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 was up 7% and free cash flow improved by $178 million.
Operational Excellence
Magna's operational excellence initiatives contributed positively to margins. They are expected to drive further improvements into 2026.
Recognition and Awards
Magna received the J.D. Power Platinum Plant Quality Award for their vehicle assembly operation in Graz, Austria, and the Volkswagen Group Award for an innovative battery cover for VW's all-electric platform.
Capital Returns
Returned $137 million to shareholders in dividends during Q2, bringing the year-to-date return of capital to $324 million.
Successful Tariff Mitigation
Annualized tariff exposure reduced to $200 million from $250 million. Settled with multiple OEMs for 2025 net tariff exposure.