Overview
- The supplier reported Q4 sales of $10.8 billion, up 2% year over year, with adjusted EBIT margin at 7.5% and adjusted EPS rising 29% to $2.18.
- For 2025, Magna generated about $42 billion in sales, $3.6 billion in operating cash flow and $1.9 billion in free cash flow, finishing with net leverage just under 1.6x and $5.1 billion of liquidity.
- The company guided 2026 to near‑flat to 3.5% sales growth with 6.0%–6.6% adjusted EBIT margins, $6.25–$7.25 adjusted EPS and $1.6–$1.8 billion free cash flow, alongside an increased dividend and planned buybacks.
- Executives flagged seating as a relative strength, with Power & Vision facing near‑term headwinds yet expected to deliver considerable margin expansion during 2026.
- Quarterly performance reflected FX translation, new launches such as Ford Expedition/Navigator and Xiaomi YU7, and customer tariff recoveries, partly offset by lower engineering revenue and the end of Jaguar E‑PACE/I‑PACE assembly in Graz, with margin drivers of about +130 bps operational gains, ~+50 bps tariffs, ~−50 bps discrete items and ~−30 bps volume.