Canada-based Magna International has reported $10.6bn in sales for the fourth quarter (Q4) of 2024, marking a 2% increase from the same period in 2023.
This growth aligns with global light vehicle production, which also saw a 2% increase. This includes higher production in North America and China with an increase of 10% and 2%, respectively. Production in Europe fell by 6%, partially offsetting these gains.
The Q4 sales uptick was driven by new programme launches, higher engineering revenue, and the prior year’s impact of UAW labour strikes, which had reduced Q4 2023 sales by around $275m.
Net income attributable to the company’s shareholders for the Q4 2024 stood at $203m, a decrease from $271m in the same period a year ago.
Adjusted EBIT for the quarter rose to $689m from $558m in the previous year, largely due to favourable commercial items, productivity enhancements, and higher equity income.
These positive factors were partially counterbalanced by lower sales in certain programmes, increased production costs, and higher warranty expenses.
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By GlobalData
For the full year ended 31 December 2024, Magna reported consistent sales of $42.8bn compared to the previous year.
Adjusted EBIT for the year saw an increase to $2.3bn from $2.2bn in 2023, with the UAW labour strikes negatively impacting the previous year’s earnings.
Magna returned capital to shareholders, paying dividends of $133m for the quarter and $539m for the year.
The company repurchased $202m worth shares for the quarter and $207m worth shares for the year.
The board declared a $0.485 per share fourth-quarter dividend, marking a 2% increase and the 15th consecutive year of fourth-quarter dividend growth.
Looking ahead, Magna provided a cautious outlook, citing challenges such as government policies that complicate forecasting.
The company’s sales in 2025 are expected to be between $38.6bn and $40.2bn, while the adjusted EBIT margins for year are anticipated to be between 5.3% and 5.8%, with capital spending returning to historical levels.
For 2026, sales are expected to grow to between $40.5bn and $42.6bn, with adjusted EBIT margins expanding to 6.5%-7.2%. Magna also forecasts a free cash flow of $1.5bn or more by 2026.
Last year, Magna teamed up with General Motors and technology services and consulting company Wipro to develop a B2B sales platform for buying and selling automotive software.
