- Strong second quarter performance reflected disciplined execution and operational excellence
- Comparing the second quarter of 2025 to the second quarter of 2024:
- Sales decreased 3% to $10.6 billion, as light vehicle production declined 6% and 2% in North America and Europe, respectively
- Income from operations before income taxes increased 16% to $496 million
- Adjusted EBIT increased 1% to $583 million and Adjusted EBIT margin improved 20 basis points to 5.5%
- Diluted earnings per share of $1.35 and Adjusted diluted earnings per share of $1.44 increased 24% and 7%, respectively
- Returned $324 million to shareholders in dividends and share repurchases in the first half of 2025, including $137 million in dividends during the second quarter
- Updated 2025 outlook, including increases to Total Sales, Adjusted EBIT Margin, and Adjusted Net Income attributable to Magna
AURORA, Ontario, Aug. 01, 2025 (GLOBE NEWSWIRE) — Magna International Inc. (TSX:MG, NYSE:MGA) today reported financial results for the second quarter ended June 30, 2025.
Please click HERE for full second quarter MD&A and Financial Statements.
 |
“Our strong operating results for the second quarter of 2025 exceeded our expectations and reflect continued execution on our performance initiatives, including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending.
Looking ahead, our updated 2025 Outlook indicates that we are on track for further solid execution in the second half of 2025, despite ongoing industry headwinds including soft volumes in North America and Europe and continued trade policy uncertainty.” – Swamy Kotagiri, Magna’s Chief Executive Officer |
| THREE MONTHS ENDED JUNE 30, |
SIX MONTHS ENDED JUNE 30, |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reported | ||||||||||||||||
| Sales | $ | 10,631 | $ | 10,958 | $ | 20,700 | $ | 21,928 | ||||||||
| Income from operations before income taxes | $ | 496 | $ | 427 | $ | 721 | $ | 461 | ||||||||
| Net Income attributable to Magna International Inc. | $ | 379 | $ | 313 | $ | 525 | $ | 322 | ||||||||
| Diluted earnings per share | $ | 1.35 | $ | 1.09 | $ | 1.86 | $ | 1.12 | ||||||||
| Non-GAAP Financial Measures(1) | ||||||||||||||||
| Adjusted EBIT | $ | 583 | $ | 577 | $ | 937 | $ | 1,046 | ||||||||
| Adjusted diluted earnings per share | $ | 1.44 | $ | 1.35 | $ | 2.22 | $ | 2.44 | ||||||||
| 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 JUNE 30, 2025
We posted sales of $10.6 billion for the second quarter of 2025, a decrease of 3% from the second quarter of 2024. The lower sales largely reflects:
- 6% and 2% lower light vehicle production in North America and Europe, respectively;
- lower complete vehicle assembly volumes, substantially due to the end of production of the Jaguar I-Pace and E-Pace; and
- the end of production of certain programs.
These factors were partially offset by:
- the launch of new programs; and
- the net strengthening of foreign currencies against the U.S. dollar.
Adjusted EBIT increased to $583 million in the second quarter of 2025 compared to $577 million in the second quarter of 2024. This mainly reflects:
- continued productivity and efficiency improvements, including the benefit of our operational excellence initiatives and restructuring activities in prior periods; and
- higher equity income.
These were partially offset by:
- higher tariff costs;
- commercial items in the second quarters of 2025 and 2024, which have a net unfavourable impact on a
year-over-year basis; and - reduced earnings on lower sales.
During the second quarter of 2025, Other expense, net(2) and Amortization of acquired intangibles totaled $35 million (2024 – $96 million) and on an after-tax basis $28 million (2024 – $76 million).
Income from operations before income taxes increased to $496 million for the second quarter of 2025 compared to $427 million in the second quarter of 2024. Excluding Other expense, net and Amortization of acquired intangibles from both periods, income from operations before income taxes increased $8 million in the second quarter of 2025 compared to the second quarter of 2024, largely reflecting the increase in Adjusted EBIT.
Net income attributable to Magna International Inc. was $379 million for the second quarter of 2025 compared to $313 million in the second quarter of 2024. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. increased $18 million in the second quarter of 2025 compared to the second quarter of 2024.
Diluted earnings per share were $1.35 in the second quarter of 2025, compared to $1.09 in the comparable period. Adjusted diluted earnings per share were $1.44, compared to $1.35 for the second quarter of 2024.
In the second quarter of 2025, we generated cash from operations before changes in operating assets and liabilities of $762 million and used $135 million in operating assets and liabilities. Investment activities for the second quarter of 2025 included $246 million in fixed asset additions, $94 million in investments, other assets and intangible assets, and $3 million in private equity investments.
| (2) | Other expense, net is comprised of restructuring activities, revaluations of certain public and private equity investments, and gain on sales of public equity investments, during the three months ended June 30, 2024 & 2025. A reconciliation of these Non-GAAP financial measures is included in the back of this press release. |
SIX MONTHS ENDED JUNE 30, 2025
We posted sales of $20.7 billion for the six months ended June 30, 2025, compared to $21.9 billion for the six months ended June 30, 2024. The lower sales largely reflects:
- 7% and 4% lower light vehicle production in North America and Europe, respectively;
- lower complete vehicle assembly volumes, substantially due to the end of production of the Jaguar I-Pace and E-Pace; and
- the end of production of certain programs.
These were partially offset by the launch of new programs.
Adjusted EBIT decreased to $937 million for the six months ended June 30, 2025 compared to $1,046 million for six months ended June 30, 2024 primarily due to:
- reduced earnings on lower sales; and
- higher tariff costs.
These were partially offset by:
- continued productivity and efficiency improvements, including the benefit of our operational excellence initiatives and restructuring activities in prior periods; and
- commercial items in the first six months of 2025 and 2024, which had a net favourable impact on a
year-over-year basis.
During the six months ended June 30, 2025, income from operations before income taxes was $721 million, net income attributable to Magna International Inc. was $525 million and diluted earnings per share were $1.86, increases of $260 million, $203 million, and $0.74, respectively, each compared to the six months ended June 30, 2024.
During the six months ended June 30, 2025, diluted earnings per share were $1.86, compared to $1.12 in the six months ended June 30, 2024. Adjusted diluted earnings per share were $2.22, compared to $2.44 for the six months ended June 30, 2024.
During the six months ended June 30, 2025, we generated cash from operations before changes in operating assets and liabilities of $1.31 billion and used $605 million in operating assets and liabilities. Investment activities included $514 million in fixed asset additions, a $242 million increase in investments, other assets and intangible assets, and $4 million in public and private equity investments.
RETURN OF CAPITAL TO SHAREHOLDERS
During the three months ended June 30, 2025, we paid $137 million in dividends to shareholders.
Our Board of Directors declared a second quarter dividend of $0.485 per Common Share, payable on August 29, 2025 to shareholders of record as of the close of business on August 15, 2025.
SEGMENT SUMMARY
| ($Millions) | THREE MONTHS ENDED JUNE 30, | ||||||||||||||||||
| Sales | Adjusted EBIT | ||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||
| Body Exteriors & Structures | $ | 4,253 | $ | 4,465 | $ | (212 | ) | $ | 347 | $ | 341 | $ | 6 | ||||||
| Power & Vision | 3,857 | 3,926 | (69 | ) | 162 | 198 | (36 | ) | |||||||||||
| Seating Systems | 1,433 | 1,455 | (22 | ) | 42 | 53 | (11 | ) | |||||||||||
| Complete Vehicles | 1,226 | 1,242 | (16 | ) | 28 | 20 | 8 | ||||||||||||
| Corporate and Other | (138 | ) | (130 | ) | (8 | ) | 4 | (35 | ) | 39 | |||||||||
| Total Reportable Segments | $ | 10,631 | $ | 10,958 | $ | (327 | ) | $ | 583 | $ | 577 | $ | 6 | ||||||
| THREE MONTHS ENDED JUNE 30, | ||||||||||
| Adjusted EBIT as a percentage of sales |
||||||||||
| 2025 | 2024 | Change | ||||||||
| Body Exteriors & Structures | 8.2 | % | 7.6 | % | 0.6 | % | ||||
| Power & Vision | ||||||||||