Loading...
•
Dec 31, 2024
Magna Q4 2024 Earnings Report
Magna reported a slight revenue increase and strong adjusted earnings growth in Q4 2024.
Key Takeaways
Magna International posted a 1.66% year-over-year revenue increase in Q4 2024, reaching $10.63 billion. Adjusted EBIT surged 23.48% due to operational efficiencies, while net income declined by 25.09% YoY. The company faced headwinds from lower production volumes and foreign currency impacts but continued to focus on margin expansion and cash flow generation.
Revenue grew 1.66% YoY to $10.63 billion, in line with global vehicle production.
Adjusted EBIT rose 23.48% to $689 million, reflecting cost efficiencies.
Net income fell 25.09% YoY to $203 million due to lower volumes and FX impacts.
Magna raised its quarterly dividend to $0.485 per share, marking 15 consecutive years of increases.
Revenue by Segment
Forward Guidance
Magna expects 2025 revenue between $38.6 billion and $40.2 billion, with a slight EBIT margin contraction. Growth is anticipated in 2026, driven by cost efficiencies and segment expansion.
Positive Outlook
- 2026 sales forecasted to grow to $40.5B-$42.6B.
- Adjusted EBIT margin expected to expand to 6.5%-7.2% by 2026.
- Cost control measures improving profitability.
- Free cash flow expected to exceed $1.5B by 2026.
- Continued dividend increases and share repurchases.
Challenges Ahead
- 2025 revenue expected to decline slightly due to FX and lower production.
- EBIT margin for 2025 projected at 5.3%-5.8%, down from 6.48% in Q4 2024.
- Complete vehicle segment projected to decline in 2025.
- Macroeconomic and geopolitical uncertainties remain a risk.
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
Loading earnings performance data...
Loading earnings reaction data...