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Magna Q2 Earnings Surpass Expectations, Guidance Revised
MagnaMagna(US:MGA) ZACKSยท2025-08-06 17:11

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]