Auto Parts Suppliers Rise Thanks To Easing Tariff Headwinds

2026-02-14 21:44:07

On Friday, two auto parts manufacturers — Magna International (MGA) and Atmus Filtration (ATMU) — spiked after major earnings beats.

Canada-based Magna rose almost 20% and Nashville’s Atmus rose 5%. Both auto parts stocks have performed well over the last 12 months as the auto industry wrestled with tariffs and a pronounced decline in EV sales. Over the past year, Magna is up almost 50%, while Atmus has gained nearly 60%.

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Both companies delivered their promising results, while having put the worst supply chain disruptions caused by tariffs behind them. When tariffs hit, they had been forced to increase prices. However, those changes seem to have largely stabilized.

Atmus doesn’t expect “additional tariff pricing in 2026,” CEO Steph Disher said during an investor call Friday. She added that the company intends to “remain price cost neutral on tariffs.”

Meanwhile, Magna said the net costs of tariffs throughout all of 2025 amounted to less than 10 basis points of margin impact.

Magna International

Magna trounced analyst expectations. It reported quarterly earnings per share of $2.18 apiece against estimates for $1.80, according to FactSet. Meanwhile, revenue came in at $10.848 billion, compared to a projected $10.555 billion.

Among the most promising news was the fact Magna expanded its margins, in an industry known for slim margins. In the fourth quarter, Magna said its adjusted EBIT margin rose 100 basis points to 7.5%.

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“We closed 2025 with a strong fourth quarter, successfully navigating another dynamic year in our industry. Our disciplined execution and commitment to operational excellence enabled us to deliver financial results that were in line with, or exceeded, our February 2025 outlook across all key metrics,” CEO Swamy Kotagiri said.

Magna also provided investors with updates on its plans for 2026. It projects sales between $41.9 billion and $43.5 billion, which implies a revenue range between a 0.2% decrease and 3.5% growth. In 2025, Magna sales dipped 2%.

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Magna also announced its intention to buy back about 22 million shares over the course of 2026.

Atmus Filtration

As the name suggests, Atmus specializes in all manner of filtration systems, including for air, fuel and lubrication. The company’s products go on commercial, industrial, and agricultural vehicles.

Last month, Atmus finalized its acquisition of Kock Filter Corp., which services buildings rather than cars, for $450 million in cash. The deal helps Atmus break into new lines of business like servicing HVAC units and data centers.

Atmus’ fourth quarter earnings saw revenue grow 9.7% to $447 million. Earnings per share rose 8 cents to 66 cents apiece. Analysts expected revenue of $422 million and earnings of 56 cents a share, according to FactSet.

Full-year revenue rose 5.7% to $1.764 billion, ahead of the expected $1.74 billion. EPS was $2.73 vs. $2.63 consensus.

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