Magna (MGA) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 13, 2026 astatine 8:43 AM CST 43 min read

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Friday, February 13, 2026 astatine 8:00 a.m. ET

• Chief Executive Officer — Swamy Kotagiri

• Chief Financial Officer — Philip Fracassa

• Vice President, Investor Relations — Louis Tonelli

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Louis Tonelli: And our 2026 outlook. Joining maine contiguous are Swamy Kotagiri and Philip Fracassa. Yesterday, our Board of Directors met and approved our fiscal results for 2025 arsenic good arsenic our 2026 fiscal outlook. We issued a property merchandise this greeting outlining some of these. You volition find today’s property release, league telephone webcast, the descent presumption to spell on with the call, and our updated quarterly fiscal review, each successful the Investor Relations conception of our website astatine magna.com. Before we get started, conscionable arsenic a reminder, the treatment contiguous whitethorn incorporate forward-looking accusation oregon forward-looking statements wrong the meaning of applicable securities legislation.

Such statements impact definite risks, assumptions, and uncertainties, which whitethorn origin the company’s existent aboriginal results and show to beryllium materially antithetic from those expressed oregon implied successful these statements. Please notation to today’s property merchandise for a implicit statement of our harmless harbor disclaimer. Please besides notation to the reminder descent included successful our presumption that relates to our commentary today. With that, I volition walk it implicit to Swamy. Thank you, Louis. Good morning, everyone. I admit you joining our telephone today. Let america get started. Overall, I was precise pleased with our beardown 4th fourth and afloat twelvemonth 2025 operating performance.

These results bespeak the resilience of our concern exemplary and the continued traction of our operational excellence initiatives. Throughout 2025, we delivered meaningful borderline benefits from operational excellence, we secured important commercialized recoveries, and crossed Magna we executed our tariff mitigation plans, offsetting the immense bulk of nonstop impacts. Together, these efforts contributed to our 3rd consecutive twelvemonth of adjusted EBIT borderline expansion. Our relentless absorption connected currency procreation delivered beardown results. We generated $3,600,000,000 successful operating currency travel and $1,900,000,000 successful escaped currency travel for the afloat year.

Operator: This reflects

Louis Tonelli: a disciplined attack to superior spending, improving to 3.1% of income past year, and continued improvements successful our fixed outgo operation and engineering optimization. As a result, we ended the twelvemonth with a 1.58 times leverage ratio, up of our expectations, and $1,600,000,000 currency connected hand. Now looking up to 2026, our outlook reflects continued improvements successful our operating performance. We expect weighted income maturation implicit marketplace of 1.5% astatine the midpoint, adjusted EBIT borderline enlargement of 40 to 100 ground points, and escaped currency travel of $1.6 to $1,800,000,000. We stay assured successful executing our deliberate and proven superior allocation strategy and driving EPS maturation unneurotic with beardown escaped currency flow.