Magna International (MG) Bank of America Global Automotive Summit summary

Strategic positioning and market outlook

• Operates across nearly all major vehicle systems, offering integration advantages and early OEM partnerships.

• Over 80% of the product portfolio is powertrain agnostic, supporting ICE, hybrid, and EV platforms globally.

• Well-positioned for the global shift to electrification, with strong EV growth in China and Europe, and flexible capacity management in North America.

• 2026 production outlook: slightly lower in North America and China, higher in Europe, with a net 1% decrease on a weighted basis.

• Demonstrated ability to flex costs and capital in response to market volatility and global events.

Financial performance and capital allocation

• 2026 adjusted EBIT margin expected to rise 70 basis points to 6%-6.6%, driven by operational excellence and higher revenue.

• Free cash flow guidance for 2026 is $1.6-$1.8 billion, with strong conversion of net income and disciplined CapEx management.

• Capital allocation priorities: maintain strong balance sheet, invest in growth and R&D, competitive dividends, and share buybacks.

• Plans to repurchase all 22 million shares under the current buyback plan in 2026, while keeping leverage within A- rating targets.

Segment performance and operational initiatives

• Body Exteriors & Structures: largest segment, margin expansion to 8.2%-8.8% in 2026, driven by revenue pull-through and operational excellence.

• Power & Vision: 5%-7% growth over market, margin improvement to 6%-6.6% in 2026, supported by new launches, mix, and equity income.

• Seating: mid-single digit sales decline in 2026 due to program roll-offs, but margins held steady through operational excellence and new launches in 2027.

• Complete Vehicles: sales down due to program roll-offs, but margins stable; new business with Chinese OEMs in Europe offers future growth.