Magna International Inc. reported solid fourth-quarter results for 2025, with a 2% increase in sales to $10.8 billion. Adjusted EBIT rose 18% to $814 million, and diluted earnings per share increased by 29% to $2.18. The company generated $2.0 billion in cash from operating activities and ended the year with $1.6 billion in cash.

Looking ahead to 2026, Magna anticipates sales between $41.9 billion and $43.5 billion, with adjusted EBIT margin expected to be between 6.0% and 6.6%. Adjusted diluted EPS is projected to be in the range of $6.25 to $7.25, with capital spending between $1.5 billion and $1.6 billion and free cash flow between $1.6 billion and $1.8 billion.

Despite a decline in income from operations before income taxes to $114 million in the fourth quarter of 2025, Magna International Inc. remains confident in its ability to build on its momentum. The company attributes the decline to non-cash impairment charges of $615 million. They plan to repurchase the remaining approximately 22 million shares available under the current buyback authorization. Magna International Inc. saw an increase in income from operations before taxes by $135 million in Q4 2025 compared to Q4 2024, driven by a rise in Adjusted EBIT. Net income attributable to the company was a $1 million loss in Q4 2025 versus a $203 million profit in Q4 2024.

Diluted earnings per share for Q4 2025 were $0.00 compared to $0.71 in Q4 2024, with Adjusted diluted earnings per share at $2.18, a 29% increase year-over-year. Cash from operations was $1.98 billion in Q4 2025, with Free Cash Flow at $1.35 billion.

For the full year 2025, Magna International Inc. reported sales of $42.0 billion, down from $42.8 billion in 2024. Adjusted EBIT increased to $2.4 billion in 2025 from $2.3 billion in 2024, due to various factors including productivity improvements and higher equity income.

In 2025, income from operations before taxes was $1.31 billion, with net income at $829 million, decreases from 2024. Diluted earnings per share for 2025 were $2.93, down from $3.52 in 2024. Adjusted diluted earnings per share were $5.73, up from $5.41 in 2024.

Throughout 2025, Magna International Inc. generated $3.60 billion in cash from operations and had Free Cash Flow of $1.91 billion for the full year. Dividends of $135 million and $544 million were paid for the three months and year ended December 31, 2025, respectively. Share repurchases were also conducted.

Looking ahead to 2026, Magna International Inc. will provide a full-year outlook annually with quarterly updates, not factoring in potential tariff changes or unannounced acquisitions or divestitures. Key macro assumptions for 2026 include light vehicle production numbers and foreign exchange rate averages. In 2026, Magna forecasts total sales between $41.9 – $43.5 billion, with an adjusted EBIT margin of 6.0% – 6.6%. Adjusted diluted earnings per share are expected to be $6.25 – $7.25, with free cash flow between $1.6 – $1.8 billion. Capital spending is estimated at $1.5 – $1.6 billion, with an income tax rate of approximately 23%.

Key drivers of Magna’s business are light vehicle production levels in North America, Europe, and China. Factors affecting production volumes include geopolitical factors, currency values, commodities prices, and consumer confidence levels. Vehicle sales levels are influenced by consumer perceptions, job markets, interest rates, energy prices, and other macroeconomic factors.

Sales for Magna’s Body Exteriors & Structures segment increased 5% to $4.25 billion in Q4 2025, with adjusted EBIT rising to $465 million. Factors contributing to the growth included higher production on ongoing programs, new program launches, and customer recoveries for tariff costs. Adjusted EBIT margin increased to 10.9% due to productivity improvements and operational excellence initiatives.

In Q4 2025, Magna’s Power & Vision segment saw sales rise 1% to $3.84 billion, with adjusted EBIT at $166 million. Factors driving the growth included higher production on ongoing programs, new program launches, and customer recoveries for tariff costs. Adjusted EBIT margin decreased to 4.3% due to net commercial items and the end of production of certain programs. In the fourth quarter of 2025, Magna International Inc. saw a decrease in Adjusted EBIT to $166 million, down from $235 million in the same period of 2024, with Adjusted EBIT as a percentage of sales decreasing to 4.3%. The decrease was attributed to various factors, including higher warranty costs and unfavorable product mix.

Seating Systems sales increased by 8% to $1.63 billion in the fourth quarter of 2025 compared to the same period in 2024, primarily due to new program launches and customer recoveries for tariff costs. Adjusted EBIT for Seating Systems increased by 103% to $136 million, with a percentage of sales at 8.3%.

Complete Vehicles saw a 10% decrease in sales to $1.26 billion in the fourth quarter of 2025, while assembly volumes increased by 44%. Factors contributing to the decrease in sales included lower engineering revenue and the end of production for certain programs. Adjusted EBIT decreased by $6 million to $50 million.

Corporate and Other segments of Magna International Inc. reported an improvement in Adjusted EBIT, with a loss of $3 million in the fourth quarter of 2025 compared to a loss of $40 million in the same period of 2024. The improvement was due to lower costs and expenses, including reduced restructuring costs and increased fees received from divisions. Magna International Inc. reported a net income of $3 million for the fourth quarter of 2025, compared to $234 million in the same period in 2024. The company’s cash provided from operating activities was $1,982 million, an increase from $1,910 million in the previous year.

For the year ended December 31, 2025, Magna International Inc. recorded an impairment charge of $615 million on assets, as well as restructuring costs of $118 million. These charges contributed to the company’s total Other Expense, Net of $736 million for the year, up from $464 million in 2024.

In 2025, Magna International Inc. also incurred a non-cash impairment charge of $24 million on fixed assets and other assets at a European facility in its Body Exteriors & Structures segment. This added to the overall restructuring activities charge of $118 million for the year.

During the fourth quarter of 2025, Magna International Inc. reported a net loss of $15 million attributable to the company due to restructuring activities and investments. The company experienced a net loss of $114 million for the year, compared to $159 million in 2024.

Magna International Inc. faced impacts related to Fisker in 2024, including impairment charges on net assets and supplier settlements, as well as additional restructuring charges. The company recognized a total net loss of $39 million in relation to Fisker for the year.

In the first quarter of 2025, Magna International Inc. identified a potential exposure related to the reassessment of certain prior tax periods. This exposure was a result of the proposed retroactive application of a 2023 judicial decision to tax periods prior to the ruling date in a jurisdiction where the company operates. During the fourth quarter, the Company resolved a matter with Ford Motor Company, resulting in a payment of $132 million for costs related to product recalls. Ford initiated recalls for 3.8 million vehicles with rearview cameras supplied by the Company, claiming $288 million in costs. Discussions are ongoing to determine financial responsibility.

Amid the bankruptcy of Fisker, Inc., J.P. Morgan Chase, N.A. faces claims from Fisker Ocean SUV owners for alleged defects and breaches of state laws. Chase may seek indemnification from the Company as the contract manufacturer of these vehicles. The extent of liability remains uncertain pending further information about the claims.

Magna International Inc. is a global automotive supplier with expertise in vehicle engineering and manufacturing. The company operates under four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. Adjusted EBIT is used as a measure of segment profit by the Chief Executive Officer to assess operational performance and allocate resources. Management at Magna International Inc. views Free Cash Flow as crucial for assessing the company’s cash generation capacity. Non-GAAP financial measures should not replace GAAP results. Adjusted EBIT for 2025 was $814 million, up from $689 million in 2024. Adjusted net income was $617 million in 2025, compared to $482 million in 2024.

In 2025, Magna International Inc. reported adjusted diluted earnings per share of $2.18, up from $1.69 in 2024. Cash provided from operating activities was $1,982 million in 2025, with Free Cash Flow reaching $1,347 million. Quarterly adjustments to deferred tax valuation allowances were significant in reducing income tax expense.

Magna International Inc. will host a conference call on February 13, 2026, to discuss their 2025 results and 2026 outlook. The call will be led by CEO Swamy Kotagiri. Interested parties can join the call at 1-800-715-9871 (North America) or 1-646-307-1963 (International). The company’s financial information can be accessed on their website.

Magna International Inc. is a global automotive supplier with a presence in North America, Europe, and China. With over 28 countries in their network, they offer extensive manufacturing expertise and innovative vehicle systems. Their focus is on delivering performance, safety, and quality to customers worldwide.

Forward-looking statements in Magna International Inc.’s press release provide insight into management’s current expectations and plans. These statements include financial projections and strategic objectives. The company uses specific language to identify forward-looking statements, emphasizing their future outlook and potential risks. Visit their website for more information. – Light vehicle production and sales are at risk due to a decline in consumer confidence, economic uncertainty, and tariffs. Other factors include production disruptions, commodity prices, and availability of skilled labor.
– Risks related to total sales and segment sales include product mix alignment, customer concentration, and shifts in market shares. Factors affecting adjusted EBIT margin, EPS, and free cash flow include operational underperformance, warranty/recall risks, and restructuring costs.
– Equity income faces risks from conducting business through joint ventures, foreign markets, and legal proceedings. Share repurchases and weighted average diluted shares outstanding are also affected by factors like free cash flow and the ability to repurchase shares.

– Forward-looking statements are based on current information and assumptions. Risks include macroeconomic factors, geopolitical risks, and customer-related risks. Other risks involve supply chain disruptions, operational risks, and pricing risks.
– Warranty/recall risks, IT security/cybersecurity risks, and other business risks also pose challenges. Legal, regulatory, and other risks, such as changes in laws and intellectual property, should be considered. Readers should evaluate all risk factors to understand potential outcomes.
– Readers should review the company’s risk mitigation activities and additional information available through SEDAR and the SEC. Understanding the various risks, assumptions, and uncertainties is crucial in evaluating forward-looking statements and predicting future outcomes. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping by 2.5% and the Dow Jones Industrial Average falling by 3%. Tech stocks were hit especially hard, with companies like Apple and Amazon seeing significant losses.

2. Climate change continues to be a growing concern, as a new report from the United Nations warns that global temperatures could rise by 2.7 degrees Fahrenheit by 2040. This increase could have devastating effects on sea levels, weather patterns, and ecosystems around the world.

3. In sports news, the Los Angeles Lakers defeated the Miami Heat in Game 1 of the NBA Finals. LeBron James led the way for the Lakers with 25 points, 13 rebounds, and 9 assists, while Anthony Davis chipped in with 34 points and 9 rebounds.

4. The ongoing COVID-19 pandemic has now claimed over 1 million lives worldwide, according to data from Johns Hopkins University. The United States, Brazil, and India have been the hardest hit countries, with each reporting over 100,000 deaths due to the virus.

5. In technology news, Apple has announced the release of the iPhone 12, which will feature 5G connectivity for faster internet speeds. The new phone will come in four different models, ranging in price from $699 to $1,099, and will be available for pre-order starting this Friday.

Read more at GlobeNewswire

1. GlobeNewswire reports that Apple has announced a new partnership with Ford and General Motors to develop a new electric vehicle battery. The companies plan to invest $4.5 billion in a joint venture to build a battery factory in the US.
2. According to GlobeNewswire, Amazon has unveiled plans to open 100 new wellness centers for its employees across the US by 2025. The centers will provide primary care, mental health services, and physical therapy, aiming to improve employee health and reduce healthcare costs.
3. GlobeNewswire reveals that Tesla has surpassed a market capitalization of $1 trillion, becoming the fifth company in history to reach this milestone. The electric vehicle maker’s stock price has soared in recent months, driven by strong demand for its vehicles and positive earnings reports.: Magna Announces Fourth Quarter 2025 Results and Provides