Magna International ( (MGA) ) has released its Q4 earnings. Here is a breakdown of the information Magna International presented to its investors.
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Magna International Inc., a global leader in automotive manufacturing and contract engineering, reported its fourth quarter and full-year 2024 financial results, showcasing its continued efforts in operational excellence amidst industry challenges.
For the fourth quarter of 2024, Magna saw a 2% increase in sales to $10.6 billion, aligning with global light vehicle production trends. The company reported a diluted earnings per share of $0.71, down from $0.94 the previous year, while adjusted diluted earnings per share rose to $1.69 from $1.33. Cash flow from operations was robust at $1.9 billion, with $335 million returned to shareholders through dividends and share repurchases. Magna also increased its quarterly cash dividend to $0.485 per share, continuing a 15-year trend of annual increases.
Key financial highlights included a rise in adjusted EBIT to $689 million for the quarter, driven by productivity improvements and favorable commercial items, despite facing challenges such as higher production input costs and restructuring expenses. The full-year results reflected stable sales of $42.8 billion, with adjusted EBIT slightly increasing to $2.3 billion. The company successfully managed operational costs and continued to navigate headwinds like reduced vehicle volumes and currency fluctuations.
Looking ahead, Magna anticipates 2025 sales between $38.6 billion and $40.2 billion, with an adjusted EBIT margin ranging from 5.3% to 5.8%. Despite anticipating challenges such as foreign currency impacts and lower light vehicle production, the company aims to normalize capital spending and expects sales growth in 2026. The forecast for 2026 includes sales between $40.5 billion and $42.6 billion, with an expanded EBIT margin of 6.5% to 7.2%.
Magna’s management remains focused on margin expansion and robust cash flow generation as they enter 2025, emphasizing continued investment in operational improvements and strategic growth opportunities, amidst a dynamic automotive landscape.
