Magna International Inc. · TSX:MG
Magna International — Q2 2026 Earnings Presentation
38 slides from Magna International's earnings presentation, Jul 31, 2026
Slide 1: Q2 2026 Results
Q2 2026 Results July 31, 2026 1 Q2 2026 Results Webcast 31JUL26
Slide 2: Louis Tonelli, Vice President, Investor Relations
Louis Tonelli Vice President, Investor Relations 2 Q2 2026 Results Webcast 31JUL26
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 July 31, 2026 for further information.
Slide 6: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 6 Q2 2026 Results Webcast 31JUL26
Slide 7: Key Takeaways: Strong Q2 results with continued margin expansion
Key Takeaways 1 Strong Q2 results, with continued margin expansion driven by disciplined execution • • • Sales up 3%, weighted Growth over Market of +3% Adjusted EBIT up 16%, Adjusted EBIT margin expanded 70 bps to 6.2% Adjusted EPS rose 29% to $1.86, a Q2 record • Continued traction on operational
Slide 8: Key Takeaways: Solid free cash flow reflects improved operating performance
Key Takeaways 2 Solid free cash flow reflects improved operating performance • • • Generated operating cash flow of $954 million and free cash flow of $617 million in Q2 S&P reaffirmed "A-" credit rating with “Stable" outlook Ended Q2 with strong balance sheet, including $1.4 billion in cash • Stron
Slide 9: Key Takeaways: Improved Outlook
Key Takeaways 3 Improved Outlook reflects ongoing confidence in margin, EPS and cash flow trajectory • • Weighted sales growth over market of +1% at midpoint Raised FY 2026 Outlook ranges for Adjusted EBIT margin (6.3% to 6.6%), Adjusted EPS ($6.70 – $7.30) and Free Cash Flow ($1.75B – $1.85B) • Ref
Slide 10: Key Takeaways: Executing our proven capital allocation framework
Key Takeaways 4 Executing our proven capital allocation framework • • • Continue to invest in business to support profitable growth Returned $598 million in capital to shareholders in Q2, through dividends and share repurchases ~9 million shares remaining at June 30, 2026 under current buyback autho
Slide 11: Awarded Driver and Occupant Monitoring System Program with European OEM
Awarded Driver and Occupant Monitoring System Program with European OEM • Positions Magna’s DMS/OMS as a foundational, platform-level solution for OEM • Mirror-integrated hardware and software support scalable, software-defined vehicle architectures • Combines behind-the-glass camera architecture wi
Slide 12: Awarded 800V eDrive Program with Chery
Awarded 800V eDrive Program with Chery • 250kW 800-volt 2-speed eDrive highlights Magna's advanced electrification capabilities • To be produced at Magna's new Wuhu facility, supporting localized execution in China • Momentum continues with dedicated hybrid drive system now in series production with
Slide 13: Customer Recognition
Customer Recognition • Magna Earns Five 2025 General Motors Supplier of the Year Awards • Highlights Magna's depth across vehicle systems spanning five product categories: − Frames − Transfer Cases − Rubber Sealing − Exterior Moldings − Fascias • More than 40 GM Supplier of the Year awards earned by
Slide 14: Pursuing Adjacent Market Opportunities
Pursuing Adjacent Market Opportunities Active discussions underway with potential to drive high-return incremental opportunities Market Opportunities Several non-automotive industries seeking partners to support their growth Returns-Based Criteria Opportunities to leverage existing capabilities an
Slide 15: Phil Fracassa, EVP & Chief Financial Officer
Phil Fracassa EVP & Chief Financial Officer 15 Q2 2026 Results Webcast 31JUL26
Slide 16: Q2 2026 Performance Highlights
Q2 2026 Performance Highlights Consolidated Sales Adjusted EBIT $11.0B 6.2% $677M +3% +70 bps +16% 1 Weighted GoM of +3% (+4% excl. Complete Vehicles) Adjusted EPS Free Cash Flow 2 $1.86 $617M +29% +$316M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle production cha
Slide 17: Q2 2026 Financial Results: Consolidated Sales
Q2 2026 Financial Results Consolidated Sales ($Millions) Q2 2026 LV Production +3% (Organic: +2%) North America -1% 172 10,980 273 10,631 -96 Europe -1% China -3% Global -2% Magna Weighted -1% Weighted Sales GoM1: +3% Q2 2025 Volumes, Foreign Complete Q2 2026 Launches Exchange Vehicles (+4% excl. Co
Slide 18: Q2 2026 Financial Results: Adjusted EBIT & Margin
Q2 2026 Financial Results Adjusted EBIT & Margin • Operational, Volumes & Other (+75bps) ($Millions and %) − Operational excellence initiatives driving productivity and efficiency improvements (+) 0.25% 0.10% − Benefits of prior restructuring actions (+) 0.75% 6.2% − Net transactional foreign exchan
Slide 19: Q2 2026 Financial Results
Q2 2026 Financial Results ($Millions, except per share data) Q2 2025 Q2 2026 Change Sales 10,631 10,980 349 Adjusted EBIT 583 5.5% 677 6.2% 94 Interest Expense 52 37 15 Adjusted Pre-Tax Income 531 640 109 Adjusted Income Taxes (109) 20.5% (122) 19.1% (13) Income Attributable to Non-Controlling Inter
Slide 20: Q2 2026 Segment Performance
Q2 2026 Segment Performance $Millions Body Exteriors & Structures Power & Vision Sales Adj. EBIT Sales Adj. EBIT +4% $347 +4% $360 +6% +51% $400 0.3 $400 0.3 $5,000 $4,253 $4,421 $350 $5,000 $350 $3,857 $4,093 0.3 0.3 $4,500 $4,500 $245 $300 $300 $4,000 $4,000 0.2 0.2 $3,500 $250 $250 $3,500 $162 $3
Slide 21: Q2 Free Cash Flow
Q2 Free Cash Flow ($Millions) Q2 2025 Q2 2026 Free Cash Flow 1 ($Millions) Cash from Operations Before Changes in 762 861 700 Operating Assets & Liabilities 617 Changes in Operating Assets & Liabilities (135) 93 600 Cash from Operations 627 954 Fixed Asset Additions (246) (269) 500 Increase in Inves
Slide 22: Maintaining Strong Balance Sheet and Financial Flexibility
Maintaining Strong Balance Sheet and Financial Flexibility Total Liquidity (30JUN26) ($millions) • Strong liquidity of $4.9B, including $1.4B cash Cash and Cash Equivalents 1,430 • Rating agency leverage 1.42x Available Term & Operating Lines of Credit 3,500 at June 30, 2026, better than Total Liqui
Slide 23: Updated 2026 Macro Assumptions
Updated 2026 Macro Assumptions Macro Assumptions: May 2026 July 2026 Light Vehicle Production: (millions of units) • North America 14.9 15.0 • Europe 16.6 16.8 • China 32.0 31.2 Foreign Exchange Rates: • 1 CDN dollar equals USD 0.730 0.713 • 1 EURO equals USD 1.178 1.153 • 1 RMB equals USD 0.145 0.1
Slide 24: Updated 2026 Outlook – Summary
Updated 2026 Outlook – Summary May 2026 July 2026 • Sales updated to reflect unfavourable foreign currency translation (driven by Sales $41.5 – $43.1B $41.3 – $42.5B stronger USD) and earlier-than-expected completion of announced divestitures versus May outlook Adjusted EBIT Margin % 1 6.0% – 6.6% 6
Slide 25: Swamy Kotagiri, Chief Executive Officer
Swamy Kotagiri Chief Executive Officer 25 Q2 2026 Results Webcast 31JUL26
Slide 26: In Summary: Strong Q2 2026 with margin expansion and cash generation
Strong Q2 2026 with margin expansion and cash generation In Summary • Achieved weighted sales growth over market • Delivered meaningful Adjusted EBIT Margin expansion • Generated solid free cash flow, reinforcing the quality and sustainability of earnings 26 Q2 2026 Results Webcast 31JUL26
Slide 27: In Summary: Positioned for continued margin expansion, EPS growth and shareholder returns
Positioned for continued margin expansion, EPS growth and shareholder returns In Summary • Raised 2026 outlook, reflecting confidence in operating performance • Continued focus on margin expansion, EPS growth and strong free cash flow • Executing a disciplined capital allocation strategy, including
Slide 28: Save The Date: Magna Investor Day
Save The Date Magna Investor Day Wednesday, November 11, 2026 New York, NY 28 Q2 2026 Results Webcast 31JUL26
Slide 29: Q&A
Q&A 29 Q2 2026 Results Webcast 31JUL26
Slide 30: Appendix
Appendix Q2 2026 Results 30 Q2 2026 Results Webcast 31JUL26
Slide 31: Q2 2026 Reconciliation of Reported Results
Q2 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 $ 599 $ 24 $ 17 $ 640 % of Sales 5.5% 5.8% Income Tax Expense $ 120 $ 1 $
Slide 32: 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 33: Sales Performance vs Market
Sales Performance vs Market Q2 2025 vs Q2 2026 Performance vs Weighted Global Production Reported Organic1 (Weighted GoM) Body Exteriors & Structures 4% 3% 4% Power & Vision 6% 4% 5% Seating Systems 1% 0% 1% Complete Vehicles (5%) (8%) (7%) TOTAL SALES 3% 2% 3% Unweighted Production Growth (2%) 2 We
Slide 34: Segment Impact on Adjusted EBIT % of Sales
Segment Impact on Adjusted EBIT % of Sales Q2 2025 vs Q2 2026 Adjusted Adjusted EBIT as a ($Millions) Sales EBIT Percentage of Sales 2nd Quarter of 2025 $ 10,631 $ 583 5.5% Increase (Decrease) Related to: Body Exteriors & Structures $ 168 $ 13 0.0% Power & Vision $ 236 $ 83 0.7% Seating Systems $ 15
Slide 35: Geographic Sales
Geographic Sales Q2 2025 vs Q2 2026 North America Europe $6.0B $5.2B $5.4B $6.0B $5.0B $5.0B $4.2B $4.5B $4.0B $4.0B $3.0B $3.0B $2.0B $2.0B $1.0B $1.0B $0.0B $0.0B Production (1%) Production (1%) China Rest of World1 $164M $149M $2.00B $180M $1.80B $160M $1.60B $1.2B $140M $1.1B $1.40B $120M $1.20B
Slide 36: Segment Outlook
Segment Outlook Sales ($Billions) Body Exteriors & Structures Power & Vision Seating Complete Vehicles 16.6-17.2 16.6-17.1 15.6-16.0 15.4-15.7 5.4-5.7 5.4-5.6 4.4-4.7 4.3-4.5 May 2026 July 2026 May 2026 July 2026 May 2026 July 2026 May 2026 July 2026 Adjusted EBIT Margin % 8.2-8.8% 8.4-8.7% 6.0-6.6%
Slide 37: Leverage Ratios as of June 30, 2026
Leverage Ratios as of June 30, 2026 Net Debt/ Rating Agency 1 ($Millions) Adj. EBITDA Debt/EBITDA Cash and Cash Equivalents $ (1,430) $ - ST and LT Debt per Balance Sheet 4,628 4,628 Leases and Other Credit Rating Agency Adjustments - 1,972 Net Debt / Rating Agency Debt $ 3,198 $ 6,600 LTM Adjusted
Slide 38: Q2 2026 Results Webcast 31JUL26
38 Q2 2026 Results Webcast 31JUL26