Magna International to Divest Lighting and Rooftop Systems Units

Magna International Inc. announced on Thursday that it has entered into definitive agreements to divest its lighting and rooftop systems operations. The divestitures will be executed through three separate transactions, with the company expecting all deals to be finalized in the second half of 2026. According to CEO Swamy Kotagiri, the decision underscores Magna's commitment to active portfolio management. The company intends to pivot its focus toward business segments that better align with its long-term objectives regarding growth, margins, and returns. The lighting business, which generated approximately $1 billion in sales in 2025, will be split between two buyers. One investment firm will acquire the operations serving the North American, South American, and Chinese markets, while a second investment company will acquire the European lighting operations. Additionally, the European rooftop systems business, which reported sales of roughly $100 million in 2025, will also be acquired by the second investment firm. Financial terms for the three transactions were not disclosed. Despite the removal of these revenue streams, Magna indicated that the sales are not expected to impact its adjusted income per share (EPS) outlook for 2026. This suggests the company views these specific units as non-core or lower-margin assets whose removal will not detract from overall profitability.