Magna Announces Fourth Quarter 2024 Results and 2025 Outlook

Core Insights - Magna International Inc. reported a 2% increase in sales to $10.6 billion for Q4 2024, aligning with global light vehicle production growth of 2% [3][6] - The company generated $1.9 billion in cash from operating activities and returned $335 million to shareholders through dividends and share repurchases [3][18] - For 2025, sales are expected to range between $38.6 billion and $40.2 billion, with an anticipated adjusted EBIT margin of 5.3% to 5.8% [3][25] Financial Performance - Q4 2024 diluted earnings per share were $0.71, down from $0.94 in Q4 2023, while adjusted diluted earnings per share increased to $1.69 from $1.33 [10][3] - Net income attributable to Magna for Q4 2024 was $203 million, a decrease from $271 million in Q4 2023 [9][44] - Adjusted EBIT for Q4 2024 rose to $689 million from $558 million in Q4 2023, reflecting operational improvements [7][15] Operational Highlights - The increase in sales was driven by new program launches and higher engineering revenue, despite challenges such as lower production volumes and the impact of UAW labor strikes [6][21] - The company faced a net weakening of foreign currencies against the U.S. dollar, which negatively impacted reported sales by $43 million in Q4 2024 [6][21] - Cash from operations before changes in operating assets and liabilities was $896 million for Q4 2024 [11] Segment Analysis - Sales for Body Exteriors & Structures decreased by 3% to $4.07 billion in Q4 2024, while adjusted EBIT increased by 33% to $371 million [32][33] - Power & Vision segment sales were relatively unchanged at $3.79 billion, with adjusted EBIT slightly increasing to $235 million [33][36] - Seating Systems sales increased by 6% to $1.51 billion, with adjusted EBIT rising by 52% to $67 million [36][40] Future Outlook - For 2025, Magna expects sales to be impacted by foreign currency translation and lower light vehicle production, with a projected adjusted EBIT margin of 5.3% to 5.8% [3][25] - The company anticipates sales growth in 2026, with expected sales between $40.5 billion and $42.6 billion and an adjusted EBIT margin of 6.5% to 7.2% [3][25] - Free cash flow is expected to exceed $1.5 billion by 2026 [3]