Magna International Inc. · TSX:MG
Magna International — Q3 2026 Earnings Presentation
37 slides from Magna International's earnings presentation, Oct 30, 2026
Slide 1: Q3 2026 Results
Q3 2026 Results October 30, 2026 1 Q3 2026 Results Webcast 30OCT26
Slide 2: Louis Tonelli, Vice President, Investor Relations
Louis Tonelli Vice President, Investor Relations 2 Q3 2026 Results Webcast 30OCT26
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation 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 an
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 October 30, 2026 for further informatio
Slide 6: Swamy Kotagiri, President & Chief Executive Officer
Swamy Kotagiri President & Chief Executive Officer 6 Q3 2026 Results Webcast 30OCT26
Slide 7: Key Takeaways: Strong Q3 results, continued margin expansion
Key Takeaways 1 Strong Q3 results, with continued margin expansion driven by disciplined execution • • • Sales down 4%, weighted Growth over Market of +0.5% (+1.0% ex-CV) Adjusted EBIT up 11%, Adjusted EBIT margin expanded 90 bps to 6.8% Adjusted EPS rose 38% to $1.83 • Continuing operational excell
Slide 8: Key Takeaways: Solid free cash flow
Key Takeaways 2 Solid free cash flow reflects further improved operating performance • • • Generated operating cash flow of $950 million and free cash flow of $584 million in Q3 Ended Q3 with strong balance sheet, including $1.4 billion in cash Strong cash generation and investment-grade balance she
Slide 9: Key Takeaways: Updated Outlook
Key Takeaways 3 Updated Outlook reflects ongoing confidence in margin, EPS and cash flow trajectory • • • Updating sales range to reflect lower expected vehicle production in China, unfavourable program mix Narrowing FY 2026 Outlook range for Adj. EBIT margin (6.3% to 6.5%) Maintaining midpoint of F
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 $658 million in capital to shareholders in Q3, through dividends and share repurchases Completed existing buyback authorization (NCIB) in October; Board approv
Slide 11: Launching Complete Vehicle Programs Globally
Launching Complete Vehicle Programs Globally Waymo (North America) COEMs (Europe) Arcfox (Asia) • Launch and ramp-up of two new • Assembly in Graz, Austria of in • Complete vehicle production in vehicles for upfitting in Mesa, total 6 vehicles for customers Zhenjiang, China Arizona XPENG and GAC • L
Slide 12: Awarded New Business
Awarded New Business Transfer Case, Rear Drive Module and Actuator for Front Drive Unit SmartLatch System Launches 2028 Launches 2027 12 Q3 2026 Results Webcast 30OCT26
Slide 13: Multiple Innovation Award Finalists
Multiple Innovation Award Finalists DHD Duo Hybrid Drive Bio-Based Foam Seating Battery Enclosure with Collaborative Laser Front-End EV Architecture OptiForm Endcaps Inspection Station 13 Q3 2026 Results Webcast 30OCT26
Slide 14: Phil Fracassa, EVP & Chief Financial Officer
Phil Fracassa EVP & Chief Financial Officer 14 Q3 2026 Results Webcast 30OCT26
Slide 15: Q3 2026 Performance Highlights
Q3 2026 Performance Highlights Consolidated Sales Adjusted EBIT $10.1B -4% 6.8% +90 bps $683M +11% Weighted GoM of +0.5% 1 (+1.0% excl. Complete Vehicles) Adjusted EPS Free Cash Flow 2 $1.83 +38% $584M +$12M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle production
Slide 16: Q3 2026 Financial Results: Consolidated Sales
Q3 2026 Financial Results Consolidated Sales ($Millions) Q3 2026 LV Production -4% (Organic: -2.1%) North America -5% Europe +3% 10,462 -150 10,059 China -7% -74 -165 -14 Global -3% Magna Weighted -2.6% Weighted Sales GoM1: +0.5% Q3 2025 Volumes, Complete Divestitures Foreign Q3 2026 Launches Vehicl
Slide 17: Q3 2026 Financial Results: Adjusted EBIT & Margin
Q3 2026 Financial Results Adjusted EBIT & Margin • Operational, Volumes & Other (+120 bps) ($Millions and %) − Net impact of commercial items (+) − Benefits of operational excellence initiatives, net of normal course customer price concessions (+) 0.30% − Benefits of prior restructuring actions (+)
Slide 18: Q3 2026 Financial Results
Q3 2026 Financial Results ($Millions, except per share data) Q3 2025 Q3 2026 Change Sales 10,462 10,059 (403) Adjusted EBIT 613 5.9% 683 6.8% 70 Interest Expense 65 35 30 Adjusted Pre-Tax Income 548 648 100 Adjusted Income Taxes (145) 26.5% (145) 22.4% - Income Attributable to Non-Controlling Intere
Slide 19: Q3 2026 Segment Performance
Q3 2026 Segment Performance ($Millions) Body Exteriors & Structures Power & Vision Sales Adj. EBIT Sales Adj. EBIT -% +27% -2% +22% 0.3 $400 0.3 $4,147 $4,158 $387 $450 $287 $4,500 $350 $5,000 $400 $3,854 0.3 0.3 $305 $3,773 $4,000 $4,500 $236 $300 $350 $4,000 $3,500 0.2 0.2 $300 $250 $3,500 $3,000
Slide 20: Q3 2026 Free Cash Flow
Q3 2026 Free Cash Flow ($Millions) Q3 2025 Q3 2026 Free Cash Flow 1 ($Millions) Cash from Operations Before Changes in 787 806 700 Operating Assets & Liabilities 584 Changes in Operating Assets & Liabilities 125 144 600 572 Cash from Operations 912 950 Fixed Asset Additions (267) (307) 500 Increase
Slide 21: Maintaining Strong Balance Sheet and Financial Flexibility
Maintaining Strong Balance Sheet and Financial Flexibility Total Liquidity (30SEP26) ($millions) • Strong liquidity of $4.9B, including $1.4B cash Cash and Cash Equivalents 1,378 • Net leverage 0.75x and rating Available Term & Operating Lines of Credit 3,500 agency leverage 1.40x at Total Liquidity
Slide 22: Updated 2026 Macro Assumptions
Updated 2026 Macro Assumptions Macro Assumptions: July 2026 October 2026 Light Vehicle Production: (millions of units) • North America 15.0 15.0 • Europe 16.8 16.8 • China 31.2 30.4 Foreign Exchange Rates: • 1 CDN dollar equals USD 0.713 0.719 • 1 EURO equals USD 1.153 1.156 • 1 RMB equals USD 0.146
Slide 23: Updated 2026 Outlook – Summary
Updated 2026 Outlook – Summary July 2026 October 2026 Sales $41.3 – $42.5B $41.2 – $42.0B • Updating Sales Outlook to reflect lower expected light vehicle production in Adjusted EBIT Margin % 1 6.3% – 6.6% 6.3% – 6.5% China and unfavourable program mix Adjusted EPS 2 $6.70 – $7.30 $6.85 – $7.15 • Na
Slide 24: Swamy Kotagiri, President & Chief Executive Officer
Swamy Kotagiri President & Chief Executive Officer 24 Q3 2026 Results Webcast 30OCT26
Slide 25: In Summary
Strong Q3 2026 with margin expansion, EPS growth and cash generation In Summary • Delivered meaningful Adjusted EBIT Margin and Adjusted EPS growth • Generated solid free cash flow, reinforcing the quality and sustainability of earnings 25 Q3 2026 Results Webcast 30OCT26
Slide 26: In Summary
Positioned for continued margin expansion, EPS growth and shareholder returns In Summary • Updated 2026 outlook, reflecting confidence in ongoing operating performance • Continued focus on margin expansion, EPS growth and strong free cash flow • Executing a disciplined capital allocation strategy, i
Slide 27: Magna Investor Day
Magna Investor Day Wednesday, November 11, 2026 New York, NY 27 Q3 2026 Results Webcast 30OCT26
Slide 28: Q&A
Q&A 28 Q3 2026 Results Webcast 30OCT26
Slide 29: Appendix
Appendix Q3 2026 Results 29 Q3 2026 Results Webcast 30OCT26
Slide 30: Q3 2026 Reconciliation of Reported Results
Q3 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 $ 552 $ 79 $ 17 $ 648 % of Sales 5.5% 6.4% Income Tax Expense $ 152 $ (8)
Slide 31: Q3 2025 Reconciliation of Reported Results
Q3 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 $ 473 $ 48 $ 27 $ 548 % of Sales 4.5% 5.2% Income Tax Expense $ 140 $ - $
Slide 32: Sales Performance vs Market
Sales Performance vs Market Q3 2025 vs Q3 2026 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures 0.3% 0.6% 3.2% Power & Vision (2.1%) 1.8% 4.4% Seating Systems (18.0%) (18.0%) (15.4%) Complete Vehicles (8.2%) (6.8%) (4.2%) TOTAL SALES (3.9%) (2.1%
Slide 33: Segment Impact on Adjusted EBIT % of Sales
Segment Impact on Adjusted EBIT % of Sales Q3 2025 vs Q3 2026 Adjusted Adjusted EBIT as a ($Millions) Sales EBIT Percentage of Sales 3rd Quarter of 2025 $ 10,462 $ 613 5.9% Increase (Decrease) Related to: Body Exteriors & Structures $ 11 $ 82 0.8% Power & Vision $ (81) $ 51 0.5% Seating Systems $ (2
Slide 34: Geographic Sales
Geographic Sales Q3 2025 vs Q3 2026 North America Europe $6.0B $5.3B $5.0B $6.0B $5.0B $5.0B $4.0B $4.0B $3.8B $3.8B $3.0B $3.0B $2.0B $2.0B $1.0B $1.0B $0.0B $0.0B Production (5%) Production 3% China Rest of World1 $2.00B $180M $157M $159M $1.80B $160M $1.3B $1.60B $140M $1.40B $1.2B $120M $1.20B $
Slide 35: Segment Outlook
Segment Outlook Sales ($Billions) Body Exteriors & Structures Power & Vision Seating Complete Vehicles 16.6-17.1 16.7-16.9 15.4-15.7 15.4-15.6 5.4-5.6 5.2-5.4 4.4-4.6 4.3-4.5 July 2026 Oct. 2026 July 2026 Oct. 2026 July 2026 Oct. 2026 July 2026 Oct. 2026 Adjusted EBIT Margin % 8.4-8.7% 8.4-8.6% 6.6-
Slide 36: Leverage Ratios as of September 30, 2026
Leverage Ratios as of September 30, 2026 Net Debt/ Rating Agency 1 ($Millions) Adj. EBITDA Debt/EBITDA Cash and Cash Equivalents $ (1,378) $ - ST and LT Debt per Balance Sheet 4,630 4,630 Leases and Other Credit Rating Agency Adjustments - 1,932 Net Debt / Rating Agency Debt $ 3,252 $ 6,562 LTM Adju
Slide 37: Q3 2026 Results Webcast 30OCT26
37 Q3 2026 Results Webcast 30OCT26