13 hours ago
3
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
- Comparing the first quarter of 2025 to the first quarter of 2024:
- Sales decreased 8% to $10.1 billion, as global light vehicle production decreased 3%, which included 8% and 5% declines in Europe and North America, respectively
- Diluted earnings per share of $0.52 and Adjusted diluted earnings per share of $0.78, compared to $0.03 and $1.08, respectively
- First quarter performance was broadly ahead of our expectations driven by strong incremental margins on better than anticipated vehicle production
- Returned $187 million to shareholders through dividends and share repurchases
- Updated 2025 Outlook excludes potential impacts of tariffs including on light vehicle production, full year 2025 range of net income attributable to shareholders unchanged
AURORA, Ontario, May 02, 2025 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the first quarter ended March 31, 2025.
Please click HERE for full first quarter MD&A and Financial Statements.
Get the latest news
delivered to your inbox
Sign up for The Manila Times newsletters
By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.
| "Our operating results for the first quarter of 2025 exceeded our expectations, with strong incremental margins on better than anticipated vehicle production and, for the balance of the year, we remain confident in our ability to execute on variables within our control in a complex and uncertain industry environment. We are actively advancing several initiatives including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending to mitigate the impact of tariffs.
We remain focused on generating long-term free cash flow to invest for profitable growth and drive compelling capital return to shareholders." - Swamy Kotagiri, Magna's Chief Executive Officer |
| THREE MONTHS ENDED | |||||||||
| March 31, 2025 | March 31, 2024 | ||||||||
| Reported | |||||||||
| Sales | $ | 10,069 | $ | 10,970 | |||||
| Income from operations before income taxes | $ | 225 | $ | 34 | |||||
| Net income attributable to Magna International Inc. | $ | 146 | $ | 9 | |||||
| Diluted earnings per share | $ | 0.52 | $ | 0.03 | |||||
| Non-GAAP Financial Measures(1) | |||||||||
| Adjusted EBIT | $ | 354 | $ | 469 | |||||
| Adjusted diluted earnings per share | $ | 0.78 | $ | 1.08 | |||||
| All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars | ||
| (1) | Adjusted EBIT and Adjusted diluted earnings per share are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release. | |
THREE MONTHS ENDED MARCH 31, 2025
We posted sales of $10.1 billion for the first quarter of 2025, a decrease of 8% from the first quarter of 2024. The lower sales largely reflects a 3% decrease in global light vehicle production, including 8% and 5% lower production in Europe and North America, respectively, partially offset by 2% higher production in China. In addition, sales were negatively impacted by lower complete vehicle assembly volumes, including as a result of the end of production of the Jaguar I-Pace and E-Pace, the end of production of certain programs and the net weakening of foreign currencies against the U.S. dollar. These were partially offset by the launch of new programs.
Adjusted EBIT decreased to $354 million in the first quarter of 2025 compared to $469 million in the first quarter of 2024. This mainly reflects:
- reduced earnings on lower sales; and
- higher net warranty costs associated with our seating business.
These were partially offset by:
- higher net favourable commercial items;
- continued productivity and efficiency improvements; and
- lower net engineering costs, including spending related to our electrification and active safety businesses.
During the first quarter of 2025, Other expense, net(2) and Amortization of acquired intangibles totaled $79 million (2023 - $384 million) and on an after-tax basis $73 million (2023 - $302 million).
Income from operations before income taxes increased to $225 million for the first quarter of 2025 compared to $34 million in the first quarter of 2024. Excluding Other expense, net and Amortization of acquired intangibles from both periods, income from operations before income taxes decreased $114 million in the first quarter of 2025 compared to the first quarter of 2024, largely reflecting the decrease in Adjusted EBIT.
Net income attributable to Magna International Inc. was $146 million for the first quarter of 2025 compared to $9 million in the first quarter of 2024. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. decreased $92 million in the first quarter of 2025 compared to the first quarter of 2024.
Diluted earnings per share were $0.52 in the first quarter of 2025, compared to $0.03 in the comparable period. Adjusted diluted earnings per share were $0.78, compared to $1.08 for the first quarter of 2024.
In the first quarter of 2025, we generated cash from operations before changes in operating assets and liabilities of $547 million and used $470 million in operating assets and liabilities. Investment activities for the first quarter of 2025 included $268 million in fixed asset additions, $148 million in investments, other assets and intangible assets, $4 million for business combinations and $1 million in private equity investments.
RETURN OF CAPITAL TO SHAREHOLDERS
During the three months ended March 31, 2025, we returned $187 million to shareholders, including $136 million in dividends and $51 million in share repurchases.
Our Board of Directors declared a first quarter dividend of $0.485 per Common Share, payable on May 30, 2025 to shareholders of record as of the close of business on May 16, 2025.
| (2) | Other expense, net is comprised of Fisker Inc. ["Fisker”] related impacts (restructuring and impairment of assembly and production assets, the impairment of Fisker warrants), revaluations of certain public company warrants and equity investments, and restructuring activities, during the three months ended March 31, 2024 & 2025. A reconciliation of these Non-GAAP financial measures is included in the back of this press release. | |
SEGMENT SUMMARY
| ($Millions) | For the three months ended March 31, | ||||||||||||||||||||||
| Sales | Adjusted EBIT | ||||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||
| Body Exteriors & Structures | $ | 3,966 | $ | 4,429 | $ | (463 | ) | $ | 230 | $ | 298 | $ | (68 | ) | |||||||||
| Power & Vision | 3,646 | 3,842 | (196 | ) | 124 | 98 | 26 | ||||||||||||||||
| Seating Systems | 1,312 | 1,455 | (143 | ) | (30 | ) | 52 | (82 | ) | ||||||||||||||
| Complete Vehicles | 1,276 | 1,383 | (107 | ) | 44 | 27 | 17 | ||||||||||||||||
| Corporate and Other | (131 | ) | (139 | ) | 8 | (14 | ) | (6 | ) | (8 | ) | ||||||||||||
| Total Reportable Segments | $ | 10,069 | $ | 10,970 | $ | (901 | ) | $ | 354 | $ | 469 | $ | (115 | ) | |||||||||
| For the three months ended March 31, | ||||||
| Adjusted EBIT as a percentage of sales | ||||||
| 2025 | 2024 | Change | ||||
| Body Exteriors & Structures | 5.8 | % | 6.7 | % | (0.9 | )% |
| Power & Vision | 3.4 | % | 2.6 | % | 0.8 | % |
| Seating Systems | (2.3 | )% | 3.6 | % | (5.9 | )% |
| Complete Vehicles | 3.4 | % | 2.0 | % | 1.4 | % |
| Consolidated Average | 3.5 | % | 4.3 | % | (0.8 | )% |
For further details on our segment results, please see our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements.
2025 OUTLOOK
We disclose a full-year Outlook annually in February with quarterly updates. The following Outlook is an update to our previous Outlook in February 2025.
Updated 2025 Outlook Assumptions
| Current | Previous | ||||
| Light Vehicle Production (millions of units) | |||||
| North America Europe China | 15.0 16.6 30.2 | 15.1 16.6 29.7 | |||
| Average Foreign exchange rates: | |||||
| 1 Canadian dollar equals 1 euro equals | U.S. $0.714 U.S. $1.111 | U.S. $0.690 U.S. $1.030 | |||
Light vehicle production assumptions reflect near-term original equipment manufacturer ["OEM"] production release information, including announced production downtime at certain OEM assembly facilities, but do
notinclude the potential impact of tariffs and other trade measures on vehicle costs, vehicle affordability or consumer demand, nor the impact of these on vehicle production.
Updated 2025 Outlook
| Current | Previous | |||||
| Segment Sales | ||||||
| Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles | $15.9 - $16.5 billion $14.8 - $15.2 billion $5.3 - $5.6 billion $4.5 - $4.8 billion | $15.7 - $16.3 billion $14.1 - $14.5 billion $5.3 - $5.6 billion $4.0 - $4.3 billion | ||||
| Total Sales | $40.0 - $41.6 billion | $38.6 - $40.2 billion | ||||
| Adjusted EBIT Margin(3)(4) | 5.1% - 5.6% | 5.3% - 5.8% | ||||
| Equity Income (included in EBIT)(4) | $65 - $95 million | $60 - $90 million | ||||
| Interest Expense, net | Approximately $210 million | Approximately $210 million | ||||
| Income Tax Rate(4)(5) | Approximately 26% | Approximately 25% | ||||
| Adjusted Net Income attributable to Magna(4)(6) | $1.3 - $1.5 billion | $1.3 - $1.5 billion | ||||
| Capital Spending | $1.7 - $1.8 billion
This website uses cookies. By continuing to browse the website, you are agreeing to our use of cookies. Read More. | |||||
