Toronto, Feb 17, 2026, 08:37 EST — Premarket
- Magna shares edged lower in early trading after Friday’s sharp rally.
- Investors are weighing the supplier’s 2026 outlook against recall and tariff uncertainties.
- The stock is trading near its 52-week high heading into the open.
Magna International Inc shares slipped about 2% in premarket trading on Tuesday, a pause after the Canadian auto-parts supplier surged nearly 19% in the last session. The stock was last indicated at $67.36, versus a Friday close of $68.73. (Investing)
U.S. markets were shut on Monday for Washington’s Birthday, leaving Tuesday as the first real test of whether Magna’s earnings-driven pop has legs. (New York Stock Exchange)
Magna’s move matters because suppliers are being priced on a narrow set of things right now: what they can earn on today’s mix of gas, hybrid and EV programs, and how much cost they can squeeze out while volumes stay choppy.
Magna told investors it expects 2026 sales of $41.9 billion to $43.5 billion, adjusted EBIT margin of 6.0% to 6.6%, and adjusted diluted EPS of $6.25 to $7.25. “We closed 2025 with a strong fourth quarter,” CEO Swamy Kotagiri said. Magna also raised its quarterly dividend to $0.495 a share and said it intends to repurchase the remaining roughly 22 million shares under its current buyback authorization; the dividend is payable March 13 to shareholders of record Feb. 27. (Adjusted results strip out certain items that can swing reported profit, such as impairment charges.)
Still, the company has flagged areas where the math is fuzzier. Magna has been in discussions with Ford over rearview-camera recalls and said it could not estimate its exposure, while it also booked a $591 million charge tied to its electronics unit after lower-than-expected sales. Rival BorgWarner recently pointed to demand for electrified powertrains and cost cuts as it posted a higher quarterly adjusted profit. (Reuters)
The downside case for bulls is simple: if auto builds soften, or if recall-related costs land harder than expected, the big Friday jump can turn into a quick round-trip. Tariffs are another wild card for a global supplier with a long supply chain.
For Tuesday’s session, traders will be watching whether the stock can hold near its highs once regular trading opens, and whether fresh analyst notes follow the earnings reset.
The broader tape may not help. Investors have a packed week of U.S. data ahead, and any swing in rate expectations can ripple into auto demand through financing costs. (The Wall Street Journal)
Next up for Magna holders is the Feb. 27 record date for the dividend and any new color from the company on recall talks and 2026 demand as markets reopen fully.
