Strong Q4 Financial Performance
Q4 sales of $10,800,000,000, up 2% year-over-year (or down ~1% on a constant-currency basis); Q4 adjusted EBIT margin expanded 100 basis points to 7.5%; Q4 adjusted EBIT rose 18% to $814,000,000; Q4 adjusted EPS was $2.18, up 29%.
Robust Full-Year Cash Generation
Fiscal 2025 operating cash flow of $3,600,000,000 and free cash flow of $1,900,000,000 (increase of $849,000,000 year-over-year); free cash flow ~120% of adjusted net income; Q4 free cash flow > $1,300,000,000.
Margin Expansion and Operational Excellence
Third consecutive year of adjusted EBIT margin expansion: FY adjusted EBIT margin up 20 basis points to 5.6%; company expects an additional 35–40 basis points of operational-excellence benefit in 2026 and cumulative ~200 basis points from 2023–2026; unified digital architecture now covers ~80% of divisions and is driving measurable productivity and cost improvements.
Strong Balance Sheet and Capital Returns
Year-end liquidity of $5,100,000,000 including $1,600,000,000 cash on hand; leverage ~1.58x (rating-agency adjusted debt/EBITDA) with plan to be below 1.5x in 2026; returned ~ $700,000,000 to shareholders in FY2025 (dividends and buybacks); increased quarterly dividend by $0.01 (16th consecutive annual increase) and plans to repurchase ~22,000,000 shares under NCIB in 2026.
Positive 2026 Outlook with Margin and EPS Upside
2026 guidance implies sales near flat to +3.5% vs. 2025 (Magna-weighted production ~ -1%); adjusted EBIT margin guidance 6.0%–6.6% (40–100 bps expansion); adjusted EPS outlook $6.25–$7.25; free cash flow guidance $1,600,000,000–$1,800,000,000 with CapEx below 4% of sales.
Commercial Wins, Technology Partnerships and Awards
Hit annual bookings targets across multiple product areas; 2028 business ~90% secured; strengthened collaboration with NVIDIA on AI-powered active safety; record 151 customer awards for quality and operating performance; recognized in external rankings for ethical and admired companies.