Magna Q1 Earnings Miss Expectations, 2025 Guidance Revised

In This Article:

Magna International MGA reported first-quarter 2025 adjusted earnings of 78 cents per share, which decreased from the year-ago quarter’s $1.08, missing the Zacks Consensus Estimate of 90 cents.

Net sales decreased 8.21% year over year to $10.06 billion but surpassed the Zacks Consensus Estimate of $9.5 billion.

Magna International Inc. Price, Consensus and EPS Surprise

Magna International Inc. Price, Consensus and EPS Surprise
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 $3.97 billion, down 10% year over year. This was due to lower production and the end of production of certain programs, divestitures, weakening of foreign currencies and customer price concessions. The figure missed the Zacks Consensus Estimate of $3.99 billion. The segment reported an adjusted EBIT of $230 million, down from $298 million recorded in the year-ago period. The metric also missed the Zacks Consensus Estimate of $258 million on higher pre-operating costs at new facilities, restructuring costs and labour costs.

The Power & Vision segment’s revenues declined year over year to $3.65 billion due to lower production and the end of production on certain programs. The metric surpassed the Zacks Consensus Estimate of $3.41 billion. Segmental adjusted EBIT rose from $98 million to $124 million due to lower production inputs, higher customer recoveries, lower net engineering costs, launch costs and warranty costs. The metric also topped the Zacks Consensus Estimate of $118 million.

Revenues from the Seating Systems segment fell 10% year over year to $1.31 billion and missed the Zacks Consensus Estimate of $1.34 billion due to lower production and the end of production of certain programs. Segmental adjusted loss before interest and tax was $30 million compared with adjusted EBIT of $52 million in the year-ago period due to reduced earnings on lower sales, higher net warranty costs and lower customer recoveries. The metric lagged the Zacks Consensus Estimate of adjusted EBIT of $38.68 million.

The Complete Vehicles segment’s revenues decreased 8% year over year to $1.28 billion due to lower assembly volumes. The metric outpaced the Zacks Consensus Estimate of $929 million. The segment reported an adjusted EBIT of $44 million, up from $27 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $8.91 million due to productivity and efficiency improvements.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

MGA’s Financials

Magna had $1.06 billion in cash and cash equivalents as of March 31, 2025, down from $1.25 billion as of Dec. 31, 2024. As of March 31, 2025, long-term debt was $3.89 billion, down from $4.13 billion as of Dec. 31, 2024.