Magna International Inc. (NYSE:MGA) is a leading global automotive supplier, providing a wide range of products and services to the automotive industry. The company operates in the Zacks Automotive - Original Equipment industry, competing with other major players in the sector. Magna's diverse portfolio includes vehicle engineering, manufacturing, and assembly, making it a key player in the automotive supply chain.
On February 14, 2025, Magna reported earnings per share (EPS) of $1.67, surpassing the estimated $1.46. This marks a significant improvement from the $1.33 EPS reported in the same quarter the previous year, highlighting the company's strong financial performance.
Magna generated revenue of approximately $10.5 billion, slightly below the estimated $10.8 billion but showed a modest increase from the $10.45 billion reported a year ago. Despite this success, Magna has only surpassed consensus revenue estimates once in the past four quarters, indicating some challenges in meeting market expectations.
The company achieved a 2% increase in sales to $10.5 billion, aligning with global light vehicle production trends. Magna's financial strength is further demonstrated by its generation of $1.9 billion in cash from operating activities and returning $335 million to shareholders through dividends and share repurchases. The company also raised its quarterly cash dividend to $0.485 per share, marking the 15th consecutive year of fourth-quarter increases.
Looking ahead, Magna expects sales to range between $38.6 billion and $40.2 billion in 2025, with an adjusted EBIT margin of 5.3% to 5.8%. For 2026, the company forecasts sales growth to between $40.5 billion and $42.6 billion, with an adjusted EBIT margin expansion to 6.5% to 7.2%. Magna's CEO attributes the company's success to operational excellence, restructuring, and commercial recoveries, positioning it for continued growth in the coming years.
