Auto Parts Maker Magna Q4 Earnings: Beats Expectations, Slashes 2026 Sales Target Again Amid EV Uncertainty, Market Shifts

Magna International Inc MGA shares are trading lower in premarket on Friday.

The company reported fourth-quarter sales growth of 2% year-on-year to $10.63 billion, beating the analyst consensus estimate of $10.34 billion.

Body Exteriors & Structures segment sales decreased 3%, Power & Vision remained flat, Seating Systems climbed 6%, and Complete Vehicles sales gained 17%.

Operating income before income taxes for the quarter was $381 million, with an operating margin of 3.6%.

Adjusted EBIT was $689 million with an adjusted EBIT margin of 6.5%. Adjusted EPS of $1.69 beat the consensus estimate of $1.52.

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The operating cash flow for the quarter totaled $1.9 billion. The company repurchased 4.6 million shares for $202 million in the fourth quarter.

Magna held $1.25 billion in cash and equivalents as of December 31, 2024.

The company’s Board declared a dividend of $0.485 per share, payable on March 14, 2025 to shareholders of record as of the close of business on February 28, 2025. This represents a 2% higher dividend than the third quarter dividend of $0.475 per share.

“In 2024, we successfully drove margin expansion and increased cash flow generation through deliberate actions related to operational excellence, restructuring, reduced capital spending, and commercial recoveries,” said CEO Swamy Kotagiri.

Outlook: Magna sees FY25 sales of $38.6 billion – $40.2 billion versus the estimate of $42.58 billion. Magna sees adjusted EBIT margin of 5.3% – 5.8%.

Magna sees FY26 sales of $40.5 billion – $42.6 billion, down from the prior revised outlook of $44.0 billion – $46.5 billion; adjusted EBIT margin of 6.5% – 7.2% versus the previous outlook of 6.7% – 7.4%.

The company noted that forward forecasting is more difficult due to recent industry challenges, including light vehicle production volatility, uncertain electric vehicle take-rates, OEM program recalibration actions, market share shifts, and uncertain government policies.

Price Action: MGA shares are trading lower by 6.10% at $37.25 at the last check Friday.

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