Magna International (MG) investor relations material

Executive summary

• Q3 2025 results exceeded expectations, with sales up 2% to $10.5 billion, adjusted EBIT up 3% to $613 million, and adjusted diluted EPS up 4% to $1.33, reflecting strong execution, new program launches, and performance initiatives.

• Free cash flow improved by $398 million year-over-year to $572 million, supporting a raised full-year outlook for sales, EBIT margin, and net income.

• Adjusted EBIT margin expanded by 10 basis points despite tariff headwinds; operational improvements and tariff recoveries supported margin gains.

• New business wins with China-based OEMs, including XPENG, and technology launches in hybrid drive and advanced safety systems reinforce competitive positioning.

• Board approved a new NCIB to repurchase up to 10% of public float, reinforcing commitment to share buybacks.

Financial highlights

• Q3 2025 consolidated sales were $10.5 billion, up 2% year-over-year, with global light vehicle production up 3%.

• Adjusted EBIT was $613 million (5.9% margin), up 3% and 10 basis points from Q3 2024.

• Adjusted diluted EPS was $1.33, up 4% from $1.28 in Q3 2024; net income attributable to shareholders was $305 million, down from $484 million due to prior-year one-time items.

• Free cash flow for the quarter was $572 million, up $398 million year-over-year.

• Cash from operations before changes in working capital was $787 million; fixed asset additions were $267 million.

Outlook and guidance

• 2025 sales outlook raised to $41.1–$42.1 billion, with adjusted EBIT margin expected at 5.4%–5.6%.

• Adjusted net income guidance increased to $1.45–$1.55 billion; free cash flow outlook raised to $1.0–$1.2 billion.

• Capital spending for 2025 projected at ~$1.5 billion (3.6% of sales), below prior guidance.

• Leverage ratio expected to fall below 1.7x by year-end.

• Light vehicle production assumptions updated: North America 15.0M, Europe 16.6M, China 31.5M units.