Magna(MGA) - 2025 Q1 - Quarterly Report

Overall Financial Performance (Q1 2025 vs. Q1 2024 & FY 2024) Magna International Inc.'s key financial results for Q1 2025 are reviewed against Q1 2024 and FY 2024 performance Summary of Key Financial Highlights Magna reported decreased sales and adjusted EBIT in Q1 2025, while net income attributable to Magna significantly increased Key Financial Highlights (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (USD millions) | Q1 2024 (USD millions) | Change (QoQ) | FY 2024 (USD millions) | FY 2023 (USD millions) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :------------- | :--------------------- | :--------------------- | :------------- | | Total Sales | 10,069 | 10,970 | -8.2% | 42,836 | 42,797 | +0.1% | | Net Income Attributable to Magna | 146 | 9 | +1522.2% | 1,009 | 1,213 | -16.8% | | Diluted Earnings Per Common Share | $0.52 | $0.03 | +1633.3% | $3.52 | $4.23 | -16.8% | | Adjusted EBIT | 354 | 469 | -24.5% | 2,329 | 2,238 | +4.1% | | Adjusted Diluted EPS | $0.78 | $1.08 | -27.8% | $5.41 | $5.49 | -1.5% | Operational Statistics Global vehicle production volumes and average foreign exchange rates are detailed, highlighting Q1 2025 changes Vehicle Production Volumes Global vehicle production volumes for Q1 2025 decreased slightly compared to Q1 2024, with regional variations. Magna Steyr's vehicle assembly volumes also saw a decline Vehicle Volume Statistics (in millions) | Region | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------- | :------ | :------ | :------ | | North America | 3.780 | 3.976 | 3.884 | | Europe | 4.192 | 4.567 | 4.639 | | China | 6.541 | 6.434 | 5.923 | | Other | 6.600 | 6.713 | 6.956 | | Global Total| 21.113| 21.690| 21.402| | Magna Steyr | 0.017 | 0.022 | 0.034 | - Global vehicle volume decreased by 2.66% from 21.690 million in Q1 2024 to 21.113 million in Q1 2025. Magna Steyr vehicle assembly volumes decreased by 22.7% from 0.022 million in Q1 2024 to 0.017 million in Q1 2025[1] Average Foreign Exchange Rates The average foreign exchange rates for key currencies against the U.S. dollar showed slight fluctuations in Q1 2025 compared to Q1 2024 Average Foreign Exchange Rates (Q1 2025 vs. Q1 2024) | Currency | Q1 2025 (USD) | Q1 2024 (USD) | Q1 2023 (USD) | | :------- | :------------ | :------------ | :------------ | | 1 CAD | 0.697 | 0.741 | 0.740 | | 1 EUR | 1.053 | 1.085 | 1.073 | | 1 CNY | 0.138 | 0.139 | 0.146 | - The Canadian dollar depreciated against the U.S. dollar by 5.94% from 0.741 in Q1 2024 to 0.697 in Q1 2025. The Euro depreciated against the U.S. dollar by 2.95% from 1.085 in Q1 2024 to 1.053 in Q1 2025. The Chinese Renminbi depreciated slightly against the U.S. dollar by 0.72% from 0.139 in Q1 2024 to 0.138 in Q1 2025[1] Consolidated Statements of Income (Loss) Magna's Q1 2025 income statement is analyzed, covering sales by segment, costs, profitability, and earnings per share Sales Performance by Segment Total sales for Q1 2025 decreased compared to Q1 2024, with declines observed across all segments Sales by Segment (USD millions) | Segment | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | :------ | | Body Exteriors & Structures | 3,966 | 4,429 | 4,439 | | Power & Vision | 3,646 | 3,842 | 3,323 | | Seating Systems | 1,312 | 1,455 | 1,486 | | Complete Vehicles | 1,276 | 1,383 | 1,626 | | Corporate & Other | (131) | (139) | (201) | | Total Sales | 10,069| 10,970| 10,673| - Total sales decreased by 8.2% from $10,970 million in Q1 2024 to $10,069 million in Q1 2025. Body Exteriors & Structures sales decreased by 10.4% QoQ. Power & Vision sales decreased by 5.1% QoQ. Seating Systems sales decreased by 9.8% QoQ. Complete Vehicles sales decreased by 7.7% QoQ[1] Costs and Expenses Analysis Cost of goods sold decreased in Q1 2025, generally in line with the decline in sales, while selling, general and administrative expenses saw a slight increase Costs and Expenses (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :----------------------------------- | :------ | :------ | :------ | | Cost of goods sold | 8,827 | 9,642 | 9,416 | | Selling, general and administrative | 539 | 516 | 488 | - Cost of goods sold decreased by 8.45% from $9,642 million in Q1 2024 to $8,827 million in Q1 2025. Selling, general and administrative expenses increased by 4.46% from $516 million in Q1 2024 to $539 million in Q1 2025[1] Profitability Metrics (EBITDA, EBIT, Net Income) Adjusted EBITDA and Adjusted EBIT both declined significantly in Q1 2025 compared to Q1 2024, indicating reduced operational profitability. Net income attributable to Magna International Inc. saw a substantial increase from a very low base in Q1 2024 Profitability Metrics (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------------------------- | :------ | :------ | :------ | | Adjusted EBITDA | 723 | 846 | 802 | | Adjusted EBIT | 354 | 469 | 449 | | Income from operations before income taxes| 225 | 34 | 275 | | Net income | 153 | 26 | 217 | | Net income attributable to Magna Int. Inc.| 146 | 9 | 209 | - Adjusted EBITDA decreased by 14.54% from $846 million in Q1 2024 to $723 million in Q1 2025. Adjusted EBIT decreased by 24.52% from $469 million in Q1 2024 to $354 million in Q1 2025. Net income attributable to Magna International Inc. increased significantly from $9 million in Q1 2024 to $146 million in Q1 2025, largely due to specific items in Q1 2024[1] Earnings Per Share (EPS) Diluted EPS increased significantly in Q1 2025, while Adjusted diluted EPS decreased compared to Q1 2024 Earnings Per Share | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :----------------------------------- | :------ | :------ | :------ | | Diluted earnings per common share | $0.52 | $0.03 | $0.73 |\n| Adjusted diluted earnings per common share | $0.78 | $1.08 | $1.15 | - Diluted earnings per common share increased from $0.03 in Q1 2024 to $0.52 in Q1 2025. Adjusted diluted earnings per common share decreased by 27.8% from $1.08 in Q1 2024 to $0.78 in Q1 2025[1][20] Profitability Ratios Key profitability ratios, such as Adjusted EBIT as a percentage of sales and income from operations before income taxes as a percentage of sales, declined in Q1 2025, reflecting the overall decrease in profitability Profitability Ratios | Ratio | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------------------------- | :------ | :------ | :------ | | Selling, general and administrative / Sales | 5.4% | 4.7% | 4.6% | | Adjusted EBIT / Sales | 3.5% | 4.3% | 4.2% | | Income from operations before income taxes / Sales | 2.2% | 0.3% | 2.6% | | Effective tax rate (Reported) | 32.0% | 23.5% | 21.1% | - Adjusted EBIT / Sales decreased from 4.3% in Q1 2024 to 3.5% in Q1 2025. The reported effective tax rate increased from 23.5% in Q1 2024 to 32.0% in Q1 2025[1][2] Consolidated Balance Sheets Magna's Q1 2025 balance sheet is reviewed, detailing changes in assets, liabilities, equity, and key financial ratios Assets (Funds Employed) Current assets decreased in Q1 2025, while total funds employed saw a slight increase compared to Q1 2024 Current Assets (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | :------ | | Accounts receivable | 8,198 | 8,379 | 7,959 | | Inventories | 4,184 | 4,511 | 4,421 | | Prepaid expenses and other | 358 | 399 | 367 | | Total Current Assets | 12,740| 13,289| 12,747| | Fixed assets, net | 9,650 | 9,545 | 8,304 | | Goodwill, other assets and intangible assets | 4,669 | 4,646 | 3,640 | | Funds employed | 19,009| 18,810| 16,631| - Total current assets decreased by 4.13% from $13,289 million in Q1 2024 to $12,740 million in Q1 2025. Funds employed increased by 1.06% from $18,810 million in Q1 2024 to $19,009 million in Q1 2025[3] Liabilities and Equity (Financing) Current liabilities decreased in Q1 2025, while long-term debt saw a reduction. Shareholders' equity experienced a slight increase Current Liabilities (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | :------ | | Accounts payable | 7,376 | 7,855 | 7,731 | | Accrued salaries and wages | 893 | 883 | 822 | | Other accrued liabilities | 2,723 | 2,728 | 2,526 | | Income taxes payable (receivable) | 152 | 132 | 9 | | Total Current Liabilities | 11,144| 11,598| 11,088| | Long-term debt | 3,892 | 4,549 | 4,500 | | Shareholders' equity | 12,166 | 11,924 | 11,489 | - Total current liabilities decreased by 3.91% from $11,598 million in Q1 2024 to $11,144 million in Q1 2025. Long-term debt decreased by 14.44% from $4,549 million in Q1 2024 to $3,892 million in Q1 2025. Shareholders' equity increased by 2.03% from $11,924 million in Q1 2024 to $12,166 million in Q1 2025[3] Asset Utilization Ratios Asset utilization ratios showed mixed trends in Q1 2025, with days in accounts receivable increasing and inventory turnover slightly decreasing Asset Utilization Ratios | Ratio | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | :------ | | Days in accounts receivable | 73.3 | 68.7 | 67.1 | | Days in accounts payable | 75.2 | 73.3 | 73.9 | | Inventory turnover | 8.4 | 8.5 | 8.5 | | Working capital turnover | 25.2 | 25.9 | 25.7 | | Total asset turnover | 2.1 | 2.3 | 2.6 | - Days in accounts receivable increased from 68.7 days in Q1 2024 to 73.3 days in Q1 2025. Inventory turnover slightly decreased from 8.5x in Q1 2024 to 8.4x in Q1 2025. Total asset turnover decreased from 2.3x in Q1 2024 to 2.1x in Q1 2025[3] Capital Structure Ratios Straight debt and shareholders' equity percentages slightly increased, while Adjusted Debt to Adjusted EBITDA improved Capital Structure Ratios | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------------------------------ | :------ | :------ | :------ | | Straight debt | 34.2% | 34.1% | 26.1% | | Long-term employee benefit liabilities, other long-term liabilities & deferred tax liabilities, net | 1.8% | 2.5% | 4.8% | | Shareholders' equity | 64.0% | 63.4% | 69.1% | | Adjusted Debt to Adjusted EBITDA | 1.92x | 1.98x | 2.19x | | Debt to total capitalization | 38.3% | 39.9% | 37.1% | - Straight debt as a percentage of total financing increased from 34.1% in Q1 2024 to 34.2% in Q1 2025. Shareholders' equity as a percentage of total financing decreased from 63.4% in Q1 2024 to 64.0% in Q1 2025. Adjusted Debt to Adjusted EBITDA improved from 1.98x in Q1 2024 to 1.92x in Q1 2025[3] Consolidated Statements of Cash Flows Magna's Q1 2025 cash flow activities from operations, investing, and financing are outlined, detailing net changes Cash Flow from Operating Activities Cash provided from operating activities significantly decreased in Q1 2025 compared to Q1 2024, primarily due to changes in operating assets and liabilities Cash Flow from Operating Activities (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :----------------------------------- | :------ | :------ | :------ | | Net income | 153 | 26 | 217 | | Items not involving current cash flows | 394 | 565 | 351 | | Changes in operating assets and liabilities | (470) | (330) | (341) | | Cash provided from operating activities | 77 | 261 | 227 | - Cash provided from operating activities decreased by 70.5% from $261 million in Q1 2024 to $77 million in Q1 2025[4] Cash Flow from Investing Activities Cash used for investment activities decreased in Q1 2025, driven by lower fixed asset additions and reduced increases in other assets and intangible assets Cash Flow from Investing Activities (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Fixed asset additions | (268) | (493) | (424) | | Increase in investments, other assets and intangible assets | (148) | (125) | (101) | | Business combinations | (4) | (30) | - | | Cash used for investment activities | (395)| (580)| (531)| - Cash used for investment activities decreased by 31.9% from $580 million in Q1 2024 to $395 million in Q1 2025. Fixed asset additions decreased by 45.6% QoQ[4] Cash Flow from Financing Activities Cash provided from financing activities significantly decreased in Q1 2025, primarily due to reduced net issues of debt Cash Flow from Financing Activities (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Net issues (repayments) of debt | 322 | 757 | 1,636 | | Repurchase of Common Shares | (51) | (3) | (9) | | Dividends paid | (136) | (134) | (132) | | Cash provided from (used for) financing activities | 131 | 646 | 1,485| - Cash provided from financing activities was $131 million in Q1 2025, a significant change from $646 million provided in Q1 2024. Net issues of debt decreased from $757 million in Q1 2024 to $322 million in Q1 2025[4] Net Change in Cash and Cash Equivalents The company experienced a net decrease in cash and cash equivalents during Q1 2025, resulting in a lower ending balance compared to Q1 2024 Cash and Cash Equivalents (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Net increase (decrease) in cash and cash equivalents, during the period | (188) | 319 | 1,195 | | Cash and cash equivalents, end of period | 1,059 | 1,517 | 2,429 | - Net decrease in cash and cash equivalents was $188 million in Q1 2025, compared to a net increase of $319 million in Q1 2024. Cash and cash equivalents at the end of Q1 2025 were $1,059 million, down from $1,517 million at the end of Q1 2024[4] Notes to Financial Statements Detailed explanations and reconciliations for specific financial statement items, non-GAAP measures, and segmented performance are provided Note 1: Other Expense (Income), Net This note details components of 'Other expense (income), net,' covering restructuring, investment revaluations, impairments, and specific event impacts Other Expense (Income), Net (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------------------------- | :------ | :------ | :------ | | Restructuring activities | 44 | 38 | 118 | | Investment revaluations, (gains) losses on sales, and impairments | 9 | 2 | 2 | | Impacts related to Fisker Inc. | - | 316 | 22 |\n| Impairments | - | - | - |\n| Gain on business combination | - | - | - |\n| Veoneer AS transaction costs | - | - | - |\n| Operations in Russia | - | - | - | | Total Other expense (income), net | 53 | 356 | 142 | - Total Other expense (income), net decreased significantly from $356 million in Q1 2024 to $53 million in Q1 2025. This reduction is primarily due to the absence of significant impacts related to Fisker Inc. in Q1 2025, which accounted for $316 million in Q1 2024[6] Restructuring Activities Restructuring charges in Q1 2025 were primarily related to plant closures and consolidations, mainly in Europe, with a notable charge in the Power & Vision segment Restructuring Activities by Segment (USD millions) | Segment | Q1 2025 | Q1 2024 | Q1 2023 | | :-------------------------- | :------ | :------ | :------ | | Power & Vision | 11 | - | 105 | | Complete Vehicles | 33 | 26 | - | | Body Exteriors & Structures | - | 12 | 13 | | Total | 44 | 38 | 118 | - Restructuring activities increased from $38 million in Q1 2024 to $44 million in Q1 2025. The Power & Vision segment recorded $11 million in Q1 2025, while Complete Vehicles recorded $33 million[7] Investment Revaluations, Sales, and Impairments The company recorded minor investment revaluation gains/losses and impairment charges in Q1 2025, consistent with its quarterly revaluation process Investment Revaluations, Sales, and Impairments (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------ | :------ | :------ | :------ | | Investment revaluations, (gains) losses on sales, and impairments | 9 | 2 | 2 | - Investment revaluations, (gains) losses on sales, and impairments increased from $2 million in Q1 2024 to $9 million in Q1 2025. In Q4 2024, the company recorded a non-cash impairment charge of $13 million on a private equity investment in its Corporate segment[6][8] Impacts Related to Fisker Inc. There were no impacts related to Fisker Inc. recorded in Q1 2025, a significant change from Q1 2024 which included substantial impairment charges and restructuring costs related to Fisker Impacts Related to Fisker Inc. (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------------------------- | :------ | :------ | :------ | | Impairment of Fisker related net assets | - | 261 | - | | Impairment of Fisker warrants | - | 33 | 22 | | Additional restructuring related to Complete Vehicles | - | 22 | - | | Recognition of related deferred revenue | - | - | - | | Total Impacts related to Fisker Inc. | - | 316 | 22 | - In Q1 2024, the company recorded $316 million in impacts related to Fisker Inc., including $261 million for impairment of Fisker related net assets and $33 million for impairment of Fisker warrants. The manufacturing agreement for the Fisker Ocean SUV was terminated, and $196 million of deferred revenue was recognized into income in Q3 2024[9][10] Specific Impairments In 2024, the company recorded a significant impairment charge on fixed assets, right-of-use assets, and intangible assets at two European facilities within its Power & Vision segment Impairments (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :---------- | :------ | :------ | :------ | | Impairments | - | - | - | - During 2024, the Company recorded an impairment charge of $79 million on fixed assets, right of use assets and intangible assets at two European facilities in its Power & Vision segment[11][12] Gain on Business Combination In 2024, Magna recognized a bargain purchase gain from the acquisition of a business in the Body Exteriors & Structures segment Gain on Business Combination (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------ | :------ | :------ | :------ | | Gain on business combination | - | - | - | - During 2024, the Company acquired a business in the Body Exteriors & Structures segment for $5 million, resulting in a bargain purchase gain of $9 million[13] Veoneer AS Transaction Costs In 2023, the company incurred transaction costs related to the acquisition of the Veoneer Active Safety Business Veoneer AS Transaction Costs (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------- | :------ | :------ | :------ | | Veoneer AS transaction costs | - | - | - | - During 2023, the Company incurred $23 million of transaction costs related to the acquisition of the Veoneer Active Safety Business[14] Operations in Russia In 2023, Magna completed the sale of its Russian investments, resulting in a final loss and net cash outflow Operations in Russia (USD millions) | Item | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------- | :------ | :------ | :------ | | Operations in Russia | - | - | - | - During 2023, the Company completed the sale of all of its investments in Russia resulting in a final loss of $16 million including a net cash outflow of $23 million[15] Note 2: Non-GAAP Measures This note defines and reconciles non-GAAP financial measures, including Adjusted EBIT, Net Income, EPS, and ROIC, for clearer operating performance insight - Non-GAAP measures like Adjusted EBIT, Adjusted Net Income, Adjusted Diluted Earnings per Share, and Adjusted Return on Invested Capital are presented to evaluate operating performance, as they are widely used by analysts and investors, despite not having standardized meaning under U.S. GAAP[17] Adjusted EBIT Reconciliation The reconciliation shows how Income from operations before income taxes is adjusted to arrive at Adjusted EBIT by excluding amortization of acquired intangible assets, other expense (income), net, and interest expense, net Adjusted EBIT Reconciliation (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------------------------- | :------ | :------ | :------ | | Income from operations before income taxes| 225 | 34 | 275 | | Exclude: Amortization of acquired intangible assets | 26 | 28 | 12 | | Exclude: Other expense (income), net | 53 | 356 | 142 | | Exclude: Interest expense, net | 50 | 51 | 20 | | Adjusted EBIT | 354 | 469 | 449 | - Adjusted EBIT decreased by 24.5% from $469 million in Q1 2024 to $354 million in Q1 2025. The significant decrease in 'Other expense (income), net' from $356 million in Q1 2024 to $53 million in Q1 2025 had a substantial impact on the reconciliation[18] Adjusted Return on Invested Capital Adjusted Return on Invested Capital (ROIC) declined in Q1 2025 compared to Q1 2024, reflecting lower adjusted after-tax operating profits relative to average invested capital Adjusted Return on Invested Capital | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :----------------------------------- | :------ | :------ | :------ | | Adjusted After-tax operating profits | 263 | 368 | 353 | | Average Invested Capital | 18,579 | 18,871 | 16,318 | | Adjusted Return on Invested Capital | 5.7%| 7.8%| 8.7%| - Adjusted Return on Invested Capital decreased from 7.8% in Q1 2024 to 5.7% in Q1 2025. Adjusted After-tax operating profits decreased by 28.5% from $368 million in Q1 2024 to $263 million in Q1 2025[19] Adjusted Net Income and EPS Reconciliation Reconciliations show the adjustments made to reported net income and diluted EPS to arrive at their adjusted non-GAAP counterparts, primarily by excluding non-recurring items like restructuring, investment revaluations, and Fisker-related impacts Adjusted Net Income Attributable to Magna International Inc. (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Net income attributable to Magna International Inc. | 146 | 9 | 209 | | Exclude: Amortization of acquired intangible assets | 21 | 22 | 10 | | Exclude: Restructuring activities | 44 | 32 | 92 | | Exclude: Impacts related to Fisker Inc. | - | 247 | 16 | | Adjusted net income attributable to Magna International Inc. | 219 | 311 | 329 | Adjusted Diluted Earnings per Common Share | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Diluted earnings per common share | $0.52 | $0.03 | $0.73 | | Exclude: Amortization of acquired intangible assets | 0.08 | 0.08 | 0.04 | | Exclude: Restructuring activities | 0.15 | 0.11 | 0.31 | | Exclude: Impacts related to Fisker Inc. | - | 0.86 | 0.06 | | Adjusted diluted earnings per common share | $0.78| $1.08| $1.15| - Adjusted net income attributable to Magna International Inc. decreased by 29.6% from $311 million in Q1 2024 to $219 million in Q1 2025. Adjusted diluted earnings per common share decreased by 27.8% from $1.08 in Q1 2024 to $0.78 in Q1 2025[20] Adjustments to Deferred Tax Valuation Allowance The company records quarterly adjustments to the valuation allowance against its deferred tax assets and liabilities across various continents, impacting income tax expense Adjustments to Deferred Tax Valuation Allowance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :------------------------------------------- | :------ | :------ | :------ | | Adjustments to Deferred Tax Valuation Allowance | - | - | - | - The net effect of these adjustments was an increase to income tax expense in Q4 2024 ($51 million) and a reduction in Q4 2023 ($-47 million)[20][21] Note 3: Segmented Information This note breaks down sales and Adjusted EBIT for Magna's operating segments, providing insights into their individual performance and profitability Total Sales and Adjusted EBIT by Segment (USD millions) | Segment | Q1 2025 Sales | Q1 2024 Sales | Q1 2025 Adj. EBIT | Q1 2024 Adj. EBIT | | :-------------------------- | :------------ | :------------ | :---------------- | :---------------- | | Body Exteriors & Structures | 3,966 | 4,429 | 230 | 298 | | Power & Vision | 3,646 | 3,842 | 124 | 98 | | Seating Systems | 1,312 | 1,455 | (30) | 52 | | Complete Vehicles | 1,276 | 1,383 | 44 | 27 | | Corporate and other | (131) | (139) | (14) | (6) | | Total | 10,069 | 10,970 | 354 | 469 | - Total sales decreased by 8.2% QoQ, while total Adjusted EBIT decreased by 24.5% QoQ. Seating Systems experienced a significant decline, moving from a positive Adjusted EBIT of $52 million in Q1 2024 to a loss of $30 million in Q1 2025[22] Body Exteriors & Structures Segment The Body Exteriors & Structures segment experienced a decrease in sales and Adjusted EBIT in Q1 2025, leading to a lower Adjusted EBIT margin Body Exteriors & Structures Performance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------- | :------ | :------ | :------ | | Sales | 3,966 | 4,429 | 4,439 | | Adjusted EBIT | 230 | 298 | 272 | | Adjusted EBIT as a percentage of sales | 5.8% | 6.7% | 6.1% | - Sales for Body Exteriors & Structures decreased by 10.4% from $4,429 million in Q1 2024 to $3,966 million in Q1 2025. Adjusted EBIT decreased by 22.8% from $298 million in Q1 2024 to $230 million in Q1 2025, with the margin declining from 6.7% to 5.8%[22] Power & Vision Segment The Power & Vision segment saw a slight decrease in sales but an increase in Adjusted EBIT in Q1 2025, resulting in an improved Adjusted EBIT margin Power & Vision Performance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------- | :------ | :------ | :------ | | Sales | 3,646 | 3,842 | 3,323 | | Adjusted EBIT | 124 | 98 | 92 | | Adjusted EBIT as a percentage of sales | 3.4% | 2.6% | 2.8% | - Sales for Power & Vision decreased by 5.1% from $3,842 million in Q1 2024 to $3,646 million in Q1 2025. Adjusted EBIT increased by 26.5% from $98 million in Q1 2024 to $124 million in Q1 2025, improving the margin from 2.6% to 3.4%[22] Seating Systems Segment The Seating Systems segment experienced a decline in sales and a significant drop into negative Adjusted EBIT in Q1 2025, indicating profitability challenges Seating Systems Performance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------- | :------ | :------ | :------ | | Sales | 1,312 | 1,455 | 1,486 | | Adjusted EBIT | (30) | 52 | 37 | | Adjusted EBIT as a percentage of sales | -2.3% | 3.6% | 2.5% | - Sales for Seating Systems decreased by 9.8% from $1,455 million in Q1 2024 to $1,312 million in Q1 2025. Adjusted EBIT declined sharply from $52 million in Q1 2024 to a loss of $30 million in Q1 2025, resulting in a negative margin of -2.3%[22] Complete Vehicles Segment The Complete Vehicles segment saw a decrease in sales but an increase in Adjusted EBIT in Q1 2025, leading to an improved Adjusted EBIT margin Complete Vehicles Performance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------- | :------ | :------ | :------ | | Sales | 1,276 | 1,383 | 1,626 | | Adjusted EBIT | 44 | 27 | 52 | | Adjusted EBIT as a percentage of sales | 3.4% | 2.0% | 3.2% | - Sales for Complete Vehicles decreased by 7.7% from $1,383 million in Q1 2024 to $1,276 million in Q1 2025. Adjusted EBIT increased by 63.0% from $27 million in Q1 2024 to $44 million in Q1 2025, improving the margin from 2.0% to 3.4%[22] Corporate and Other Segment The Corporate and Other segment reported a higher Adjusted EBIT loss in Q1 2025 compared to Q1 2024 Corporate and Other Performance (USD millions) | Metric | Q1 2025 | Q1 2024 | Q1 2023 | | :---------------------- | :------ | :------ | :------ | | Intercompany eliminations | (131) | (139) | (201) | | Adjusted EBIT | (14) | (6) | (4) | - Adjusted EBIT for Corporate and Other worsened from a loss of $6 million in Q1 2024 to a loss of $14 million in Q1 2025[22]