Magna Announces Second Quarter 2025 Results
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:
These factors were partially offset by:
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:
These were partially offset by:
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:
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:
These were partially offset by:
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
www.magna.com/company/investors
and filed electronically through the System for Electronic Document Analysis and Retrieval + (SEDAR+) which can be accessed at
www.sedarplus.ca
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
www.sec.gov
.
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
www.magna.com
. 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
louis.tonelli@magna.com
│ 905.726.7035
MEDIA CONTACT
Tracy Fuerst, Vice-President, Corporate Communications & PR
tracy.fuerst@magna.com
│ 248.761.7004
TELECONFERENCE CONTACT
Nancy Hansford, Executive Assistant, Investor Relations
nancy.hansford@magna.com
│ 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
www.magna.com
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:
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:
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:
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
www.sedarplus.ca
, 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
www.sec.gov
.
https://www.globenewswire.com/NewsRoom/AttachmentNg/68b66606-deed-422d-8ad3-814421a488cd
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Wayfair's (NYSE:W) Q2 Sales Beat Estimates, Stock Soars
Online home goods retailer Wayfair (NYSE:W) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 5% year on year to $3.27 billion. Its non-GAAP profit of $0.87 per share was significantly above analysts' consensus estimates. Is now the time to buy Wayfair? Find out in our full research report. Wayfair (W) Q2 CY2025 Highlights: Revenue: $3.27 billion vs analyst estimates of $3.12 billion (5% year-on-year growth, 4.8% beat) Adjusted EPS: $0.87 vs analyst estimates of $0.33 (significant beat) Adjusted EBITDA: $205 million vs analyst estimates of $147.6 million (6.3% margin, 38.9% beat) Operating Margin: 0.5%, up from -1.1% in the same quarter last year Free Cash Flow was $230 million, up from -$139 million in the previous quarter Active Customers: 21 million, down 1 million year on year Market Capitalization: $8.37 billion "The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market. Year-over-year revenue growth of 6% - excluding the impact of Germany - marks the highest growth rate we have seen since early 2021. Our over 6% Adjusted EBITDA margin demonstrates the significant leverage in our model, and as previewed in our investor day two years ago, is just the beginning of what we believe we can achieve over time," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. Company Overview Founded in 2002 by Niraj Shah, Wayfair (NYSE:W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Wayfair's demand was weak over the last three years as its sales fell at a 1.7% annual rate. This wasn't a great result and is a sign of poor business quality. This quarter, Wayfair reported year-on-year revenue growth of 5%, and its $3.27 billion of revenue exceeded Wall Street's estimates by 4.8%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Active Customers Buyer Growth As an online retailer, Wayfair generates revenue growth by expanding its number of users and the average order size in dollars. Wayfair struggled with new customer acquisition over the last two years as its active customers have declined by 1.7% annually to 21 million in the latest quarter. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Wayfair wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. In Q2, Wayfair's active customers once again decreased by 1 million, a 4.5% drop since last year. The quarterly print was lower than its two-year result, suggesting its new initiatives aren't moving the needle for buyers yet. Revenue Per Buyer Average revenue per buyer (ARPB) is a critical metric to track because it measures how much customers spend per order. Wayfair's ARPB has been roughly flat over the last two years. This raises questions about its platform's health when paired with its declining active customers. If Wayfair wants to increase its buyers, it must either develop new features or provide some existing ones for free. This quarter, Wayfair's ARPB clocked in at $572. It grew by 5.9% year on year, faster than its active customers. Key Takeaways from Wayfair's Q2 Results We were impressed by how significantly Wayfair blew past analysts' EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its number of active customers missed. Zooming out, we think this was still a solid quarter. The stock traded up 9.1% to $71.17 immediately following the results. Big picture, is Wayfair a buy here and now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 minutes ago
- Yahoo
Why BigBear.ai Stock Plummeted Last Week
Key Points stock lost ground last week in conjunction with the U.S. making a significant concession to enable trade negotiations with China. Tensions between the U.S. and China have helped power big gains for defense companies including is gearing up to report its second-quarter results, and the stock could see more volatility in the near term. 10 stocks we like better than › (NYSE: BBAI) stock saw substantial sell-offs last week. The company's share price fell 13.4% in a stretch that saw the the S&P 500 decline 2.4% and the Nasdaq Composite decline 2.2%. While there wasn't any major business-specific news that pushed the stock lower, the company's valuation retreated in response to the U.S. lifting restrictions on technology exports to China. Despite its recent pullback, has seen strong valuation gains as investors have sought artificial intelligence (AI) companies with exposure to the defense industry as potentially explosive growth plays. The stock is still up 90.5% over the last three months of trading. stock slipped in response to China news has seen big valuation gains in conjunction with the defense-AI investing trend, but the stock saw a significant pullback last week on indications that relations between the U.S. and China may be improving. In order to help facilitate trade negotiations with China, the Trump administration paused export restrictions that prevented advanced AI processors and chip manufacturing equipment from being sold into the country. While the lifting of the export licensing requirements likely has minimal direct impact on business, some investors interpreted the development as a negative catalyst for defense software plays. What's next for will publish its second-quarter results and host an investor conference call after the market closes on Aug. 11. While the company didn't provide guidance for Q2 with its last update, it did issue guidance for full-year revenue to be between $160 million and $180 million -- suggesting annual growth of approximately 7.5%. On the heels of its valuation gains over the last few months, investors may be looking for significant performance beats or new contract or partnership announcements with the company's upcoming quarterly report. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Stock Plummeted Last Week was originally published by The Motley Fool Sign in to access your portfolio
Business Wire
7 minutes ago
- Business Wire
Mogo Monetizes $13.8 Million of WonderFi Stake and Increases Bitcoin Holdings
VANCOUVER, British Columbia--(BUSINESS WIRE)--Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) ('Mogo' or the 'Company'), a digital wealth and payments company with a strategic Bitcoin treasury, today announced it has monetized approximately $13.8 million of its investment in WonderFi Technologies Inc. (' WonderFi '), representing just under 50% of its total holdings in the company. This transaction is highly significant in the context of Mogo's current market capitalization of approximately $50 million, underscoring the intrinsic value of the company's investment portfolio and balance sheet. The WonderFi shares were sold at a modest discount to the proposed deal value in connection with WonderFi's pending acquisition by Robinhood Markets, Inc. The Company currently plans to hold the remaining shares until that transaction closes, which WonderFi has stated is expected to occur in the second half of 2025, subject to customary closing conditions (see WonderFi's July 30, 2025 press release: link). 'We saw a timely opportunity to unlock value on a portion of our position while retaining meaningful exposure to WonderFi,' said Greg Feller, President & CFO of Mogo. 'This transaction reflects our disciplined approach to capital allocation and allows us to accelerate our Bitcoin treasury strategy.' Mogo is allocating the proceeds from this monetization in line with its long-term capital strategy. With these proceeds, the Company has increased its investment in Bitcoin 1 to approximately $2 million, further reinforcing its conviction in Bitcoin as a strategic reserve asset and a core pillar of its treasury strategy. About Mogo Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is on a mission to build the future of intelligent finance, empowering consumers to grow wealth through a suite of innovative financial products and a capital strategy anchored by Bitcoin. The company's platform combines digital wealth management and lending with a growing commitment to hard asset capital allocation. Mogo is publicly listed on the NASDAQ and TSX. 1 Investment was done through Bitcoin ETFs. Forward-Looking Statements This news release may contain 'forward-looking statements' within the meaning of applicable securities legislation, including statements regarding expected closing of the transaction between WonderFi and Robinhood, Mogo's capital allocation strategy and Mogo's strategic initiatives. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, including receipt of applicable regulatory approvals in respect of its products, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the 'Risk Factors' section of Mogo's current annual information form, which is available at and Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
