Magna International Inc. · TSX:MG
Magna International — Q4 2025 Earnings Presentation
48 slides from Magna International's earnings presentation, Feb 13, 2026
Slide 1: Q4 & FY 2025 and 2026 Outlook
Q4 & FY 2025 and 2026 Outlook February 13, 2026 1 Q4 & FY 2025 and 2026 OUTLOOK
Slide 2: Louis Tonelli, Vice President, Investor Relations
Louis Tonelli Vice President, Investor Relations 2 Q4 & FY 2025 and 2026 OUTLOOK
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements in this document constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and pl
Slide 4: Forward-Looking Statements (cont.)
Forward-Looking Statements (cont.) Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as ot
Slide 5: Reminders
All amounts are in U.S. Dollars Reminders Today's discussion excludes the impact of other expense (income), net ("Unusual Items") and amortization of acquired intangible assets. Please refer to the reconciliation of Non-GAAP measures in our press release dated February 13, 2026 for further informati
Slide 6: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 6 Q4 & FY 2025 and 2026 OUTLOOK
Slide 7: Key Takeaways: Strong Q4 and 2025 financial performance
Key Takeaways 1 Strong Q4 and 2025 financial performance, reflecting resilience of our business model • • • Continued traction on operational excellence activities Successful efforts across Magna to secure commercial recoveries Executed tariff mitigation plans, offsetting vast majority of direct imp
Slide 8: Key Takeaways: Focus on free cash flow
Key Takeaways 2 Focus on free cash flow resulting in strong delivery • • • Generated full year operating cash flow of $3.6 billion and free cash flow of $1.9 billion Disciplined approach to capital spending – CapEx/Sales of 3.1% for 2025 Continue to improve fixed cost structure and optimize engineer
Slide 9: Key Takeaways: Outlook for 2026
Key Takeaways 3 Outlook for 2026 reflects continued improvement, particularly operating margins • • • Weighted sales growth over market of +1.5% at midpoint Adjusted EBIT margin expansion between 40 and 100 bps for the year Free cash flow generation in $1.6 – 1.8B range 9 Q4 & FY 2025 and 2026 OUTLO
Slide 10: Key Takeaways: Capital allocation strategy
Key Takeaways 4 Executing our deliberate and proven capital allocation strategy • • • Driving EPS growth with strong free cash flow ~22 million shares available for repurchase as of today under current buyback authorization (NCIB) Company plans to repurchase all remaining available shares during 202
Slide 11: 2025 Highlights
2025 Highlights 11 Q4 & FY 2025 and 2026 OUTLOOK
Slide 12: Financial Results – Q4 and Full Year 2025
Financial Results – Q4 and Full Year 2025 CONSOLIDATED ADJUSTED ADJUSTED FREE SALES EBIT DILUTED EPS CASH FLOW Q4 2025 $10.8B 7.5% $814M $2.18 $1.3B YoY ▲2% ▲100bps ▲18% ▲29% ▲$316M FY 2025 $42.0B 5.6% $2,364M $5.73 $1.9B YoY ▼2% ▲20bps ▲2% ▲ 6% ▲$849M 12 Q4 & FY 2025 and 2026 OUTLOOK
Slide 13: Performance Against Prior Outlooks
Performance Against Prior Outlooks Initial 2025 Outlook Most Recent 2025 Outlook ($Billions) 2025 Actual (February) (October) Sales 38.6 – 40.2 41.1 – 42.1 42.0 Adjusted EBIT Margin 5.3% – 5.8% 5.4% – 5.6% 5.6% Adjusted Net Income 1.3 – 1.5 1.45 – 1.55 1.62 Free Cash Flow 0.8 – 1.0 1.0 – 1.2 1
Slide 14: Driving Long-Term Performance: Product Innovation and Growth
Driving Long-Term Performance Product Innovation and Growth • Hit target award bookings for '25, including: ‒ High-voltage programs for hybrids and EVs with multiple customers ‒ Large ADAS program with NA-based global OEM ‒ Gen 3 core seat structure awards across multiple China-based OEMs ‒ Complete
Slide 15: Driving Long-Term Performance: Operational Excellence
Driving Long-Term Performance Operational Excellence Driving Margin Expansion • Contributed ~35 bps in 2025 • Operational excellence at scale: ~80% of facilities streaming live data on a unified platform, providing improved visibility • Material flow optimization underway in over half our divisions,
Slide 16: Driving Long-Term Performance: People Focus
Driving Long-Term Performance People Focus • Operational Management Accelerator Program earned Brandon Hall Group's Best Senior Manager Development Program award • Named to Ethisphere's "World's Most Ethical Companies" list (4th consecutive year) • Made Fortune's "World's Most Admired Companies" lis
Slide 17: Phil Fracassa, EVP & Chief Financial Officer
Phil Fracassa EVP & Chief Financial Officer 17 Q4 & FY 2025 and 2026 OUTLOOK
Slide 18: Q4 2025 Results
Q4 2025 Results 18 Q4 & FY 2025 and 2026 OUTLOOK
Slide 19: Q4 2025 Financial Results
Q4 2025 Financial Results Consolidated Sales Adjusted EBIT Margin Adjusted Diluted EPS ($Billions) (%) ($) +2% +100 bps +29% $10.6 $10.8 0.1 8.0% 7.5% $2.50 0.1 $10.0 $2.18 0.1 7.0% 6.5% 0.1 $2.00 $1.69 6.0% $8.0 0.1 0.1 5.0% $1.50 0.1 0.1 $6.0 4.0% 0.1 0.1 $1.00 3.0% $4.0 0.1 0.1 2.0% $0.50 $2.0 0.
Slide 20: Q4 2025 Financial Results: Consolidated Sales
Q4 2025 Financial Results Consolidated Sales ($Millions) +2% Q4 2025 LV Production 355 106 North America -3% 10,848 10,628 -241 Europe 3% China -2% Global -1% Magna Weighted -1% Q4 2024 Foreign Volumes, Complete Q4 2025 Weighted Sales GoM1: 0% Exchange Launches Vehicles (+2% excl. Complete Vehicles)
Slide 21: Q4 2025 Financial Results: Adjusted EBIT & Margin
Q4 2025 Financial Results • Operational Adjusted EBIT & Margin − Operational excellence activities driving ($Millions and %) productivity and efficiency improvements (+) − Benefits of previous restructuring actions (+) 0.50% − Lower engineering spend (+) − Higher commodity and labour costs (-) 1.30%
Slide 22: Q4 2025 Segment Performance
Q4 2025 Segment Performance $Millions Body Exteriors & Structures Power & Vision Sales EBIT Sales EBIT +5% +25% $465 0.2 +1% $400 -29% 0.2 $4,252 $500 $4,500 $4,067 $4,500 $3,786 $3,841 $350 $4,000 $371 0.2 $4,000 $300 0.1 $235 $400 $3,500 $3,500 $250 10.9% 0.1 $3,000 $166 $3,000 $300 9.1% +180 bps
Slide 23: Q4 & FY Free Cash Flow
Q4 & FY Free Cash Flow ($Millions) Q4 2024 Q4 2025 Free Cash Flow 1 ($Millions) Cash from Operations Before Changes in 896 1,155 2,000 2,000 1,907 Operating Assets & Liabilities 1,800 1,800 Changes in Operating Assets & Liabilities 1,014 827 1,600 1,600 Cash from Operations 1,910 1,982 1,347 1,400 1
Slide 24: Maintaining Strong Balance Sheet and Financial Flexibility
Maintaining Strong Balance Sheet and Financial Flexibility Total Liquidity (31DEC25) ($millions) • Ended 2025 with strong liquidity of $5.1B, including Cash and Cash Equivalents 1,612 $1.6B of cash on hand Available Term & Operating Lines of Credit 3,500 • Rating agency leverage below Total Liquidit
Slide 25: Consolidated Outlook
Consolidated Outlook 25 Q4 & FY 2025 and 2026 OUTLOOK
Slide 26: Financial Outlook – Key Macro Assumptions
Financial Outlook – Key Macro Assumptions Automotive Light Vehicle Production (millions of units) 2025 2026 North America 15.2 15.0 Europe 16.7 16.8 China 32.7 32.0 Magna-Weighted GLVP Growth -1% ‘25-'26 U.S. Foreign Exchange Rates 2025 2026 Cdn 0.716 0.720 Euro 1.130 1.160 RMB 0.139 0.143 Acquisiti
Slide 27: Consolidated Sales
Consolidated Sales ($Billions) • 2026 sales outlook: ~flat to up ~3.5% vs. 2025 41.9-43.5 42.8 42.0 • New and replacement program launches (+) Note: represent midpoints • Weaker US$ (+) • LVP modestly down in North 2026 sales outlook: ~flat to up ~3.5% versus 2025 America and China, slightly up in E
Slide 28: Consolidated Adj. EBIT Margin %
Consolidated Adj. EBIT Margin % • 2026 Adjusted EBIT margin outlook: up 40 -100 basis points 6.0-6.6% versus 2025 5.6% • Operational 5.4% Note: represent midpoints − Continued operational excellence and cost reduction initiatives, net of normal price concessions (+) − Lower new facility costs (+) −
Slide 29: 2026 Outlook Summary
2026 Outlook Summary Consolidated Sales Other Key Assumptions: $41.9B - $43.5B • Capital Spending (CapEx): $1.5 - 1.6B Adjusted EBIT Margin • Equity Income: $160 - 195M 6.0% - 6.6% (included in EBIT margin) Adjusted EPS • Interest Expense (net): ~$180M $6.25 - $7.25 • Adjusted Tax Rate: ~23% Free Ca
Slide 30: Segment Sales & Adjusted EBIT Margin %
Segment Sales & Adjusted EBIT Margin % Sales ($Billions) Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles '25-’26 '25-’26 '25-’26 '25-’26 0 to 3% 5 to 7% -8 to -3% -9 to -3% 16.6 16.6-17.2 15.2 15.9-16.3 5.9 5.4-5.7 4.8 4.4-4.7 2025 2026F 2025 2026F 2025 2026F 2025 2026F
Slide 31: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 31 Q4 & FY 2025 and 2026 OUTLOOK
Slide 32: Closing Comments
Closing Comments 32 Q4 & FY 2025 and 2026 OUTLOOK
Slide 33: In Summary: Strong Q4 and FY 2025 results
In Summary Strong Q4/25 and FY 2025 results – Adj. EBIT margin expansion, Adj. EPS growth, strong FCF generation 33 Q4 & FY 2025 and 2026 OUTLOOK
Slide 34: In Summary: Operational excellence impacting margin
In Summary Operational excellence positively impacting margin performance in 2025 and 2026 34 Q4 & FY 2025 and 2026 OUTLOOK
Slide 35: In Summary: Solid outlook
In Summary Solid Outlook, including further margin expansion and EPS growth, and continued strong FCF generation 35 Q4 & FY 2025 and 2026 OUTLOOK
Slide 36: In Summary: Shareholder value creation
In Summary Focused on shareholder value creation – raised dividend for 16th consecutive year, expect to repurchase all shares available under current buyback authorization during 2026 36 Q4 & FY 2025 and 2026 OUTLOOK
Slide 37: In Summary: Confident in proven strategy
In Summary We remain confident in executing our proven strategy and driving EPS growth, together with strong FCF 37 Q4 & FY 2025 and 2026 OUTLOOK
Slide 38: Q&A
Q&A 38 Q4 & FY 2025 and 2026 OUTLOOK
Slide 39: Appendix Q4 2025 Results
Appendix Q4 2025 Results 39 Q4 & FY 2025 and 2026 OUTLOOK
Slide 40: Q4 2025 Reconciliation of Reported Results
Q4 2025 Reconciliation of Reported Results Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures Reported (1) (2) Adjusted Income Before Income Taxes $ 114 $ 629 $ 29 $ 772 % of Sales 1.1% 7.1% Income Tax Expense $ 111 $ 37
Slide 41: Q4 2024 Reconciliation of Reported Results
Q4 2024 Reconciliation of Reported Results Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures Reported (1) (2) Adjusted Income Before Income Taxes $ 381 $ 228 $ 28 $ 637 % of Sales 3.6% 6.0% Income Tax Expense $ 147 $ (29
Slide 42: Sales Performance vs Market (Q4 2025)
Sales Performance vs Market Q4 2025 vs Q4 2024 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures 5% 2% 3% Power & Vision 1% (2%) (1%) Seating Systems 8% 6% 7% Complete Vehicles (10%) (17%) (16%) TOTAL SALES 2% (1%) 0% Unweighted Production Growth
Slide 43: Sales Performance vs Market (2025)
Sales Performance vs Market 2025 vs 2024 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures (2%) (2%) (1%) Power & Vision (1%) (3%) (2%) Seating Systems 2% 1% 2% Complete Vehicles (7%) (10%) (9%) TOTAL SALES (2%) (3%) (2%) Unweighted Production Gro
Slide 44: Segment Impact on Adjusted EBIT % of Sales
Segment Impact on Adjusted EBIT % of Sales Q4 2025 vs Q4 2024 Adjusted Adjusted EBIT as a ($Millions) Sales EBIT Percentage of Sales 4th Quarter of 2024 $ 10,628 $ 689 6.5% Increase (Decrease) Related to: Body Exteriors & Structures $ 185 $ 94 0.8% Power & Vision $ 55 $ (69) (0.7%) Seating Systems $
Slide 45: Geographic Sales
Geographic Sales Q4 2025 vs Q4 2024 North America Europe $4.2B $5.1B $3.9B $6.0B $4.5B $5.0B $4.8B $4.0B $3.5B $4.0B $3.0B $2.5B $3.0B $2.0B $2.0B $1.5B $1.0B $1.0B $0.5B $0.0B $0.0B Production (3%) Production 3% Asia Rest of World $148M $1.7B $137M $2.00B $160M $1.80B $140M $1.60B $1.4B $120M $1.40
Slide 46: Q4 2025 Financial Results
Q4 2025 Financial Results ($Millions, unless otherwise noted) Q4 2024 Q4 2025 Change Sales 10,628 10,848 220 Adjusted EBIT 689 6.5% 814 7.5% 125 Interest Expense 52 42 10 Adjusted Pre-Tax Income 637 772 135 Adjusted Income Taxes 124 19.5% 151 19.6% (27) Income Attributable to Non-Controlling Interes
Slide 47: Leverage Ratios as of December 31, 2025
Leverage Ratios as of December 31, 2025 Net Debt/ Rating Agency 1 ($Millions) Adj. EBITDA Debt/EBITDA Cash and Cash Equivalents $ (1,612) - ST and LT Debt per Balance Sheet 4,712 $ 4,712 Leases and Other Credit Rating Agency Adjustments - 2,108 Net Debt / Rating Agency Debt $ 3,100 $ 6,820 LTM Adjus
Slide 48: Q4 & FY 2025 and 2026 OUTLOOK
48 Q4 & FY 2025 and 2026 OUTLOOK