Magna International Lowers Guidance Due To Tariff Uncertainty

Canada’s Magna International (MGA) has lowered its forward guidance for this year, citing uncertainty caused by the threat of trade tariffs and government policies.The Aurora, Ontario-based automotive parts manufacturer said that the current trade tensions between the U.S. and Canada have made forecasting over the near-term “more difficult.”Looking ahead, Magna said it expects fiscal 2026 revenue of $40.50 billion U.S. to $42.60 billion U.S. That’s down from a previous forecast of $48.80 billion U.S. to $51.20 billion U.S.Magna produces vehicle components and assembles cars at its manufacturing facilities for several top automakers, including BMW (BMW.DE), Mazda and Ferrari (RACE), among others.Potential tariffs of 25% on U.S. imports of Canadian goods has upended the outlooks of many Canadian companies, particularly in the auto industry that is closely integrated across the U.S., Canada and Mexico. Canadian aircraft manufacturer Bombardier (BBD.B) recently suspended its 2025 guidance altogether, citing tariff uncertainty.Other issues that are likely to impact Magna’s operations and finances this year include rising competition from Chinese automakers and a strengthening U.S. dollar.Magna also reported that its sales in the fourth quarter of 2024 rose 2% to $10.63 billion U.S., beating analyst expectations of $10.30 billion U.S. Earnings per share (EPS) of $1.69 U.S. in the fourth quarter were also above estimates of $1.53 U.S. per share.The stock of Magna International is down 6% on news of the guidance cut. Over the last 12 months, the company’s share price has declined 27% to trade at $39.67 U.S.