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Magna Q2 Earnings Surpass Expectations, Guidance Revised
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Key Takeaways
MGA posted Q2 EPS of $1.44, beating estimates and rising from $1.35 a year earlier.
Revenues dipped 3% to $10.63B, but topped expectations on segmental strength and efficiency gains.
MGA raised its 2025 revenue and income outlook, while trimming capex forecast to $1.6-$1.7B.
Magna International (MGA - Free Report) reported second-quarter 2025 adjusted earnings of $1.44 per share, which rose from the year-ago quarter’s $1.35, beating the Zacks Consensus Estimate of $1.19.
Net sales decreased 3% year over year to $10.63 billion but surpassed the Zacks Consensus Estimate of $10.41 billion.
Magna International Inc. Price, Consensus and EPS Surprise
The Body Exteriors & Structures segment’s revenues were $4.25 billion, down 5% year over year. This was due to lower light vehicle production and the end of production of certain programs, divestitures and customer price concessions. The figure also missed the Zacks Consensus Estimate of $4.28 billion. The segment reported an adjusted EBIT of $347 million, up from $341 million recorded in the year-ago period. The metric also topped the Zacks Consensus Estimate of $287 million on enhanced productivity and efficiency and lower net warranty costs.
The Power & Vision segment’s revenues declined 2% year over year to $3.86 billion due to lower light vehicle production, customer price concessions and the end of production on certain programs. The metric, however, surpassed the Zacks Consensus Estimate of $3.80 billion. Segmental adjusted EBIT fell from $198 million to $162 million due to higher tariff costs, foreign exchange losses and reduced earnings on lower sales. The metric also missed the Zacks Consensus Estimate of $189 million.
Revenues from the Seating Systems segment fell 2% year over year to $1.43 billion due to lower production, the end of production of certain programs and customer price concessions. The metric, however, topped the Zacks Consensus Estimate of $1.34 billion. Segmental adjusted EBIT fell to $42 million from $53 million in the year-ago period due to higher tariff costs, reduced earnings on lower sales and foreign exchange losses. The metric, however, topped the Zacks Consensus Estimate of $39.61 million.
The Complete Vehicles segment’s revenues decreased 12% year over year to $1.23 billion due to lower assembly volumes. The metric, however, outpaced the Zacks Consensus Estimate of $1.11 billion. The segment reported an adjusted EBIT of $28 million, up from $20 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $15.81 million due to productivity and efficiency improvements and lower restructuring costs.
MGA’s Financials
Magna had $1.54 billion in cash and cash equivalents as of June 30, 2025, up from $1.25 billion as of Dec. 31, 2024. As of June 30, 2025, long-term debt was $4.98 billion, up from $4.13 billion as of Dec. 31, 2024.
In the reported quarter, cash provided from operating activities totaled $627 million, down from the year-ago figure of $736 million.
The company declared its quarterly dividend of 48.50 cents per common share, which will be paid on Aug. 29, 2025, to shareholders of record as of Aug.15, 2025.
Magna Updates 2025 Outlook
Magna now expects 2025 revenues in the band of $40.4-$42 billion, up from the previous target of $40-$41.6 billion. Adjusted EBIT margin is expected in the band of 5.2-5.6% compared with the previous estimate of 5.1-5.6%. Adjusted net income is estimated between $1.35 billion and $1.55 billion, up from the previous estimate of $1.3-$1.5 billion. Capex is estimated to be in the range of $1.6-$1.7 billion, down from $1.7-$1.8 billion.
The Zacks Consensus Estimate for RACE’s 2025 earnings indicates year-over-year growth of 12.1%. EPS estimates for 2025 and 2026 have improved 5 cents each over the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings indicates year-over-year growth of 11.31% and 14.32%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 11 cents and 45 cents, respectively, in the past seven days.
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Magna Q2 Earnings Surpass Expectations, Guidance Revised
Key Takeaways
Magna International (MGA - Free Report) reported second-quarter 2025 adjusted earnings of $1.44 per share, which rose from the year-ago quarter’s $1.35, beating the Zacks Consensus Estimate of $1.19.
Net sales decreased 3% year over year to $10.63 billion but surpassed the Zacks Consensus Estimate of $10.41 billion.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
MGA’s Segmental Performance
The Body Exteriors & Structures segment’s revenues were $4.25 billion, down 5% year over year. This was due to lower light vehicle production and the end of production of certain programs, divestitures and customer price concessions. The figure also missed the Zacks Consensus Estimate of $4.28 billion. The segment reported an adjusted EBIT of $347 million, up from $341 million recorded in the year-ago period. The metric also topped the Zacks Consensus Estimate of $287 million on enhanced productivity and efficiency and lower net warranty costs.
The Power & Vision segment’s revenues declined 2% year over year to $3.86 billion due to lower light vehicle production, customer price concessions and the end of production on certain programs. The metric, however, surpassed the Zacks Consensus Estimate of $3.80 billion. Segmental adjusted EBIT fell from $198 million to $162 million due to higher tariff costs, foreign exchange losses and reduced earnings on lower sales. The metric also missed the Zacks Consensus Estimate of $189 million.
Revenues from the Seating Systems segment fell 2% year over year to $1.43 billion due to lower production, the end of production of certain programs and customer price concessions. The metric, however, topped the Zacks Consensus Estimate of $1.34 billion. Segmental adjusted EBIT fell to $42 million from $53 million in the year-ago period due to higher tariff costs, reduced earnings on lower sales and foreign exchange losses. The metric, however, topped the Zacks Consensus Estimate of $39.61 million.
The Complete Vehicles segment’s revenues decreased 12% year over year to $1.23 billion due to lower assembly volumes. The metric, however, outpaced the Zacks Consensus Estimate of $1.11 billion. The segment reported an adjusted EBIT of $28 million, up from $20 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $15.81 million due to productivity and efficiency improvements and lower restructuring costs.
MGA’s Financials
Magna had $1.54 billion in cash and cash equivalents as of June 30, 2025, up from $1.25 billion as of Dec. 31, 2024. As of June 30, 2025, long-term debt was $4.98 billion, up from $4.13 billion as of Dec. 31, 2024.
In the reported quarter, cash provided from operating activities totaled $627 million, down from the year-ago figure of $736 million.
The company declared its quarterly dividend of 48.50 cents per common share, which will be paid on Aug. 29, 2025, to shareholders of record as of Aug.15, 2025.
Magna Updates 2025 Outlook
Magna now expects 2025 revenues in the band of $40.4-$42 billion, up from the previous target of $40-$41.6 billion. Adjusted EBIT margin is expected in the band of 5.2-5.6% compared with the previous estimate of 5.1-5.6%. Adjusted net income is estimated between $1.35 billion and $1.55 billion, up from the previous estimate of $1.3-$1.5 billion. Capex is estimated to be in the range of $1.6-$1.7 billion, down from $1.7-$1.8 billion.
MGA’s Zacks Rank & Key Picks
Magna currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , PHINIA Inc. (PHIN - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RACE’s 2025 earnings indicates year-over-year growth of 12.1%. EPS estimates for 2025 and 2026 have improved 5 cents each over the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings indicates year-over-year growth of 11.31% and 14.32%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 11 cents and 45 cents, respectively, in the past seven days.