Magna boosts outlook, saying it can weather tariff storm

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Or sign-in if you have an account.An employee carries a General Motors Co. Chevrolet bumper at the Magna International Inc. Polycon Industries auto parts manufacturing facility in Guelph, Ont. Photo by Cole Burston/Bloomberg filesMagna International Inc. has raised its full-year guidance for 2026, saying the company is confident in its ability to mitigate macroeconomic and geopolitical headwinds.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe auto parts manufacturer released its second-quarter earnings on Friday and increased its outlook for adjusted earnings margin, adjusted earnings per share and free cash flow, which it said reflects its strong first-half results and expectations for “continued solid execution” through the remainder of the year.Magna raised its outlook for adjusted earnings per share to between $6.70 and $7.30 from between $6.25 and $7.25. Free cash flow is now expected to be between $1.75 billion and $1.85 billion, up from $1.6 billion to $1.8 billion.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“While macroeconomic and geopolitical conditions remain somewhat uncertain, including recent developments in the Middle East and with respect to trade policy, our outlook reflects our best estimates and confidence in our ability to mitigate headwinds and execute on what is within our control,” chief executive Swamy Kotagiri said during the earnings call.Chief financial officer Philip Fracassa said that while the tariff situation with the United States continues to evolve, they currently expect the company’s net tariff headwind for 2026 to be similar to 2025.Compared to the May outlook, Magna increased its estimates for North American and European production by 100,000 and 200,000 units, respectively. It reduced its China production estimate by 800,000 units.The company lowered its sales outlook from $41.5-billion to $43.1-billion to $41.3- to $42.5-billion.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.