Canopy Growth to Strengthen Balance Sheet with Early Prepayments Set to Reduce Term Loan by US$50 Million; Annual Cash Interest Expense Expected to be Reduced by US$6.5 Million
This news release constitutes a 'designated news release' for the purposes of Canopy Growth's prospectus supplement dated February 28, 2025 to its short form base shelf prospectus dated June 5, 2024.
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SMITHS FALLS, Ontario — Canopy Growth Corporation ('Canopy Growth' or the 'Company') (TSX: WEED) (Nasdaq: CGC), a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives, announced today that it has entered into an agreement (the 'Agreement') with certain of its lenders (the 'Lenders') to make three prepayments that are expected to reduce the Company's Senior Secured Term Loan (the 'Term Loan') by US$50 Million by March 31, 2026. The Agreement was entered into in order to facilitate the Acreage Financing (as defined below).
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Under the terms of the Agreement, Canopy Growth agreed to make the following prepayments under the Term Loan: (i) US$25,000,000 at par on or about July 31, 2025; (ii) US$10,000,000 at par on or prior to December 31, 2025; and (iii) US$15,000,000 at par on or prior to March 31, 2026 (collectively, the 'Prepayments'). When completed, the Prepayments are expected to reduce the Company's interest expense under the Term Loan by approximately US$6.5 million on an annualized basis.
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'These prepayments reflect our continued focus on strengthening our balance sheet and lowering cash interest expense,' said Luc Mongeau, Chief Executive Officer. 'Reducing debt is essential to creating the financial flexibility Canopy Growth's needs to drive sustainable growth now and in the future.'
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In connection with the Agreement, Canopy USA, LLC ('Canopy USA') obtained consent from the Company (the 'Acreage Financing Consent') in order for Canopy USA to secure an additional US$22 million in funding for Acreage Holdings, Inc. ('Acreage') and its subsidiaries (the 'Acreage Financing'). The Acreage Financing Consent required the consent of the Lenders.
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About Canopy Growth
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Canopy Growth is a world-leading cannabis company dedicated to unleashing the power of cannabis to improve lives.
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Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Tweed, 7ACRES, DOJA, Deep Space and Claybourne, as well as category-defining vaporization devices by Storz & Bickel. In addition, Canopy Growth serves medical cannabis patients globally with principal operations in Canada, Germany, Poland, and Australia.
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Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA. Canopy USA's portfolio includes ownership of Acreage, a vertically integrated multi‑state cannabis operator with operations throughout the U.S. Northeast and Midwest, as well as ownership of Wana Wellness, LLC, The Cima Group, LLC, and Mountain High Products, LLC, a leading North American edibles brand, and majority ownership of Lemurian, Inc., a California-based producer of high-quality cannabis extracts and clean vape technology.
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At Canopy Growth, we're shaping a future where cannabis is embraced for its potential to enhance well-being and improve lives. With high-quality products, a commitment to responsible use, and a focus on enhancing the communities where we live and work, we're paving the way for a better understanding of all that cannabis can offer.
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Forward-Looking Statements
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This news release contains 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and 'forward-looking information' within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'estimates', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Examples of such statements and uncertainties include statements with respect to the anticipated impact of the Prepayments, including the occurrence, timing and amounts thereof.
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Risks, uncertainties and other factors involved with forward-looking information or statements could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including negative operating cash flow; uncertainty of additional financing; use of proceeds; volatility in the price of the common shares; risks relating to the overall macroeconomic environment, which may impact customer spending, costs and margins, including tariffs (and related retaliatory measures), the levels of inflation, and interest rates; expectations regarding future investment, growth and expansion of operations; regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial and stock markets; legal and regulatory risks inherent in the cannabis industry, including the global regulatory landscape and enforcement related to cannabis; additional dilution; political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the cannabis industry; and such other risks contained in the public filings of the Company filed with Canadian securities regulators and available under the Company's profile on SEDAR+ at www.sedarplus.com and with the SEC through EDGAR at www.sec.gov/edgar, including under the heading 'Risk Factors' in the Company's annual report on Form 10-K for the year ended March 31, 2025 and its subsequently filed quarterly reports on Form 10-Q.
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In respect of the forward-looking statements and information, the Company has provided such statements and information in reliance on certain assumptions that they believe are reasonable at this time. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information or statements and no assurance can be given that such events will occur in the disclosed time frames or at all. Should one or more of the foregoing risks or uncertainties materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information or forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
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35 minutes ago
- Toronto Star
Magna Announces Second Quarter 2025 Results
Strong second quarter performance reflected disciplined execution and operational excellence Comparing the second quarter of 2025 to the second quarter of 2024: Sales decreased 3% to $10.6 billion, as light vehicle production declined 6% and 2% in North America and Europe, respectively Income from operations before income taxes increased 16% to $496 million Adjusted EBIT increased 1% to $583 million and Adjusted EBIT margin improved 20 basis points to 5.5% Diluted earnings per share of $1.35 and Adjusted diluted earnings per share of $1.44 increased 24% and 7%, respectively Strong second quarter performance reflected disciplined execution and operational excellence Comparing the second quarter of 2025 to the second quarter of 2024: Sales decreased 3% to $10.6 billion, as light vehicle production declined 6% and 2% in North America and Europe, respectively Income from operations before income taxes increased 16% to $496 million Adjusted EBIT increased 1% to $583 million and Adjusted EBIT margin improved 20 basis points to 5.5% Diluted earnings per share of $1.35 and Adjusted diluted earnings per share of $1.44 increased 24% and 7%, respectively Returned $324 million to shareholders in dividends and share repurchases in the first half of 2025, including $137 million in dividends during the second quarter Updated 2025 outlook, including increases to Total Sales, Adjusted EBIT Margin, and Adjusted Net Income attributable to Magna AURORA, Ontario, Aug. 01, 2025 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the second quarter ended June 30, 2025. Please click HERE for full second quarter MD&A and Financial Statements. THREE MONTHS ENDED JUNE 30, 2025 We posted sales of $10.6 billion for the second quarter of 2025, a decrease of 3% from the second quarter of 2024. The lower sales largely reflects: 6% and 2% lower light vehicle production in North America and Europe, respectively; lower complete vehicle assembly volumes, substantially due to the end of production of the Jaguar I-Pace and E-Pace; and the end of production of certain programs. These factors were partially offset by: the launch of new programs; and the net strengthening of foreign currencies against the U.S. dollar. Adjusted EBIT increased to $583 million in the second quarter of 2025 compared to $577 million in the second quarter of 2024. This mainly reflects: continued productivity and efficiency improvements, including the benefit of our operational excellence initiatives and restructuring activities in prior periods; and higher equity income. These were partially offset by: higher tariff costs; commercial items in the second quarters of 2025 and 2024, which have a net unfavourable impact on a year-over-year basis; and reduced earnings on lower sales. During the second quarter of 2025, Other expense, net(2) and Amortization of acquired intangibles totaled $35 million (2024 - $96 million) and on an after-tax basis $28 million (2024 - $76 million). Income from operations before income taxes increased to $496 million for the second quarter of 2025 compared to $427 million in the second quarter of 2024. Excluding Other expense, net and Amortization of acquired intangibles from both periods, income from operations before income taxes increased $8 million in the second quarter of 2025 compared to the second quarter of 2024, largely reflecting the increase in Adjusted EBIT. Net income attributable to Magna International Inc. was $379 million for the second quarter of 2025 compared to $313 million in the second quarter of 2024. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. increased $18 million in the second quarter of 2025 compared to the second quarter of 2024. Diluted earnings per share were $1.35 in the second quarter of 2025, compared to $1.09 in the comparable period. Adjusted diluted earnings per share were $1.44, compared to $1.35 for the second quarter of 2024. In the second quarter of 2025, we generated cash from operations before changes in operating assets and liabilities of $762 million and used $135 million in operating assets and liabilities. Investment activities for the second quarter of 2025 included $246 million in fixed asset additions, $94 million in investments, other assets and intangible assets, and $3 million in private equity investments. SIX MONTHS ENDED JUNE 30, 2025 We posted sales of $20.7 billion for the six months ended June 30, 2025, compared to $21.9 billion for the six months ended June 30, 2024. The lower sales largely reflects: 7% and 4% lower light vehicle production in North America and Europe, respectively; lower complete vehicle assembly volumes, substantially due to the end of production of the Jaguar I-Pace and E-Pace; and the end of production of certain programs. These were partially offset by the launch of new programs. Adjusted EBIT decreased to $937 million for the six months ended June 30, 2025 compared to $1,046 million for six months ended June 30, 2024 primarily due to: reduced earnings on lower sales; and higher tariff costs. These were partially offset by: continued productivity and efficiency improvements, including the benefit of our operational excellence initiatives and restructuring activities in prior periods; and commercial items in the first six months of 2025 and 2024, which had a net favourable impact on a year-over-year basis. During the six months ended June 30, 2025, income from operations before income taxes was $721 million, net income attributable to Magna International Inc. was $525 million and diluted earnings per share were $1.86, increases of $260 million, $203 million, and $0.74, respectively, each compared to the six months ended June 30, 2024. During the six months ended June 30, 2025, diluted earnings per share were $1.86, compared to $1.12 in the six months ended June 30, 2024. Adjusted diluted earnings per share were $2.22, compared to $2.44 for the six months ended June 30, 2024. During the six months ended June 30, 2025, we generated cash from operations before changes in operating assets and liabilities of $1.31 billion and used $605 million in operating assets and liabilities. Investment activities included $514 million in fixed asset additions, a $242 million increase in investments, other assets and intangible assets, and $4 million in public and private equity investments. RETURN OF CAPITAL TO SHAREHOLDERS During the three months ended June 30, 2025, we paid $137 million in dividends to shareholders. Our Board of Directors declared a second quarter dividend of $0.485 per Common Share, payable on August 29, 2025 to shareholders of record as of the close of business on August 15, 2025. SEGMENT SUMMARY For further details on our segment results, please see our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements. 2025 OUTLOOK We disclose a full-year Outlook annually in February with quarterly updates. The following Outlook is an update to our previous Outlook in May 2025. Updated 2025 Outlook Assumptions Light vehicle production assumptions reflect near-term original equipment manufacturer ["OEM"] production release information, including announced production downtime at certain OEM assembly facilities, but do not include the potential impact of tariffs and other trade measures on vehicle costs, vehicle affordability or consumer demand, nor the impact of these on vehicle production. Updated 2025 Outlook Our Outlook is intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Although considered reasonable by Magna as of the date of this document, the 2025 Outlook above and the underlying assumptions may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth herein. The risks identified in the 'Forward-Looking Statements' section below represent the primary factors which we believe could cause actual results to differ materially from our expectations. KEY DRIVERS OF OUR BUSINESS Our business and operating results are dependent on light vehicle production by our customers in three key regions – North America, Europe, and China. While we supply systems and components to many OEMs globally, we do not supply systems and components for every vehicle, nor is the value of our content consistent from one vehicle to the next. As a result, customer and program mix relative to market trends, as well as the value of our content on specific vehicle production programs, are also important drivers of our results. Ordinarily, OEM production volumes are aligned with vehicle sales levels and thus affected by changes in such levels. Aside from vehicle sales levels, production volumes are typically impacted by a range of factors, including: OEM, supplier or sub-supplier disruptions; free trade arrangements and tariffs; relative currency values; commodities prices; supply chains and infrastructure; labour disruptions and the availability and relative cost of skilled labour; regulatory frameworks; and other factors. Overall vehicle sales levels are significantly affected by changes in consumer confidence levels, which may in turn be impacted by consumer perceptions and general trends related to the job, housing, and stock markets, as well as other macroeconomic and political factors. Other factors which typically impact vehicle sales levels and thus production volumes include: vehicle affordability; interest rates and/or availability of credit; fuel and energy prices; relative currency values; uncertainty as to the pace of EV adoption; and other factors. NON-GAAP FINANCIAL MEASURES RECONCILIATION In addition to the financial results reported in accordance with U.S. GAAP, this press release contains references to the Non-GAAP financial measures reconciled below. We believe the Non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company's financial position and results of operations, and to improve comparability between fiscal periods. In particular, management believes that Adjusted EBIT and Adjusted diluted earnings per share are useful measures in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance. The presentation of Non-GAAP financial measures should not be considered in isolation, or as a substitute for the Company's related financial results prepared in accordance with U.S. GAAP. The following table reconciles Net income to Adjusted EBIT: Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. To do so would be potentially misleading and not practical given the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items, however, may be significant. This press release together with our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements are available in the Investor Relations section of our website at and filed electronically through the System for Electronic Document Analysis and Retrieval + (SEDAR+) which can be accessed at as well as on the United States Securities and Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at We will hold a conference call for interested analysts and shareholders to discuss our second quarter ended June 30, 2025 results on Friday, August 1, 2025 at 8:00 a.m. ET. The conference call will be chaired by Swamy Kotagiri, Chief Executive Officer. The number to use for this call from North America is 1-800-715-9871. International callers should use 1-646-307-1963. Please call in at least 10 minutes prior to the call start time. We will also webcast the conference call at The slide presentation accompanying the conference call as well as our financial review summary will be available on our website Friday prior to the call. INVESTOR CONTACT Louis Tonelli, Vice-President, Investor Relations │ 905.726.7035 MEDIA CONTACT Tracy Fuerst, Vice-President, Corporate Communications & PR │ 248.761.7004 TELECONFERENCE CONTACT Nancy Hansford, Executive Assistant, Investor Relations │ 905.726.7108 OUR BUSINESS(6) Magna is more than one of the world's largest suppliers in the automotive space. We are a mobility technology company built to innovate, with a global, entrepreneurial-minded team of approximately 164,000(7) employees across 338 manufacturing operations and 106 product development, engineering and sales centres spanning 28 countries. With 65+ years of expertise, our ecosystem of interconnected products combined with our complete vehicle expertise uniquely positions us to advance mobility in an expanded transportation landscape. For further information about Magna (NYSE:MGA; TSX:MG), please visit or follow us on social. FORWARD-LOOKING STATEMENTS Certain statements in this press release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "assume", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "potential", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table: Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Customer concentration Uncertain pace of EV adoption. Including North American electric vehicle program deferrals, cancellations and volume reductions and growth with EV-focused OEMs, particularly Chinese OEMs Shifts in market shares among vehicles or vehicle segments Shifts in consumer "take rates" for products we sell Relative currency values Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Customer concentration Uncertain pace of EV adoption. Including North American electric vehicle program deferrals, cancellations and volume reductions and growth with EV-focused OEMs, particularly Chinese OEMs Shifts in market shares among vehicles or vehicle segments Shifts in consumer "take rates" for products we sell Relative currency values Same risks as for Total Sales and Segment Sales above Execution of critical program launches Operational underperformance Product warranty/recall risks Production inefficiencies Unmitigated incremental tariff costs Restructuring costs and/or impairment charges, including due to the 'reshoring' of production to the U.S. Inflation Ability to secure planned cost recoveries from our customers and/or otherwise offset higher input costs Price concessions Risks of conducting business with newer EV-focused OEMs Commodity cost volatility Scrap steel price volatility Tax risks, including our dispute with the Mexican tax authority regarding VAT Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Customer concentration Uncertain pace of EV adoption. Including North American electric vehicle program deferrals, cancellations and volume reductions and growth with EV-focused OEMs, particularly Chinese OEMs Shifts in market shares among vehicles or vehicle segments Shifts in consumer "take rates" for products we sell Relative currency values Same risks as for Total Sales and Segment Sales above Execution of critical program launches Operational underperformance Product warranty/recall risks Production inefficiencies Unmitigated incremental tariff costs Restructuring costs and/or impairment charges, including due to the 'reshoring' of production to the U.S. Inflation Ability to secure planned cost recoveries from our customers and/or otherwise offset higher input costs Price concessions Risks of conducting business with newer EV-focused OEMs Commodity cost volatility Scrap steel price volatility Tax risks, including our dispute with the Mexican tax authority regarding VAT Same risks as Adjusted EBIT Margin and Net Income Attributable to Magna Risks related to conducting business through joint ventures Risks of doing business in foreign markets Legal and regulatory proceedings Changes in law Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions, and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; transition risks and physical risks; strategic and other risks; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; transition risks and physical risks; strategic and other risks; IT/cybersecurity breach; product cybersecurity; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; transition risks and physical risks; strategic and other risks; IT/cybersecurity breach; product cybersecurity; inherent merger and acquisition risks; acquisition integration and synergies; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; transition risks and physical risks; strategic and other risks; IT/cybersecurity breach; product cybersecurity; inherent merger and acquisition risks; acquisition integration and synergies; joint ventures; intellectual property; risks of doing business in foreign markets; relative foreign exchange rates; pension risks; tax risks, including our dispute with the Mexican tax authority regarding VAT; returns on capital investments; financial flexibility; credit ratings changes; stock price fluctuation; unpredictable tariff and trade environment; trade disputes and threats to free trade agreements; consumer confidence levels; increasing economic uncertainty; interest rates and availability of consumer credit; geopolitical risks; program deferrals, cancellations and volume reductions; economic cyclicality; regional production volume declines; deteriorating vehicle affordability; uncertain pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions; intense competition; planning and forecasting challenges; evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; customer concentration; market shifts; growth of EV-focused OEMs, particularly Chinese OEMs; risks of conducting business with newer EV-focused OEMs; dependence on outsourcing; customer cooperation and consolidation; consumer take rate shifts; customer purchase orders; potential OEM production-related disruptions; supply base; supplier claims; supply chain disruptions; regional energy supply and pricing; product launch; operational underperformance; restructuring costs and impairment charges, including those related to the 'reshoring' of production to the U.S.; skilled labour attraction/retention; leadership expertise and succession; quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity cost volatility; scrap steel/aluminum price volatility; repair/replace costs; warranty provisions; product liability; transition risks and physical risks; strategic and other risks; IT/cybersecurity breach; product cybersecurity; inherent merger and acquisition risks; acquisition integration and synergies; joint ventures; intellectual property; risks of doing business in foreign markets; relative foreign exchange rates; pension risks; tax risks, including our dispute with the Mexican tax authority regarding VAT; returns on capital investments; financial flexibility; credit ratings changes; stock price fluctuation; legal and regulatory proceedings; changes in laws; and environmental compliance. In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are: discussed under the "Industry Trends and Risks" heading of our Management's Discussion and Analysis; and set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F with the United States Securities and Exchange commission, and subsequent filings. Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form. Additional information about Magna, including our Annual Information Form, is available through the System for Electronic Data Analysis and Retrieval + (SEDAR+) at as well as on the United States Securities and Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at GlobeNewswire, Inc.
Globe and Mail
an hour ago
- Globe and Mail
DecisionRules.io Deepens US Commitment with Local Team Expansion and Increased Industry Engagement
Following rapid adoption of its AI-powered Business Rules Engine, the Prague-based firm is hiring US-based experts and increasing its presence at key industry events to support its growing North American client base. Wilmington, Delaware--(Newsfile Corp. - August 1, 2025) - a leader in next-generation Business Rules Management Systems (BRMS), today announced a significant expansion of its US operations, including the hiring of local employees and a planned increase in its presence at major American industry events. This move is fueled by the rapid adoption of its AI-driven decision automation platform by US companies seeking to move beyond the limitations of legacy rules engines. To view an enhanced version of this graphic, please visit: As a proven enterprise solution with an established foothold in the North American market, next phase of growth focuses on building a robust, on-the-ground team to provide direct partnership and expert support to its clients. "The response from the US market has been phenomenal. It has confirmed that businesses are not just ready for, but are actively seeking, a more intelligent and agile way to manage their core logic," said Petr Lev, Co-Founder and CTO of "Expanding our local team is the natural next step. Hiring US-based experts is crucial for providing the hands-on, strategic partnership our clients value as they integrate AI into their decision-making processes." This success is underscored by the company's continuous recognition as a High Performer in 2024 and 2025 in the G2 Grid Report for Decision Management Platforms, cementing its position as a rising industry leader. This powerful combination of accessibility and speed is paired with a core focus on explainable AI (XAI). In regulated industries, the ability to understand why a decision was made is paramount. The platform provides a transparent, human-readable audit trail, solving the "black box" problem that has plagued earlier AI systems. "The traction we're seeing proves that companies are tired of trying to fly a modern jet with just a compass and the naked eye," added Lev. "Our platform is the advanced 'glass cockpit' for their business. The reason it's resonating so deeply is that it delivers both the intelligence of modern AI to navigate any conditions and the transparent instrumentation that business requires. Our growing investment in the US is a direct reflection of our commitment to helping even more American companies upgrade their controls."
Globe and Mail
3 hours ago
- Globe and Mail
Hawkins (HWKN) Q1 Revenue Rises 15%
Key Points GAAP revenue reached a record $293.3 million in Q1 FY2026, but missed analyst estimates by 3%. Earnings per share were $1.40 for the first quarter of fiscal 2026, also below the $1.45 GAAP consensus estimate. Water Treatment segment revenue surged 28% year over year (GAAP), driven by acquisitions. These 10 stocks could mint the next wave of millionaires › Hawkins (NASDAQ:HWKN), a specialty chemical and ingredient company focusing on water treatment, health and nutrition, and industrial solutions, announced its first quarter fiscal 2026 financial results on July 30, 2025. The headline news: the company posted record GAAP revenue and gross profit for Q1 FY2026, but fell short of analyst expectations for both revenue and earnings per share (GAAP). Actual GAAP revenue was $293.3 million, below the $302.3 million GAAP consensus, while reported GAAP earnings per share were $1.40 versus the $1.45 estimate. Despite these shortfalls, the company delivered significant top-line growth, with GAAP revenue increasing 15% and highlighted its Water Treatment business as a key driver for the period. Metric Q1 FY26(3 mos. ended Jun 29, 2025) Q1 FY26 Estimate Q1 FY25(3 mos. ended Jun 30, 2024) Y/Y Change EPS (GAAP) $1.40 $1.45 $1.38 1.4% Revenue (GAAP) $293.3 million $302.3 million $255.9 million 14.6 % Adjusted EBITDA $57.6 million $50.9 million 13.2% Gross Profit $72.4 million $64.7 million 11.9% Net Income $29.2 million $28.9 million 1.0 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. Business Overview and Strategic Focus Hawkins is a U.S. company specializing in the formulation, blending, and distribution of chemicals and ingredients. Its business serves municipal water suppliers, food manufacturers, dietary supplement companies, and industrial clients. The company organizes its operations into three segments: Water Treatment, Food & Health Sciences, and Industrial Solutions. Recently, the company has sharpened its focus on the Water Treatment segment, pursuing acquisitions to scale operations and capture higher-margin business. Hawkins relies on segment synergy, an extensive distribution network, and strict regulatory compliance, all of which underpin its core strategy. Sourcing of raw materials and maintaining strong supplier relationships are also critical factors for ongoing success, especially given supply chain variability and competitive pressures in its key markets. Quarter in Review: Results and Operational Drivers During Q1 FY2026, Hawkins achieved record revenue, climbing 15.0% year over year (GAAP). The Water Treatment segment led growth, with sales jumping 28% year-over-year to $149.6 million (GAAP). This was largely the result of the WaterSurplus acquisition, which contributed $29 million in new sales and expanded the company's engineering and filtration system offerings. Gross profit from the Water Treatment segment (GAAP) increased by $8.5 million, though gross margin for the Water Treatment segment slipped one percentage point to 29% due to integration and acquisition costs. The Food & Health Sciences segment, focused on ingredients and manufacturing for food and dietary supplement businesses, reported GAAP revenue of $89.2 million, up 5% compared to the same period a year ago. However, gross profit in this area fell 3% (GAAP), as weaker pricing from heightened competition offset higher agriculture-related volumes. Margin percentage squeezed to 22% from 23% (GAAP), reflecting these pricing challenges. Industrial Solutions, primarily supplying chemicals and packaged products to industrial manufacturers, saw modest revenue growth of 2%, rising to $54.5 million (GAAP). Cost increases and competitive pricing continued to pressure profitability in this segment, Operating income for the Industrial Solutions segment declined to $5.7 million from $6.1 million in Q1 FY2025. Company-wide, gross profit (GAAP) reached $72.4 million, up 12%. Selling, general and administrative expenses (SG&A) jumped 24%, mainly from the integration of new Water Treatment operations and associated amortization. Net income (GAAP) edged up to $29.2 million. Adjusted EBITDA, a measure of recurring operating profit that removes one-time charges such as acquisition costs, climbed 13% to $57.6 million. The company financed recent acquisitions by increasing debt to $299.0 million, moving the leverage ratio to 1.6 times adjusted EBITDA from 0.86. The company declared a quarterly dividend of $0.18 per share, continuing a trend of annual dividend growth in recent years. Looking Forward: Outlook and Areas to Watch Management said it expects all three segments to achieve profitable growth in FY2026 and reiterated its commitment to investing in higher-margin business areas. However, the company did not provide numeric revenue or profit guidance for the next quarter or fiscal year. It expects the effective annual tax rate to range from 26% to 27% for FY2026. Going forward, investors may want to pay attention to how integration expenses from the WaterSurplus deal affect margins, as well as ongoing competition in Food & Health Sciences and Industrial Solutions. Balance sheet leverage is up after acquisition activity, so monitoring debt levels and interest expenses will be important. Weather and seasonality, especially for Water Treatment, could also influence segment results and working capital needs in coming quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. 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