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Dec 31, 2025
Magna Q4 2025 Earnings Report
Magna reported higher revenue and adjusted earnings in Q4 2025, while posting a net loss due to impairment charges.
Key Takeaways
Magna generated revenue growth and strong adjusted EBIT expansion in Q4 2025, but recorded a net loss driven by a $591 million non-cash impairment charge. Adjusted diluted EPS increased significantly year-over-year and free cash flow remained robust.
Revenue increased to 10848000000 with growth across key segments.
Adjusted EBIT rose to 814000000 with margin expansion.
Net loss of -1000000 was driven by a large non-cash impairment.
Free cash flow remained strong at 1347000000.
Revenue by Segment
Forward Guidance
For 2026, Magna expects solid sales performance, sustained margin progress, and strong free cash flow generation.
Positive Outlook
- Total sales expected between 41900000000 and 43500000000.
- Adjusted EBIT margin projected between 6.0% and 6.6%.
- Adjusted diluted EPS expected between 6.25 and 7.25.
- Free cash flow forecast between 1600000000 and 1800000000.
- Plan to repurchase approximately 22000000 shares under existing authorization.
Challenges Ahead
- Outlook excludes potential tariff rate changes.
- Exposure to global light vehicle production volatility.
- Potential impact from EV program deferrals and cancellations.
- Ongoing warranty and recall risk exposure.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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