Magna International Inc. · TSX:MG
Magna International — Q1 2026 Earnings Presentation
41 slides from Magna International's earnings presentation, May 1, 2026
Slide 1: Q1 2026 Results
Q1 2026 Results May 1, 2026 1 Q1 2026 Results Webcast 01MAY26
Slide 2: Louis Tonelli, Vice President, Investor Relations
Louis Tonelli Vice President, Investor Relations 2 Q1 2026 Results Webcast 01MAY26
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements in this press release 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 a
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 May 1, 2026 for further information. "O
Slide 6: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 6 Q1 2026 Results Webcast 01MAY26
Slide 7: Key Takeaways: Strong Q1 results, with margin expansion
Key Takeaways 1 Strong Q1 results, with margin expansion driven by disciplined execution • • • Sales up 3%, weighted Growth over Market of +3% (ex-Complete Vehicles: +5%) Adjusted EBIT up 58%, Adjusted EBIT margin expanded 190 bps to 5.4% Adjusted EPS rose 77% to $1.38 • Continued traction on operat
Slide 8: Key Takeaways: Robust free cash flow
Key Takeaways 2 Robust free cash flow reflects improved operating performance • • • Generated operating cash flow of $677 million and free cash flow of $372 million in Q1 Moody's reaffirmed "A3" credit rating with a stable outlook Ended Q1 with strong balance sheet, including $1.6 billion in cash 8
Slide 9: Key Takeaways: Outlook reinforces confidence
Key Takeaways 3 Outlook reinforces confidence in margin, EPS and cash flow trajectory • • Weighted sales growth over market of +1.5% at midpoint Affirming FY 2026 Outlook ranges for Adjusted EBIT margin expansion (up 40 to 100 bps), Adjusted EPS ($6.25 – $7.25), and Free Cash Flow ($1.6 – 1.8B) 9 Q1
Slide 10: Key Takeaways: Executing capital allocation framework
Key Takeaways 4 Executing our proven capital allocation framework • • • Continue to invest in business to support profitable growth Returned $575 million in capital to shareholders in Q1, through share repurchases and dividends ~17 million shares remaining at March 31, 2026 under current buyback aut
Slide 11: Announced Dispositions of Lighting and Rooftop Systems Businesses
Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long-standing guiding principles around portfolio management 11 Q1 2026 Results Webcast 01MAY26
Slide 12: Announced Dispositions of Lighting and Rooftop Systems Businesses
Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long-standing guiding principles around portfolio management Guiding Principles Long-Term • Culture of accountability with compensation aligned with short-term execution, long-term value creation Own
Slide 13: Announced Dispositions of Lighting and Rooftop Systems Businesses
Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long-standing guiding principles around portfolio management • Allow us to streamline our portfolio and focus on businesses that advance our long-term growth, margin and return objectives 13 Q1 2026
Slide 14: Announced Dispositions of Lighting and Rooftop Systems Businesses
Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long-standing guiding principles around portfolio management • Allow us to streamline our portfolio and focus on businesses that advance our long-term growth, margin and return objectives • Transacti
Slide 15: Expanding Advanced Hybrid Technology Offerings
Expanding Advanced Hybrid Technology Offerings Dedicated REX Hybrid Drive • Reduced size, weight and system cost • Multiple operating modes: electric driving, generating mode and optional parallel hybrid mode for improved highway performance • Applicable to B through E segments in AWD layouts • Furt
Slide 16: Electric Vehicle Launches for China-based OEMs
Electric Vehicle Launches for China-based OEMs • Launched second model (AION UT) for GAC in March '26 • Launched third model (P7+) for XPENG in April '26 • Five EV models now launched for these two OEMs since September 2025 • Recently awarded 4th program with XPENG • Reinforces Magna's strong positi
Slide 17: Named to Ethisphere's World's Most Ethical Companies List
Named to Ethisphere's World's Most Ethical Companies List • Ethisphere's annual recognition honours global leaders in ethical business practices • 2026 represents 5th consecutive year Magna has been recognized • Reflects Magna's commitment to integrity, ethical decision-making and doing what's right
Slide 18: Phil Fracassa, EVP & Chief Financial Officer
Phil Fracassa EVP & Chief Financial Officer 18 Q1 2026 Results Webcast 01MAY26
Slide 19: Q1 2026 Performance Highlights
Q1 2026 Performance Highlights Consolidated Sales Adjusted EBIT $10.4B 5.4% $558M +3% +190 bps +58% 1 Weighted GoM of +3% (+5% excl. Complete Vehicles) Adjusted EPS Free Cash Flow 2 $1.38 $372M +77% +$685M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle production ch
Slide 20: Q1 2026 Financial Results
Q1 2026 Financial Results Consolidated Sales ($Millions) Q1 2026 LV Production +3% (Organic: -2%) North America -4% 520 10,381 Europe -4% -36 10,069 -172 China -12% Global -7% Magna Weighted -5% Weighted Sales GoM1: +3% Q1 2025 Foreign Volumes, Complete Q1 2026 Exchange Launches Vehicles (+5% excl.
Slide 21: Q1 2026 Financial Results
Q1 2026 Financial Results • Operational, Volumes & Other − Operational excellence activities driving Adjusted EBIT & Margin productivity and efficiency improvements (+) ($Millions and %) − Benefits of prior restructuring actions (+) − Net transactional foreign exchange gains (+) − Reduced earnings o
Slide 22: Q1 2026 Financial Results
Q1 2026 Financial Results ($Millions, unless otherwise noted) Q1 2025 Q1 2026 Change Sales 10,069 10,381 312 Adjusted EBIT 354 3.5% 558 5.4% 204 Interest Expense 50 37 13 Adjusted Pre-Tax Income 304 521 217 Adjusted Income Taxes (78) 25.7% (124) 23.8% (46) Income Attributable to Non-Controlling Inte
Slide 23: Q1 2026 Segment Performance
Q1 2026 Segment Performance $Millions Body Exteriors & Structures Power & Vision Sales EBIT Sales EBIT +3% +19% +6% +103% 0.3 $400 0.3 $3,966 $4,079 $500 $3,881 $350 $3,646 $4,500 $4,500 0.3 0.3 $252 $4,000 $4,000 $300 $400 $3,500 0.2 0.2 $274 $3,500 $250 $230 $3,000 $3,000 $300 0.2 $200 0.2 $2,500
Slide 24: Q1 Free Cash Flow
Q1 Free Cash Flow ($Millions) Q1 2025 Q1 2026 Free Cash Flow 1 ($Millions) Cash from Operations Before Changes in 547 637 500 Operating Assets & Liabilities 400 372 Changes in Operating Assets & Liabilities (470) 40 300 Cash from Operations 77 677 200 Fixed Asset Additions (268) (219) Increase in In
Slide 25: Maintaining Strong Balance Sheet and Financial Flexibility
Maintaining Strong Balance Sheet and Financial Flexibility Total Liquidity (31MAR26) ($millions) • Strong liquidity of $5B, including $1.6B cash Cash and Cash Equivalents 1,605 • Rating agency leverage 1.50x Available Term & Operating Lines of Credit 3,364 at 03/31/26, better than Total Liquidity 4,
Slide 26: Updated 2026 Outlook – Key Assumptions
Updated 2026 Outlook – Key Assumptions 2025 February 2026 May 2026 Light Vehicle Production: (millions of units) • North America 15.317 15.0 14.9 • Europe 16.771 16.8 16.6 • China 33.035 32.0 32.0 Foreign Exchange Rates: • 1 CDN dollar equals USD 0.716 0.720 0.730 • 1 EURO equals USD 1.130 1.160 1.1
Slide 27: Updated 2026 Outlook
Updated 2026 Outlook ($Billions, unless otherwise noted) 2025 February 2026 May 2026 Sales 42.010 41.9 – 43.5 41.5 – 43.1 Adjusted EBIT Margin % 1 5.6% 6.0% – 6.6% 6.0% – 6.6% Equity Income (included in Adj. EBIT) 143 160M – 195M 160M – 195M Interest Expense 209 ~180M ~165M Income Tax Rate2 22.4% ~2
Slide 28: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 28 Q1 2026 Results Webcast 01MAY26
Slide 29: In Summary
Strong start to 2026 with margin expansion and cash generation In Summary • Delivered meaningful Adjusted EBIT Margin expansion, despite a declining production environment • Achieved solid weighted sales growth over market • Generated strong free cash flow, reinforcing the quality and sustainability
Slide 30: In Summary
Positioned for continued margin expansion and shareholder returns In Summary • 2026 outlook largely unchanged, reflecting confidence in operating performance • Continued focus on margin expansion, EPS growth and strong free cash flow • Executing a disciplined capital allocation strategy, including s
Slide 31: Save The Date
Save The Date Magna Investor Day Wednesday, November 11, 2026 New York, NY
Slide 32: Q&A
Q&A 32 Q1 2026 Results Webcast 01MAY26
Slide 33: Appendix
Appendix Q1 2026 Results 33 Q1 2026 Results Webcast 01MAY26
Slide 34: Q1 2026 Reconciliation of Reported Results
Q1 2026 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 $ 87 $ 415 $ 19 $ 521 % of Sales 0.8% 5.0% Income Tax Expense $ 88 $ 34 $
Slide 35: Q1 2025 Reconciliation of Reported Results
Q1 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 $ 225 $ 53 $ 26 $ 304 % of Sales 2.2% 3.0% Income Tax Expense $ 72 $ 1 $ 5
Slide 36: Sales Performance vs Market
Sales Performance vs Market Q1 2025 vs Q1 2026 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures 3% (1%) 4% Power & Vision 6% 1% 6% Seating Systems 2% (2%) 3% Complete Vehicles (4%) (14%) (9%) TOTAL SALES 3% (2%) 3% Unweighted Production Growth (7
Slide 37: Segment Impact on Adjusted EBIT % of Sales
Segment Impact on Adjusted EBIT % of Sales Q1 2025 vs Q1 2026 Adjusted Adjusted EBIT as a ($Millions) Sales EBIT Percentage of Sales 1st Quarter of 2025 $ 10,069 $ 354 3.5% Increase (Decrease) Related to: Body Exteriors & Structures $ 113 $ 44 0.4% Power & Vision $ 235 $ 128 1.2% Seating Systems $ 2
Slide 38: Geographic Sales
Geographic Sales Q1 2025 vs Q1 2026 North America Europe $4.4B $4.9B $4.9B $6.0B $5.0B $5.0B $4.5B $4.0B $4.0B $3.5B $4.0B $3.0B $3.0B $2.5B $2.0B $2.0B $1.5B $1.0B $1.0B $0.5B $0.0B $0.0B Production (4%) Production (4%) China Rest of World1 $2.00B $250M $220M $227M $1.80B $1.60B $200M $1.2B $1.1B $
Slide 39: 2026 Segment Adjusted EBIT Margin
2026 Segment Adjusted EBIT Margin Body Exteriors & Structures Power & Vision 8.2-8.8% 8.2-8.8% 8.1% 6.0-6.6% 6.0-6.6% 4.5% Seating Complete Vehicles 3.6% 3.1-3.7% 3.1-3.7% 3.1% 2.0-2.6% 2.0-2.6% 2025 February 2026 Outlook May 2026 Outlook 39 Q1 2026 Results Webcast 01MAY26
Slide 40: Leverage Ratios as of March 31, 2026
Leverage Ratios as of March 31, 2026 Net Debt/ Rating Agency 1 ($Millions) Adj. EBITDA Debt/EBITDA Cash and Cash Equivalents $ (1,605) $ - ST and LT Debt per Balance Sheet 4,799 4,799 Leases and Other Credit Rating Agency Adjustments - 2,032 Net Debt / Rating Agency Debt $ 3,194 $ 6,831 LTM Adjusted
Slide 41: Q1 2026 Results Webcast 01MAY26
41 Q1 2026 Results Webcast 01MAY26