Magna International Inc. · TSX:MG
Magna International — Q1 2025 Earnings Presentation
31 slides from Magna International's earnings presentation, May 2, 2025
Slide 1: First Quarter 2025 Results Webcast
May 2, 2025 First Quarter 2025 Results Webcast 1 FIRST QUARTER 2025 RESULTS WEBCAST
Slide 2: Vice President, Investor Relations Louis Tonelli
2 FIRST QUARTER 2025 RESULTS WEBCAST Vice President, Investor Relations Louis Tonelli
Slide 3: Forward Looking Statements
3 FIRST QUARTER 2025 RESULTS WEBCAST Forward Looking Statements Certain statements in this presentation and accompanying document constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to
Slide 4: Forward Looking Statements (cont.)
4 FIRST QUARTER 2025 RESULTS WEBCAST 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 expect
Slide 5: Reminders
5 FIRST QUARTER 2025 RESULTS WEBCAST All amounts are in U.S. Dollars 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 2, 2025
Slide 6: Chief Executive Officer Swamy Kotagiri
6 FIRST QUARTER 2025 RESULTS WEBCAST Chief Executive Officer Swamy Kotagiri
Slide 7: Key Takeaways
7 FIRST QUARTER 2025 RESULTS WEBCAST ; Q1 financial performance ahead of our expectations • Mainly strong incremental margins on higher sales ; Returned $187 million to shareholders through dividends and share repurchases ; Updated Outlook • Sales: Increase largely reflects foreign currency translat
Slide 8: Continue to Win Business and Advance Technologies
8 FIRST QUARTER 2025 RESULTS WEBCAST Continue to Win Business and Advance Technologies 2-speed, dual motor e-Drive with advanced off-road technology expands long-term innovation partnership with Mercedes-Benz • Development, engineering, and production of all-new electric model of iconic off-roader •
Slide 9: Actions to Mitigate Tariff Cost Impacts
9 Actions to Mitigate Tariff Cost Impacts Assessment of Tariff Impacts What we are focused on: ƒ Our North American business was $20 billion or 48% of our global sales in 2024 ƒ In 2024, we imported roughly $2 billion of goods from countries subject to tariffs, which would result in roughly ~$500 mi
Slide 10: Updated 2025 Outlook – Key Assumptions
10 FIRST QUARTER 2025 RESULTS WEBCAST Updated 2025 Outlook – Key Assumptions 2024 February 2025 May 2025 Light Vehicle Production: (millions of units) • North America 15.379 15.1 15.0 • Europe 16.899 16.6 16.6 • China 30.839 29.7 30.2 Foreign Exchange Rates: • 1 CDN dollar equals USD 0.730 0.690 0.7
Slide 11: Updated 2025 Outlook
11 FIRST QUARTER 2025 RESULTS WEBCAST Updated 2025 Outlook ($Billions, unless otherwise noted) 2024 February 2025 May 2025 Total Sales 42.836 38.6 – 40.2 40.0 – 41.6 Adjusted EBIT Margin % 5.4% 5.3% – 5.8% 5.1% – 5.6% 1 Equity Income 101 60M – 90M 65M – 95M Interest Expense 211 ~210M ~210M Income Ta
Slide 12: Additional Financial Modeling Guidance
12 FIRST QUARTER 2025 RESULTS WEBCAST • North America Average content per vehicle ~$1,300 Incremental/Decremental margins 15-20%, under normal conditions • Foreign currency translation sensitivity on sales and Adj. EBIT Margin Euro-US$ • Sales: 1 cent change: ~$110m annually • Adj. EBIT Margin
Slide 13: Guiding Principles
13 FIRST QUARTER 2025 RESULTS WEBCAST Guiding Principles • Culture of accountability with compensation aligned with short-term execution, long-term value creation • Solutions-oriented approach to building durable partnerships with OEMs • Investment decisions based on long-term ownership mindset Long
Slide 14: Executive Vice President & Chief Financial Officer Pat McCann
14 FIRST QUARTER 2025 RESULTS WEBCAST Executive Vice President & Chief Financial Officer Pat McCann
Slide 15: Q1 2025 Performance Highlights
15 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Performance Highlights Consolidated Sales $10.1B Weighted GoM1 of -1% (-1% excl. Complete Vehicles) -8% Adjusted Diluted EPS $0.78 -28% Free Cash Flow2 $-313M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle production cha
Slide 16: Q1 2025 Financial Results: Consolidated Sales
16 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Financial Results Weighted Sales GoM1 -1% (-1% excl. Complete Vehicles) Q1 2025 LV Production Global -3% North America -5% Detroit-based -9% Europe -8% China +2% Magna Weighted -5% 1 Weighted Sales Growth over Market (GoM) compares organic sales growth (
Slide 17: Q1 2025 Financial Results: Adjusted EBIT & Margin
17 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Financial Results 0.60% 0.00% -0.15% -0.10% -1.15% 4.3% 3.5% Q1 2024 Operational Discrete Items Equity Income Tariffs Volumes & Other Q1 2025 $469 $354 Adjusted EBIT & Margin ($Millions and %) Note: bps changes are approximate 1 • Operational Operation
Slide 18: Q1 2025 Financial Results
18 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Financial Results ($Millions, unless otherwise noted) Q1 2024 Q1 2025 Change Sales 10,970 10,069 (901) Adjusted EBIT 469 354 (115) Interest Expense 51 50 1 Adjusted Pre-Tax Income 418 304 (114) Adjusted Income Taxes (90) (78) 12 Income Attributable to No
Slide 19: Q1 2025 Cash Flow and Investment Activities
19 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Cash Flow and Investment Activities Free Cash Flow1 ($Millions) -270 -313 -500 -450 -400 -350 -300 -250 -200 -150 -100 -50 0 Q1'24 Q1'25 1 Free Cash Flow (FCF) is Cash from Operations plus Proceeds from normal course Dispositions of fixed and other asset
Slide 20: Maintaining Strong Balance Sheet
20 FIRST QUARTER 2025 RESULTS WEBCAST Maintaining Strong Balance Sheet Leverage Ratio (LTM, 31MAR25) ($millions) Adjusted Debt 7,685 Adjusted EBITDA 4,001 Adjusted Debt / Adjusted EBITDA 1.92x Total Liquidity (31MAR25) ($millions) Cash 1,059 Available Term & Operating Lines of Credit 3,536 Total Liq
Slide 21: In Summary: Magna's Performance and Outlook
21 FIRST QUARTER 2025 RESULTS WEBCAST In Summary: Magna’s Performance and Outlook Q1 financial performance ahead of our expectations Returned $187 million to shareholders in dividends and share repurchases Updated Outlook, excluding impacts of tariffs • Mainly reflects impacts of foreign currency tr
Slide 22: Appendix
22 FIRST QUARTER 2025 RESULTS WEBCAST Appendix
Slide 23: Q1 2025 Reconciliation of Reported Results
23 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 Reconciliation of Reported Results Reported (1) (2) Adjusted Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures Income Before Income Taxes $ 225 $ 53 $ 26 $ 304 % of Sales 2.2
Slide 24: Q1 2024 Reconciliation of Reported Results
24 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2024 Reconciliation of Reported Results Reported (1) (2) Adjusted Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures Income Before Income Taxes $ 34 $ 356 $ 28 $ 418 % of Sales 0.3
Slide 25: Q1 2025 vs Q1 2024 Sales Performance vs Market
25 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 vs Q1 2024 Sales Performance vs Market Performance vs Weighted Global Production Organic (Weighted GoM) Reported 1 Body Exteriors & Structures (10%) (7%) (2%) Power & Vision (5%) (3%) 2% Seating Systems (10%) (8%) (3%) Complete Vehicles (8%) (5%) 0% TOTA
Slide 26: Q1 2025 vs Q1 2024 Segment Impact on Adjusted EBIT
26 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 vs Q1 2024 Segment Impact on Adjusted EBIT % of Sales Adjusted EBIT as a Percentage of Sales Adjusted ($Millions) Sales EBIT 1st Quarter of 2024 $ 10,970 $ 469 4.3% Increase (Decrease) Related to: Body Exteriors & Structures $ (463) $ (68) (0.5%) Power &
Slide 27: Q1 2025 vs Q1 2024 Geographic Sales
27 FIRST QUARTER 2025 RESULTS WEBCAST Q1 2025 vs Q1 2024 Geographic Sales „ Q1 2024 „ Q1 2025 Asia Asia Production 0% China Production 2% $1.5B $1.3B $0.00B $0.20B $0.40B $0.60B $0.80B $1.00B $1.20B $1.40B $1.60B $1.80B $2.00B $5.3B $4.9B $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B $6.0B North America Produ
Slide 28: 2025 Segment Adjusted EBIT Margin
28 FIRST QUARTER 2025 RESULTS WEBCAST 2025 Segment Adjusted EBIT Margin „ 2024 „ February 2025 Outlook „ May 2025 Outlook Seating Body Exteriors & Structures Power & Vision Complete Vehicles 7.5% 7.2-7.8% 5.3% 5.0-5.6% 3.8% 3.0-3.6% 2.5% 1.7-2.3% 6.8-7.4% 2.4-3.0% 5.0-5.6% 2.0-2.6%
Slide 29: Leverage Ratio Q1 2025
29 FIRST QUARTER 2025 RESULTS WEBCAST Leverage Ratio Q1 2025 ($Millions) Debt per Balance Sheet $ 7,558 Credit Rating Agency Adjustments 127 Adjusted Debt $ 7,685 LTM EBITDA $ 3,716 Credit Rating Agency Adjustments 285 Adjusted EBITDA $ 4,001 Adjusted Debt / Adjusted EBITDA Ratio (Q1 2025) 1.92x
Slide 30: Financial Outlook
30 FIRST QUARTER 2025 RESULTS WEBCAST Financial Outlook ($Billions, unless otherwise noted) 2025 2026 16.8 – 17.6 15.2 – 15.7 5.3 – 5.7 3.7 – 4.1 15.9 – 16.5 14.8 – 15.2 5.3 – 5.6 4.5 – 4.8 Sales: • Body Exteriors & Structures • Power & Vision • Seating Systems • Complete Vehicles Total Sales 40.0 –
Slide 31: 31 FIRST QUARTER 2025 RESULTS WEBCAST
31 FIRST QUARTER 2025 RESULTS WEBCAST