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 | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

Financial Data and Key Metrics Changes - Adjusted EBIT increased by 1% to $583 million, with an EBIT margin of 5.5%, up 20 basis points year over year despite a 40 basis point negative impact from tariffs [6][20] - Adjusted diluted EPS rose by 7% to CAD 1.44, reflecting higher net income and a reduction in diluted shares outstanding [18][25] - Free cash flow improved by $178 million year over year, totaling $301 million for the quarter [7][26] Business Line Data and Key Metrics Changes - North American and European light vehicle production decreased by 62%, while production in China increased by 5%, resulting in a net global production increase of 1% [21] - Consolidated sales were $10.6 billion, down 3% compared to the previous year, primarily due to lower production volumes and program changes [20][22] - The decline in total sales was partially offset by new program launches and favorable foreign exchange impacts [22][24] Market Data and Key Metrics Changes - North American production forecast was adjusted to 14.7 million units, reflecting a reduction of about 300,000 units [14] - China production was raised to 30.8 million units, attributed to adjustments in estimated Q1 production and Q2 performance [15] - The company expects a higher euro and slightly higher Canadian dollar and RMB for 2025 compared to previous forecasts [16] Company Strategy and Development Direction - The company is focused on innovation and high-quality delivery to differentiate itself in the industry, with recent awards highlighting its operational excellence [10][11] - The strategy includes working closely with customers to mitigate tariff impacts and exploring share repurchases once conditions stabilize [9][28] - The company is advancing automotive technologies, including hybrid transmission programs and integrated vehicle safety innovations [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for the remainder of the year, supported by strong Q2 execution and ongoing operational discipline despite industry challenges [19][27] - The company anticipates a less than 10 basis point impact on EBIT margin from tariffs and expects to generate approximately 35% of full-year EBIT in Q4 [13][17] - Management noted that while macroeconomic conditions remain uncertain, they are focused on controllable factors and adapting to evolving situations [12][88] Other Important Information - The company returned $137 million to shareholders in dividends during Q2, with a year-to-date return of capital totaling $324 million [9][26] - The adjusted effective income tax rate decreased to 20.5% from approximately 26% due to favorable FX adjustments and changes in tax reserves [18][24] - The company reduced its capital spending range by $100 million compared to previous outlooks, reflecting a disciplined approach to capital allocation [19][96] Q&A Session Summary Question: Were there any one-time items affecting the BES segment margins? - Management confirmed that the strong margin result was primarily driven by operational excellence and a better program mix, with no significant one-time items [30][31] Question: What is the expectation for tariff recoveries by Q4? - Management indicated that they expect a cadence of recovery, with some tariffs still coming in Q4, but they feel comfortable with the outlook [32][34] Question: How have recent production changes by major customers affected North American assets? - Management noted that increased production in U.S. plants has not negatively impacted Canadian operations, as a significant portion of sales are already directed to the U.S. [35][38] Question: What is the visibility into the second half of the year regarding EBIT? - Management stated that they have good visibility on the outlook, with expectations for a significant portion of earnings to come in Q4 due to commercial recoveries and lower engineering spend [41][43] Question: How does the company view the impact of tariffs on margins? - Management expects tariffs to have a positive impact in the second half of the year, with recoveries anticipated based on signed agreements with customers [64][71] Question: How is the company approaching capital allocation and buybacks? - Management emphasized a focus on capital discipline and free cash flow generation, with potential buybacks contingent on improved visibility in the market [95][96]

Financial Data and Key Metrics Changes - Adjusted EBIT increased by 1% to $583 million, with an EBIT margin improvement of 20 basis points to 5.5% despite a 40 basis point negative impact from tariffs [6][21] - Adjusted diluted EPS rose by 7% to CAD 1.44, reflecting higher net income and a reduction in diluted shares outstanding [6][21] - Free cash flow improved by $178 million year over year, totaling $300 million for the quarter [6][21] Business Line Data and Key Metrics Changes - North American and European light vehicle production decreased by 62%, while production in China increased by 5%, resulting in a net global production increase of 1% [21][22] - Consolidated sales were $10.6 billion, down 3% compared to the previous year, reflecting a negative production mix and lower complete vehicle assembly volumes [21][22] - The decline in total sales was partially offset by new program launches and favorable foreign exchange impacts [22][23] Market Data and Key Metrics Changes - North American production forecast was adjusted to 14.7 million units, a reduction of about 300,000 units, while European production remained unchanged [14] - China production was raised to 30.8 million units due to adjustments in estimated Q1 production and Q2 performance [14] - The company expects a higher euro and slightly higher Canadian dollar and RMB for 2025 compared to previous forecasts [15] Company Strategy and Development Direction - The company is focused on innovation and high quality to differentiate itself in the industry, recently receiving awards for quality and technical ingenuity [10][11] - The company continues to execute its capital allocation strategy, including share repurchases once conditions stabilize [8][29] - The operational excellence initiatives are expected to contribute positively to margins, with a roadmap for similar improvements into 2026 [19][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for the remainder of the year, supported by strong Q2 execution and ongoing operational discipline despite industry challenges [19] - The company has reduced its estimated annualized tariff exposure to $200 million from $250 million, having settled with multiple OEMs for most of its 2025 net tariff exposure [7][12] - The macroeconomic environment remains uncertain, but the company is focused on what it can control and adapting to evolving conditions [89] Other Important Information - The company returned $137 million to shareholders in dividends during the second quarter, bringing the year-to-date total to $324 million [8][27] - The adjusted debt to adjusted EBITDA ratio is at 1.87, better than anticipated and within the target range [28] Q&A Session Summary Question: Were there any one-time items affecting the BES segment margins? - Management confirmed that the strong margin result was largely driven by operational excellence and a better program mix, with no significant one-time items [32] Question: Are recoveries for tariff impacts expected by Q4? - Management indicated that a cadence of recovery is expected, with some tariffs still anticipated in Q4, but they feel comfortable with the outlook [34][35] Question: How have production changes by major customers affected North American assets? - Management noted that increased production in U.S. plants has not negatively impacted Canadian operations, as a significant portion of sales in Canada are already directed to the U.S. [39] Question: What is the visibility into the second half EBIT margin improvement? - Management highlighted that the margin improvement is expected due to commercial recoveries, lower engineering spend, and tariff recoveries, with good visibility on the outlook [42][46] Question: How does the company view the impact of tariffs on future margins? - Management expects a pickup in EBIT related to tariffs in the second half of the year, based on signed agreements and frameworks with customers [72] Question: How is the company approaching capital allocation and buybacks? - Management emphasized a focus on capital discipline and free cash flow generation, with potential buybacks contingent on improved visibility in the market [96]

Company Performance - Magna reported quarterly earnings of $1.44 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and showing an increase from $1.35 per share a year ago, resulting in an earnings surprise of +21.01% [1] - The company posted revenues of $10.63 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.09%, although this represents a decline from year-ago revenues of $10.96 billion [2] - Over the last four quarters, Magna has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $9.96 billion, and for the current fiscal year, it is $4.77 on revenues of $40.59 billion [7] - The estimate revisions trend for Magna was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Magna belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Magna reported strong Q2 2025 financial performance, exceeding expectations [19, 51] - Adjusted EBIT increased by 1% year-over-year, with a margin of 55%, a 20 bps increase [20, 37] - Adjusted Diluted EPS increased by 7% year-over-year to $144 [20, 37] - Free Cash Flow increased by $178 million year-over-year to $301 million [20, 37] Updated Outlook - Magna increased its 2025 outlook, raising the low end of the Adjusted EBIT margin range to 52%-56% [20, 34, 51] - The company also increased its Adjusted Net Income Attributable to Magna forecast to $135 billion - $155 billion [20, 34, 51] - Total sales are projected to be $404 billion - $420 billion [34] Tariff Mitigation - Magna reduced its estimated 2025 annualized net tariff exposure to approximately $200 million, down from approximately $250 million in Q1 [20, 32, 51] - The company has settled with multiple OEMs for substantially all of its 2025 net tariff exposure with them [20, 32, 51] Sales Performance - Consolidated sales decreased by 3% to $10631 billion [39, 45] - Weighted Sales Growth over Market (GoM) was -1% (-1% excluding Complete Vehicles) [37, 39]

Core Insights - Magna International Inc. reported strong operating results for Q2 2025, exceeding expectations due to effective performance initiatives [3][4] - The company anticipates solid execution in the second half of 2025 despite industry challenges such as soft volumes in North America and Europe [4] Financial Performance - Q2 2025 sales were $10.6 billion, a 3% decrease from Q2 2024, attributed to a 6% decline in North American light vehicle production and a 2% decline in Europe [6][7] - Income from operations before income taxes increased by 16% to $496 million compared to Q2 2024 [8] - Adjusted EBIT rose by 1% to $583 million, with an adjusted EBIT margin improvement of 20 basis points to 5.5% [6][21] - Diluted earnings per share increased to $1.35, a 24% rise, while adjusted diluted earnings per share rose to $1.44, a 7% increase [10][35] - The company returned $324 million to shareholders in the first half of 2025, including $137 million in dividends during Q2 [6][18] Six-Month Overview - For the six months ended June 30, 2025, total sales were $20.7 billion, down from $21.9 billion in the same period of 2024 [15] - Adjusted EBIT for the first half of 2025 decreased to $937 million from $1,046 million in 2024 [15][23] - Net income attributable to Magna was $525 million, up from $322 million in the previous year [15][16] Segment Performance - Sales in the Body Exteriors & Structures segment were $4.253 billion, down from $4.465 billion in Q2 2024 [19] - Power & Vision segment sales decreased to $3.857 billion from $3.926 billion [19] - Seating Systems and Complete Vehicles segments also saw slight declines in sales [19] 2025 Outlook - The updated 2025 outlook projects total sales between $40.4 billion and $42.0 billion, with an adjusted EBIT margin of 5.2% to 5.6% [29][27] - Light vehicle production assumptions for North America and Europe have been adjusted to 14.7 million and 16.6 million units, respectively [27][28]

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Core Insights - Magna is redefining vehicle safety through comprehensive interior sensing systems aimed at protecting occupants and enhancing the driving experience [1][4] - The company has initiated production on five OEM programs across North America, Europe, and Asia, indicating the growing importance of interior sensing technology [1] - S&P Global forecasts a 3.5 times growth in interior sensor adoption from 2024 to 2032, driven by legislation and safety ratings supporting Advanced Driver Assistance Systems (ADAS) [1] Interior Sensing Solutions - Magna's Child Presence Detection (CPD) technology addresses the critical safety issue of preventing children from being left behind in vehicles, with nearly 40 children dying in hot cars annually in the U.S. [2][9] - The integration of cameras and radars in Magna's interior sensing systems allows for real-time monitoring of occupant behavior and conditions, enhancing overall vehicle safety [3][9] - These systems track driver attentiveness through eye movement and facial expression analysis, while radar detects the presence and position of all passengers [3][10] Market Position and Strategy - Magna's innovative approach positions the company as a leader in advanced mobility technology, offering scalable solutions that meet and exceed regulatory requirements [4] - The company's commitment to enhancing safety standards globally is reflected in its focus on developing technologies that protect vulnerable passengers [3][9] - With over 65 years of expertise and a global workforce of approximately 167,000 employees, Magna is well-positioned to advance mobility in an evolving transportation landscape [5]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Magna (MGA) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Magna is expected to report quarterly earnings of $1.19 per share, reflecting a year-over-year decrease of 11.9% [3] - Revenue projections stand at $10.41 billion, down 5% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 3.13% higher in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +5.04% suggests analysts have recently become more optimistic about Magna's earnings prospects [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Magna currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Magna's expected earnings were $0.90 per share, but the actual earnings were $0.78, resulting in a surprise of -13.33% [13] - Over the past four quarters, Magna has only beaten consensus EPS estimates once [14] Industry Comparison - Ferrari (RACE), another player in the automotive industry, is expected to report earnings of $2.57 per share, showing a year-over-year increase of 4.5% [18] - Ferrari's revenue is projected at $2.04 billion, up 10.5% from the previous year, with an Earnings ESP of +2.53% and a Zacks Rank of 1, indicating a strong likelihood of beating estimates [19]