Magna Outlines Path to Turn Enterprise Strength into Lasting Value at Investor Day

Magna expects greater free cash flow in 2027–2030 than in 2022–2026, supported by its plans for continued margin expansion.

Rhea-AI Summary

Magna International (NYSE: MGA; TSX: MG) outlined new 2030 growth and profitability targets at its Investor Day in New York City. The company targets organic sales growth of 2–4% above market, adjusted operating profit margin expansion of at least 200 basis points and adjusted earnings per share growth of 15% or more.

Magna expects data connectivity, automation and AI deployment across facilities representing approximately 70% of sales by 2029. It is on track for approximately 190 basis points of adjusted operating profit margin expansion from 2022 through 2026 and approximately $5 billion of free cash flow over that period, based on its updated outlook midpoint. Shareholder returns over the period are about $5.5 billion. After repurchasing over 25 million shares in the past 12 months, Magna intends to repurchase almost 26 million over the next 12 months under its renewed authorization.

14 points · 0 major

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Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Organic sales growth targeted at 2–4% above market through 2030, supported by largely booked business.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Adjusted operating profit margin expansion targeted at at least 200 basis points through 2030.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Adjusted earnings per share growth targeted at 15% or more through 2030.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Renewed buyback authorization targets repurchasing almost 26 million shares over the next 12 months.
• Moderate pointCompleted buyback authorization included over 25 million shares repurchased over the past 12 months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Free cash flow on pace for approximately $5 billion in 2022–2026, based on updated outlook midpoint.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Free cash flow expected to be greater in 2027–2030 than in 2022–2026.
• Moderate pointShareholder returns through dividends and repurchases total about $5.5 billion over 2022–2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Adjusted operating profit margin expansion on track for approximately 190 basis points in 2022–2026, using updated outlook midpoint.

5 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Data connectivity, automation and AI deployment expected across facilities representing approximately 70% of sales by 2029.
• Minor pointConsolidated China sales rose from approximately $500 million in 2010 to nearly $5 billion in 2025.
• Minor pointChina-based automakers increased from less than 20% to about 60% of Magna’s regional sales.
• Minor pointContent per vehicle on one SUV program increased from approximately $900 in 2010 to $4,800 today.
• Minor point. Forward-looking: it has not happened yet and may not happen.Magna sees opportunities to apply its capabilities in adjacent mobility and industrial markets.

Negative

• None.

Key Figures

Organic sales growth target: 2–4% above market Adjusted EBIT margin expansion target: at least 200 basis points Adjusted EPS growth target: 15% or more +5 more

Organic sales growth target

2–4% above market

2030 target

Adjusted EBIT margin expansion target

at least 200 basis points

2030 target

Adjusted EPS growth target

15% or more

2030 target

Adjusted EBIT margin expansion

approximately 190 basis points

2022 through 2026

Free cash flow

approximately $5 billion

2022–2026 period

Capital returned to shareholders

about $5.5 billion

2022–2026 period, through dividends and share repurchases

Shares repurchased

over 25 million shares

Past 12 months

Planned share repurchases

almost 26 million shares

Intended over the next 12 months

Historical Context

2 past events · Latest: Nov 05

2 events

1. Nov 05

   NCIB renewal

   24h Move

   -4.3%

   Renewed authorization covered up to 25.778 million shares for November 2026 through November 2027.

2. Oct 30

   Q3 results

   24h Move

   -1.4%

   Raised 2026 free-cash-flow outlook to $1.85–$1.90 billion after Q3 results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

normal course issuer bid, non-gaap financial measures, basis points

3 terms

normal course issuer bid financial

"completed its normal course issuer bid (NCIB) share buyback authorization"

A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.

non-gaap financial measures financial

"we also use Non-GAAP financial measures in this press release"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

basis points financial

"Adjusted EBIT margin expansion of at least 200 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

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• Growth supported by largely booked business, increasing vehicle content and a broader global customer base
• Data, automation and AI expected to accelerate operational improvements and support continued margin expansion
• Disciplined capital allocation supports investment for growth while continuing to return capital to shareholders
  
  

AURORA, Ontario, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) earlier today held its 2026 Investor Day, The Power of Magna: Turning Enterprise Strength into Lasting Value, in New York City. At the event, the company detailed how it plans to deliver above-market organic sales growth and continued margin expansion through 2030, supported by largely booked business, deeper customer relationships, operational improvements and disciplined capital allocation.

The company's new 2030 targets are compelling and include organic sales growth of 2-4% above market, Adjusted EBIT margin expansion of at least 200 basis points, and Adjusted EPS growth of 15% or more.

"Our strategy is clear, and it's working," said Swamy Kotagiri, Chief Executive Officer at Magna. "We’re confident in our growth outlook, supported by a significant level of booked business through 2028, a long runway for continued margin expansion and a balance sheet that gives us flexibility. Today was about showing investors how those pieces fit together and why we're confident in the targets we've set."

Growth That's Already Taking Shape

Magna’s growth builds on capabilities and customer relationships already in place. Strong launch performance and quality open the door for Magna's broader capabilities, expanding into additional product areas on platforms it already supplies. On one long-running SUV program, for example, Magna has increased content per vehicle from approximately $900 in 2010 to $4,800 today.

Magna is also broadening its customer base. Its consolidated sales in China have risen from approximately $500 million in 2010 to nearly $5 billion in 2025, with China-based automakers increasing from less than 20% to about 60% of Magna’s sales in the region. Magna is also supporting these customers as they expand into new regions.

Beyond its core automotive business, Magna also sees opportunities to selectively apply its manufacturing and engineering capabilities across a range of adjacent mobility and industrial markets, from established areas such as commercial vehicles to newer opportunities in warehousing, data centers and more.

Margin Expansion in the Early Innings

Magna is on track to expand Adjusted EBIT margin by approximately 190 basis points¹ from 2022 through 2026. Building on that progress, the company sees further margin opportunity through the Magna Business System and the expanded use of data connectivity, automation and AI, which it expects to deploy across facilities representing approximately 70% of its sales by 2029.

The Magna Business System provides a consistent approach to continuous improvement across the enterprise, helping Magna learn from what works, standardize proven practices and scale them more broadly.

"What we've delivered so far came from thousands of improvements made across our enterprise every day," Kotagiri said. "Connecting our data and scaling what works lets us capture those gains faster and more consistently across the entire company."

Disciplined Capital, Returned to Shareholders

Magna is on pace to generate approximately $5 billion¹ of free cash flow over the 2022–2026 period, while returning about $5.5 billion to shareholders through dividends and share repurchases. The company expects even greater free cash flow over the 2027-2030 period.

Magna recently completed its normal course issuer bid (NCIB) share buyback authorization approved in November 2025, with over 25 million shares repurchased over the past 12 months. It also renewed its NCIB earlier this month and intends to fully complete the repurchase of almost 26 million shares over the next 12 months.

"Our approach to capital allocation hasn't changed," said Phil Fracassa, Chief Financial Officer at Magna. "We invest where we can earn strong returns and return excess capital to shareholders, while keeping the balance sheet strong. As margins expand and earnings grow, that formula becomes even more powerful."

A replay of Magna’s 2026 Investor Day webcast, presentation materials and supporting videos will be available at www.magna.com/company/investors.

¹Adjusted EBIT margin expansion and free cash flow from 2022 through 2026 are based on the midpoint of updated Outlook range disclosed on October 30, 2026.

INVESTOR CONTACT
Louis Tonelli, Vice President, Investor Relations
louis.tonelli@magna.com │   905.726.7035

MEDIA CONTACT
Tracy Fuerst, Vice President, Corporate Communications & PR
tracy.fuerst@magna.com │ 248.761.7004

ABOUT MAGNA
Magna is one of the world’s largest automotive suppliers and a trusted partner to automakers in the industry’s most critical markets globally. With operations in 27 countries, we combine global scale with trusted reliability and proven execution. Backed by nearly seven decades of experience, we bring together deep manufacturing expertise with innovative vehicle systems to deliver performance, safety, and quality.
​
For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on social.

NON-GAAP FINANCIAL MEASURES

In addition to financial measures presented in accordance with U.S. GAAP, we also use Non-GAAP financial measures in this press release. We believe the Non-GAAP financial measures are useful in analysis of the Company’s financial position, results and targets. In particular, management believes that Adjusted EBIT and Adjusted diluted earnings per share are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company's core operating performance. Management also believes that Free Cash Flow is a useful measure in assessing the Company’s ability to generate cash to maintain operations and repay its debt. Please refer to our Management's Discussion and Analysis of Results of Operations and Financial Position for three and nine month periods ended September 30, 2026, as well as our press release dated October 30, 2026 for a reconciliation of Non-GAAP measures to their most comparable U.S GAAP measure. Non-GAAP financial measures do not have standardized meanings and may not be comparable to similar measures used by other companies in our industry. The presentation of Non-GAAP financial measures should not be considered in isolation, or as a substitute for the Company’s related financial results prepared in accordance with U.S. GAAP.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "assume", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "potential", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Unless otherwise indicated, all forward-looking statements in this presentation are made as at November 11, 2026, and are subject to change after that date.

The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table:

Material Forward-Looking Statement	Material Potential Risks Related to Applicable Forward-Looking Statement
Light Vehicle Production	Light vehicle sales levels, including due to:    - A decline in consumer confidence    - Economic uncertainty    - Elevated interest rates and availability of consumer credit    - Deteriorating vehicle affordability Tariffs and/or other actions that erode free trade agreements Production deferrals, cancellations and volume reductions Production and supply disruptions Commodities prices Availability and relative cost of skilled labour
Total Sales Organic Sales GoM Sales Mix Segment Sales	Same risks as for Light Vehicle Production above Alignment of our product mix with production demand Supply disruptions, including as a result of semiconductor and memory (DRAM) chip shortages Customer concentration and growth in adjacent markets Pace of EV adoption, including North American electric vehicle program deferrals, cancellations and volume reductions Shifts in market shares among OEMs, vehicles and/or vehicle segments Shifts in consumer "take rates" for products we sell Relative currency values
Adjusted EBIT Margin Adjusted EBIT Margin Expansion Adjusted Diluted EPS Free Cash Flow Free Cash Flow Conversion	Same risks as for Total Sales and Segment Sales above Execution of critical program launches Operational underperformance Product warranty/recall risks Production inefficiencies Unmitigated incremental tariff costs Restructuring costs and/or impairment charges Inflation Ability to secure cost recoveries Price concessions Commodity cost volatility Scrap steel price volatility
Equity Income ROIC	Same risks as Adjusted EBIT Margin above Risks related to conducting business through joint ventures Risks of doing business in foreign markets Legal and regulatory proceedings Changes in law
Share Repurchases Weighted Average Diluted Shares Outstanding	Same risks impacting Free Cash Flow above Ability to repurchase shares for cancellation, including due to normal course issuer bid rules, trading blackouts, and other factors

Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions, and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:

Macroeconomic, Geopolitical and Other Risks geopolitical crises and military conflicts; threats to free trade agreements; international trade disputes; planning and forecasting challenges; interest rates and availability of consumer credit; Risks Related to the Automotive Industry pace of EV adoption; North American EV program deferrals, cancellations and volume reductions; economic cyclicality; regional production volumes; deteriorating vehicle affordability; intense competition; Strategic Risks evolution of the vehicle; evolving business risk profile; technology and innovation; investments in mobility and technology companies; Customer-Related Risks customer concentration; market shifts; evolving OEM competitive landscape; dependence on outsourcing; consumer take rate shifts; nature of customer blanket purchase orders; potential OEM production-related disruptions; Supply Chain Risks supply chain disruptions; regional energy supply and pricing; financial condition of supply base; supplier claims; Manufacturing/Operational Risks product launch; operational underperformance; restructuring costs; impairments; skilled labour attraction/retention;

Pricing Risks quote/pricing assumptions; customer pricing pressure/contractual arrangements; commodity price volatility; scrap steel/aluminum price volatility; Warranty/Recall Risks repair/replacement costs; warranty provisions; product liability; IT Security/Cybersecurity Risks IT/cybersecurity breach; product cybersecurity breach; risks related to the use of artificial intelligence; Merger and Acquisition Risks inherent merger and acquisition risks; acquisition integration and synergies; Other Business Risks joint ventures; intellectual property; risks of doing business in foreign markets; tax risks; relative foreign exchange rates; returns on capital investments; financial flexibility; credit ratings changes; stock price fluctuation; Legal, Regulatory and Other Risks legal and regulatory proceedings; and changes in laws.

In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:

• discussed under the “Industry Trends and Risks” heading of our Management’s Discussion and Analysis; and
• set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.
  
  

Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form. Additional information about Magna, including our Annual Information Form, is available through the System for Electronic Data Analysis and Retrieval + (SEDAR+) at www.sedarplus.ca, as well as on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8670136c-3c9d-4410-8be4-44ca71637ccc
https://www.globenewswire.com/NewsRoom/AttachmentNg/e44850b7-a7cc-4471-9509-7c52a8ec3c37

FAQ

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What are Magna’s 2030 growth and margin targets?

Magna targets organic sales growth of 2–4% above market, adjusted operating profit margin expansion of at least 200 basis points and adjusted earnings per share growth of 15% or more through 2030.

How many shares does Magna plan to repurchase under its renewed buyback authorization?

Magna intends to fully complete the repurchase of almost 26 million shares over the next 12 months. It renewed its normal course issuer bid authorization earlier in November 2026 after completing the authorization approved in November 2025.

Are Magna’s Investor Day financial targets GAAP measures?

Adjusted operating profit, adjusted diluted earnings per share and free cash flow are non-GAAP measures. These measures do not have standardized meanings and may not be comparable with similarly named measures at other companies. They should not be considered substitutes for financial results prepared under U.S. GAAP.