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Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook
Magna delivered solid fourth-quarter results, reflecting disciplined execution, and improved operating performance.
Year-over-year comparison (fourth quarter of 2025 versus fourth quarter of 2024):
- Sales increased 2% to $10.8 billion, despite a 1% decline in global light vehicle production
- Income from operations before income taxes was $114 million, including non-cash impairment charges of $615 million
- Adjusted EBIT increased 18% to $814 million, with Adjusted EBIT margin expanding 100 basis points to 7.5%
- Diluted earnings per share was $0.00; Adjusted diluted earnings per share increased 29% to $2.18
Additional Q4 2025 performance:
- Generated $2.0 billion in cash from operating activities and $1.3 billion in Free Cash Flow
- Ended 2025 with $1.6 billion of cash
- Increased our quarterly dividend to $0.495 per share, representing the 16th consecutive year of dividend growth
2026 Outlook Highlights:
Magna expects solid top-line performance and sustained progress toward long-term margin objectives.
- Sales expected to be between $41.9 billion and $43.5 billion
- Adjusted EBIT Margin expected between 6.0% and 6.6%
- Adjusted diluted EPS expected to be in the range of $6.25 to $7.25
- Capital spending projected to be between $1.5 billion and $1.6 billion
- Free Cash Flow anticipated between $1.6 billion and $1.8 billion
- Intends to repurchase remaining a^ 1/422 million shares available under current buyback authorization (NCIB)
AURORA, Ontario, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the fourth quarter and year ended December 31, 2025.
"We closed 2025 with a strong fourth quarter, successfully navigating another dynamic year in our industry. Our disciplined execution and commitment to operational excellence enabled us to deliver financial results that were in line with, or exceeded, our February 2025 Outlook across all key metrics. We expanded full-year adjusted EBIT margin by 20 basis points and generated robust Free Cash Flow of $1.9 billion.
Our 2026 outlook reflects confidence in our ability to build on this momentum. With capital spending expected to remain below historical levels, we anticipate continued strong Free Cash Flow, which we intend to deploy using our long-standing capital allocation framework, including repurchasing the remaining shares available under our current buyback authorization."
- Swamy Kotagiri, Magna's Chief Executive Officer
(1) Adjusted EBIT, Adjusted EBIT margin, Adjusted diluted earnings per share, and Free Cash Flow 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. Further information and a reconciliation of these Non-GAAP financial measures is included in the back of this press release.
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2025 2024 2025 2024
Reported
Sales $ 10,848 $ 10,628 $ 42,010 $ 42,836
Income from operations before income taxes $ 114 $ 381 $ 1,308 $ 1,542
Net (loss) income attributable to Magna
International Inc. $ (1 ) $ 203 $ 829 $ 1,009
Diluted earnings per share $ -- $ 0.71 $ 2.93 $ 3.52
Non-GAAP Financial Measures
Adjusted EBIT $ 814 $ 689 $ 2,364 $ 2,329
Adjusted diluted earnings per share $ 2.18 $ 1.69 $ 5.73 $ 5.41
Free Cash Flow $ 1,347 $ 1,031 $ 1,907 $ 1,058
All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars.
THREE MONTHS ENDED DECEMBER 31, 2025
We posted sales of $10.8 billion for the fourth quarter of 2025, an increase of 2% over the fourth quarter of 2024. The higher sales largely reflects:
- higher production on certain ongoing programs, and the launch of new programs, including the Ford Expedition and Lincoln Navigator, Xiaomi YU7, and Jetour Zongheng G700;
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $355 million;
- net customer recoveries to largely recoup higher tariff costs incurred during the year; and
- higher complete vehicle assembly volumes, primarily due to the launch of the Mercedes-Benz G-Class during the fourth quarter of 2024, partially offset by the end of production of the Jaguar I-Pace and Jaguar E-Pace.
These factors were partially offset by:
- lower engineering revenue, primarily in our Complete Vehicles segment;
- the end of production of certain programs;
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025; and
- net customer price concessions subsequent to the fourth quarter of 2024.
Adjusted EBIT increased to $814 million for the fourth quarter of 2025 compared to $689 million for the fourth quarter of 2024, primarily due to:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- earnings on higher sales;
- customer recoveries for tariffs, net of costs incurred;
- earnings on higher complete vehicle assembly volumes;
- provisions related to the insolvency of two Chinese OEMs during the fourth quarter of 2024;
- the net strengthening of foreign currencies against the U.S. dollar, which had a $17 million favourable impact on reported U.S. Dollar Adjusted EBIT; and
- lower investments in research, development and our new mobility business.
These factors were partially offset by:
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025;
- lower income on lower engineering sales, primarily in our Complete Vehicles segment;
- unfavourable product mix;
- higher production input costs net of customer recoveries, primarily for certain commodities and labour; and
- higher employee profit sharing, stock-based compensation, and incentive compensation.
Income from operations before income taxes declined to $114 million for the fourth quarter of 2025 compared to $381 million in the fourth quarter of 2024, which includes Other expense, net(2) and Amortization of acquired intangible assets totaling $658 million and $256 million in the fourth quarters of 2025 and 2024, respectively. The most significant item in Other expense, net in the fourth quarter of 2025 was a non-cash goodwill and intangible asset impairment charge of $591 million (pre-tax) related to our Electronics reporting unit. The impairment charge was primarily due to lower than expected sales and declines in volume projections, as a result of changing industry dynamics and other factors. The most significant item in Other expense, net in the fourth quarter of 2024 was the positive impact of recognizing $196 million of Fisker deferred revenue in the fourth quarter of 2024 as the associated agreements were cancelled. Excluding Other expense, net and Amortization of acquired intangible assets from both periods, income from operations before income taxes increased $135 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, largely reflecting the increase in Adjusted EBIT.
Net (loss) income attributable to Magna International Inc. was a loss of $1 million for the fourth quarter of 2025 compared to income of $203 million in the fourth quarter of 2024. Excluding Other expense, net, after tax and Amortization of acquired intangibles from both periods, net income attributable to Magna International Inc. was $617 million in the fourth quarter of 2025 compared to $482 million in the fourth quarter of 2024.
Diluted earnings per share were $0.00 in the fourth quarter of 2025, compared to $0.71 in the comparable period. Adjusted diluted earnings per share were $2.18, compared to $1.69 for the fourth quarter of 2024, an increase of 29%. The increase in adjusted diluted earnings per share reflects the impacts of higher adjusted EBIT, lower income attributable to non-controlling interests and a lower share count reflecting share repurchases over the past 12 months.
In the fourth quarter of 2025, we generated cash from operations of $1.98 billion. Free Cash Flow was $1.35 billion in the period.
(2) Other expense, net is comprised of impairment of assets, restructuring activities, loss (gain) on investments, Fisker Inc. ["Fisker"] related impacts, and gain on business combination during the three and twelve months ended December 31, 2025 & 2024. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.
YEAR ENDED DECEMBER 31, 2025
We posted sales of $42.0 billion for the year ended December 31, 2025, compared to $42.8 billion for the year ended December 31, 2024. The lower sales largely reflects:
- lower light vehicle production in North America and Europe on certain ongoing programs, and the end of production of certain programs, including the Chevrolet Malibu, Ford Edge, and Ford Escape;
- lower engineering revenue, primarily in our Complete Vehicles segment;
- net customer price concessions subsequent to 2024;
- lower complete vehicle assembly volumes, primarily due to the end of production of the Jaguar I-Pace, and Jaguar E-Pace, partially offset by the launch of the Mercedes-Benz G-Class during the fourth quarter of 2024;
- the divestiture of certain operations in India during 2024, net of acquisitions, which decreased sales by $112 million; and
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025.
These factors were partially offset by:
- the launch of new programs during or subsequent to 2024, including the Mercedes-Benz G-Class, GMC Acadia, Chevrolet Traverse & Buick Enclave, Skoda Elroq, Audi A5, Cadillac Vistiq, and BMW 1-Series;
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $555 million; and
- net customer recoveries to largely recoup higher tariff costs incurred during the year.
Adjusted EBIT increased to $2.4 billion for the year ended December 31, 2025 compared to $2.3 billion for year ended December 31, 2024 primarily due to:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- higher equity income;
- higher supply chain costs in 2024, due in part to a supplier bankruptcy;
- lower investments in research, development and our new mobility business; and
- provisions related to the insolvency of two Chinese OEMs during 2024.
These factors were partially offset by:
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025;
- reduced earnings on lower sales;
- unfavourable product mix;
- higher employee profit sharing, stock-based and incentive compensation;
- higher production input costs net of customer recoveries, primarily for labour;
- lower income on lower engineering sales, primarily in our Complete Vehicles segment;
- higher pre-operating costs incurred at new facilities;
- higher net tariff costs; and
- net transactional foreign exchange losses in 2025, compared to net transactional foreign exchange gains in 2024.
During the year ended December 31, 2025, income from operations before income taxes was $1.31 billion, and net income attributable to Magna International Inc. was $829 million, decreases of $234 million and $180 million, respectively, each compared to the year ended December 31, 2024.
During the year ended December 31, 2025, diluted earnings per share were $2.93, compared to $3.52 in the year ended December 31, 2024. Adjusted diluted earnings per share were $5.73, compared to $5.41 for the year ended December 31, 2024.
During the year ended December 31, 2025, we generated cash from operations of $3.60 billion. Free Cash Flow for the year was $1.91 billion for the full year.
RETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS
We paid dividends of $135 million and $544 million for the three months and year ended December 31, 2025, respectively. In addition, we repurchased 1.7 million shares for $86 million and 3.0 million shares for $137 million, respectively, for the three months and year ended December 31, 2025.
Our Board of Directors declared a fourth quarter dividend of $0.495 per Common Share. This represents a 2% higher dividend, and our 16th consecutive year of fourth quarter dividend increases. The dividend is payable on March 13, 2026 to shareholders of record as of the close of business on February 27, 2026.
2026 OUTLOOK
Our full year Outlook for 2026 is provided annually, with quarterly updates. It does not incorporate any potential changes in tariff rates, or any material unannounced acquisitions or divestitures.
2026 Macro Assumptions
2026
Light Vehicle Production (millions of units) 15.0
North America 16.8
Europe 32.0
China
Average Foreign exchange rates: U.S. $0.72
1 Canadian dollar equals U.S. $1.16
1 euro equals
2026 Outlook
2026
Segment Sales $16.6 - $17.2 billion
Body Exteriors & Structures $15.9 - $16.3 billion
Power & Vision $5.4 - $5.7 billion
Seating Systems $4.4 - $4.7 billion
Complete Vehicles
Total Sales $41.9 - $43.5 billion
Adjusted EBIT Margin(3) 6.0% - 6.6%
Adjusted diluted earnings per share (EPS)(4) $6.25 - $7.25
Free Cash Flow(5) $1.6 - $1.8 billion
Capital Spending $1.5 - $1.6 billion
Equity Income (included in EBIT) $160 - $195 million
Interest Expense, net Approximately $180 million
Income Tax Rate(6) Approximately 23%
Weighted average diluted shares outstanding Approximately 270 million
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) Adjusted diluted EPS represents Adjusted Net Income attributable to Magna divided by the Diluted weighted average number of Common Shares outstanding during the period. (5) Refer to the reconciliation of Non-GAAP financial measures in the back of this press release for further information on Free Cash Flow. (6) The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation.
Our Outlook is intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Although considered reasonable by Magna as of the date of this document, the 2026 Outlook above and the underlying assumptions may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth herein. The risks identified in the "Forward-Looking Statements" section below represent the primary factors which we believe could cause actual results to differ materially from our expectations.
KEY DRIVERS OF OUR BUSINESS
Our business and operating results are dependent on light vehicle production by our customers in three key regions - North America, Europe, and China. While we supply systems and components to many OEMs globally, we do not supply systems and components for every vehicle, nor is the value of our content consistent from one vehicle to the next. As a result, customer and program mix relative to market trends, as well as the value of our content on specific vehicle production programs, are also important drivers of our results.
Ordinarily, OEM production volumes are aligned with vehicle sales levels and thus affected by changes in such levels. Aside from vehicle sales levels, production volumes are typically impacted by a range of factors, including: certain geopolitical factors, such as free trade arrangements and tariffs; OEM, supplier or sub-supplier disruptions; relative currency values; commodities prices; supply chains and infrastructure; labour disruptions and the availability and relative cost of skilled labour; regulatory frameworks; and other factors.
Overall vehicle sales levels are significantly affected by changes in consumer confidence levels, which may in turn be impacted by consumer perceptions and general trends related to the job, housing, and stock markets, as well as other macroeconomic and political factors. Other factors which typically impact vehicle sales levels and thus production volumes include: vehicle affordability; interest rates and/or availability of credit; fuel and energy prices; relative currency values; considerations applicable to EVs, including EV range, charging infrastructure, and electricity pricing; and other factors.
Segment Analysis
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]
Body Exteriors & Structures
For the three months
ended December 31,
2025 2024 Change
Sales $ 4,252 $ 4,067 $ 185 + 5%
Adjusted EBIT $ 465 $ 371 $ 94 + 25%
Adjusted EBIT as a percentage of sales (i) 10.9% 9.1% + 1.8%
(i) Adjusted EBIT as a percentage of sales is calculated as Adjusted EBIT divided by Sales.
Sales for Body Exteriors & Structures increased 5%, or $185 million, to $4.25 billion for the fourth quarter of 2025, compared to $4.07 billion for the fourth quarter of 2024 primarily due to:
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $88 million;
- higher production on certain ongoing programs, and the launch of new programs, including the Ford Expedition and Lincoln Navigator, Audi Q6, and BMW X3; and
- net customer recoveries to largely recoup higher tariff costs incurred during the year.
These factors were partially offset by:
- the end of production of certain programs, including the Chevrolet Malibu; and
- net customer price concessions subsequent to the fourth quarter of 2024.
Adjusted EBIT increased $94 million to $465 million for the fourth quarter of 2025 compared to $371 million in the fourth quarter of 2024 and Adjusted EBIT as a percentage of sales increased to 10.9% from 9.1%. These increases were primarily due to:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- earnings on higher sales;
- provisions related to the insolvency of two Chinese OEMs during the fourth quarter of 2024;
- the net strengthening of foreign currencies against the U.S. dollar, which had a $7 million favourable impact on reported U.S. Dollar Adjusted EBIT;
- higher tooling contribution;
- higher supply chain costs in 2024, due in part to a supplier bankruptcy; and
- customer recoveries for tariffs, net of costs incurred.
These were partially offset by:
- higher production input costs net of customer recoveries, primarily for certain commodities and labour;
- net transactional foreign exchange losses in the fourth quarter of 2025, compared to net transactional foreign exchange gains in the fourth quarter of 2024;
- higher pre-operating costs incurred at new facilities; and
- unfavourable product mix.
Power & Vision
For the three months
ended December 31,
2025 2024 Change
Sales $ 3,841 $ 3,786 $ 55 + 1%
Adjusted EBIT $ 166 $ 235 $ (69 ) - 29%
Adjusted EBIT as a percentage of sales 4.3% 6.2% - 1.9%
Sales for Power & Vision increased 1%, or $55 million, to $3.84 billion for the fourth quarter of 2025, compared to $3.79 billion for the fourth quarter of 2024 primarily due to:
- higher production on certain ongoing programs, and the launch of new programs, including the Xiaomi YU7, Jetour Zongheng G700, and Subaru Forester;
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $139 million; and
- net customer recoveries to largely recoup higher tariff costs incurred during the year.
These factors were partially offset by:
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025;
- the end of production of certain programs, including the Subaru Legacy, and Porsche 718; and
- net customer price concessions subsequent to the fourth quarter of 2024.
Adjusted EBIT decreased $69 million to $166 million for the fourth quarter of 2025 compared to $235 million for the fourth quarter of 2024 and Adjusted EBIT as a percentage of sales decreased to 4.3% from 6.2%. These decreases were primarily due to:
- net commercial items, which had an unfavourable impact on a year-over-year basis, including a customer resolution for a product-related matter during the fourth quarter of 2025;
- higher net warranty costs of $36 million;
- higher production input costs net of customer recoveries, primarily for certain commodities; and
- unfavourable product mix.
These were partially offset by:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- customer recoveries for tariffs, net of costs incurred;
- earnings on higher sales; and
- higher equity income.
Seating Systems
For the three months
ended December 31,
2025 2024 Change
Sales $ 1,633 $ 1,511 $ 122 + 8%
Adjusted EBIT $ 136 $ 67 $ 69 + 103%
Adjusted EBIT as a percentage of sales 8.3% 4.4% + 3.9%
Sales for Seating Systems increased 8%, or $122 million, to $1.63 billion for the fourth quarter of 2025, compared to $1.51 billion for the fourth quarter of 2024 primarily due to:
- the launch of programs during or subsequent to the fourth quarter of 2024, including the Ford Expedition and Lincoln Navigator, and Changan Deepal S09;
- net customer recoveries to largely recoup higher tariff costs incurred during the year; and
- the net strengthening of foreign currencies against the U.S. dollar, which increased reported U.S. Dollar sales by $37 million.
These factors were partially offset by lower production and end of production of certain programs.
Adjusted EBIT increased $69 million to $136 million for the fourth quarter of 2025 compared to $67 million for the fourth quarter of 2024 and Adjusted EBIT as a percentage of sales increased to 8.3% from 4.4%. These increases were primarily due to:
- productivity and efficiency improvements, including the benefit of operational excellence initiatives and prior restructuring actions;
- lower net warranty costs of $27 million;
- customer recoveries for tariffs, net of costs incurred;
- provisions related to the insolvency of a Chinese OEM during the fourth quarter of 2024; and
- earnings on higher sales.
These were partially offset by:
- higher restructuring costs;
- net commercial items, which had an unfavourable impact on a year-over-year basis;
- lower tooling contribution;
- higher production input costs net of customer recoveries, primarily relating to labour;
- lower equity income; and
- higher launch costs.
Complete Vehicles
For the three months
ended December 31,
2025 2024 Change
Complete Vehicle Assembly Volumes (thousands of units) 22.5 15.6 6.9 + 44%
Sales $ 1,261 $ 1,402 $ (141 ) - 10%
Adjusted EBIT $ 50 $ 56 $ (6 ) - 11%
Adjusted EBIT as a percentage of sales 4.0% 4.0% --
Sales decreased 10%, or $141 million, to $1.26 billion for the fourth quarter of 2025, compared to $1.40 billion for the fourth quarter of 2024, while complete vehicle assembly volumes increased 44%. The increase in volume was primarily due to higher volumes with value-added contractual arrangements as opposed to full-costed contractual arrangements. The decrease in sales is primarily a result of:
- lower engineering revenue;
- the end of production of the Jaguar I-Pace and Jaguar E-Pace; and
- net commercial items, which had an unfavourable impact on a year-over-year basis.
These factors were partially offset by:
- higher complete vehicle assembly volumes including the launch of the Mercedes-Benz G-Class during fourth quarter of 2024; and
- a $100 million increase in reported U.S. Dollar sales as a result of the strengthening of the euro against the U.S. dollar.
Adjusted EBIT decreased $6 million to $50 million for the fourth quarter of 2025 compared to $56 million for the fourth quarter of 2024 and Adjusted EBIT as a percentage of sales was 4.0% in both periods. Factors decreasing Adjusted EBIT and Adjusted EBIT as a percentage of sales included:
- lower income on lower engineering sales; and
- net commercial items, which had an unfavourable impact on a year-over-year basis.
These factors were partially offset by:
- earnings on higher complete vehicle assembly volumes;
- lower production input costs net of customer recoveries, primarily relating to labour; and
- productivity and efficiency improvements, including the benefit of operational excellence and prior restructuring actions.
Corporate and Other
Adjusted EBIT was a loss of $3 million for the fourth quarter of 2025 compared to a loss of $40 million for the fourth quarter of 2024. The $37 million improvement was primarily the result of:
- lower investments in research, development and our new mobility business;
- an increase in fees received from our divisions;
- lower restructuring costs;
- lower labour and benefit costs;
- higher net transactional foreign exchange gains; and
- lower consulting and legal costs.
These factors were partially offset by higher stock-based compensation.
MAGNA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF INCOME
[Unaudited]
[U.S. dollars in millions, except per share figures]
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Sales $ 10,848 $ 10,628 $ 42,010 $ 42,836
Costs and expenses
Cost of goods sold 9,094 9,073 36,021 37,037
Selling, general and administrative 586 535 2,221 2,061
Depreciation 401 376 1,547 1,510
Amortization of acquired intangible assets 29 28 111 112
Interest expense, net 42 52 209 211
Equity income (47 ) (45 ) (143 ) (101 )
Other expense, net [i] 629 228 736 464
Income from operations before income taxes 114 381 1,308 1,542
Income taxes 111 147 425 446
Net income 3 234 883 1,096
Income attributable to non-controlling interests (4 ) (31 ) (54 ) (87 )
Net (loss) income attributable to Magna International Inc. $ (1 ) $ 203 $ 829 $ 1,009
Earnings per Common Share:
Basic $ -- $ 0.71 $ 2.94 $ 3.52
Diluted $ -- $ 0.71 $ 2.93 $ 3.52
Cash dividends paid per Common Share $ 0.485 $ 0.475 $ 1.940 $ 1.900
Weighted average number of Common Shares outstanding during
the period [in millions]:
Basic 281.2 285.9 281.7 286.8
Diluted 281.2 285.9 282.5 286.9
[i] See "Other expense, net" information included in this Press Release.
MAGNA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
[Unaudited]
[U.S. dollars in millions]
As at As at
December 31, December 31,
2025 2024
ASSETS
Current assets
Cash and cash equivalents $ 1,612 $ 1,247
Accounts receivable 7,593 7,376
Inventories 4,126 4,151
Prepaid expenses and other 407 344
13,738 13,118
Investments 1,103 1,045
Fixed assets, net 9,507 9,584
Operating lease right-of-use assets 1,928 1,941
Intangible assets, net 490 738
Goodwill 2,512 2,674
Other assets 1,275 1,120
Deferred tax assets 864 819
$ 31,417 $ 31,039
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ -- $ 271
Long'term debt due within one year 27 708
Accounts payable 6,895 7,194
Other accrued liabilities 2,745 2,572
Accrued salaries and wages 888 867
Income taxes payable 106 192
Current portion of operating lease liabilities 328 293
10,989 12,097
Long'term debt 4,685 4,134
Operating lease liabilities 1,649 1,662
Long-term employee benefit liabilities 554 533
Other long'term liabilities 399 396
Deferred tax liabilities 302 277
18,578 19,099
Shareholders' equity
Common Shares [issued: 280,242,006; December 31, 2024 - 282,875,928] 3,352 3,359
Contributed surplus 142 149
Retained earnings 9,765 9,598
Accumulated other comprehensive loss (766 ) (1,584 )
12,493 11,522
Non-controlling interests 346 418
12,839 11,940
$ 31,417 $ 31,039
MAGNA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
[Unaudited]
[U.S. dollars in millions]
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Cash provided from (used for):
OPERATING ACTIVITIES
Net income $ 3 $ 234 $ 883 $ 1,096
Items not involving current cash flows 1,152 662 2,368 1,857
1,155 896 3,251 2,953
Changes in operating assets and liabilities 827 1,014 347 681
Cash provided from operating activities 1,982 1,910 3,598 3,634
INVESTING ACTIVITIES
Fixed asset additions (532 ) (709 ) (1,313 ) (2,178 )
Acquisitions -- -- (1 ) (86 )
Increase in investments, other assets and intangible assets (157 ) (207 ) (499 ) (617 )
(Increase) decrease in public and private equity investments (2 ) 10 (8 ) (12 )
Proceeds from dispositions 54 37 121 219
Net cash inflow from disposal of facilities -- -- -- 82
Cash used for investing activities (637 ) (869 ) (1,700 ) (2,592 )
FINANCING ACTIVITIES
Issues of debt 1 11 1,048 778
Decrease in short-term borrowings (437 ) (506 ) (318 ) (182 )
Repayments of debt (311 ) (18 ) (1,397 ) (815 )
Issue of Common Shares on exercise of stock options 2 -- 2 30
Tax withholdings on vesting of equity awards (1 ) (3 ) (5 ) (8 )
Repurchase of Common Shares (86 ) (202 ) (137 ) (207 )
Dividends (135 ) (133 ) (544 ) (539 )
Dividends paid to non-controlling interests (19 ) (10 ) (59 ) (46 )
Acquisition of non-controlling interest (82 ) -- (122 ) --
Cash used for financing activities (1,068 ) (861 ) (1,532 ) (989 )
Effect of exchange rate changes on cash and cash equivalents 8 6 (1 ) (4 )
Net increase in cash, cash equivalents during the period 285 186 365 49
Cash and cash equivalents, beginning of period 1,327 1,061 1,247 1,198
Cash and cash equivalents, end of period $ 1,612 $ 1,247 $ 1,612 $ 1,247
MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]
OTHER EXPENSE, NET
Other expense, net consists of significant items such as: impairment charges; restructuring costs generally related to significant plant closures or consolidations; net losses (gains) on investments; gains or losses on disposal of facilities or businesses; and other items not reflective of ongoing operating profit or loss. For the years ended December 31, 2025 and 2024, Other expense, net consists of:
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Impairment of assets [a] $ 615 $ 79 $ 615 $ 79
Restructuring activities [b] 15 94 118 187
Investments [c] (1 ) 3 3 9
Impacts related to Fisker Inc. ["Fisker"] [d] -- 52 -- 198
Gain on business combination [e] -- -- -- (9 )
$ 629 $ 228 $ 736 $ 464
[a] Impairment of assets
During 2025, the Company concluded that indicators of impairment were present for finite-lived intangible assets and goodwill in the Electronics reporting unit within the Power & Vision segment. The conclusion was based on lower than expected sales and reduced volume projections, reflecting slower growth relative to expectations. Contributing factors include OEM delays in sourcing cycles as they reassess vehicle architectures, as well as a change in market dynamics in China. Accordingly, the Company undertook impairment analyses to determine the fair value of the finite-lived intangible assets and goodwill utilizing estimated discounted cash flows to derive fair values. Based on the analyses, the carrying value of the reporting unit's finite-lived intangible assets exceeded fair value by $212 million, and the carrying value of net assets exceeded the fair value of the reporting unit by $379 million. As a result, the Company recorded a $591 million [$554 million after tax] non-cash impairment charge. The finite-lived intangible asset impairment charges included $158 million related to patents and technology, and $54 million related to customer relationship intangibles. The inputs utilized in the analyses are classified as Level 3 inputs within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement" and primarily consist of expected revenues and costs, estimated production volumes, future growth rates and the appropriate discount rates (based on weighted average cost of capital).
During 2025, the Company also recorded an impairment charge of $24 million [$24 million after tax] on fixed assets and other assets at a European facility in its Body Exteriors & Structures segment.
During 2024, the Company recorded an impairment charge of $79 million [$79 million after tax] on fixed assets, right of use assets and intangible assets at two European facilities in its Power & Vision segment.
MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]
OTHER EXPENSE, NET (CONTINUED)
[b] Restructuring activities
The Company recorded restructuring charges related to significant plant closures and consolidations primarily in Europe and to a lesser extent in North America and Asia Pacific.
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Complete Vehicles $ 13 $ 29 $ 58 $ 55
Body Exteriors & Structures 9 16 9 28
Power & Vision (7 ) 49 51 104
Other expense, net 15 94 118 187
Tax effect -- (12 ) (4 ) (28 )
Net loss attributable to Magna $ 15 $ 82 $ 114 $ 159
[c] Investments
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Net revaluation of public and private equity investments $ (1 ) $ 1 $ (4 ) $ 13
Non-cash impairment charge [i] -- 13 2 13
Revaluation (gain) loss on public company warrants -- (11 ) 8 (17 )
Sale of public equity investments -- -- (3 ) --
Other (income) expense, net (1 ) 3 3 9
Tax effect -- 3 1 3
Net (gain) loss attributable to Magna $ (1 ) $ 6 $ 4 $ 12
[i] The non-cash impairment charge relates to the impairment of a private equity investment.
MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]
OTHER EXPENSE, NET (CONTINUED)
[d] Impacts related to Fisker
During 2024, Fisker filed for Chapter 11 bankruptcy protection in the United States and for similar protection in Austria. As a result, the Company recorded impairment charges on its Fisker related net assets and supplier related settlements, including its Fisker warrants, which were received in connection with the agreements with Fisker for platform sharing, engineering and manufacturing of the Fisker Ocean SUV. The Company also recorded additional restructuring charges during 2024 related to its Fisker related assembly operations. In the course of such bankruptcy proceedings, the Company terminated its manufacturing agreement for the Fisker Ocean SUV and recognized the remaining $196 million of deferred revenue into income.
Three months ended Year ended
December 31, December 31,
2025 2024 2025