Business Overview
Magna International Inc. (NYSE: MGA) reported fourth-quarter and full-year 2025 financial results reflecting modest revenue growth in the quarter, improved adjusted operating performance, and continued strong cash generation. The company operates globally as an automotive supplier across Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. Its customer base includes major original equipment manufacturers in North America, Europe, and Asia.
Financial Performance
For the fourth quarter ended December 31, 2025, consolidated sales were $10,848 million, an increase of 2% compared with the prior-year quarter. Adjusted EBIT rose to $814 million, up 18% year over year, reflecting operational improvements and productivity initiatives. Adjusted diluted earnings per share were $2.18 for the quarter.
The reported net loss attributable to the company was $1 million, or $0.00 per diluted share, compared with net income in the prior-year period. Reported results included impairment and other non-operating items that were excluded from adjusted metrics.
For the full year 2025, total sales were $42,010 million, slightly below 2024 levels. Adjusted EBIT for the year totaled $2,364 million, and adjusted diluted earnings per share were $5.73. Cash generated from operating activities was $3,598 million, and free cash flow reached $1,907 million for the year.
Operating Metrics
In the fourth quarter, Body Exteriors & Structures generated sales of $4,252 million and adjusted EBIT of $465 million, representing a margin of 10.9%. Power & Vision posted sales of $3,841 million and adjusted EBIT of $166 million. Seating Systems delivered sales of $1,633 million and adjusted EBIT of $136 million. Complete Vehicles recorded sales of $1,261 million and adjusted EBIT of $50 million.
Bookings remained solid during the quarter, supporting the company’s near-term production outlook. Segment performance reflected vehicle production trends across key markets and continued program launches.
Key Developments
Management cited productivity initiatives and operational execution as contributors to adjusted EBIT expansion. Currency movements and customer recoveries partially offset higher input costs. The company declared a quarterly dividend of $0.495 per share and continued share repurchases during 2025 as part of its capital allocation strategy.
Risks and Constraints
The company noted potential risks, including vehicle production volatility, commodity cost fluctuations, tariff exposure, and warranty-related expenses. Reported results can be affected by restructuring actions, impairment charges, and other non-recurring items. Broader macroeconomic conditions, including interest rates and consumer demand, remain external variables influencing automotive production levels.
Outlook / Guidance
For 2026, Magna expects total sales between $41.9 billion and $43.5 billion. The company projects an adjusted EBIT margin range of 6.0% to 6.6% and adjusted diluted earnings per share of $6.25 to $7.25. Capital expenditures are expected to range from $1.5 billion to $1.6 billion, and free cash flow is projected to be between $1.6 billion and $1.8 billion. Management indicated continued focus on margin improvement, disciplined capital deployment, and shareholder returns.
Performance Summary
Magna reported fourth-quarter revenue growth and a significant increase in adjusted EBIT. Full-year revenue was broadly stable while adjusted earnings and cash generation remained strong. The company issued 2026 guidance targeting margin expansion and sustained free cash flow generation while maintaining shareholder returns.
The post Magna posts fourth-quarter sales growth and provides 2026 outlook first appeared on AlphaStreet News.
