Magna International Reports Strong Q1 2025 Financial Results

“Our operating results for the first quarter of 2025 exceeded our expectations, with strong incremental margins on better-than-anticipated vehicle production. For the rest of the year, we remain confident in managing the variables we control amidst this complex and uncertain industry environment. We are actively advancing several initiatives including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending to mitigate the impact of tariffs.” – Swamy Kotagiri, Magna’s Chief Executive Officer

Company Reports Strong Financial Performance in Latest Quarter

			THREE MONTHS ENDED
			March 31, 2025				March 31, 2024
Reported
Sales			$	10,069			$	10,970
Income from operations before income taxes			$	225			$	34

Diluted earnings per share			$	0.52			$	0.03
Adjusted EBIT			$	354			$	469
Adjusted diluted earnings per share			$	0.78			$	1.08

All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars
(1)		Adjusted EBIT and Adjusted diluted earnings per share are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies.

Magna International Reports Q1 2025 Financial Performance

Financial Overview for Q1 2025

Magna International Inc. reported sales of $10.1 billion for the first quarter of 2025, reflecting an 8% decline compared to the same period in 2024. This dip is primarily driven by a 3% reduction in global light vehicle production. The production decrease was particularly notable in Europe and North America, where volumes fell by 8% and 5%, respectively; however, production in China increased by 2%. Additional factors influencing sales included reduced complete vehicle assembly volumes due to the end of production for models like the Jaguar I-Pace and E-Pace, along with the overall weakening of foreign currencies against the U.S. dollar. Some offsetting effect occurred from the launch of new programs.

Adjusted EBIT for the first quarter decreased to $354 million, down from $469 million in Q1 2024. Key reasons for this decline included:

• Lower sales leading to decreased earnings;
• Increased net warranty costs in the seating business.

Offsetting these decreases were:

• Higher net favorable commercial items;
• Ongoing improvements in productivity and efficiency;
• Reduced net engineering costs, particularly in electrification and active safety areas.

For Q1 2025, Other expense, net, including Amortization of acquired intangibles, stood at $79 million compared to $384 million in 2024. On an after-tax basis, these figures were $73 million and $302 million, respectively.

Income from operations before income taxes rose to $225 million in Q1 2025, significantly higher than the $34 million reported in the same quarter last year. However, when excluding Other expense, net, and Amortization of acquired intangibles from both periods, this income actually decreased by $114 million, largely attributed to the drop in Adjusted EBIT.

Net income attributable to Magna International Inc. reached $146 million for the first quarter of 2025, a substantial increase from $9 million in Q1 2024. Adjusting for Other expense, net, after tax, and Amortization of acquired intangibles, net income fell by $92 million year-over-year.

Diluted earnings per share for Q1 2025 were $0.52, dramatically higher than the $0.03 reported in the same period last year. Adjusted diluted earnings per share registered at $0.78, down from $1.08 in Q1 2024.

In the first quarter, Magna generated $547 million in cash from operations before changes in operating assets and liabilities, after which $470 million was consumed by operating assets and liabilities. Investment activities for the quarter included $268 million in fixed asset additions, $148 million in investments and intangible assets, $4 million for business combinations, and $1 million in private equity investments.

Return of Capital to Shareholders

During the first quarter ended March 31, 2025, Magna returned $187 million to shareholders. This included $136 million in dividends and $51 million in share repurchases.

The Board of Directors declared a dividend of $0.485 per Common Share for Q1, which will be payable on May 30, 2025, to shareholders of record as of the close of business on May 16, 2025.

Other Expenses and Financial Reconciliation

Other expense, net primarily encompasses Fisker Inc. related impacts, including restructuring and impairment of assembly and production assets, impairments of Fisker warrants, and revaluations of certain public company warrants and equity investments, alongside restructuring activities for both Q1 2024 and Q1 2025. Further reconciliation of these Non-GAAP financial measures is available at the end of this press release.

Segment Summary

Detailed financial metrics for segmented sales and Adjusted EBIT will be provided in subsequent documentation. This summary pins down the crucial metrics that drive Magna’s comprehensive business performance and support its strategic objectives moving forward.

# Financial Overview for Body Exteriors and Power & Vision Divisions in 2024 and 2025

			2025				2024				Change
Body Exteriors & Structures	$	3,966			$	4,429			$	(463)	)		$	230			$	298			$	(68)	)
Power & Vision		3,646				3,842				(196)

In summary, the Body Exteriors & Structures division anticipates a decrease in revenue from $3,966 million in 2024 to $4,429 million in 2025, signaling a significant shift. Similarly, the Power & Vision segment projects an increase from $3,646 million to $3,842 million, reflecting a modest decline. These figures highlight critical shifts within the divisions that will require further analysis in the upcoming financial periods.# Company Financial Update: Key Figures from Recent Reports

## Summary of Financial Performance

In reviewing the latest financial reports, several critical figures stand out for key business segments. The data outlines performance trends and highlights the company’s standing in the market.

### Seating Systems

– **Revenue:** $1,312
– **Previous Revenue:** $1,455
– **Change:** Decrease of 143

### Complete Vehicles

– **Revenue:** $1,276
– **Previous Revenue:** $1,383
– **Change:** Decrease of 107

### Corporate and Other

The overall performance in corporate segments also reflects shifts that warrant further examination.

As companies navigate market fluctuations, these figures provide insight into trends and potential growth areas. Monitoring these metrics will be crucial for stakeholders and investors looking to assess future opportunities.# Financial Overview: Total Reportable Segments and Key Figures

(131	)			(139	)			8				(14	)			(6	)			(8	)
Total Reportable Segments	$	10,069			$	10,970			$	(901	)		$	354			$	469			$	(115

# Financial Insights: Adjusted EBIT Trends for Q1 2025

	For the three months ended March 31,
	Adjusted EBIT as a percentage of sales
	2025		2024		Change
Body Exteriors & Structures	5.8	%	6.7	%	(0.9	)%
Power & Vision	3.4	%	2.6	%	0.8	%
Seating Systems	(2.3	)%	3.6	%	(5.9	)%
Complete Vehicles	3.4	%	2.0	%	1.4	%
Consolidated Average	3.5	%	4.3	%	(0.8	)%

For further details on our segment results, please see our Management’s Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements.

2025 OUTLOOK

We disclose a full-year Outlook annually in our reports.

# Updated 2025 Financial Outlook: Key Assumptions and Projections

In light of recent quarterly updates, this report presents an update to our previous Outlook from February 2025.

Updated 2025 Outlook Assumptions

			Current		Previous
Light Vehicle Production (millions of units)
North America Europe China			15.0 16.6 30.2		15.1 16.6 29.7
Average Foreign Exchange Rates:
1 Canadian dollar equals 1 euro equals			U.S. $0.714 U.S. $1.111		U.S. $0.690 U.S. $1.030

The assumptions for light vehicle production reflect recent information from original equipment manufacturers (OEMs). This includes announced production downtimes at specific OEM assembly facilities. However, these projections do not account for potential tariffs, trade measures affecting vehicle costs, or overall consumer demand impacts.

Updated 2025 Outlook

# Financial Overview: Key Metrics and Projections for Magna’s Performance

			Current		Previous
Segment Sales
Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles			$15.9 – $16.5 billion $14.8 – $15.2 billion $5.3 – $5.6 billion $4.5 – $4.8 billion		$15.7 – $16.3 billion $14.1 – $14.5 billion $5.3 – $5.6 billion $4.0 – $4.3 billion
Total Sales			$40.0 – $41.6 billion		$38.6 – $40.2 billion
Adjusted EBIT Margin (3)(4)			5.1% – 5.6%

5.3% – 5.8%
Equity Income (included in EBIT) (4)			$65 – $95 million		$60 – $90 million
Interest Expense, net			Approximately $210 million		Approximately $210 million
Income Tax Rate ( (4)(5)			Approximately 26%		Approximately 25%
Adjusted Net Income attributable to Magna (4) (6)			$1.3 – $1.5 billion		$1.3 – $1.5 billion
Capital Spending			$1.7 – $1.8 billion		Approximately $1.8 billion

Notes:
(3)		Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales. Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information.
(4)		Excludes unmitigated incremental tariff costs.
(5)		The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation.
(6)		Adjusted Net Income attributable to Magna.

Magna’s Business Outlook: Key Financial Insights and Risks

Magna’s outlook for 2025 emphasizes the company’s expectations regarding net income, excluding other expenses and amortization of acquired intangible assets, net of tax. While these projections are deemed reasonable at the document’s release, they may not reflect actual future results. Unforeseen factors, as discussed in the “Forward-Looking Statements” section, could lead to significant variances from these expectations.

Key Drivers of Our Business

Magna’s operational performance hinges on light vehicle production across three main regions: North America, Europe, and China. The company supplies systems and components to various Original Equipment Manufacturers (OEMs) globally; however, it does not cater to every vehicle model, leading to variability in content value between different vehicles. Customer and program mix, along with market trends, are crucial in driving our results.

Typically, OEM production volumes align with vehicle sales, which means any changes will affect production output. Factors such as disruptions among OEMs or suppliers, trade agreements, and fluctuating commodity prices can all influence these volumes. Additionally, regional labor availability, regulatory environments, and even the supply chain can impact production levels.

Consumer confidence plays a pivotal role in overall vehicle sales. Changes in consumer perceptions related to the job market, real estate, and the stock market directly affect purchasing behaviors. Other elements that generally influence vehicle sales include vehicle affordability, interest rates, fuel prices, and uncertainties regarding electric vehicle adoption, all of which can variably impact production volumes.

Non-GAAP Financial Measures Reconciliation

This press release includes references to Non-GAAP financial measures in addition to U.S. GAAP results. Magna considers these measures significant for both management and investors, enhancing the clarity of the company’s financial position across different fiscal periods. Specifically, Management views Adjusted Earnings Before Interest and Taxes (EBIT) and Adjusted diluted earnings per share as valuable indicators of the company’s core operational performance, excluding items that may not reflect this core activity. It’s essential for stakeholders to view these measures in conjunction with related U.S. GAAP financial results.

Adjusted EBIT
	For the three months ended March 31,
		2025				2024
Net Income	$	153

# Company Financials Show Mixed Results Across Key Metrics

	$	26
Add:
Amortization of acquired intangible assets		26				28
Interest expense, net		50				51
Other expense, net		53				356
Income taxes		72				8
Adjusted EBIT	$	354			$	469
Adjusted EBIT as a percentage of sales ( “ Adjusted EBIT Margin “ )

Financial Performance Overview for Q1 2025: Key Metrics Reported

	For the three months ended March 31,
		2025				2024
Sales	$	10,069			$	10,970
Adjusted EBIT	$	354			$	469
Adjusted EBIT as a percentage of sales		3.5	%			4.3	%

# Magna International Reports Adjusted Diluted Earnings; Key Financial Highlights

Adjusted Diluted Earnings Per Share
	For the Three Months Ended March 31
		2025				2024
Net Income Attributable to Magna International Inc.	$	146			$	9
Add (Deduct):
Amortization of Acquired Intangible Assets		26				28
Other Expense, Net		53				356
Tax Effect on Amortization of Acquired Intangible Assets

Magna International Reports First Quarter Earnings and Financial Metrics

Other expense, net		(6	)			(82	)
Adjusted net income attributable to Magna International Inc.	$	219			$	311
Diluted weighted average number of Common Shares outstanding during the period (millions):		282.0				287.1
Adjusted diluted earnings per share	$	0.78			$	1.08

Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. To do so would be potentially misleading and not practical given the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items, however, may be significant.

This press release, along with our Management’s Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements, is available in the Investor Relations section of our website at www.magna.com/company/investors and filed electronically through the System for Electronic Document Analysis and Retrieval (SEDAR), accessible at www.sedarplus.ca, and on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) at www.sec.gov.

We will hold a conference call for interested analysts and shareholders to discuss our first quarter results for the period ending March 31, 2025, on Friday, May 2, 2025, at 8:00 a.m. ET. The call will be chaired by Swamy Kotagiri, Chief Executive Officer. Interested participants from North America can dial 1-800-715-9871, while international callers should use 1-646-307-1963. We recommend calling in at least 10 minutes before the start time. A webcast of the conference call will also be available at www.magna.com. The slide presentation and our financial review summary will be posted on the website prior to the call.

INVESTOR CONTACT

Louis Tonelli, Vice-President, Investor Relations

[email protected] | 905.726.7035

MEDIA CONTACT

Tracy Fuerst, Vice-President, Corporate Communications & PR

[email protected] | 248.761.7004

TELECONFERENCE CONTACT

Nancy Hansford, Executive Assistant

Magna Reports on Forward-Looking Statements and Market Risks

Investor Relations

[email protected]

│ 905.726.7108

Magna is one of the world’s largest automotive suppliers and a significant player in mobility technology. The company has a global, entrepreneurial team of about 167,000 employees across 342 manufacturing operations and 103 product development and engineering centers in 28 countries. With over 65 years of experience, Magna’s network of interconnected products, combined with full vehicle expertise, positions the company to lead innovations in an evolving transportation landscape.

For more information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com.

(7)		Manufacturing operations and development centers include some operations accounted for under the equity method.
(8)		The number of employees includes approximately 155,000 at wholly owned entities and over 12,000 at certain operations accounted for under the equity method.

Below, we outline “forward-looking statements” that express current expectations and plans, though these may not apply for other purposes. Such statements may encompass financial projections and future plans. Words like “may,” “will,” “likely,” “expect,” “plan,” and “project” help identify these statements.

Understanding the associated risks is crucial. The following table lists key forward-looking statements along with potential risks that might impact actual results.

Material Forward-Looking Statement	Material Potential Risks Related to Applicable Forward-Looking Statement
Light Vehicle Production	Light vehicle sales levels affected by: Declining consumer confidence Economic uncertainty High interest rates and limited consumer credit Vehicle affordability issues Tariffs and actions compromising free trade agreements Production delays, cancellations, and volume reductions Production and supply chain disruptions Commodity price fluctuations Availability and cost of skilled labor
Total Sales/Segment Sales	Same risks as Light Vehicle Production Product mix alignment with production demand Customer concentration risks Unpredictable electric vehicle adoption, including North American programs Market share shifts among vehicle segments Changes in consumer preferences for products Currency value fluctuations
Adjusted EBIT Margin/Net Income Attributable to Magna	Same risks as Total Sales and Segment Sales Critical program launch execution Operational underperformance Potential product warranty or recall issues Production inefficiencies Incurred incremental tariff costs Restructuring costs or impairment charges Inflation impacts Ability to recover costs from customers Price concessions Risks with newer electric vehicle-focused manufacturers Commodity and scrap steel price volatility Tax uncertainties

# Understanding Risks: A Comprehensive Look at Equity Income

Equity Income

Same risks as Adjusted EBIT Margin and Net Income Attributable to Magna Risks related to conducting business through joint ventures Risks of doing business in foreign markets Legal and regulatory proceedings Changes in law

Forward-looking statements are formed from information currently accessible to us and are derived from assumptions and analyses consistent with our experience and perception of historical trends, current conditions, and anticipated future developments, along with relevant factors considered appropriate. Although we believe these forward-looking statements have a reasonable basis, they do not guarantee future performance or outcomes. In addition to the factors listed above, various risks, assumptions, and uncertainties may cause actual results to differ from our predictions. Many of these factors are beyond our control and can be challenging to predict:

Macroeconomic, Geopolitical and Other Risks Unpredictable tariff and trade environment; Trade disputes and threats to free trade agreements; Consumer confidence levels; Increasing economic uncertainty; Interest rates and availability of consumer credit; Geopolitical risks; Risks Related to the Automotive Industry Program deferrals, cancellations, and volume reductions; Economic cyclicality; Regional production volume declines; Deteriorating vehicle affordability; Uncertain pace of EV adoption, including program deferrals, cancellations, and volume reductions; Intense competition; Strategic Risks Planning and forecasting challenges; Evolution of the vehicle; Evolving business risk profile; Technology and innovation; Investments in mobility and technology companies;

Customer-Related Risks Customer concentration; Market shifts; Growth of EV-focused OEMs; Risks of conducting business with newer EV-focused OEMs; Dependence on outsourcing; Customer cooperation and consolidation; Consumer take rate shifts; Customer purchase orders; Potential OEM production-related disruptions; Supply Chain Risks Supply base; Supplier claims; Supply chain disruptions; Regional energy supply and pricing; Manufacturing/Operational Risks Product launch; Operational underperformance; Restructuring costs; Impairments; Skilled labour attraction/retention; Leadership expertise and succession;

Pricing Risks

• Quote/pricing assumptions;
• Customer pricing pressure/contractual arrangements;
• Commodity cost volatility;
• Scrap steel/aluminum price volatility;

Warranty/Recall Risks

• Repair/replace costs;
• Warranty provisions;
• Product liability;

Climate Change Risks

• Transition risks and physical risks;
• Strategic and other risks;

IT Security/Cybersecurity Risks

• IT/cybersecurity breach;
• Product cybersecurity;

Acquisition Risks

• Inherent merger and acquisition risks;
• Acquisition integration and synergies;

Other Business Risks

• Joint ventures;
• Intellectual property;
• Risks of doing business in foreign markets;
• Relative foreign exchange rates;
• Pension risks;
• Tax risks;
• Returns on capital investments;
• Financial flexibility;
• Credit ratings changes;
• Stock price fluctuation;

Legal, Regulatory and Other Risks

• Legal and regulatory proceedings;
• Changes in laws;
• Environmental compliance;

In evaluating forward-looking statements or information, we advise readers to consider the various factors that could cause actual events or results to differ materially from those indicated. These include risks, assumptions, and uncertainties, which are discussed under the “Industry Trends and Risks” section of our Management’s Discussion and Analysis. Comprehensive details are outlined in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F with the U.S. Securities and Exchange Commission, and other subsequent filings.

Readers may also review our risk mitigation activities related to certain factors found in our Annual Information Form. Additional information on Magna, including our Annual Information Form, is accessible through the System for Electronic Data Analysis and Retrieval + (SEDAR+) at

www.sedarplus.ca

and the U.S. Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) at

www.sec.gov.