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Magna International: A Deep Dive Into New Launches at Magna Steyr & the Operational Flexibility That Can Change the Earnings Curve!

Magna International reported its third-quarter 2025 financial results that reflect a strong operational performance, overcoming several challenges in the industry. The company experienced a 2% increase in sales, reaching $10.5 billion, and a 3% rise in adjusted EBIT, up to $613 million. The adjusted EBIT margin expanded by 10 basis points, despite facing a significant 35 basis point headwind from unrecovered tariffs. Moreover, adjusted diluted EPS increased by 4%, bolstered by stronger earnings and a reduced share count. Free cash flow saw a substantial improvement, increasing by nearly $400 million compared to the previous year. For the full year outlook, Magna International raised its projections, supported by improved light vehicle production and effective launch execution. The company expects higher adjusted net income, primarily driven by increased adjusted EBIT and a reduced effective tax rate.