajectory without pressuring gross margins. While explicit segment year-over-year growth is not disclosed, the company-level forecast pattern implies margin accretion where complex electronic and mechatronic content reaches volume and stabilization. Operationally, that means tight execution across supply, calibration timelines, and change order management to avoid erosion of margin from rework or delayed validation. The segment’s potential this quarter is defined less by headline revenue and more by the degree to which higher-value content scales efficiently within existing platforms; if realized, this supports the consensus for EBIT and EPS growth exceeding revenue growth.

Share Price Drivers This Quarter

Near-term share price dynamics are tied to the quality of earnings relative to the mix of revenue growth and margin progression. Consensus estimates—revenue of 10.53 billion US dollars, EBIT of 0.73 billion US dollars, and adjusted EPS of 1.79—imply that the market expects the company to extract operating leverage from stable to slightly improving gross profit that flows into EBIT. Without explicit gross profit margin guidance, the revealed operating leverage will be assessed primarily through the conversion rates of EBIT and adjusted EPS versus revenue, and the consistency of segment contributions to profitability. The previous quarter’s 14.23% gross margin and 2.92% net margin set a baseline; the market will look for signs of incremental margin improvement aligned with the forecast, and it will penalize any mismatch between volume realization and cost timing. Another driver is the quarter-on-quarter behavior of net profit, particularly after the last quarter’s 19.53% decline; stabilization or improvement will be considered a validation of the forward earnings power implied by consensus. Investors will also weigh the degree to which main segments, especially Body Exteriors and Structures and Power and Vision, show operating efficiency consistent with the scale of their revenue contributions, as this underpins EBIT expansion despite modest revenue growth. The interplay between program ramps, cost controls, and launch execution with mix-driven content increases forms the narrative the market will translate into valuation changes immediately after the print.

Analyst Opinions

The majority institutional stance observed in early-2026 rating updates is neutral, with prominent brokers maintaining Hold ratings into the print window. Wells Fargo maintained a Hold rating on Magna International in January 2026, paired with a 58.00 US dollars price target, emphasizing a cautious approach to near-term valuation and execution risks against the backdrop of expected earnings improvement. Wolfe Research reiterated a Hold rating in January 2026, reflecting a balanced view on the anticipated EBIT and EPS uplift relative to modest revenue growth, highlighting the importance of delivery against cost-reduction milestones to sustain margin gains. With observable opinions concentrated in Hold ratings during the January 2026 timeframe, the majority view is neutral; this aligns with a market posture that awaits validation of operating leverage and margin resilience in the face of program timing and input cost variability.

This neutral majority largely centers on execution clarity rather than a dispute over directional earnings growth. The consensus figures—revenue up 1.75% year-over-year to 10.53 billion US dollars, EBIT up 16.80% to 0.73 billion US dollars, and adjusted EPS up 17.74% to 1.79—indicate expected earnings outperformance versus revenue, but Hold ratings imply that investors want evidence of margin capture beyond modeling assumptions. Analysts point to prior-quarter results as a cautionary case: while revenue rose 1.77% and adjusted EPS increased 3.91% year-over-year, net profit fell 19.53% quarter-on-quarter, showing sensitivity to cost timing and ramp progression. As a result, the focus of Hold-rated commentary is the translation of operating efficiencies and content mix into sustainable margins rather than headline growth alone. A key aspect of these opinions is the conversion rate from gross profit to EBIT within the main business segments. Body Exteriors and Structures and Power and Vision together represent 76.48% of last quarter’s revenue; analysts expect these segments to carry the quarter, but they also seek assurance that operating cost controls and ramp quality will not dilute the anticipated uplift embedded in consensus EPS. The neutral stance is therefore framed around execution benchmarks—quality gates on ramped programs, adherence to cost-out plans, and steady volume alignment—being the catalysts that determine whether the earnings trajectory can hold through the fiscal year.

In summary, the institutional majority is neutral ahead of February 13, 2026. The observable consensus is supportive of earnings growth on moderate revenue expansion, but brokers are cautious, preferring to see confirmation of margin durability through segment operating performance. If Magna International demonstrates effective conversion of gross profit to EBIT across its largest segments and stabilizes quarter-on-quarter net profit behavior, the neutral contingent suggests the earnings narrative could become more constructive; conversely, misalignment between volume execution and cost timing would reinforce the current Hold posture. The market will likely calibrate valuation to the realized spread between revenue growth and earnings growth, using adjusted EPS and EBIT delivery against consensus as the key checkpoints immediately following the Pre-Market release on February 13, 2026.