Magna Announces Sale of Its Lighting and Rooftop Systems Businesses

Magna (NYSE: MGA) has signed definitive agreements to divest its Lighting and Rooftop Systems businesses, which together generated approximately $1.1 billion in global sales in 2025 ($1.0 billion Lighting; $100 million Rooftop Systems).

Rhea-AI Summary

Magna (NYSE: MGA) has signed definitive agreements to divest its Lighting and Rooftop Systems businesses, which together generated approximately $1.1 billion in global sales in 2025 ($1.0 billion Lighting; $100 million Rooftop Systems).

Three separate transactions are expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals. Magna said it does not expect these divestitures to affect its 2026 adjusted diluted EPS outlook.

Positive

• Combined sales of $1.1 billion in 2025
• Lighting business sales of $1.0 billion in 2025
• Rooftop Systems sales of $100 million in 2025
• Transactions expected to close in H2 2026
• Company expects no impact to 2026 adjusted diluted EPS outlook

Negative

• Divestitures remove $1.1 billion from Magna's 2025 revenue base
• All transactions subject to customary closing conditions and regulatory approvals

Argus Apr 9 session

+0.82% close to close Open Argus

Details

News Market Reaction – MGA

In the Apr 9 session, MGA gained 0.82%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details Magna’s plan to divest Lighting and Rooftop Systems businesses that genera...

Analysis

This announcement details Magna’s plan to divest Lighting and Rooftop Systems businesses that generated about $1.1 billion in 2025 sales, with closings targeted for the second half of 2026. Management states the moves should not affect its 2026 adjusted EPS outlook, fitting an ongoing portfolio management theme. Investors may track closing progress, regulatory approvals, and how proceeds and freed capacity support long-term growth, margin, and return objectives.

Key Figures

Combined 2025 sales: $1.1 billion Lighting 2025 sales: $1 billion Rooftop 2025 sales: $100 million +5 more

Combined 2025 sales

$1.1 billion

Lighting and Rooftop Systems businesses global sales in 2025

Lighting 2025 sales

$1 billion

Lighting business global sales in 2025

Rooftop 2025 sales

$100 million

Rooftop Systems business global sales in 2025

Expected closing timing

Second half of 2026

Anticipated closing period for three divestiture transactions

2026 EPS outlook impact

No impact expected

Company does not expect divestitures to affect 2026 adjusted EPS outlook

Price change

5.86%

24h move in MGA prior to/around this announcement

52-week range

$30.39–$69.94

52-week low and high before this news

Market cap

$14,963,107,508

Equity value prior to this announcement

Historical Context

5 past events · Latest: Mar 27

5 events

1. Mar 27

   Annual report posted

   24h Move

   -1.8%

   Release of 2025 Annual Report and meeting details with modest price decline.

2. Mar 24

   Product launch

   24h Move

   +1.9%

   Launch of DHD REX hybrid drive targeting range‑extended EV applications.

3. Feb 13

   Earnings and outlook

   24h Move

   +18.9%

   Q4 2025 results and 2026 guidance including sales, margin and EPS outlook.

4. Jan 22

   Earnings date set

   24h Move

   -0.3%

   Announcement of timing and access details for Q4 and year‑end results webcast.

5. Jan 05

   Tech collaboration

   24h Move

   +3.0%

   Expanded NVIDIA collaboration for DRIVE Hyperion‑compatible ECUs and integration.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted earnings per diluted share, regulatory approvals, forward-looking statements, annual report on form 40-f

4 terms

adjusted earnings per diluted share financial

"Magna does not expect the divestitures to impact its 2026 adjusted earnings per diluted share outlook"

Adjusted earnings per diluted share shows a company's profit attributable to each share after accounting for potential new shares (like stock options or convertible securities) and excluding one-time or unusual items that can distort results. Investors use it as a cleaned-up per-share profit measure—like checking a car’s fuel efficiency after ignoring a bad tank of gas—to compare underlying performance over time or across companies, though the adjustments can vary by management.

regulatory approvals regulatory

"expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

forward-looking statements regulatory

"THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

annual report on form 40-f regulatory

"ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED"

An annual report on Form 40-F is a yearly filing that certain non-U.S. (commonly Canadian) public companies submit to the U.S. Securities and Exchange Commission to provide audited financial statements, management discussion, risk factors and governance information. For investors it’s like a company’s annual report card and storybook combined, allowing you to check profitability, cash flow, risks and how management explains the past year and plans for the future.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• 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
louis.tonelli@magna.com │ 905.726.7035

MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
tracy.fuerst@magna.com │ 248.761.7004

ABOUT 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Magna (MGA) announce about selling its Lighting and Rooftop Systems businesses on April 9, 2026?

Magna announced definitive agreements to divest its Lighting and Rooftop Systems businesses. According to the company, three separate transactions were signed and are expected to close in the second half of 2026, subject to customary conditions and regulatory approvals.

How much revenue did the divested businesses generate for Magna (MGA) in 2025?

The combined businesses generated about $1.1 billion in 2025. According to the company, Lighting contributed approximately $1.0 billion and Rooftop Systems about $100 million in global sales.

When are the Lighting and Rooftop Systems sales for Magna (MGA) expected to close?

All three transactions are expected to close in the second half of 2026. According to the company, closings remain subject to customary closing conditions and regulatory approvals before completion.

Will the divestitures affect Magna's (MGA) 2026 adjusted EPS guidance?

Magna said the divestitures are not expected to impact its 2026 adjusted diluted EPS outlook. According to the company, the previously issued 2026 outlook remains unchanged following the announced transactions.

Who is buying Magna's (MGA) Lighting and Rooftop Systems operations?

The Lighting operations serving North America, South America and China will be acquired by a global investment firm. According to the company, a separate investment firm will acquire European Lighting and Rooftop Systems operations.

What risks could delay Magna's (MGA) Lighting and Rooftop Systems transactions?

Closings are subject to customary closing conditions and regulatory approvals, which could delay or alter timing. According to the company, regulatory review and customary conditions remain outstanding for each transaction.