Fourth Quarter 2024 Highlights
- Sales increased 2% to $10.6 billion, in-line with global light vehicle production
- Diluted earnings per share of $0.71 and Adjusted diluted earnings per share of $1.69, compared to $0.94 and $1.33, respectively
- Generated $1.9 billion in cash from operating activities
- Returned $335 million to shareholders through dividends and share repurchases
- Raised quarterly cash dividend to $0.485 per share, marking our 15th consecutive year of fourth quarter increases
- 2025 Sales expected to be between $38.6 billion and $40.2 billion, mainly reflecting negative impacts of foreign currency translation, lower light vehicle production and end of production of Jaguar assembly programs
- 2025 Adjusted EBIT Margin expected to be between 5.3% and 5.8%
- Capital spending projected to normalize to historical levels beginning in 2025
- 2026 Sales expected to grow from 2025 to between $40.5 billion and $42.6 billion
- 2026 Adjusted EBIT Margin expected to expand to a range of 6.5%-7.2%
- Expect Free Cash Flow of $1.5 billion or more by 2026
 | "In 2024, we successfully drove margin expansion and increased cash flow generation through deliberate actions related to operational excellence, restructuring, reduced capital spending, and commercial recoveries. We achieved this despite continued industry headwinds, including lower vehicle volumes in key markets.
As we begin 2025, we remain focused on multiple activities to drive further margin expansion, strong free cash flow generation and increased return on investment.” - Swamy Kotagiri, Magna's Chief Executive Officer |
| THREE MONTHS ENDED
DECEMBER 31, | YEAR ENDED DECEMBER 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reported | ||||||||||||||||
| Sales | $ | 10,628 | $ | 10,454 | $ | 42,836 | $ | 42,797 | ||||||||
| Income from operations before income taxes | $ | 381 | $ | 310 | $ | 1,542 | $ | 1,606 | ||||||||
| Net income attributable to | ||||||||||||||||
| Magna International Inc. |
$ | 203 |
$ | 271 | $ | 1,009 | $ | 1,213 | ||||||||
| Diluted earnings per share | $ | 0.71 | $ | 0.94 | $ | 3.52 | $ | 4.23 | ||||||||
| Non-GAAP Financial Measures(1) | ||||||||||||||||
| Adjusted EBIT | $ | 689 | $ | 558 | $ | 2,329 | $ | 2,238 | ||||||||
| Adjusted diluted earnings per share | $ | 1.69 | $ | 1.33 | $ | 5.41 | $ | 5.49 | ||||||||
| All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars. | ||||||||||||||||
| (1) Adjusted EBIT and Adjusted diluted earnings per share 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. | ||||||||||||||||
We posted sales of $10.6 billion for the fourth quarter of 2024, an increase of 2% over the fourth quarter of 2023, which compares to global light vehicle production that also increased 2%, including 2% and 10% higher production in North America and China, respectively, partially offset by 6% lower production in Europe. The increase in sales was primarily due to:
- the launch of new programs during or subsequent to the fourth quarter of 2023;
- higher engineering revenue;
- the negative impact of the UAW labour strikes, which decreased fourth quarter 2023 sales by approximately $275 million; and
- commercial items in the fourth quarters of 2024 and 2023, which had a net favourable impact on a year-over-year basis.
- lower production on certain programs;
- the end of production of certain programs;
- lower complete vehicle assembly volumes, including on the Jaguar E-Pace and the end of production of the Fisker Ocean;
- divestitures during 2024, which reduced sales by $62 million;
- the net weakening of foreign currencies against the U.S. dollar, which decreased reported U.S. dollar sales by $43 million; and
- net customer price concessions.
- commercial items in the fourth quarters of 2024 and 2023, which had a net favourable impact on a year-over-year basis, including the negative impact of a settlement with a supplier during the fourth quarter of 2024;
- productivity and efficiency improvements, including lower costs at certain underperforming facilities;
- the negative impact of the UAW labour strikes during the fourth quarter of 2023;
- higher equity income;
- higher engineering margin on higher engineering sales; and
- higher net transactional foreign exchange gains in the fourth quarter of 2024 compared to the fourth quarter of 2023.
- reduced earnings on lower sales;
- higher production input costs, net of customer recoveries;
- lower tooling contribution;
- higher net warranty costs of $29 million;
- reduced earnings on lower assembly volumes;
- provisions related to the insolvency of two Chinese OEMs during the fourth quarter of 2024; and
- higher restructuring costs.
Income from operations before income taxes increased to $381 million for the fourth quarter of 2024 compared to $310 million in the fourth quarter of 2023. Excluding Other expense, net and Amortization of acquired intangibles from both periods, income from operations before income taxes increased $132 million in the fourth quarter of 2024 compared to the fourth quarter of 2023, largely reflecting the increase in Adjusted EBIT.
Net income attributable to Magna International Inc. was $203 million for the fourth quarter of 2024 compared to $271 million in the fourth quarter of 2023. Excluding Other expense, net, after tax, Amortization of acquired intangibles and Adjustments to Deferred Tax Valuation Allowances from both periods, net income attributable to Magna International Inc. increased $99 million in the fourth quarter of 2024 compared to the fourth quarter of 2023.
Diluted earnings per share were $0.71 in the fourth quarter of 2024, compared to $0.94 in the comparable period. Adjusted diluted earnings per share were $1.69, up $0.36 from $1.33 for the fourth quarter of 2023.
In the fourth quarter of 2024, we generated cash from operations before changes in operating assets and liabilities of $896 million and generated $1.01 billion in operating assets and liabilities. Investment activities included $709 million in fixed asset additions and $207 million in investments, other assets and intangible assets.
(2) Other expense, net is comprised of Fisker Inc. ["Fisker”] related impacts (restructuring and impairment of assembly and production assets, the impairment of Fisker warrants, and the recognition of previously deferred revenue), revaluations of certain public company warrants and equity investments, restructuring activities, asset impairments and a gain on business combination, during the three and twelve months ended December 31, 2023 & 2024. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.
YEAR ENDED DECEMBER 31, 2024
We posted sales of $42.8 billion for the year ended December 31, 2024, compared to $42.8 billion for the year ended December 31, 2023, a period in which global light vehicle production was substantially unchanged. Factors positively impacting sales include:
- the launch of new programs during or subsequent to 2023;
- acquisitions, net of divestitures, during or subsequent to 2023, which increased sales by $468 million;
- the negative impact of the UAW labour strikes, which decreased 2023 sales by approximately $325 million;
- higher engineering revenue;
- commercial items in 2024 and 2023, which had a net favourable impact on a year-over-year basis; and
- customer price increases to partially recover certain higher production input costs.
- lower production on certain programs;
- the end of production of certain programs;
- lower complete vehicle assembly volumes, including the end of production of the BMW 5-Series and Jaguar E-Pace;
- the net weakening of foreign currencies against the U.S. dollar, which decreased reported U.S. dollar sales by $151 million; and
- net customer price concessions.
- commercial items in 2024 and 2023, which had a net favourable impact on a year-over-year basis, including the negative impact of a settlement with a supplier during the fourth quarter of 2024;
- productivity and efficiency improvements, including lower costs at certain underperforming facilities;
- the negative impact of the UAW labour strikes during 2023; and
- lower net engineering costs, including spending related to our electrification and active safety business.
- reduced earnings on lower assembly volumes;
- higher production input costs net of customer recoveries;
- reduced earnings on lower sales;
- higher net warranty costs of $61 million;
- higher restructuring costs; and
- acquisitions, net of divestitures, during and subsequent to 2023.
During the year ended December 31, 2024, Adjusted diluted earnings per share decreased 1% to $5.41, compared to the year ended December 31, 2023.
During the year ended December 31, 2024, we generated cash from operations before changes in operating assets and liabilities of $2.95 billion and generated $681 million in operating assets and liabilities. Investment activities included $2.18 billion in fixed asset additions, a $617 million increase in investments, other assets and intangible assets, $86 million for acquisitions and $12 million in public and private equity investments.
RETURN OF CAPITAL TO SHAREHOLDERS AND OTHER MATTERS
We paid dividends of $133 million and $539 million for the three months and year ended December 31, 2024, respectively. In addition, we repurchased 4.6 million shares for $202 million and 4.7 million shares for $207 million, respectively, for the three months and year ended December 31, 2024.
Our Board of Directors declared a fourth quarter dividend of $0.485 per Common Share. This represents a 2% higher dividend, and our 15th consecutive year of fourth quarter dividend increases. The dividend is payable on March 14, 2025 to shareholders of record as of the close of business on February 28, 2025.
Our Board appointed Peter Sklar as an independent director. With nearly four decades of experience as a top-ranked equity research analyst at BMO Capital Markets, Peter brings extensive expertise in the automotive and investment sectors.
2025 AND 2026 OUTLOOK
We typically provide Outlooks for the current year and two years hence. Recently, a number of industry challenges, including light vehicle production volatility, uncertain electric vehicle take-rates, OEM program recalibration actions, market share shifts and uncertain government policies have made forward-forecasting more difficult. As a result, we are providing a current year Outlook and, since we provided a 2026 Outlook last year, an updated 2026 Outlook.
Our current year Outlook is provided annually, with quarterly updates; our 2026 Outlook is provided below, but will not be updated quarterly. Our outlook does not incorporate any potential impact of the imposition of tariffs or changes in tariff rates, or any material unannounced acquisitions or divestitures.
2025 and 2026 Outlook Assumptions
| 2025 | 2026 | |||||||
| Light Vehicle Production (millions of units) | ||||||||
| North America | 15.1 | 15.4 | ||||||
| Europe | 16.6 | 17.0 | ||||||
| China | 29.7 | 30.8 | ||||||
| Average Foreign exchange rates: | ||||||||
| 1 Canadian dollar equals | U.S. $0.69 | U.S. $0.69 | ||||||
| 1 euro equals | U.S. $1.03 | U.S. $1.03 | ||||||
| 2025 | 2026 | |||||||
| Segment Sales | ||||||||
| Body Exteriors & Structures | $15.7 - $16.3 billion | $16.8 - $17.6 billion | ||||||
| Power & Vision | $14.1 - $14.5 billion | $15.2 - $15.7 billion | ||||||
| Seating Systems | $5.3 - $5.6 billion | $5.3 - $5.7 billion | ||||||
| Complete Vehicles | $4.0 - $4.3 billion | $3.7 - $4.1 billion | ||||||
| Total Sales | $38.6 - $40.2 billion | $40.5 - $42.6 billion | ||||||
| Adjusted EBIT Margin(3) | 5.3% - 5.8% | 6.5% - 7.2% | ||||||
| Equity Income (included in EBIT) | $60 - $90 million | $65 - $110 million | ||||||
| Interest Expense, net | Approximately $210 million | |||||||
| Income Tax Rate(4) | Approximately 25% | |||||||
| Adjusted Net Income attributable to Magna(5) | $1.3 - $1.5 billion | |||||||
| Capital Spending | Approximately $1.8 billion | |||||||
| 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) The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation. (5) Adjusted Net income attributable to Magna represents Net income excluding Other expense, net and Amortization of acquired intangible assets, net of tax. | ||||||||
KEY DRIVERS OF OUR BUSINESS
Our operating results are primarily dependent on the levels of North American, European, and Chinese car and light truck production by our customers. While we supply systems and components to every major original equipment manufacturer ("OEM"), 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.
OEM production volumes are generally 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: labour disruptions; free trade arrangements and tariffs; relative currency values; commodities prices; supply chains and infrastructure; 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; uncertainty as to consumer acceptance of EVs; government subsidies to consumers for the purchase of low- and zero-emission vehicles; 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, | |||||||||||||||