Magna International Inc. · TSX:MG
Magna International — Q4 2024 Earnings Presentation
51 slides from Magna International's earnings presentation, Feb 14, 2025
Slide 1: Q4 & Full Year 2024 + 2025 Outlook
February 14, 2025 Q4 & Full Year 2024 + 2025 Outlook Q4 & FULL YEAR 2024 + 2025 OUTLOOK 1
Slide 2: Vice President, Investor Relations Louis Tonelli
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 2 Vice President, Investor Relations Louis Tonelli
Slide 3: Forward Looking Statements
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 3 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 in
Slide 4: Forward Looking Statements (cont.)
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 4 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 expe
Slide 5: Reminders
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 5 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 February 1
Slide 6: Chief Executive Officer Swamy Kotagiri
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 6 Chief Executive Officer Swamy Kotagiri
Slide 7: 2024 Highlights
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 7 2024 Highlights
Slide 8: Financial Results – Q4 and Full Year 2024
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 8 Financial Results – Q4 and Full Year 2024 FREE CASH FLOW ADJUSTED DILUTED EPS ADJUSTED EBIT CONSOLIDATED SALES $1,031M $1.69 $689M 6.50% $10.6B Q4 2024 ▲ 118% ▲ 27 % ▲ 23% ▲ 120 bps ▲ 2 % YoY $1,058M $5.41 $2,329M 5.40% $42.8B FY 2024 ▲ $849M ▼ 1 % ▲ 4 % ▲ 20 bps
Slide 9: Notable 2024 Accomplishments: Driving Performance
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 9 Financial Performance • Weighted Sales Growth over Market of 1% (2% excl. Complete Vehicles) • Grew sales by 15% in China ~60% of '24 sales to China - based OEMs • Improved Adj. EBIT margins in all Operating Segments • Returned $746 million to shareholders in the
Slide 10: Notable 2024 Accomplishments: Operational Excellence and People Focus
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 10 Operational Excellence • Contributed ~40 bps to '24 margin improvement • 109 customer recognition awards • Implemented energy saving projects resulting in over $35M in cost savings People Focus • Graduated future leaders from inaugural Operational Management Acc
Slide 11: Executive Vice President & Chief Financial Officer Pat McCann
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 11 Executive Vice President & Chief Financial Officer Pat McCann
Slide 12: Q4 2024 Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 12 Q4 2024 Results
Slide 13: Q4 2024 Financial Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 13 Q4 2024 Financial Results Adjusted EPS ($) $1.33 $1.69 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 Q4'23 Q4'24 +27% Consolidated Sales ($Billions) $10.5 $10.6 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $0.0 $2.0 $4.0 $6.0 $8.
Slide 14: Q4 2024 Financial Results: Sales Bridge
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 14 Q4 2024 Financial Results Weighted Sales GoM 1 2% (1% excl. Complete Vehicles) Q4 2024 LV Production 2% Global 2% North America - 6% Europe 10% China 0% Magna Weighted 1 Weighted Sales Growth over Market ( GoM ) compares organic sales growth (%) to vehicle produ
Slide 15: Q4 2024 Financial Results: Adjusted EBIT & Margin
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 15 Q4 2024 Financial Results 0.60% 0.40% 0.15% 0.05% 5.3% 6.5% Q4 2023 Discrete Items Equity Income Operational Volumes & Other Q4 2024 $689 $558 Adjusted EBIT & Margin ($Millions and %) Note: bps changes are approximate 1 • Discrete Items 1 Higher net favourable c
Slide 16: Q4 2024 Cash Flow and Investment Activities
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 16 Q4 2024 Cash Flow and Investment Activities Free Cash Flow 1 ($Millions) 472 1,031 0 200 400 600 800 1,000 1,200 Q4'23 Q4'24 1 Free Cash Flow (FCF) is Cash from Operations plus Proceeds from normal course Dispositions of fixed and other assets minus Fixed Asset
Slide 17: Maintaining Strong Balance Sheet
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 17 Maintaining Strong Balance Sheet Leverage Ratio (LTM, 31DEC24) ($millions) 7,193 Adjusted Debt 4,063 Adjusted EBITDA 1.77 Adjusted Debt / Adjusted EBITDA Total Liquidity (31DEC24) ($millions) 1,247 Cash 3,229 Available Term & Operating Lines of Credit 4,476 Tota
Slide 18: Performance vs. Initial Outlook Expectations
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 18 Performance vs. Initial Outlook Expectations
Slide 19: Delivered on '24 Adj. EBIT Margin and Exceeded FCF Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 19 Delivered on '24 Adj. EBIT Margin and Exceeded FCF Outlook Despite Sales Below Outlook Range • '24 sales shortfall mainly due to lower - than - expected industry production in key markets, negative customer and program mix • In response: negotiated commercial re
Slide 20: Lower Industry Production and Fisker Bankruptcy Impacted 2024 versus Initial Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 20 Lower Industry Production and Fisker Bankruptcy Impacted 2024 versus Initial Outlook 2024 LV Production vs. Initial 2024 Outlook +1% Global - 1% North America - 6% Detroit - based - 3% Europe +8% China - 1% Magna Weighted Consolidated Sales ($Billions) - 4% at m
Slide 21: Self-Help Activities Largely Offset Sales Headwinds
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 21 Self - Help Activities Largely Offset Sales Headwinds - 0.25% 0.10% - 0.50% - 0.10% 0.40% 0.05% 5.40% Feb. 2024 Outlook Fisker MB G - Class Pricing Volumes & Other Equity Income Discerete Items, Mainly Commercial Operational 2024 Actual Adjusted EBIT & Margin (%
Slide 22: Consolidated Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 22 Consolidated Outlook
Slide 23: Overview of 2025 Outlook: Tailwinds and Headwinds
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 23 Tailwinds • Further margin contribution from Operational Excellence activities Continuous improvement activities Optimizing current operations Factory of the Future initiatives • Benefits of restructuring actions • Insourcing business to optimize capacity • Lowe
Slide 24: Financial Outlook – Key Assumptions
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 24 Financial Outlook – Key Assumptions Automotive Light Vehicle Production (millions of units) 2026 2025 2024 15.4 15.1 15.5 North America 17.0 16.6 16.9 Europe 30.8 29.7 30.7 China 0% '24 - '26 (2%) '24 - '25 Weighted GLVP CAGR U.S. Foreign Exchange Rates 2026 202
Slide 25: Consolidated Sales
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 25 Consolidated Sales • LVP down in North America and Europe in '25, flattish '24 - '26 • New and replacement program launches • Program EOPs in Complete Vehicles • Stronger US$ ($Billions) 42.8 42.8 2023 2024 Volumes, Launches & Other Complete Vehicles (CV) Foreig
Slide 26: Consolidated Adjusted EBIT Margin 2024 to 2025F
5.2% 5.4% 2023 2024 Operational Lower Net Engineering Spend Volumes & Other Discrete Items 2025F 5.3 - 5.8% Equity Income ($M) 112 101 60 - 90 Q4 & FULL YEAR 2024 + 2025 OUTLOOK 26 Consolidated Adjusted EBIT Margin % • Operational Operational Excellence activities (+) Benefits of restructuring actio
Slide 27: Consolidated Adjusted EBIT Margin 2025F to 2026F
2025F Volumes & Other Operational Lower Net Engineering Spend Discrete Items 2026F 5.3 - 5.8 % 6.5 - 7.2 % Equity Income ($M) 60 - 90 65 - 110 Q4 & FULL YEAR 2024 + 2025 OUTLOOK 27 Consolidated Adjusted EBIT Margin % • Volumes & other Contribution on higher sales, including due to new launches (+) •
Slide 28: Segment Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 28 Segment Outlook
Slide 29: Segment Sales & Adjusted EBIT Margin %
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 29 Segment Sales & Adjusted EBIT Margin % 2023 2024 2025F 2026F 7.4 7.5 7.2 - 7.8 8.0 - 8.7 2023 2024 2025F 2026F 3.6 3.8 3.0 - 3.6 3.4 - 4.1 2023 2024 2025F 2026F 4.7 5.3 5.0 - 5.6 6.7 - 7.4 2023 2024 2025F 2026F 2.2 2.5 1.7 - 2.3 2.0 - 2.7 Adjusted EBIT Margin %
Slide 30: Magna Excluding Complete Vehicles Sales & Adjusted EBIT Margin %
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 30 Magna Excluding Complete Vehicles Sales & Adjusted EBIT Margin % 2023 2024 2025F 2026F 5.7 5.8 7.0 - 7.7 5.7 - 6.2 EBIT Margin (%) 2023 2024 2025F 2026F 37.3 37.7 36.8 - 38.5 34.6 - 35.9 Sales ($Billions) '24 - ’26 - 1 to +1% CAGR Organic CAGR 0 to +3%
Slide 31: Chief Executive Officer Swamy Kotagiri
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 31 Chief Executive Officer Swamy Kotagiri
Slide 32: Business Strategy
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 32 Business Strategy
Slide 33: Guiding Principles
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 33 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 mind
Slide 34: Invest for Profitable Growth
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 34 Invest for Profitable Growth Expect continued EBITDA growth and CapEx /Sales to normalize (2024 - 2026) 1 Percentage of cumulative spend on CapEx, Other Assets, Net M&A (including divestitures), Share Repurchases and Dividends 2 2025 to 2026 are based on mid - p
Slide 35: Return Capital to Shareholders
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 35 Return Capital to Shareholders Dividend: ─ 15 th consecutive year of quarterly dividend increase ─ Quarterly dividend increased to $0.485/share Share Repurchases (since 2011): ─ Returned ~$10.8 billion to shareholders ─ ~40% reduction of shares December 31, 2010
Slide 36: Free Cash Flow Growth Per Share
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 36 Free Cash Flow ("FCF") Growth Per Share 1 1 FCF is Cash from Operating Activities plus proceeds from normal course dispositions of capital and other assets minus capital s pending minus investment in other assets. FCF per share is FCF/Average Diluted Shares Outs
Slide 37: Outlook Summary
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 37 Outlook Summary FREE CASH FLOW CAP EX/SALES ADJUSTED EBIT MARGIN CONSOLIDATED SALES $0.8 - $1.0B Mid 4% 5.3% - 5.8% $38.6 - $40.2B 2025 $1.5B+ Low to Mid 4% 6.5% - 7.2% $40.5 - $42.6B 2026
Slide 38: In Summary
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 38 In Summary Strong Q4/24 results, including > $1 billion in FCF, despite continued challenging industry backdrop Operational excellence drives '24 margin performance, continued contributions in '25 and '26 Increased dividend for 15 th consecutive year, expect con
Slide 39: Q4 & FULL YEAR 2024 + 2025 OUTLOOK 39
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 39
Slide 40: Appendix – Q4 2024 Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 40 Appendix – Q4 2024 Results
Slide 41: Q4 2024 Reconciliation of Reported Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 41 Q4 2024 Reconciliation of Reported Results Adjusted (2) (1) Reported Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures $ 637 $ 28 $ 228 $ 381 Income Before Income Taxes 6.0% 3.6% % o
Slide 42: Q4 2023 Reconciliation of Reported Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 42 Q4 2023 Reconciliation of Reported Results Adjusted (2) (1) Reported Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures $ 505 $ 31 $ 164 $ 310 Income Before Income Taxes 4.8% 3.0% % o
Slide 43: Q4 2024 vs Q4 2023 Sales Performance vs Market Performance
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 43 Q4 2024 vs Q4 2023 Sales Performance vs Market Performance vs Weighted Global Production (Weighted GoM) Organic 1 Reported (1%) (1%) (3%) Body Exteriors & Structures 0% 0% 0% Power & Vision 6% 6% 6% Seating Systems 17% 17% 17% Complete Vehicles 2% 2% 2% TOTAL SA
Slide 44: 2024 vs 2023 Sales Performance vs Market Performance
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 44 2024 vs 2023 Sales Performance vs Market Performance vs Weighted Global Production (Weighted GoM) Organic 1 Reported 0% (2%) (3%) Body Exteriors & Structures 6% 4% 8% Power & Vision (2%) (4%) (4%) Seating Systems (5%) (7%) (6%) Complete Vehicles 1% (1%) 0% TOTAL
Slide 45: Q4 2024 vs Q4 2023 Segment Impact on Adjusted EBIT
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 45 Q4 2024 vs Q4 2023 Segment Impact on Adjusted EBIT % of Sales Adjusted EBIT as a Percentage of Sales Adjusted EBIT Sales ($Millions) 5.3% $ 558 $ 10,454 4 th Quarter of 2023 Increase (Decrease) Related to: 0.9% $ 91 $ (111) Body Exteriors & Structures 0.0% $ 4 $
Slide 46: Q4 2024 vs Q4 2023 Geographic Sales
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 46 Q4 2024 vs Q4 2023 Geographic Sales Q4 2023 Q4 2024 Asia Asia Production 5% China Production 10% $1.7B $1.7B $0.00B $0.20B $0.40B $0.60B $0.80B $1.00B $1.20B $1.40B $1.60B $1.80B $2.00B $4.9B $4.9B $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B $6.0B North America Producti
Slide 47: Q4 2024 Financial Results
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 47 Q4 2024 Financial Results Change Q4 2024 Q4 2023 ($Millions, unless otherwise noted) 174 10,628 10,454 Sales 131 689 558 Adjusted EBIT 1 52 53 Interest Expense 132 637 505 Adjusted Pre - Tax Income (29) 124 95 Adjusted Income Taxes (4) 31 27 Income Attributable
Slide 48: Leverage Ratio Q4 2024
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 48 Leverage Ratio Q4 2024 ($Millions) $ 7,068 Debt per Balance Sheet 125 Credit Rating Agency Adjustments $ 7,193 Adjusted Debt $ 3,839 LTM EBITDA 224 Credit Rating Agency Adjustments $ 4,063 Adjusted EBITDA 1.77x Adjusted Debt / Adjusted EBITDA Ratio (Q4 2024)
Slide 49: Appendix - Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 49 Appendix - Outlook
Slide 50: Financial Outlook
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 50 Financial Outlook 2026 2025 ($Billions, unless otherwise noted) 16.8 – 17.6 15.2 – 15.7 5.3 – 5.7 3.7 – 4.1 15.7 – 16.3 14.1 – 14.5 5.3 – 5.6 4.0 – 4.3 Sales: • Body Exteriors & Structures • Power & Vision • Seating Systems • Complete Vehicles 40.5 – 42.6 38.6 –
Slide 51: Q4 & FULL YEAR 2024 + 2025 OUTLOOK 51
Q4 & FULL YEAR 2024 + 2025 OUTLOOK 51