Magna International Reports Strong Q4 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy MGA?
Source: Newsfilter
- Sales Growth: Magna reported sales of $10.8 billion in Q4 2025, reflecting a 2% year-over-year increase despite a 1% decline in global light vehicle production, demonstrating resilience amid market fluctuations.
- Adjusted EBIT Increase: Adjusted EBIT rose 18% to $814 million, with the adjusted EBIT margin expanding by 100 basis points to 7.5%, indicating successful operational efficiency and cost control measures.
- Cash Flow Performance: The company generated $1.98 billion in operating cash flow and $1.35 billion in free cash flow during Q4, showcasing strong cash generation capabilities that support future investments and shareholder returns.
- Dividend Growth: Magna increased its quarterly dividend to $0.495 per share, marking the 16th consecutive year of dividend growth, reflecting a strong commitment to returning value to shareholders.
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Analyst Views on MGA
Wall Street analysts forecast MGA stock price to fall
11 Analyst Rating
3 Buy
8 Hold
0 Sell
Moderate Buy
Current: 57.780
Low
48.00
Averages
52.80
High
58.00
Current: 57.780
Low
48.00
Averages
52.80
High
58.00
About MGA
Magna International Inc. is a Canada-based mobility technology company. The Company is a supplier in automotive space, specializing in body and chassis, all-wheel drive/front-wheel-drive, transmissions, latches, mirrors and contract vehicle assembly. Its segments include Body Exteriors & Structures, Power & Vision, Seating Systems and Complete Vehicles. The Company's major product portfolio includes seating, mechatronics, electronics, body & chassis exteriors, mirrors, lighting, powertrain, and complete vehicle. Its products include battery enclosures, body-in-white solutions, chassis systems, ADAS and automated driving, control modules, active aerodynamics, exterior systems and modules, lighting, mechatronics, mirrors, electrified powertrain products, complete vehicle engineering and others. Its global network includes approximately 341 manufacturing operations and 106 product development, engineering and sales centers spanning 28 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Magna International Q4 Earnings Preview
- Earnings Announcement Date: Magna International is set to announce its Q4 earnings on February 13 before market open, with a consensus EPS estimate of $1.80, reflecting a 6.5% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $10.54 billion, representing a slight decline of 0.6% year-over-year, which highlights potential challenges in the market environment that could impact overall performance.
- Historical Performance Review: Over the past two years, Magna has beaten EPS estimates 38% of the time and revenue estimates 75% of the time, demonstrating reliability in financial forecasting and market adaptability.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 10 upward revisions and 2 downward revisions, while revenue estimates have experienced 7 upward and 4 downward revisions, indicating fluctuating analyst confidence in the company's future performance.
See More
Magna International Q4 Earnings Exceed Expectations
- Strong Earnings Report: Magna International reported a Q4 non-GAAP EPS of $2.18, beating expectations by $0.38, which reflects the company's robust profitability and boosts investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $10.85 billion, a 2.4% year-over-year increase, surpassing market expectations by $310 million, indicating solid performance and an increase in market share within the automotive sector.
- Future Outlook: Magna anticipates sales between $41.9 billion and $43.5 billion for 2025, with an adjusted EBIT margin expected between 6.0% and 6.6%, demonstrating confidence in future growth and a strategic focus on continuous improvement.
- Capital Expenditure and Buyback Plans: Projected capital spending is between $1.5 billion and $1.6 billion, with free cash flow expected between $1.6 billion and $1.8 billion, alongside a plan to repurchase approximately 22 million shares, enhancing shareholder returns.
See More
Magna International Reports Strong Q4 2025 Financial Results
- Sales Growth: Magna reported sales of $10.8 billion in Q4 2025, reflecting a 2% year-over-year increase despite a 1% decline in global light vehicle production, demonstrating resilience amid market fluctuations.
- Adjusted EBIT Increase: Adjusted EBIT rose 18% to $814 million, with the adjusted EBIT margin expanding by 100 basis points to 7.5%, indicating successful operational efficiency and cost control measures.
- Cash Flow Performance: The company generated $1.98 billion in operating cash flow and $1.35 billion in free cash flow during Q4, showcasing strong cash generation capabilities that support future investments and shareholder returns.
- Dividend Growth: Magna increased its quarterly dividend to $0.495 per share, marking the 16th consecutive year of dividend growth, reflecting a strong commitment to returning value to shareholders.
See More
Market Sentiment Declines Further as Fear Index Drops to Low Levels
- Sentiment Shift: The CNN Money Fear & Greed Index dropped to 36.9 on Thursday, entering the 'Fear' zone from a previous reading of 48.4, indicating a significant deterioration in investor sentiment that could lead to further declines in the stock market.
- Weak Market Performance: U.S. stocks closed lower on Thursday, with the Nasdaq Composite falling 2% and the Dow Jones dropping around 669 points to 49,451.98, reflecting concerns over economic outlook, particularly in the technology, energy, and financial sectors.
- Jobless Claims Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000 in the first week of February, although below market expectations of 222,000, indicating underlying weakness in the labor market that could impact consumer confidence and spending.
- Sector Performance Divergence: While most S&P 500 sectors closed negatively, utilities and consumer staples stocks rose, suggesting that investors are seeking defensive investments in uncertain market conditions, which may influence future capital flows.
See More
U.S. Stock Futures Open Lower, Investors Eye Individual Stocks
- Market Dynamics: U.S. stock futures opened lower this morning on Friday, reflecting cautious investor sentiment that may influence trading strategies and investment decisions throughout the day.
- Investor Focus: Despite the overall market decline, certain individual stocks may attract investor attention, indicating potential interest and trading opportunities in specific equities.
- Premarket Coverage: Market participants can check out premarket coverage for the latest market dynamics and individual stock performances, aiding them in making more informed investment choices.
- Data Source: This market news and data is provided by Benzinga APIs, ensuring timely and accurate information to help investors stay attuned to market movements.
See More
Magna International Stock Price Dynamics Analysis
- Stock Price Movement: Magna International (TSX:MG) has seen its stock price rise by 2.3% recently and 6% over the past week, despite a weaker monthly performance, indicating increased investor interest that may attract more capital inflow.
- Long-Term Returns: The stock has returned 7.05% over the past 90 days, with a slightly negative year-to-date return; however, a total shareholder return of 40.30% over the past year suggests significant gains for long-term holders, potentially drawing more long-term investors.
- Valuation Analysis: With a current price of CA$73.80 above the analyst target of CA$69.18, Magna is seen as approximately 7% overvalued, although a cash flow model indicates a future cash flow value of CA$94.25, suggesting potential upside that investors should carefully evaluate.
- Operational Optimization: Magna International is focusing on operational excellence and restructuring, which are expected to lead to meaningful margin expansion over the next two years, positively impacting net margins and earnings, thereby enhancing the company's competitive position in the market.
See More
Magna International Q4 Earnings Preview
- Earnings Announcement Date: Magna International is set to announce its Q4 earnings on February 13 before market open, with a consensus EPS estimate of $1.80, reflecting a 6.5% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $10.54 billion, representing a slight decline of 0.6% year-over-year, which highlights potential challenges in the market environment that could impact overall performance.
- Historical Performance Review: Over the past two years, Magna has beaten EPS estimates 38% of the time and revenue estimates 75% of the time, demonstrating reliability in financial forecasting and market adaptability.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 10 upward revisions and 2 downward revisions, while revenue estimates have experienced 7 upward and 4 downward revisions, indicating fluctuating analyst confidence in the company's future performance.
See More
Magna International Q4 Earnings Exceed Expectations
- Strong Earnings Report: Magna International reported a Q4 non-GAAP EPS of $2.18, beating expectations by $0.38, which reflects the company's robust profitability and boosts investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $10.85 billion, a 2.4% year-over-year increase, surpassing market expectations by $310 million, indicating solid performance and an increase in market share within the automotive sector.
- Future Outlook: Magna anticipates sales between $41.9 billion and $43.5 billion for 2025, with an adjusted EBIT margin expected between 6.0% and 6.6%, demonstrating confidence in future growth and a strategic focus on continuous improvement.
- Capital Expenditure and Buyback Plans: Projected capital spending is between $1.5 billion and $1.6 billion, with free cash flow expected between $1.6 billion and $1.8 billion, alongside a plan to repurchase approximately 22 million shares, enhancing shareholder returns.
See More
Magna International Reports Strong Q4 2025 Financial Results
- Sales Growth: Magna reported sales of $10.8 billion in Q4 2025, reflecting a 2% year-over-year increase despite a 1% decline in global light vehicle production, demonstrating resilience amid market fluctuations.
- Adjusted EBIT Increase: Adjusted EBIT rose 18% to $814 million, with the adjusted EBIT margin expanding by 100 basis points to 7.5%, indicating successful operational efficiency and cost control measures.
- Cash Flow Performance: The company generated $1.98 billion in operating cash flow and $1.35 billion in free cash flow during Q4, showcasing strong cash generation capabilities that support future investments and shareholder returns.
- Dividend Growth: Magna increased its quarterly dividend to $0.495 per share, marking the 16th consecutive year of dividend growth, reflecting a strong commitment to returning value to shareholders.
See More
Market Sentiment Declines Further as Fear Index Drops to Low Levels
- Sentiment Shift: The CNN Money Fear & Greed Index dropped to 36.9 on Thursday, entering the 'Fear' zone from a previous reading of 48.4, indicating a significant deterioration in investor sentiment that could lead to further declines in the stock market.
- Weak Market Performance: U.S. stocks closed lower on Thursday, with the Nasdaq Composite falling 2% and the Dow Jones dropping around 669 points to 49,451.98, reflecting concerns over economic outlook, particularly in the technology, energy, and financial sectors.
- Jobless Claims Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000 in the first week of February, although below market expectations of 222,000, indicating underlying weakness in the labor market that could impact consumer confidence and spending.
- Sector Performance Divergence: While most S&P 500 sectors closed negatively, utilities and consumer staples stocks rose, suggesting that investors are seeking defensive investments in uncertain market conditions, which may influence future capital flows.
See More
U.S. Stock Futures Open Lower, Investors Eye Individual Stocks
- Market Dynamics: U.S. stock futures opened lower this morning on Friday, reflecting cautious investor sentiment that may influence trading strategies and investment decisions throughout the day.
- Investor Focus: Despite the overall market decline, certain individual stocks may attract investor attention, indicating potential interest and trading opportunities in specific equities.
- Premarket Coverage: Market participants can check out premarket coverage for the latest market dynamics and individual stock performances, aiding them in making more informed investment choices.
- Data Source: This market news and data is provided by Benzinga APIs, ensuring timely and accurate information to help investors stay attuned to market movements.
See More
Magna International Stock Price Dynamics Analysis
- Stock Price Movement: Magna International (TSX:MG) has seen its stock price rise by 2.3% recently and 6% over the past week, despite a weaker monthly performance, indicating increased investor interest that may attract more capital inflow.
- Long-Term Returns: The stock has returned 7.05% over the past 90 days, with a slightly negative year-to-date return; however, a total shareholder return of 40.30% over the past year suggests significant gains for long-term holders, potentially drawing more long-term investors.
- Valuation Analysis: With a current price of CA$73.80 above the analyst target of CA$69.18, Magna is seen as approximately 7% overvalued, although a cash flow model indicates a future cash flow value of CA$94.25, suggesting potential upside that investors should carefully evaluate.
- Operational Optimization: Magna International is focusing on operational excellence and restructuring, which are expected to lead to meaningful margin expansion over the next two years, positively impacting net margins and earnings, thereby enhancing the company's competitive position in the market.
See More
