Magna International will divest its Lighting and Rooftop Systems businesses, generating $1.1 billion in combined sales.
Quiver AI Summary
Magna International Inc. has signed definitive agreements to divest its Lighting and Rooftop Systems businesses, which together generated about $1.1 billion in global sales in 2025. The divestiture will occur in three separate transactions: a global investment firm will acquire the North American, South American, and Chinese Lighting operations, while another firm will take over the European Lighting and Rooftop Systems operations. CEO Swamy Kotagiri emphasized that this move aligns with Magna's strategy to manage its portfolio effectively and focus on long-term growth objectives. The transactions are expected to be completed in the second half of 2026, pending regulatory approvals, and are not anticipated to affect the company's earnings outlook for that year.
Potential Positives
- Definitive agreements for the divestiture of Lighting and Rooftop Systems businesses demonstrate Magna's strategic focus on optimizing its portfolio.
- The combined global sales of approximately $1.1 billion for the divested businesses underscore their significant contribution to overall revenue.
- Magna expects the divestitures to have no impact on its 2026 adjusted earnings per diluted share outlook, indicating financial stability during the transition.
- The acquisitions by global investment firms suggest strong market confidence in Magna's remaining business segments and future growth potential.
Potential Negatives
- Divesting significant business units like Lighting and Rooftop Systems could indicate a strategic shift that may lead to concerns about the company’s core competencies and future growth potential.
- The timing of the closures, expected in the second half of 2026, may create uncertainty and challenges for employees, customers, and other stakeholders during the transition period.
- Generating approximately $1.1 billion in combined sales from the divested businesses highlights the potential revenue loss, which could affect the company's market position long-term.
FAQ
What businesses is Magna divesting?
Magna is divesting its Lighting and Rooftop Systems businesses through multiple transactions with global investment firms.
How much revenue did these businesses generate in 2025?
The Lighting and Rooftop Systems businesses generated approximately $1.1 billion in combined global sales in 2025.
When are the transactions expected to close?
The transactions are expected to close in the second half of 2026, pending regulatory approvals and other conditions.
Will the divestitures impact Magna's 2026 earnings?
Magna does not expect the divestitures to affect its previously issued 2026 adjusted earnings per diluted share outlook.
Who can be contacted for investor inquiries?
For investor inquiries, contact Louis Tonelli, Vice President of Investor Relations at [email protected].
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MGA Congressional Stock Trading
Members of Congress have traded $MGA stock 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $MGA stock by members of Congress over the last 6 months:
- REPRESENTATIVE DAN NEWHOUSE sold up to $15,000 on 12/11.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$MGA Hedge Fund Activity
We have seen 236 institutional investors add shares of $MGA stock to their portfolio, and 155 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FIL LTD added 4,535,705 shares (+140.9%) to their portfolio in Q4 2025, for an estimated $241,753,076
- HARRIS ASSOCIATES L P removed 1,953,617 shares (-90.4%) from their portfolio in Q4 2025, for an estimated $104,127,786
- POINT72 ASSET MANAGEMENT, L.P. removed 1,740,381 shares (-94.1%) from their portfolio in Q4 2025, for an estimated $92,762,307
- AQR CAPITAL MANAGEMENT LLC added 1,645,151 shares (+9533.8%) to their portfolio in Q4 2025, for an estimated $87,686,548
- JANE STREET GROUP, LLC removed 1,167,122 shares (-97.0%) from their portfolio in Q4 2025, for an estimated $62,207,602
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC removed 974,933 shares (-9.0%) from their portfolio in Q4 2025, for an estimated $51,963,928
- CIBC WORLD MARKET INC. added 937,098 shares (+18.3%) to their portfolio in Q4 2025, for an estimated $49,947,323
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$MGA Analyst Ratings
Wall Street analysts have issued reports on $MGA in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- BMO Capital issued a "Outperform" rating on 11/03/2025
To track analyst ratings and price targets for $MGA, check out Quiver Quantitative's $MGA forecast page.
$MGA Price Targets
Multiple analysts have issued price targets for $MGA recently. We have seen 13 analysts offer price targets for $MGA in the last 6 months, with a median target of $60.0.
Here are some recent targets:
- Colin Langan from Wells Fargo set a target price of $59.0 on 03/31/2026
- Dan Levy from Barclays set a target price of $66.0 on 03/30/2026
- Michael Ward from Citigroup set a target price of $58.0 on 03/23/2026
- Krista Friesen from CIBC set a target price of $76.0 on 02/18/2026
- Adam Jonas from Morgan Stanley set a target price of $65.0 on 02/18/2026
- Chris McNally from Evercore ISI Group set a target price of $66.0 on 02/17/2026
- Mark Delaney from Goldman Sachs set a target price of $60.0 on 02/17/2026
Full Release
- Definitive agreements signed to divest Lighting and Rooftop Systems businesses
- Businesses generated approximately $1.1 billion in combined global sales in 2025
- Transactions expected to close in the second half of 2026
AURORA, Ontario, April 09, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today announced that it has entered into definitive agreements to divest its Lighting business through two separate transactions, as well as its Rooftop Systems business in a third transaction.
A global investment firm will acquire the Lighting operations serving front and rear lighting programs in North America, South America and China. A separate investment firm will acquire Magna’s European Lighting and Rooftop Systems operations.
“Today’s announcement underscores our commitment to actively managing our portfolio in line with our guiding principles,” said Swamy Kotagiri, Magna Chief Executive Officer. “Magna will continue to focus on businesses that advance our long-term growth, margin, and return objectives. We are committed to ensuring a smooth transition for employees, customers, and all other stakeholders.”
The Lighting and Rooftop Systems businesses are part of Magna’s Power & Vision segment and generated approximately $1 billion and $100 million in global sales, respectively, in 2025.
All three transactions are expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals.
Magna does not expect the divestitures to impact its 2026 adjusted earnings per diluted share outlook as previously issued.
INVESTOR CONTACT
Louis Tonelli, Vice President, Investor Relations
[email protected] │ 905.726.7035
MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
[email protected] │ 248.761.7004
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BOUT MAGNA
Magna is one of the world’s largest automotive suppliers and a trusted partner to automakers in the industry’s most critical markets—North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle systems to deliver performance, safety, and quality.
For further information about Magna (NYSE:MGA; TSX:MG), please visit
www.magna.com
or follow us on social.
THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM.
