Magna International Inc. delivered robust Q4 2025 results, posting sales of $10.8 billion, a 2% increase year-over-year despite a 1% drop in global light vehicle production.5051
Q4 2025 Financial Highlights
Adjusted EBIT reached $814 million, up 18% from the prior year, with margins expanding 100 basis points to 7.5%. Adjusted diluted earnings per share climbed 29% to $2.18. Cash from operations hit $2.0 billion, generating $1.3 billion in free cash flow. The company ended the quarter with $1.6 billion in cash.50
Full-Year 2025 Performance
Annual sales totaled $42.0 billion, down slightly from $42.8 billion in 2024. Adjusted EBIT improved to $2.36 billion, with margins up 20 basis points. Adjusted diluted EPS rose to $5.73 from $5.41, supported by $3.6 billion in operating cash flow and $1.9 billion in free cash flow.5051
Segment Results
- Body Exteriors & Structures: Sales up 5% to $4.25 billion; adjusted EBIT surged 25% to $465 million (10.9% margin).
- Power & Vision: Sales edged up 1% to $3.84 billion; adjusted EBIT fell 29% to $166 million (4.3% margin).
- Seating Systems: Sales rose 8% to $1.63 billion; adjusted EBIT doubled to $136 million (8.3% margin).
- Complete Vehicles: Sales declined 10% to $1.26 billion; adjusted EBIT dipped 11% to $50 million (4.0% margin), though assembly volumes increased 44%.50
2026 Outlook
Magna forecasts 2026 sales between $41.9 billion and $43.5 billion, with adjusted EBIT margins of 6.0% to 6.6% and adjusted diluted EPS of $6.25 to $7.25. Free cash flow is projected at $1.6 billion to $1.8 billion, with capital spending at $1.5 billion to $1.6 billion. The outlook assumes North America light vehicle production of 15.0 million units, Europe at 16.8 million, and China at 32.0 million.5051
Capital Allocation and Dividend
The board approved a 2.1% dividend increase to $0.495 per share, marking the 16th consecutive annual hike. Magna plans to repurchase the remaining approximately 22 million shares under its current normal course issuer bid.50
CEO Commentary
“We closed 2025 with a strong fourth quarter, successfully navigating another dynamic year in our industry,” stated Swamy Kotagiri, Chief Executive Officer. “Our 2026 outlook reflects confidence in our ability to build on this momentum.”51
