Magna Announces Fourth Quarter 2025 Results and Provides 2026 Outlook

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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.

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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		2024

		Impairment and supplier related settlements	$	—	$	43		$	—	$	330
		Impairment of Fisker Warrants		—		—			—		33
		Additional restructuring related to Complete Vehicles		—		9			—		31
		Recognition of deferred revenue		—		—			—		(196	)
		Other expense, net		—		52			—		198
		Tax effect		—		(13	)		—		(37	)
		Net loss attributable to Magna	$	—	$	39		$	—	$	161

	[e]	Gain on business combination

		During 2024, the Company acquired a business in the Body Exteriors & Structures segment for $5 million, which resulted in a bargain purchase gain of $9 million [$9 million after tax].

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MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]

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CONTINGENCIES

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From time to time, the Company may become involved in regulatory proceedings, or become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees, class action plaintiffs and others. On an ongoing basis, the Company attempts to assess the likelihood of any adverse judgments or outcomes to these proceedings or claims, together with potential ranges of probable costs and losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters.

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In the first quarter of 2025, management identified a potential exposure related to the reassessment of certain prior tax periods. This was a result of the proposed retroactive application of a 2023 judicial decision to tax periods prior to the date of the ruling within a jurisdiction in which the Company operates. This exposure pertained to previously claimed refundable value added tax amounts, as well as associated interest, penalties, and other charges. During the third quarter, the Company negotiated a resolution to this matter and paid an amount during the fourth quarter, which is not considered material.

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In December 2023, the Company received a notification [the “Notification Letter”] from Ford Motor Company [“Ford”] informing the Company as to its initial determination that one of the Company’s operating groups bore responsibility for costs totaling $352 million related to two product recalls. The Notification Letter triggered negotiations regarding financial allocation of the total costs for the two recalls. During the fourth quarter, the Company reached a commercial resolution with respect to this matter, which resulted in a payment to the customer of $132 million.

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In the third quarter of 2025, Ford initiated recalls covering approximately 3.8 million vehicles equipped with rearview cameras or image processing modules supplied by the Company. Ford also announced a new 15-year extended warranty program for up to approximately 14.9 million vehicles also equipped with rearview cameras supplied by us. Ford is claiming approximately $288 million in costs related to these recalls and warranty claims. Additional recalls and/or extended warranty programs remain possible. The Company is in technical and commercial discussions with Ford, however, at this time, root cause determinations have not been made and/or confirmed for the vehicles covered by Ford’s recalls and warranty extension program. Even after root cause(s) have been determined, other challenges make it difficult to fully quantify the Company’s potential financial exposure, if any. These challenges include: integration with other vehicle systems and non-camera components; the age of affected vehicles; duration of the original warranty; number of affected vehicles brought to Ford dealers for inspection; and dealer discretion to determine the nature of the remedy to be applied, which may range from software upgrades, inspection of the rearview camera and other components, repairs, or replacement of the rearview camera. In the absence of certainty as to the scope of potentially affected vehicles, the root cause(s) of the alleged product failures, and/or the related costs of service actions, the Company is unable to fully estimate its potential exposure, if any, for recall-related costs and the extension of product warranties by Ford to affected vehicle owners. If the Company is determined to be fully or partially responsible for defective rearview cameras, the related recall and extended warranty costs could be material to the Company’s profitability in the period(s) in which such costs are recognized or provided for.

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As a result of the bankruptcy of Fisker, Inc., owners of Fisker Ocean SUVs have asserted claims for alleged vehicle defects and breaches of state “lemon laws” against J.P. Morgan Chase, N.A. [“Chase”], the direct financer of approximately 2,000 such vehicles in the United States. Chase has indicated that it will seek indemnification from the Company, as contract manufacturer, for damages and legal costs incurred with the resolution of these claims. As the number, details and amount of these claims are all currently unknown, it is too early to determine the Company’s potential liability, if any, at this time.

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MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]

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SEGMENTED INFORMATION

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Magna is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mirrors & lighting, mechatronics, and roof systems.

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The Company is organized under four operating segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. These segments have been determined on the basis of technological opportunities, product similarities, market and operating factors, and are also the Company’s reportable segments.

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The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker uses Adjusted Earnings before Interest and Income Taxes [“Adjusted EBIT”] as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. The chief operating decision maker uses Adjusted EBIT to assess operating performance, allocate resources, and to help plan the Company’s long-term strategic direction and future global growth. Adjusted EBIT is calculated by taking Net income and adding back Amortization of acquired intangible assets, Income taxes, Interest expense, net and Other expense, net.

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The following tables show segment information for the Company’s reporting segments: See Non-GAAP Financial Measures section for a reconciliation of Adjusted EBIT to the Company’s consolidated net income.

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	Three months ended December 31, 2025
														Fixed
	Total			External		Adjusted					Equity			asset
	sales			sales		EBIT ^[ii]			Depreciation		income			additions
Body Exteriors & Structures	$	4,252		$	4,188	$	465		$	193	$	—		$	262
Power & Vision		3,841			3,772		166			154		(39	)		199
Seating Systems		1,633			1,623		136			25		(5	)		34
Complete Vehicles		1,261			1,255		50			21		(3	)		25
Corporate & Other ^[i]		(139	)		10		(3	)		8		—			12
Total Reportable Segments	$	10,848		$	10,848	$	814		$	401	$	(47	)	$	532

	Three months ended December 31, 2024
											Equity			Fixed
	Total			External		Adjusted					(income)			asset
	sales			sales		EBIT ^[ii]			Depreciation		loss			additions
Body Exteriors & Structures	$	4,067		$	3,999	$	371		$	183	$	(2	)	$	435
Power & Vision		3,786			3,716		235			141		(33	)		201
Seating Systems		1,511			1,509		67			25		(9	)		46
Complete Vehicles		1,402			1,395		56			20		(2	)		22
Corporate & Other ^[i]		(138	)		9		(40	)		7		1			5
Total Reportable Segments	$	10,628		$	10,628	$	689		$	376	$	(45	)	$	709

	Year ended December 31, 2025
														Fixed
	Total			External		Adjusted					Equity			asset
	sales			sales		EBIT ^[ii]			Depreciation		income			additions
Body Exteriors & Structures	$	16,618		$	16,373	$	1,347		$	759	$	(4	)	$	615
Power & Vision		15,198			14,901		688			581		(96	)		522
Seating Systems		5,898			5,882		210			103		(35	)		90
Complete Vehicles		4,848			4,817		151			73		(6	)		61
Corporate & Other ^[i]		(552	)		37		(32	)		31		(2	)		25
Total Reportable Segments	$	42,010		$	42,010	$	2,364		$	1,547	$	(143	)	$	1,313

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MAGNA INTERNATIONAL INC. SUPPLEMENTAL DATA [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]

SEGMENTED INFORMATION (CONTINUED)

		Year ended December 31, 2024
												Equity			Fixed
		Total			External		Adjusted					(income)			asset
		sales			sales		EBIT ^[ii]			Depreciation		loss			additions
Body Exteriors & Structures		$	16,999		$	16,745	$	1,283		$	731	$	(4	)	$	1,338
Power & Vision			15,391			15,132		810			572		(70	)		644
Seating Systems			5,800			5,787		223			98		(24	)		112
Complete Vehicles			5,186			5,155		130			83		(7	)		59
Corporate & Other ^[i]			(540	)		17		(117	)		26		4			25
Total Reportable Segments		$	42,836		$	42,836	$	2,329		$	1,510	$	(101	)	$	2,178

^[i]	Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.

^[^ii]	Other segment items constitute the difference between External sales by segment and Adjusted EBIT by segment, and are comprised of cost of goods sold, selling, general, and administrative expenses, depreciation, and equity income. The chief operating decision maker uses consolidated expense information as included within Adjusted EBIT to manage segment operations.

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NON-GAAP FINANCIAL MEASURES

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In addition to the financial results reported in accordance with U.S. GAAP, this press release contains references to the Non-GAAP financial measures reconciled below. We believe the Non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations, and to improve comparability between fiscal periods. In particular, management believes that Adjusted EBIT and Adjusted diluted earnings per share are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance. Management also believes that Free Cash Flow is a useful measure in assessing the Company’s ability to generate cash to maintain operations and repay its debt. The presentation of Non-GAAP financial measures should not be considered in isolation, or as a substitute for the Company’s related financial results prepared in accordance with U.S. GAAP.

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The following table reconciles Net income to Adjusted EBIT:

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	Three months ended				Year ended
	December 31,				December 31,
		2025		2024		2025		2024

Net income	$	3	$	234	$	883	$	1,096
Add:
Amortization of acquired intangible assets		29		28		111		112
Interest expense, net		42		52		209		211
Other expense, net		629		228		736		464
Income taxes		111		147		425		446
Adjusted EBIT	$	814	$	689	$	2,364	$	2,329

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MAGNA INTERNATIONAL INC.
SUPPLEMENTAL DATA
[Unaudited]
[All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted]

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NON-GAAP FINANCIAL MEASURES (CONTINUED)

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The following table reconciles Net (loss) income attributable to Magna International Inc. to Adjusted diluted earnings per share:

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		Three months ended						Year ended
		December 31,						December 31,
			2025			2024			2025			2024

Net (loss) income attributable to Magna International Inc.		$	(1	)	$	203		$	829		$	1,009
Add (deduct):
Amortization of acquired intangible assets			29			28			111			112
Tax effect on Amortization of acquired intangible assets			(3	)		(6	)		(18	)		(23	)
Other expense, net			629			228			736			464
Tax effect on Other expense, net			(37	)		(22	)		(40	)		(62	)
Adjustments to Deferred Tax Valuation Allowances ^[i]			—			51			—			51
Adjusted net income attributable to Magna International Inc.		$	617		$	482		$	1,618		$	1,551

Diluted weighted average number of Common Shares
outstanding during the period (millions):			281.2			285.9			282.5			286.9
Adjusted Dilutive impact of stock option and share awards ^[ii]			1.5			—			—			—
Adjusted diluted weighted average number of Common Shares outstanding during the period (millions):			282.7			—			282.5			—

Adjusted diluted earnings per share		$	2.18		$	1.69		$	5.73		$	5.41

^[i]	The Company records quarterly adjustments to the valuation allowance against its deferred tax assets in continents like North America, Europe, Asia, and South America. The net effect of these adjustments is a reduction to income tax expense. [‘‘Adjustments to Deferred Tax Valuation Allowance’’].

^[ii]	During the fourth quarter of 2025, the Company generated Adjusted net Income attributable to Magna International Inc. while reporting a net loss attributable to Magna International Inc. As a result, certain stock‑based compensation awards are dilutive for adjusted diluted earnings per share and are included in the adjusted diluted weighted average number of Common Shares outstanding. The dilutive impact was determined using the treasury stock method.

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The following table reconciles Cash provided from operating activities to Free Cash Flow:

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	Three months ended						Year ended
	December 31,						December 31,
		2025			2024			2025			2024

Cash provided from operating activities	$	1,982		$	1,910		$	3,598		$	3,634
Add (deduct):
Fixed asset additions		(532	)		(709	)		(1,313	)		(2,178	)
Increase in investment, other assets, and intangible assets		(157	)		(207	)		(499	)		(617	)
Proceeds from dispositions		54			37			121			219
Free Cash Flow	$	1,347		$	1,031		$	1,907		$	1,058

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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.

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This press release, together with our Management’s Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements, are 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+) which can be accessed at www.sedarplus.ca as well as on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.

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We will hold a conference call for interested analysts and shareholders to discuss our year ended December 31, 2025 results and 2026 Outlook on Friday, February 13, 2026 at 8:00 a.m. ET. The conference call will be chaired by Swamy Kotagiri, Chief Executive Officer. The number to use for this call from North America is 1-800-715-9871. International callers should use 1-646-307-1963. Please call in at least 10 minutes prior to the call start time. We will also webcast the conference call at www.magna.com. The slide presentation accompanying the conference call as well as our financial review summary will be available on our website Friday prior to the call.

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TAGS: Quarterly earnings, full year results, outlook, financial results, vehicle production

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INVESTOR CONTACT
Louis Tonelli, Vice-President, Investor Relations
[email protected] │ 905.726.7035

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MEDIA CONTACT
Tracy Fuerst, Vice-President, Corporate Communications & PR
[email protected] │ 248.761.7004

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TELECONFERENCE CONTACT
Nancy Hansford, Executive Assistant, Investor Relations
[email protected] │ 905.726.7108

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ABOUT MAGNA
Magna is one of the world’s largest automotive suppliers and a trusted partner to automakers in the industry’s most critical markets—North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle systems to deliver performance, safety, and quality.

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For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.

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FORWARD-LOOKING STATEMENTS

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Certain statements in this press release constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”). Any such forward-looking statements are intended to provide information about management’s current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as “may”, “would”, “could”, “should”, “will”, “likely”, “expect”, “anticipate”, “assume”, “believe”, “intend”, “plan”, “aim”, “forecast”, “outlook”, “project”, “potential”, “estimate”, “target” and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table:

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Material Forward-Looking Statement	Material Potential Risks Related to Applicable Forward-Looking Statement
Light Vehicle Production	Light vehicle sales levels, including due to: A decline in consumer confidence Economic uncertainty Elevated interest rates and availability of consumer credit Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour
Total Sales Segment Sales	Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Customer concentration Pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions and growth of Chinese OEMs Shifts in market shares among vehicles or vehicle segments Shifts in consumer “take rates” for products we sell Relative currency values
Adjusted EBIT Margin Adjusted Diluted EPS Free Cash Flow	Same risks as for Total Sales and Segment Sales above Execution of critical program launches Operational underperformance Product warranty/recall risks Production inefficiencies Unmitigated incremental tariff costs Restructuring costs and/or impairment charges Inflation Ability to secure planned cost recoveries from our customers and/or otherwise offset higher input costs Price concessions Commodity cost volatility Scrap steel price volatility
Equity Income	Same risks as Adjusted EBIT Margin above Risks related to conducting business through joint ventures Risks of doing business in foreign markets Legal and regulatory proceedings Changes in law
Share Repurchases Weighted Average Diluted Shares Outstanding	Same risks impacting Free Cash Flow above Ability to repurchase shares for cancellation, including due to normal course issuer bid rules, trading blackouts, and other factors

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Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions, and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:

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Macroeconomic, Geopolitical and Other Risks

consumer confidence levels;
geopolitical risks;
threats to free trade agreements;
international trade disputes;
planning and forecasting challenges;
interest rates and availability of consumer credit;

Risks Related to the Automotive Industry

pace of EV adoption;
North American EV program deferrals, cancellations and volume reductions;
economic cyclicality;
regional production volumes;
deteriorating vehicle affordability;
intense competition;

Strategic Risks

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 Chinese OEMs;
dependence on outsourcing;
consumer take rate shifts;
customer purchase orders;
potential OEM production-related disruptions;

Supply Chain Risks

semiconductor chip supply disruptions and price increases;
supply base;
supplier claims;
supply chain disruptions;
regional energy supply and pricing;

Manufacturing/Operational Risks

product launch;
operational underperformance;
restructuring costs and impairment charges;
skilled labour attraction/retention;

Pricing Risks

quote/pricing assumptions;
customer pricing pressure/contractual arrangements;
commodity price volatility;
scrap steel/aluminum price volatility;

Warranty/Recall Risks

repair/replacement costs;
warranty provisions;
product liability;

IT Security/Cybersecurity Risks

IT/cybersecurity breach;
product cybersecurity;

Other Business Risks

joint ventures;
intellectual property;
risks of doing business in foreign markets;
tax risks;
relative foreign exchange rates;
returns on capital investments;
financial flexibility;
credit ratings changes;
stock price fluctuation;

Legal, Regulatory and Other Risks

legal and regulatory proceedings, and;
changes in laws.

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In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:

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discussed under the “Industry Trends and Risks” heading of our Management’s Discussion and Analysis; and
set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.

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Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form. Additional information about Magna, including our Annual Information Form, is available through the System for Electronic Data Analysis and Retrieval + (SEDAR+) at www.sedarplus.ca, as well as on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.

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