The earnings call reflects a strong second quarter performance with improvements in key financial metrics such as EBIT and EPS, alongside successful cost and tariff management. However, challenges remain with declining sales and necessary adjustments in production forecasts due to market dynamics.

Company Guidance

During the Magna International Second Quarter 2025 results call, the company highlighted several key metrics and updated guidance for the fiscal year. Adjusted EBIT increased by 1% compared to the previous year, with an EBIT margin improvement of 20 basis points despite a 40 basis point negative impact from tariffs not yet recovered. Adjusted diluted EPS rose by 7%, and free cash flow improved by $178 million. The company raised its sales outlook, driven by foreign currency translation and a better-than-expected program mix. Magna reduced its estimated annualized tariff exposure from $250 million to $200 million and reported returning $137 million to shareholders in dividends during the second quarter, with a year-to-date total of $324 million. The company plans to generate approximately 35% of its full-year EBIT in the fourth quarter, supported by commercial recoveries, lower engineering spend, and operational excellence activities. Despite industry uncertainties, Magna remains confident in its outlook, with a focus on cost discipline and capital allocation strategy.

Strong Financial Performance

Adjusted EBIT increased by 1% and EBIT margin improved by 20 basis points despite a 40 basis point negative impact from tariffs. Adjusted diluted EPS rose 7% and free cash flow improved by $178 million.

Increased Annual Outlook

Magna raised the low end of their adjusted EBIT margin range and increased adjusted net income expectations, largely due to higher expected adjusted EBIT and a lower effective income tax rate.

Operational Achievements

Magna's assembly operation in Graz, Austria won the J.D. Power Platinum Plant Quality Award. Additionally, Magna received the Volkswagen Group Award for developing an innovative battery cover.

Successful Cost Mitigation

Annualized tariff exposure reduced to $200 million from $250 million, with settlements covering substantial 2025 net tariff exposure.

Shareholder Returns

Returned $137 million to shareholders in dividends in Q2, with a year-to-date return of capital totaling $324 million.

Magna International (MGA) Earnings, Revenues Date & History

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MGA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 31, 2025	2025 (Q3)	1.19 / -	1.287	―	―	―
Aug 01, 2025	2025 (Q2)	1.15 / 1.43	1.352	6.15% (+0.08)
May 02, 2025	2025 (Q1)	0.85 / 0.78	1.067	-27.29% (-0.29)
Feb 14, 2025	2024 (Q4)	1.57 / 1.73	1.293	33.74% (+0.44)
Nov 01, 2024	2024 (Q3)	1.39 / 1.29	1.442	-10.72% (-0.15)
Aug 02, 2024	2024 (Q2)	1.42 / 1.35	1.448	-6.64% (-0.10)
May 03, 2024	2024 (Q1)	1.18 / 1.07	1.078	-1.01% (-0.01)
Feb 09, 2024	2023 (Q4)	1.42 / 1.29	0.878	47.33% (+0.42)
Nov 03, 2023	2023 (Q3)	1.32 / 1.44	1.046	37.85% (+0.40)
Aug 04, 2023	2023 (Q2)	1.18 / 1.45	0.769	88.35% (+0.68)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

MGA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 01, 2025	$40.56	$40.87	+0.76%
May 02, 2025	$34.17	$32.27	-5.56%
Feb 14, 2025	$38.21	$36.46	-4.58%
Nov 01, 2024	$37.61	$39.99	+6.33%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.