Group 1 - Magna International, Inc. is a prominent auto component supplier based in Canada and is classified as a large-cap stock [1] - The company has experienced an underwhelming journey throughout the current year [1]

Group 1 - Magna International, Inc. is a prominent auto component supplier based in Canada and is classified as a large-cap stock [1] - The company has experienced an underwhelming journey throughout the current year [1]

Core Viewpoint - Thyssenkrupp has received a non-binding bid for its steel unit from a division of the Indian conglomerate Naveen Jindal Group, indicating ongoing interest in the steel sector and potential strategic shifts for Thyssenkrupp [1] Company Summary - Thyssenkrupp's steel unit is attracting interest from international players, highlighting the competitive landscape in the steel industry [1] - The bid from Naveen Jindal Group represents a significant development in Thyssenkrupp's efforts to restructure and optimize its business operations [1] Industry Summary - The steel industry is witnessing increased consolidation and interest from foreign investors, reflecting broader trends in global manufacturing and resource allocation [1] - The move by Naveen Jindal Group may signal a growing trend of Indian conglomerates expanding their footprint in international markets, particularly in the steel sector [1]

Core Insights - XPeng Inc. has partnered with Magna International to assemble two electric vehicle models in Europe, marking XPeng as the first Chinese automaker to localize production at Magna's facilities [1][4] - Production is set to begin in the third quarter of 2025 at Magna's plant in Graz, Austria, emphasizing the importance of localized production for Chinese automakers expanding in Europe [1][4] Company Collaboration - Roland Prettner, president of Magna Complete Vehicles, described the collaboration as a "significant milestone" and expressed readiness to support XPeng's growth plans in Europe [2] - XPeng's Vice Chairman and President Brian Gu referred to the partnership as the company's "first step" towards a long-term commitment to the European market [2] Industry Context - Magna has over a century of manufacturing experience, having developed more than 40 complete vehicles and built over 4 million cars globally, positioning itself as a key partner for automakers entering Europe's competitive EV market [3] - The deal highlights the increasing significance of Europe in the global EV race, as Chinese automakers enhance their international strategies while Magna solidifies its role as a contract manufacturer [4]

Core Insights - The partnership between Magna and XPENG marks a significant milestone as it is the first complete vehicle assembly with a Chinese OEM in Europe, highlighting the growing need for localized production as Chinese car manufacturers enter the European market [1][2][7] - Serial production of two new smart electric vehicle models for the European market is set to begin in Q3 2025, indicating a long-term collaboration between the two companies [1][7] Company Overview - Magna has nearly 20 years of experience supporting Chinese automakers with complete vehicle engineering and has been providing domestic manufacturing and assembly services since 2018 [2] - The company has developed over 40 complete vehicles and derivatives, producing more than 4 million vehicles, showcasing its extensive manufacturing expertise [4] Strategic Importance - The collaboration with XPENG aligns with Magna's commitment to innovation and flexibility in the automotive industry, positioning the company as a key strategic partner for OEMs looking to expand in Europe [3][4] - XPENG's Vice Chairman emphasized that this partnership is a first step in their long-term commitment to strengthening their European capabilities [4]

Core Points - Magna has appointed Philip D. Fracassa as Executive Vice-President and Chief Financial Officer (CFO), effective immediately, succeeding Patrick McCann who has served for over 26 years [1][10] - McCann will remain in an advisory role until the end of February 2026 to ensure a smooth transition [1] - Fracassa's appointment is part of Magna's strategy to enhance shareholder value through operational excellence and financial discipline [2][10] Company Strategy and Performance - The company aims to build on its strong first-half performance and deliver on its full-year outlook disclosed in August [2][10] - Fracassa brings extensive experience in corporate finance and strategic planning, which will be crucial for advancing Magna's financial position [3][10] Leadership Background - Fracassa has 20 years of experience at The Timken Company, where he served as Executive Vice-President and CFO since 2014, contributing to profitable growth and improved returns [3][10] - He holds a bachelor's degree in accounting and a juris doctor degree in law, and is a registered CPA and licensed attorney in Michigan [4]

Summary of Magna International (MGA) Conference Call Company Overview - **Company**: Magna International (MGA) - **Industry**: Automotive Parts Supplier - **Position**: One of the largest auto parts suppliers globally, with significant sales in North America Key Points Tariff Impact - **Direct Tariff Exposure**: Initially estimated at $250 million, reduced to approximately $200 million annually due to compliance efforts with USMCA [5][6] - **Q2 Tariff Expense**: $45 million incurred in Q2, totaling $55 million year-to-date [6] - **Indirect Impact**: Uncertainty regarding OEMs passing tariff costs to consumers, affecting demand [7] - **USMCA Compliance**: Focus on increasing North American content to mitigate tariff exposure [6][11] Vehicle Electrification Outlook - **EV Market Focus**: North American EV market is critical; China shows strong EV production while Europe sees slight declines [19][20] - **Volume Expectations**: Lower than third-party forecasts, with a temporary dip expected due to regulatory changes [21][22] - **Product Agnosticism**: 80% of products are applicable to both EV and ICE vehicles, providing a natural hedge [22] Operational Efficiency - **Stability in Operations**: Improved stability allows for better execution of operational improvements, targeting a 75 basis point increase in efficiency [30][32] - **Automation Initiatives**: Significant investments in automation, reducing reliance on manual labor [50][54] Growth in China - **Sales in China**: $5.5 billion in sales, with 60% to domestic OEMs [43] - **Competitive Landscape**: Focus on high-value components to avoid low-margin competition [36][38] - **Payment Terms**: Extended payment terms from Chinese OEMs, with delays up to 150 days [39][40] M&A Strategy - **Focus on Organic Growth**: Historically, Magna has prioritized organic growth over M&A, with $20 billion in CapEx compared to $2 billion in net M&A over the last 15 years [57][58] - **Portfolio Review**: Regular evaluations of product lines to identify potential divestitures or areas for growth [61][62] Capital Allocation and Leverage - **Target Leverage**: Aiming for 1.5x net leverage, currently at approximately 1.9x [68][70] - **Share Repurchase Strategy**: Flexibility to repurchase shares when conditions are favorable, despite current tariff uncertainties [74][75] Electrochromic Mirror Business - **Market Share Growth**: Anticipated growth in market share in China, aiming for 30% in the coming years [80] Complete Vehicle Assembly - **Joint Ventures**: Successful operations in China with increasing volumes, particularly with the Arc Fox models [96][97] - **Flexibility in Production**: Ability to quickly adapt to customer needs without the need for extensive new facilities [98][99] Additional Insights - **Regulatory Changes**: Ongoing adjustments in response to regulatory changes affecting the EV market and tariffs [18][20] - **Customer Relationships**: Strong focus on maintaining relationships with key customers while navigating competitive pressures [41][42] This summary encapsulates the critical insights from the Magna International conference call, highlighting the company's strategic focus areas, operational challenges, and market dynamics.

Core Insights - Magna will showcase innovations in sustainable materials, drivetrain technologies, energy storage systems, and Advanced Driver Assistance Systems at IAA Mobility 2025 in Munich from September 8 to 14 [1][3][11] - The company emphasizes solutions that minimize environmental impact and support social and economic development [2][5] Sustainable Materials - A key focus will be on sustainable materials that meet high technical standards while reducing the ecological footprint of vehicles [2][11] - Magna aims to deliver scalable solutions that help customers transition to safer, smarter, and greener mobility [3][5] Powertrain Technologies - Magna will present flexible powertrain systems designed for diverse vehicle segments, including advanced battery-integrated body and chassis systems [3][11] - Modular energy storage solutions will be introduced to enhance the efficiency and reliability of transportation electrification [3][11] Intelligent Driving Technologies - The exhibition will feature technologies for Level 2+ and 3 driving systems, including intelligent sensor fusion and AI-powered decision-making processes [4][11] - Live vehicle demonstrations will showcase innovations in imaging radar, radar fusion, and interior sensing technologies, crucial for vehicle perception and occupant monitoring [4][11] Company Overview - Magna is a leading mobility technology company with approximately 164,000 employees across 338 manufacturing operations and 106 product development, engineering, and sales centers in 28 countries [6] - With over 65 years of expertise, Magna's interconnected products and complete vehicle expertise position it uniquely in the transportation landscape [6]

Core Insights - Magna International (MGA) reported Q2 2025 adjusted earnings of $1.44 per share, an increase from $1.35 in the previous year, exceeding the Zacks Consensus Estimate of $1.19 [1] - Net sales decreased by 3% year over year to $10.63 billion but surpassed the Zacks Consensus Estimate of $10.41 billion [1][9] - The company raised its 2025 revenue and income outlook while trimming its capital expenditure forecast [9] Segment Performance - The Body Exteriors & Structures segment generated revenues of $4.25 billion, down 5% year over year, missing the Zacks Consensus Estimate of $4.28 billion, but adjusted EBIT increased to $347 million from $341 million [2] - The Power & Vision segment's revenues declined 2% year over year to $3.86 billion, surpassing the Zacks Consensus Estimate of $3.80 billion, but adjusted EBIT fell to $162 million from $198 million [3] - Revenues from the Seating Systems segment fell 2% year over year to $1.43 billion, exceeding the Zacks Consensus Estimate of $1.34 billion, while adjusted EBIT decreased to $42 million from $53 million [4] - The Complete Vehicles segment's revenues decreased 12% year over year to $1.23 billion, outperforming the Zacks Consensus Estimate of $1.11 billion, with adjusted EBIT rising to $28 million from $20 million [5] Financial Overview - As of June 30, 2025, Magna had $1.54 billion in cash and cash equivalents, up from $1.25 billion at the end of 2024, while long-term debt increased to $4.98 billion from $4.13 billion [6] - Cash provided from operating activities totaled $627 million, down from $736 million in the previous year [6] Dividend and Outlook - The company declared a quarterly dividend of 48.50 cents per common share, payable on August 29, 2025 [7] - Magna now expects 2025 revenues in the range of $40.4-$42 billion, up from the previous target of $40-$41.6 billion, with adjusted EBIT margin expected between 5.2-5.6% [8]

Exhibit 99.1 FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. (United States dollars in millions, except per share figures) (Unaudited) Prepared in accordance with U.S. GAAP | 2023 | 2024 | 2025 | Note | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...