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Mar 31, 2025
Magna Q1 2025 Earnings Report
Magna reported decreased revenue and lower adjusted EBIT, but improved net income driven by reduced other expenses and operational efficiencies.
Key Takeaways
Revenue fell 8% due to weaker vehicle production and program roll-offs, but net income improved significantly from the prior year thanks to cost control and reduced restructuring and impairment charges.
Revenue declined to $10.1B, impacted by lower production volumes and currency headwinds.
Adjusted EBIT margin dropped to 3.5% from 4.3% year-over-year.
Net income rose to $146M from $9M in Q1 2024, aided by lower other expenses.
Returned $187M to shareholders through dividends and buybacks.
Revenue by Segment
Forward Guidance
Magna maintained its full-year adjusted net income guidance, with updated assumptions for segment revenue and exchange rates, excluding the potential impact of tariffs.
Positive Outlook
- Full-year adjusted net income guidance maintained at $1.3–$1.5B.
- Raised sales guidance for Power & Vision and Complete Vehicles.
- Favorable commercial recoveries anticipated.
- Operational excellence and restructuring initiatives in progress.
- Focus on long-term free cash flow and shareholder returns.
Challenges Ahead
- Uncertainty around tariff impacts not included in guidance.
- Macroeconomic volatility and weakening consumer sentiment.
- Ongoing production declines in Europe and North America.
- Elevated net warranty costs, especially in Seating Systems.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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