Magna International Inc. · TSX:MG
Magna International — Q2 2025 Earnings Presentation
31 slides from Magna International's earnings presentation, Aug 1, 2025
Slide 1: Second Quarter 2025 Results Webcast
Second Quarter 2025 Results Webcast August 1, 2025 1 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 2: Louis Tonelli
Louis Tonelli Vice President, Investor Relations 2 SECOND QUARTER 2025 RESULTS WEBCAST
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 Today's discussion excludes the impact of other expense (income), net ("Unusual Items") and amortization of acquired Reminders intangible assets. Please refer to the reconciliation of Non-GAAP measures in our press release dated August 1, 2025 for further information.
Slide 6: Swamy Kotagiri
Swamy Kotagiri Chief Executive Officer 6 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 7: Key Takeaways
Key Takeaways Strong Q2 financial performance, reflecting consistent execution across our business • YoY: Adj. EBIT +1%, Adj. EBIT margin +20 bps, Adj. Diluted EPS +7%, FCF +$178 million • Versus our expectations: Ahead, mainly reflecting strong incremental margins on higher sales Increasing Out
Slide 8: Success Through Quality and Innovation
Success Through Quality and Innovation J.D. Power Platinum Plant Quality Award to Earned Volkswagen Group Award 2025 in Magna’s Complete Vehicle Assembly Operation Product category for Innovative Battery Cover in Graz, Austria on VW MEB platform • Based on J.D. Power’s 39th annual Initial Quality •
Slide 9: Technologies Continue to Win Business and Advance
Continue to Win Business and Advance Technologies Awarded Dedicated Hybrid Transmission Advancing Vehicle Safety Innovation with North America-based Global OEM with Integrated Interior Sensing Systems • Application for PHEV models launching in 2028 • Redefining vehicle safety with Magna’s Child • Qu
Slide 10: Tariff Cost Update
Tariff Cost Update Updated tariff impacts: What we remain focused on: Utilizing government remissions programs where • Estimated 2025 annualized net tariff exposure appropriate reduced to ~$200 million1 from ~$250 million Continuing cost reduction programs already in place • Settled with multipl
Slide 11: Updated 2025 Outlook – Key Assumptions
Updated 2025 Outlook – Key Assumptions 2024 May 2025 August 2025 Light Vehicle Production: (millions of units) • North America 15.379 15.0 14.7 • Europe 16.752 16.6 16.6 • China 30.811 30.2 30.8 Foreign Exchange Rates: • 1 CDN dollar equals USD 0.730 0.714 0.715 • 1 EURO equals USD 1.082 1.111 1.127
Slide 12: Updated 2025 Outlook
Updated 2025 Outlook ($Billions, unless otherwise noted) 2024 May 2025 August 2025 Total Sales 42.836 40.0 – 41.6 40.4 – 42.0 Adjusted EBIT Margin % 1 5.4% 5.1% – 5.6% 5.2% – 5.6% Equity Income 101 65M – 95M 75M – 105M Interest Expense 211 ~210M ~210M Income Tax Rate2 22.7% ~26% ~25% Adjusted Net In
Slide 13: Pat McCann
Pat McCann Executive Vice President & Chief Financial Officer 13 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 14: Q2 2025 Performance Highlights
Q2 2025 Performance Highlights Consolidated Sales Adjusted EBIT 10.6B 5.5% $583M -3% +20 bps +1% 1 Weighted GoM of -1% (-1% excl. Complete Vehicles) Adjusted Diluted EPS Free Cash Flow 2 $1.44 $301M +7% +$178M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle productio
Slide 15: Q2 2025 Financial Results
Q2 2025 Financial Results Consolidated Sales ($Millions) -3% 10,958 194 10,631 Q2 2025 LV Production -392 -75 -54 Global 1% North America -6% Detroit-based -9% Europe -2% China 5% Magna Weighted -3% Weighted Sales GoM1 -1% (-1% excl. Complete Vehicles) Q2 2024 Volumes, Complete Divestitures, Foreign
Slide 16: Q2 2025 Financial Results
Q2 2025 Financial Results • Operational Adjusted EBIT & Margin − Operational excellence activities driving productivity ($Millions and %) and efficiency improvements (+) − Lower launch costs (+) − Higher new facility costs (-) 0.20% 0.10% 0.50% • Equity Income 5.5% − Higher net favourable commercial
Slide 17: Q2 2025 Financial Results
Q2 2025 Financial Results ($Millions, unless otherwise noted) Q2 2024 Q2 2025 Change Sales 10,958 10,631 (327) Adjusted EBIT 577 5.3% 583 5.5% 6 Interest Expense 54 52 2 Adjusted Pre-Tax Income 523 531 8 Adjusted Income Taxes (119) 22.8% (109) 20.5% 10 Income Attributable to Non-Controlling Interest
Slide 18: Q2 2025 Cash Flow and Investment Activities
Q2 2025 Cash Flow and Investment Activities Free Cash Flow 1 ($Millions) Q2 2024 Q2 2025 ($Millions) Cash from Operations Before Changes in 681 762 Operating Assets & Liabilities Changes in Operating Assets & Liabilities 55 (135) 350 301 300 Cash from Operations 736 627 Fixed Asset Additions (500) (
Slide 19: Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet Total Liquidity (30JUN25) ($millions) • Raised €575M and Cash 1,536 $400M in Senior Notes Available Term & Operating Lines of Credit 3,501 Total Liquidity 5,037 • To be used principally to repay $650M debt Leverage Ratio (LTM, 30JUN25) ($millions) in September 2025 A
Slide 20: In Summary: Magna's Performance and Outlook
Strong Q2 financial performance better year over year and ahead of our expectations In Summary: Increasing Outlook Magna’s • Higher sales range • Raising low end of Adj. EBIT margin range Performance • Increased Adj. net income attributable to Magna and Outlook Continued actions with customers to mi
Slide 21: Q&A
Q&A 21 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 22: SECOND QUARTER 2025 RESULTS WEBCAST
22 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 23: Appendix
Appendix 23 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 24: Q2 2025 Reconciliation of Reported Results
Q2 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 $ 496 $ 6 $ 29 $ 531 % of Sales 4.7% 5.0% Income Tax Expense $ 102 $ 2 $ 5
Slide 25: Q2 2024 Reconciliation of Reported Results
Q2 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 $ 427 $ 68 $ 28 $ 523 % of Sales 3.9% 4.8% Income Tax Expense $ 99 $ 15 $
Slide 26: Sales Performance vs Market
Sales Performance vs Market Q2 2025 vs Q2 2024 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures (5%) (4%) (1%) Power & Vision (2%) (4%) (1%) Seating Systems (2%) (3%) - Complete Vehicles (1%) (6%) (3%) TOTAL SALES (3%) (4%) (1%) Unweighted Produc
Slide 27: Segment Impact on Adjusted EBIT % of Sales
Segment Impact on Adjusted EBIT % of Sales Q2 2025 vs Q2 2024 Adjusted Adjusted EBIT as a ($Millions) Sales EBIT Percentage of Sales 2nd Quarter of 2024 $ 10,958 $ 577 5.3% Increase (Decrease) Related to: Body Exteriors & Structures $ (212) $ 6 0.2% Power & Vision $ (69) $ (36) (0.3%) Seating System
Slide 28: Geographic Sales
Geographic Sales Q2 2025 vs Q2 2024 North America Europe $5.50B $4.08B $4.23B $5.20B $6.00B $4.50B $4.00B $5.00B $3.50B $4.00B $3.00B $2.50B $3.00B $2.00B $2.00B $1.50B $1.00B $1.00B $0.50B $0.00B $0.00B Production (6%) Production (2%) Asia Rest of World $2.00B $160M $149M $130M $1.47B $1.80B $140M
Slide 29: 2025 Segment Adjusted EBIT Margin
2025 Segment Adjusted EBIT Margin Body Exteriors & Structures Power & Vision 7.5% 6.8-7.4% 7.1-7.7% 5.3% 5.0-5.6% 5.0-5.6% Seating Complete Vehicles 3.8% 2.4-3.0% 2.4-3.0% 2.5% 2.0-2.6% 2.0-2.6% 2024 May 2025 Outlook August 2025 Outlook 29 SECOND QUARTER 2025 RESULTS WEBCAST
Slide 30: Leverage Ratio Q2 2025
Leverage Ratio Q2 2025 ($Millions) Debt per Balance Sheet $ 8,116 Credit Rating Agency Adjustments 127 Adjusted Debt $ 8,243 LTM EBITDA $ 3,737 Credit Rating Agency Adjustments 327 Adjusted EBITDA $ 4,064 Adjusted Debt / Adjusted EBITDA Ratio 2.03x Excess Cash (636) 1 Adjusted Debt / Adjusted EBITDA
Slide 31: SECOND QUARTER 2025 RESULTS WEBCAST
31 SECOND QUARTER 2025 RESULTS WEBCAST