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Jun 30, 2025
Magna Q2 2025 Earnings Report
Magna reported strong Q2 performance with higher earnings despite a decline in sales.
Key Takeaways
Magna International delivered solid Q2 results, with EPS and net income rising year-over-year due to operational efficiency and disciplined cost control, despite a 3% drop in revenue.
Revenue declined 3% year-over-year to $10.63 billion due to lower light vehicle production.
Adjusted EBIT margin improved to 5.5%, driven by operational improvements.
Net income rose to $379 million, up from $313 million in Q2 2024.
Cash and cash equivalents grew to $1.536 billion by the end of the quarter.
Revenue by Segment
Forward Guidance
Magna raised its 2025 full-year outlook, forecasting higher sales, adjusted EBIT margin, and adjusted net income.
Positive Outlook
- Total sales guidance raised to $40.4–$42.0 billion.
- Adjusted EBIT margin forecast increased to 5.2%–5.6%.
- Higher equity income expected from $75M to $105M.
- Lower tax rate guidance at approximately 25%.
- Capital spending revised slightly down to $1.6–$1.7 billion.
Challenges Ahead
- North America light vehicle production guidance reduced to 14.7M units.
- Persistent tariff-related cost pressures.
- Production declines in North America and Europe.
- End of production of several vehicle programs.
- Ongoing uncertainty in global trade policies and vehicle affordability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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