Magna International Inc. has released its Q4 2025 earnings call presentation, showcasing strong quarterly performance amid challenging global vehicle production trends.
Q4 2025 Financial Highlights
Sales climbed 2% to $10.8 billion in the fourth quarter, outpacing a 1% drop in global light vehicle production. Adjusted EBIT surged 18% to $814 million, boosting the margin by 100 basis points to 7.5%. Adjusted diluted earnings per share rose 29% to $2.18.
The company generated $2.0 billion in cash from operating activities and $1.3 billion in free cash flow. Magna ended the year with $1.6 billion in cash and raised its quarterly dividend to $0.495 per share, continuing 16 years of increases.
Full-Year 2025 Results
For the full year, sales totaled $42.0 billion. Adjusted EBIT reached $2.4 billion, with the margin expanding 20 basis points. Free cash flow hit a robust $1.9 billion, up significantly from the prior year.
Key Drivers
Higher volumes on programs like the Ford Expedition and Xiaomi YU7, along with favorable foreign exchange and tariff recoveries, drove gains. These offset lower engineering revenue and certain program launches.
2026 Outlook
Magna projects sales between $41.9 billion and $43.5 billion, with adjusted EBIT margin of 6.0% to 6.6% and adjusted diluted EPS of $6.25 to $7.25. Capital spending remains at $1.5 billion to $1.6 billion, supporting free cash flow of $1.6 billion to $1.8 billion.
The outlook assumes North America production at 15.0 million units, Europe at 16.8 million, and China at 32.0 million. Magna plans to repurchase the remaining 22 million shares under its current buyback program.
Executive Commentary
“We closed 2025 with a strong fourth quarter, successfully navigating another dynamic year in our industry,” stated Swamy Kotagiri, Magna’s Chief Executive Officer. “Our disciplined execution enabled us to deliver financial results that were in line with, or exceeded, our February 2025 Outlook across all key metrics.”
