# EDGAR Filing Document

**Accession Number:** 0000749098
**File Stem:** 0001104659-26-054211
**Filing Date:** 2026-5
**Character Count:** 132460
**Document Hash:** fa92417e6b02c7e0d876cf431943a555
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-054211.hdr.sgml**: 20260501

**ACCESSION NUMBER**: 0001104659-26-054211

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 45

**CONFORMED PERIOD OF REPORT**: 20260501

**FILED AS OF DATE**: 20260501

**DATE AS OF CHANGE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MAGNA INTERNATIONAL INC
- **CENTRAL INDEX KEY:** 0000749098
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLE PARTS & ACCESSORIES [3714]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-11444
- **FILM NUMBER:** 26933447

**BUSINESS ADDRESS:**
- **STREET 1:** 337 MAGNA DRIVE
- **STREET 2:** N/A
- **CITY:** AURORA, ONTARIO, CAN
- **STATE:** A6
- **ZIP:** L4G 7K1
- **BUSINESS PHONE:** 9057262462

**MAIL ADDRESS:**
- **STREET 1:** 337 MAGNA DRIVE
- **STREET 2:** N/A
- **CITY:** AURORA, ONTARIO, CAN
- **STATE:** A6
- **ZIP:** L4G 7K1

UNITED STATES

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549**

**FORM 6-K**

**Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16<br> under the Securities Exchange Act of 1934** 

**For the month of May 2026**

**Commission File Number 001-11444**

---

| |
|:---|
| **MAGNA INTERNATIONAL INC.** |
| (Exact Name of Registrant as specified in its Charter) |
| **337 Magna Drive, Aurora, Ontario, Canada L4G 7K1** |
| (Address of principal executive office) |

---

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ◻ Form 40-F ⌧

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **MAGNA INTERNATIONAL INC.** | **MAGNA INTERNATIONAL INC.** |
|  | (Registrant) | (Registrant) |
| Date: <u>May 1, 2026</u> |  |  |
|  | By: | */s/ "Bassem Shakeel"* |
|  |  | Bassem A. Shakeel, |
|  |  | Vice-President, Associate General Counsel and Corporate Secretary |

---

**EXHIBITS**

---

| | |
|:---|:---|
| **[Exhibit 99.1](tm2612872d2_ex99-1.htm)** | [Q1 2026 Financial Review](tm2612872d2_ex99-1.htm) |
| **[Exhibit 99.2](tm2612872d2_ex99-2.htm)** | [Q1 2026 Results Webcast Presentation (May 1, 2026)](tm2612872d2_ex99-2.htm) |
| **[Exhibit 99.3](tm2612872d2_ex99-3.htm)** | [Q1 2026 Results Webcast Transcript (May 1, 2026)](tm2612872d2_ex99-3.htm) |

---

## Exhibit 99.1

**Exhibit 99.1**

**FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.** <br> (United States dollars in millions, except per share figures) (Unaudited) <br> Prepared in accordance with U.S. GAAP

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | <br>**Note** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **<u>VEHICLE VOLUME STATISTICS (in millions)</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| **North America** |  | 3.979 | 4.105 | 3.716 | 3.723 | **15.523** | 3.696 | 3.983 | 3.936 | 3.702 | **15.317** | 3.542 |
| **Europe** |  | 4.556 | 4.451 | 3.705 | 4.133 | **16.845** | 4.233 | 4.376 | 3.771 | 4.391 | **16.771** | 4.067 |
| **China** |  | 6.355 | 7.065 | 7.268 | 9.732 | **30.420** | 7.060 | 7.749 | 8.151 | 10.075 | **33.035** | 6.225 |
| **Rest of World** |  | 6.456 | 6.557 | 7.540 | 6.350 | **26.903** | 7.027 | 6.845 | 6.854 | 7.603 | **28.329** | 6.653 |
| **Global** |  | 21.346 | 22.178 | 22.229 | 23.938 | **89.691** | 22.016 | 22.953 | 22.712 | 25.771 | **93.452** | 20.487 |
| **Magna Steyr vehicle assembly volumes** |  | 0.034 | 0.027 | 0.023 | 0.021 | **0.105** | 0.022 | 0.019 | 0.015 | 0.016 | **0.072** | 0.025 |
| **<u>AVERAGE FOREIGN EXCHANGE RATES</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| **1 Canadian dollar equals U.S. dollars** |  | 0.741 | 0.731 | 0.733 | 0.715 | **0.730** | 0.697 | 0.723 | 0.726 | 0.717 | **0.716** | 0.730 |
| **1 euro equals U.S. dollars** |  | 1.085 | 1.076 | 1.099 | 1.066 | **1.082** | 1.053 | 1.134 | 1.169 | 1.164 | **1.130** | 1.171 |
| **1 Chinese renminbi equals U.S. dollars** |  | 0.139 | 0.138 | 0.140 | 0.139 | **0.139** | 0.138 | 0.138 | 0.140 | 0.141 | **0.139** | 0.144 |
| **<u>CONSOLIDATED STATEMENTS OF INCOME (LOSS)</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Sales** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Body Exteriors & Structures** |  | 4429 | 4465 | 4038 | 4067 | **16999** | 3966 | 4253 | 4147 | 4252 | **16618** | 4079 |
| &nbsp;&nbsp;&nbsp;**Power & Vision** |  | 3842 | 3926 | 3837 | 3786 | **15391** | 3646 | 3857 | 3854 | 3841 | **15198** | 3881 |
| &nbsp;&nbsp;&nbsp;**Seating Systems** |  | 1455 | 1455 | 1379 | 1511 | **5800** | 1312 | 1433 | 1520 | 1633 | **5898** | 1340 |
| &nbsp;&nbsp;&nbsp;**Complete Vehicles** |  | 1383 | 1242 | 1159 | 1402 | **5186** | 1276 | 1226 | 1085 | 1261 | **4848** | 1224 |
| &nbsp;&nbsp;&nbsp;**Corporate & Other** |  | (139) | (130) | (133) | (138) | **(540)** | (131) | (138) | (144) | (139) | **(552)** | (143) |
|  |  | **10970** | **10958** | **10280** | **10628** | **42836** | **10069** | **10631** | **10462** | **10848** | **42010** | **10381** |
| **Costs and expenses** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Cost of goods sold** |  | 9642 | 9494 | 8828 | 9073 | **37037** | 8827 | 9127 | 8973 | 9094 | **36021** | 8958 |
| &nbsp;&nbsp;&nbsp;**Selling, general and administrative** |  | 516 | 523 | 487 | 535 | **2061** | 539 | 565 | 531 | 586 | **2221** | 557 |
| &nbsp;&nbsp;&nbsp;**Equity income** |  | (34) | (9) | (13) | (45) | **(101)** | (20) | (32) | (44) | (47) | **(143)** | (95) |
| **Adjusted EBITDA** |  | **846** | **950** | **978** | **1065** | **3839** | **723** | **971** | **1002** | **1215** | **3911** | **961** |
| **Depreciation** |  | 377 | 373 | 384 | 376 | **1510** | 369 | 388 | 389 | 401 | **1547** | 403 |
| **Adjusted EBIT** |  | **469** | **577** | **594** | **689** | **2329** | **354** | **583** | **613** | **814** | **2364** | **558** |
| &nbsp;&nbsp;&nbsp;**Amortization of acquired intangible assets** |  | 28 | 28 | 28 | 28 | **112** | 26 | 29 | 27 | 29 | **111** | 19 |
| &nbsp;&nbsp;&nbsp;**Other expense (income), net** | **1** | 356 | 68 | (188) | 228 | **464** | 53 | 6 | 48 | 629 | **736** | 415 |
| &nbsp;&nbsp;&nbsp;**Interest expense, net** |  | 51 | 54 | 54 | 52 | **211** | 50 | 52 | 65 | 42 | **209** | 37 |
| **Income from operations before income taxes** |  | **34** | **427** | **700** | **381** | **1542** | **225** | **496** | **473** | **114** | **1308** | **87** |
| **Income tax expense** |  | 8 | 99 | 192 | 147 | **446** | 72 | 102 | 140 | 111 | **425** | 88 |
| **Net (loss) income** |  | **26** | **328** | **508** | **234** | **1096** | **153** | **394** | **333** | **3** | **883** | **(1)** |
| **Income attributable to non-controlling interests** |  | (17) | (15) | (24) | (31) | **(87)** | (7) | (15) | (28) | (4) | **(54)** | (11) |
| **Net (loss) income attributable to Magna International Inc.** |  | **9** | **313** | **484** | **203** | **1009** | **146** | **379** | **305** | **(1)** | **829** | **(12)** |
| **Diluted (loss) earnings per common share** |  | $**0.03** | $**1.09** | $**1.68** | $**0.71** | $**3.52** | $**0.52** | $**1.35** | $**1.08** | $**-** | $**2.93** | $**(0.04)** |
| **Weighted average number of Common Shares outstanding during the period (in millions):** |  | **287.1** | **287.3** | **287.3** | **285.9** | **286.9** | **282.0** | **281.7** | **281.8** | **281.2** | **282.5** | **278.1** |
| **<u>NON-GAAP MEASURES</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Adjusted EBITDA** |  | **846** | **950** | **978** | **1065** | **3839** | **723** | **971** | **1002** | **1215** | **3911** | **961** |
| &nbsp;&nbsp;&nbsp;**Adjusted EBIT** | **2** | **469** | **577** | **594** | **689** | **2329** | **354** | **583** | **613** | **814** | **2364** | **558** |
| &nbsp;&nbsp;&nbsp;**Adjusted Return on Invested Capital** | **2** | **7.8%** | **9.4%** | **9.0%** | **11.8%** | **9.5%** | **5.7%** | **9.6%** | **9.2%** | **13.9%** | **9.7%** | **9.4%** |
| &nbsp;&nbsp;&nbsp;**Adjusted net income attributable to Magna International Inc.** | **2** | **311** | **389** | **369** | **482** | **1551** | **219** | **407** | **375** | **617** | **1618** | **386** |
| &nbsp;&nbsp;&nbsp;**Adjusted EPS** | **2** | $**1.08** | $**1.35** | $**1.28** | $**1.69** | $**5.41** | $**0.78** | $**1.44** | $**1.33** | $**2.18** | $**5.73** | $**1.38** |
| &nbsp;&nbsp;&nbsp;**Adjusted weighted average number of Common Shares outstanding during the period (in millions):** | **2** | **287.1** | **287.3** | **287.3** | **285.9** | **286.9** | **282.0** | **281.7** | **281.8** | **282.7** | **282.5** | **279.9** |
| **<u>PROFITABILITY RATIOS</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Selling, general and administrative /Sales** |  | 4.7% | 4.8% | 4.7% | 5.0% | **4.8%** | 5.4% | 5.3% | 5.1% | 5.4% | **5.3%** | 5.4% |
| &nbsp;&nbsp;&nbsp;**Adjusted EBIT /Sales** |  | 4.3% | 5.3% | 5.8% | 6.5% | **5.4%** | 3.5% | 5.5% | 5.9% | 7.5% | **5.6%** | 5.4% |
| &nbsp;&nbsp;&nbsp;**Income (loss) from operations before income taxes /Sales** |  | 0.3% | 3.9% | 6.8% | 3.6% | **3.6%** | 2.2% | 4.7% | 4.5% | 1.1% | **3.1%** | 0.8% |
| &nbsp;&nbsp;&nbsp;**Effective tax rate** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Reported** |  | 23.5% | 23.2% | 27.4% | 38.6% | **28.9%** | 32.0% | 20.6% | 29.6% | 97.4% | **32.5%** | 101.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Excluding Other expense (income) and amortization, net of taxes and valuation allowance adjustments** |  | 21.5% | 22.8% | 27.2% | 19.5% | **22.7%** | 25.7% | 20.5% | 26.5% | 19.6% | **22.4%** | 23.8% |

---

Q1 2026 Financial Review of Magna International Inc. Page 1 of 7 Prepared as at 4/30/2026

**FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.**<br> (United States dollars in millions) (Unaudited)<br> Prepared in accordance with U.S. GAAP

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** |
| **<u>CONSOLIDATED BALANCE SHEETS</u>** |  |  |  |  |  |  |  |  |  |  |
| **FUNDS EMPLOYED** |  |  |  |  |  |  |  |  |  |  |
| **Current assets:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Accounts receivable** |  | 8379 | 8219 | 8377 | 7376 | 8198 | 8258 | 8406 | 7593 | 8215 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Inventories** |  | 4511 | 4466 | 4592 | 4151 | 4184 | 4207 | 4233 | 4126 | 3964 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Prepaid expenses and other** |  | 399 | 314 | 303 | 344 | 358 | 333 | 316 | 407 | 405 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Held for sale assets** |  | - | - | - | - | - | - | - | - | 316 |
|  |  | **13289** | **12999** | **13272** | **11871** | **12740** | **12798** | **12955** | **12126** | **12900** |
| **Current liabilities:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Accounts payable** |  | 7855 | 7639 | 7608 | 7194 | 7376 | 7127 | 7261 | 6895 | 7216 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Accrued salaries and wages** |  | 883 | 862 | 962 | 867 | 893 | 917 | 994 | 888 | 920 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other accrued liabilities** |  | 2728 | 2650 | 2642 | 2572 | 2723 | 2845 | 2906 | 2745 | 2878 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income taxes payable (receivable)** |  | 132 | 79 | 176 | 192 | 152 | 88 | 109 | 106 | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Held for sale liabilities** |  | - | - | - | - | - | - | - | - | 296 |
|  |  | **11598** | **11230** | **11388** | **10825** | **11144** | **10977** | **11270** | **10634** | **11439** |
| **Working capital** |  | **1691** | **1769** | **1884** | **1046** | **1596** | **1821** | **1685** | **1492** | **1461** |
| **Investments** |  | 1195 | 1161 | 1165 | 1045 | 1062 | 1129 | 1098 | 1103 | 1289 |
| **Fixed assets, net** |  | 9545 | 9623 | 9836 | 9584 | 9650 | 9853 | 9707 | 9507 | 9012 |
| **Goodwill, other assets and intangible assets** |  | 4646 | 4709 | 4865 | 4532 | 4669 | 4896 | 4876 | 4277 | 4108 |
| **Operating lease right-of-use assets** |  | 1733 | 1688 | 1780 | 1941 | 2032 | 2061 | 2024 | 1928 | 1865 |
| **Funds employed** |  | **18810** | **18950** | **19530** | **18148** | **19009** | **19760** | **19390** | **18307** | **17735** |
| **FINANCING** |  |  |  |  |  |  |  |  |  |  |
| **Net debt and leases:** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Cash and cash equivalents** |  | (1517) | (999) | (1061) | (1247) | (1059) | (1536) | (1327) | (1612) | (1605) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Short-term borrowings** |  | 838 | 848 | 828 | 271 | 614 | 349 | 433 |  | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Long-term debt due within one year** |  | 824 | 65 | 65 | 708 | 1005 | 706 | 33 | 27 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Long-term debt** |  | 4549 | 4863 | 4916 | 4134 | 3892 | 4984 | 4967 | 4685 | 4643 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Current portion of operating lease liabilities** |  | 306 | 306 | 319 | 293 | 305 | 318 | 323 | 328 | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Operating lease liabilities** |  | 1407 | 1378 | 1458 | 1662 | 1742 | 1759 | 1722 | 1649 | 1573 |
|  |  | **6407** | **6461** | **6525** | **5821** | **6499** | **6580** | **6151** | **5077** | **5095** |
| **Long-term employee benefit liabilities** |  | 584 | 564 | 571 | 533 | 552 | 574 | 573 | 554 | 530 |
| **Other long-term liabilities** |  | 471 | 507 | 339 | 396 | 349 | 267 | 298 | 399 | 426 |
| **Deferred tax assets, net** |  | (576 | (592 | (592 | (542 | (557 | (564 | (567 | (562 | (588 |
|  |  | **479** | **479** | **318** | **387** | **344** | **277** | **304** | **391** | **368** |
| **Shareholders' equity** |  | 11924 | 12010 | 12687 | 11940 | 12166 | 12903 | 12935 | 12839 | 12272 |
|  |  | **18810** | **18950** | **19530** | **18148** | **19009** | **19760** | **19390** | **18307** | **17735** |
| **<u>ASSET UTILIZATION RATIOS</u>** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Days in accounts receivable** |  | 68.7 | 67.5 | 73.3 | 62.5 | 73.3 | 69.9 | 72.3 | 63.0 | 71.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Days in accounts payable** |  | 73.3 | 72.4 | 77.6 | 71.4 | 75.2 | 70.3 | 72.8 | 68.2 | 72.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Inventory turnover - cost of goods sold** |  | 8.5 | 8.5 | 7.7 | 8.7 | 8.4 | 8.7 | 8.5 | 8.8 | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Working capital turnover** |  | 25.9 | 24.8 | 21.8 | 40.6 | 25.2 | 23.4 | 24.8 | 29.1 | 28.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total asset turnover** |  | 2.3 | 2.3 | 2.1 | 2.3 | 2.1 | 2.2 | 2.2 | 2.4 | 2.3 |
| **<u>CAPITAL STRUCTURE</u>** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net debt and leases** |  | 34.1 | 34.1 | 33.4 | 32.1 | 34.2 | 33.3 | 31.7 | 27.7 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Long-term employee benefit liabilities, other long-term liabilities & deferred tax liabilities, net** |  | 2.5 | 2.5 | 1.6 | 2.1 | 1.8 | 1.4 | 1.6 | 2.1 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Shareholders' equity** |  | 63.4 | 63.4 | 65.0 | 65.8 | 64.0 | 65.3 | 66.7 | 70.1 | 69.2 |
|  |  | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Adjusted Debt to Adjusted EBITDA** | **2** | 1.98 | 1.91 | 1.93 | 1.75 | 1.92 | 2.03 | 1.88 | 1.59 | 1.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Debt to total capitalization** |  | 39.9 | 38.3 | 37.4 | 37.2 | 38.3 | 38.6 | 36.6 | 34.3 | 35.3 |

---

Q1 2026 Financial Review of Magna International Inc. Page 2 of 7 Prepared as at 4/30/2026

**FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.**<br> (United States dollars in millions) (Unaudited)<br> Prepared in accordance with U.S. GAAP

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | <br>**Note** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **<u>CONSOLIDATED STATEMENTS OF CASH FLOWS</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| **Operating activities** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** |  | 26 | 328 | 508 | 234 | **1096** | 153 | 394 | 333 | 3 | **883** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Items not involving current cash flows** |  | 565 | 353 | 277 | 662 | **1857** | 394 | 368 | 454 | 1152 | **2368** | 638 |
|  |  | **591** | **681** | **785** | **896** | **2953** | **547** | **762** | **787** | **1155** | **3251** | **637** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities** |  | (330) | 55 | (58) | 1014 | **681** | (470) | (135) | 125 | 827 | **347** | 40 |
| **Cash provided from operating activities** |  | **261** | **736** | **727** | **1910** | **3634** | **77** | **627** | **912** | **1982** | **3598** | **677** |
| **Investment activities** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Fixed asset additions** |  | (493) | (500) | (476) | (709) | **(2178)** | (268) | (246) | (267) | (532) | **(1313)** | (219) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Increase in investments, other assets and intangible assets** |  | (125) | (170) | (115) | (207) | **(617)** | (148) | (94) | (100) | (157) | **(499)** | (168) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net cash (outflow) inflow from disposal of facilities** | **1(f), 1(g)** | 4 |  | 78 |  | **82** |  |  |  |  | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Investment in Public and Private Equity Investments** |  | (23) | 2 | (1) | 10 | **(12)** | (1) | (3) | (2) | (2) | **(8)** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Proceeds from disposition** |  | 87 | 57 | 38 | 37 | **219** | 26 | 14 | 27 | 54 | **121** | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Business combinations** |  | (30) | (56) | - | - | **(86)** | (4) | 4 | (1) | - | **(1)** | - |
| **Cash used for investment activities** |  | **(580)** | **(667)** | **(476)** | **(869)** | **(2592)** | **(395)** | **(325)** | **(343)** | **(637)** | **(1700)** | **(306)** |
| **Financing activities** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net issues (repayments) of debt** |  | 757 | (416) | (47) | (513) | **(219)** | 322 | 341 | (583) | (747) | **(667)** | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Common Shares issued on exercise of stock options** |  | 30 |  |  |  | **30** |  |  |  | 2 | **2** | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Repurchase of Common Shares** |  | (3) | (2) |  | (202) | **(207)** | (51) |  |  | (86) | **(137)** | (440) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Tax withholdings on vesting of equity awards** |  | (4) | (1) |  | (3) | **(8)** | (4) |  |  | (1) | **(5)** | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Acquisition of non-controlling interest** |  |  |  |  |  | **-** |  |  | (40) | (82) | **(122)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Dividends paid to non-controlling interests** |  |  | (26) | (10) | (10) | **(46)** |  | (25) | (15) | (19) | **(59)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Dividends paid** |  | (134) | (134) | (138) | (133) | **(539)** | (136) | (137) | (136) | (135) | **(544)** | (135) |
| **Cash provided from (used for) financing activities** |  | **646** | **(579)** | **(195)** | **(861)** | **(989)** | **131** | **179** | **(774)** | **(1068)** | **(1532)** | **(363)** |
| **Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents** |  | (8) | (8) | 6 | 6 | **(4)** | (1) | (4) | (4) | 8 | **(1)** | 8 |
| **Net increase (decrease) in cash, cash equivalents and restricted cash equivalents during the period** |  | **319** | **(518)** | **62** | **186** | **49** | **(188)** | **477** | **(209)** | **285** | **365** | **16** |
| **Cash, cash equivalents and restricted cash equivalents, beginning of period** | **4** | 1198 | 1517 | 999 | 1061 | 1198 | 1247 | 1059 | 1536 | 1327 | 1247 | 1612 |
| **Cash, cash equivalents and restricted cash equivalents, end of period** |  | **1517** | **999** | **1061** | **1247** | **1247** | **1059** | **1536** | **1327** | **1612** | **1612** | **1628** |
| **<u>NON-GAAP MEASURES</u>** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Free Cash Flow** | **2** | **(270)** | **123** | **174** | **1031** | **1058** | **(313)** | **301** | **572** | **1347** | **1907** | **372** |

---

Q1 2026 Financial Review of Magna International Inc. Page 3 of 7 Prepared as at 4/30/2026

**FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.**

(United States dollars in millions, except per share figures) (Unaudited)

Prepared in accordance with U.S. GAAP

This Analyst should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2025.

---

| | |
|:---|:---|
| **Note 1:** | **OTHER EXPENSE (INCOME), NET** |

---

Other expense (income), net consists of significant items such as: impairment charges; restructuring costs generally related to significant plant closures or consolidations; net losses (gains) on investments; gains or losses on disposal of facilities or businesses; and other items not reflective of on-going operating profit or loss. Other expense (income), net consists of:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| Loss on assets held for sale | [a] |  |  |  |  | **-** |  |  |  |  | **-** | 485 |
| Restructuring activities | [b] | 38 | 55 |  | 94 | **187** | 44 | 13 | 46 | 15 | **118** | 26 |
| Investment revaluations, (gains) losses on sales, and impairments | [c] | 2 | 3 | 1 | 3 | **9** | 9 | (7) | 2 | (1) | **3** | (96) |
| Impairments | [d] |  |  |  | 79 | **79** |  |  |  | 615 | **615** |  |
| Impacts related to Fisker Inc. ["Fisker"] | [e] | 316 | 19 | (189) | 52 | **198** |  |  |  |  | **-** |  |
| Gain on business combination | [f] | - | (9) | - | - | **(9)** | - | - | - | - | **-** | - |
|  |  | **356** | **68** | **(188)** | **228** | **464** | **53** | **6** | **48** | **629** | **736** | **415** |

---

---

| | |
|:---|:---|
| **[a]** | **<u>Loss on assets held for sale</u>** |

---

During the first quarter of 2026, the Company entered into definitive agreements to divest its European Lighting and Rooftop Systems businesses. Subsequent to March 31, 2026, the Company entered into a definitive agreement to divest its Lighting business in North America, South America, and China. The Company concluded that the assets and liabilities of the Lighting and Rooftop Systems businesses met the criteria to be classified as held for sale as of March 31, 2026. These businesses are reported within the Company's Power & Vision segment.

The Company determined that the carrying amount of the disposal groups exceeded its fair value less costs to sell and recognized an impairment loss of $485 million. All three transactions are expected to close during the second half of 2026, subject to customary closing conditions and regulatory approvals.

---

| | |
|:---|:---|
| **[b]** | **<u>Restructuring activities</u>** |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| Complete Vehicles | 26 |  |  | 29 | **55** | 33 |  | 12 | 13 | **58** | 21 |
| Power & Vision |  | 55 |  | 49 | **104** | 11 | 13 | 34 | (7) | **51** | 5 |
| Body Exteriors & Structures | 12 | - |  | 16 | **28** | - | - | - | 9 | **9** | - |
|  | **38** | **55** |  | **94** | **187** | **44** | **13** | **46** | **15** | **118** | **26** |

---

Restructuring charges generally related to significant plant closures and consolidations primarily in Europe and to a lesser extent in North America and Asia Pacific. During the third quarter of 2025, the Company's Power & Vision segment recorded $10 million of equity losses associated with its share of significant rightsizing activities at an equity method investee. During the second quarters of 2025 and 2024, the Company recorded $6 million and $35 million, respectively, of restructuring charges associated with its acquisition of the Veoneer Active Safety Business ["Veoneer AS"].

---

| | |
|:---|:---|
| **[c]** | **<u>Investment revaluations, (gains) losses on sales, and impairments</u>** |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| (Gains) and losses related to revaluation and disposition | 2 | 3 | 1 | (10) | **(4)** | 9 | (7) |  | (1) | **1** | (110) |
| Non-cash impairment charges | - | - | - | 13 | **13** | - | - | 2 | - | **2** | 14 |
|  | **2** | **3** | **1** | **3** | **9** | **9** | **(7)** | **2** | **(1)** | **3** | **(96)** |

---

The Company revalues its public and private equity investments and certain public company warrants every quarter. The gains and losses related to this revaluation, as well as gains and losses on disposition, are primarily recorded in Corporate. The non-cash impairment charges on private equity investments are primarily recorded in Corporate. During the first quarter of 2026, the Company recorded an unrealized gain of $108 million resulting from the revaluation of its existing private equity investment in Waymo LLC ("Waymo") following Waymo's completion of a new financing round.

---

| | |
|:---|:---|
| **[d]** | **<u>Impairments</u>** |

---

During 2025, the Company concluded that indicators of impairment were present for finite-lived intangible assets and goodwill in the Electronics reporting unit within the Power & Vision segment and recorded $591 million impairment. During 2025, the Company also recorded an impairment charge of $24 million on fixed assets and other assets at a European facility in its Body Exteriors & Structures segment. During 2024, the Company recorded an impairment charge of $79 million on fixed assets, right of use assets and intangible assets at two European facilities in its Power & Vision segment.

---

| | |
|:---|:---|
| **[e]** | **<u>Impacts related to Fisker Inc. ["Fisker"]</u>** |

---

During 2023 and 2024, the Company recorded impairment charges on its Fisker related net assets, including its Fisker warrants, which were received in connection with the agreements with Fisker for platform sharing, engineering and manufacturing of the Fisker Ocean SUV. The Company also recorded additional restructuring charges during the first quarter of 2024 related to its Fisker related assembly operations. In the course of such bankruptcy proceedings, the Company terminated its manufacturing agreement for the Fisker Ocean SUV and recognized the remaining $196 million of deferred revenue into income.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| Impairment of Fisker related net assets | 261 | 19 | 7 | 43 | **330** |  |  |  |  |  |  |
| Impairment of Fisker warrants | 33 |  |  |  | **33** |  |  |  |  |  |  |
| Additional restructuring related to Complete Vehicles | 22 |  |  | 9 | **31** |  |  |  |  |  |  |
| Recognition of related deferred revenue | - | - | (196) | - | **(196)** |  |  |  |  |  |  |
|  | **316** | **19** | **(189)** | **52** | **198** |  |  |  |  |  |  |

---

---

| | |
|:---|:---|
| **[f]** | **<u>Gain on business combination</u>** |

---

During 2024, the Company acquired a business in the Body Exteriors & Structures segment for $5 million, resulting in a bargain purchase gain of $9 million.

Q1 2026 Financial Review of Magna International Inc. Page 4 of 7 Prepared as at 4/30/2026

---

| | |
|:---|:---|
| **Note 2:** | **NON-GAAP MEASURES** |

---

The Company presents Adjusted EBIT (Earnings before interest, taxes, Other expense (income), net and amortization of acquired intangible assets); Adjusted Net Income (Net Income before Other expense (income), net, net of tax excluding significant income tax valuation allowance adjustments, and amortization of acquired intangible assets); Adjusted Diluted Earnings per Share ("Adjusted EPS"); Adjusted EBIT as a percentage of sales; Free Cash Flow; Adjusted Return on Invested Capital; and Adjusted Debt to Adjusted EBITDA. The Company presents these financial figures because such measures are widely used by analysts and investors in evaluating the operating performance of the Company. However, such measures do not have any standardized meaning under U.S. generally accepted accounting principles and may not be comparable to the calculation of similar measures by other companies.

**The following table reconciles Income from operations before income taxes to Adjusted EBIT:**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Income from operations before income taxes** | **34** | **427** | **700** | **381** | **1542** | **225** | **496** | **473** | **114** | **1308** | **87** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Exclude:** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 28 | 28 | 28 | 28 | **112** | 26 | 29 | 27 | 29 | **111** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | 356 | 68 | (188) | 228 | **464** | 53 | 6 | 48 | 629 | **736** | 415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 51 | 54 | 54 | 52 | **211** | 50 | 52 | 65 | 42 | **209** | 37 |
| **Adjusted EBIT** | **469** | **577** | **594** | **689** | **2329** | **354** | **583** | **613** | **814** | **2364** | **558** |

---

**The following table shows the calculation of Adjusted Return on Invested Capital:**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **FY** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **FY** | **1st Q** |
| **Net (loss) income** | **26** | **328** | **508** | **234** | **1096** | **153** | **394** | **333** | **3** | **883** | **(1)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Add (deduct):** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | 51 | 54 | 54 | 52 | 211 | 50 | 52 | 65 | 42 | 209 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 28 | 28 | 28 | 28 | 112 | 26 | 29 | 27 | 29 | 111 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | 356 | 68 | (188) | 228 | 464 | 53 | 6 | 48 | 629 | 736 | 415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effect on Interest expense, net, Amortization of acquired intangible assets and Other expense, net | (93) | (32) | 30 | (38) | (133) | (19) | (18) | (22) | (48) | (107) | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to Deferred Tax Valuation Allowances | - | - | - | 51 | 51 | - | - | - | - | - | - |
| **Adjusted After-tax operating profits** | **368** | **446** | **432** | **555** | **1801** | **263** | **463** | **451** | **655** | **1832** | **425** |
| **Total Assets** | **32678** | **31986** | **32790** | **31039** |  | **32074** | **33175** | **32907** | **31417** |  | **31660** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding:** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | (1517) | (999) | (1061) | (1247) |  | (1059) | (1536) | (1327) | (1612) |  | (1605) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | (753) | (807) | (811) | (819) |  | (862) | (902) | (920) | (864) |  | (881) |
| **Less Current Liabilities** | (13566) | (12449) | (12600) | (12097) |  | (13068) | (12350) | (12059) | (10989) |  | (11923) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Excluding:** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowing | 838 | 848 | 828 | 271 |  | 614 | 349 | 433 |  |  | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt due within one year | 824 | 65 | 65 | 708 |  | 1005 | 706 | 33 | 27 |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 306 | 306 | 319 | 293 |  | 305 | 318 | 323 | 328 |  | 328 |
| **Invested Capital** | **18810** | **18950** | **19530** | **18148** |  | **19009** | **19760** | **19390** | **18307** |  | **17735** |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted After-tax operating profits | 368 | 446 | 432 | 555 | 1801 | 263 | 463 | 451 | 655 | 1832 | 425 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average Invested Capital | 18871 | 18880 | 19240 | 18839 | 18875 | 18579 | 19385 | 19575 | 18849 | 18923 | 18021 |
| **Adjusted Return on Invested Capital** | **7.8%** | **9.4%** | **9.0%** | **11.8%** | **9.5%** | **5.7%** | **9.6%** | **9.2%** | **13.9%** | **9.7%** | **9.4%** |

---

Q1 2026 Financial Review of Magna International Inc. Page 5 of 7 Prepared as at 4/30/2026

---

| | |
|:---|:---|
| **Note 2:** | **NON-GAAP MEASURES (Continued)** |

---

**The following table reconciles Net income attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.:**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Net (loss) income attributable to Magna International Inc.** |  | **9** | **313** | **484** | **203** | **1009** | **146** | **379** | **305** | **(1)** | **829** | **(12)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Exclude:** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets |  | 22 | 23 | 22 | 22 | **89** | 21 | 24 | 22 | 26 | **93** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on assets held for sale |  |  |  |  |  | **-** |  |  |  |  | **-** | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments |  |  |  |  | 79 | **79** |  |  |  | 578 | **578** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring activities |  | 32 | 45 |  | 82 | **159** | 44 | 9 | 46 | 15 | **114** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment revaluations, (gains) losses on sales, and impairments |  | 1 | 2 | 3 | 6 | **12** | 8 | (5) | 2 | (1) | **4** | (96) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impacts related to Fisker Inc. ["Fisker"] |  | 247 | 15 | (140) | 39 | **161** |  |  |  |  | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on business combination |  |  | (9) |  |  | **(9)** |  |  |  |  | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to Deferred Tax Valuation Allowance | [iii] |  |  |  | 51 | **51** |  |  |  |  | **-** |  |
|  |  |  |  |  |  |  |  |  |  |  |  | - |
| **Adjusted net income attributable to Magna International Inc.** |  | **311** | **389** | **369** | **482** | **1551** | **219** | **407** | **375** | **617** | **1618** | **386** |

---

**The following table reconciles diluted (loss) earnings per common share to Adjusted EPS [iv]:**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Diluted (loss) earnings per common share** |  | $**0.03** | $**1.09** | $**1.68** | $**0.71** | $**3.52** | $**0.52** | $**1.35** | $**1.08** | $**-** | $**2.93** | $**(0.04)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Exclude:** |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets |  | 0.08 | 0.08 | 0.08 | 0.08 | **0.31** | 0.08 | 0.08 | 0.08 | 0.09 | **0.34** | 0.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on assets held for sale |  |  |  |  |  | **-** |  |  |  |  | **-** | 1.61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments |  |  |  |  | 0.28 | **0.28** |  |  |  | 2.04 | **2.05** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring activities |  | 0.11 | 0.15 |  | 0.29 | **0.55** | 0.15 | 0.03 | 0.16 | 0.05 | **0.40** | 0.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment revaluations, (gains) losses on sales, and impairments |  |  | 0.01 | 0.01 | 0.01 | **0.04** | 0.03 | (0.02) | 0.01 |  | **0.01** | (0.34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impacts related to Fisker Inc. ["Fisker"] |  | 0.86 | 0.05 | (0.49) | 0.14 | **0.56** |  |  |  |  | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on business combination |  |  | (0.03) |  |  | **(0.03)** |  |  |  |  | **-** |  |
| Adjustments to Deferred Tax Valuation Allowance | [iii] |  |  |  | 0.18 | **0.18** |  |  |  |  | **-** |  |
| **Adjusted EPS** |  | $**1.08** | $**1.35** | $**1.28** | $**1.69** | $**5.41** | $**0.78** | $**1.44** | $**1.33** | $**2.18** | $**5.73** | $**1.38** |

---

[iii] Adjustments to Deferred Tax Valuation Allowance

The Company records quarterly adjustments to the valuation allowance against its deferred tax assets and liabilities in continents like North America, Europe, Asia, and South America. The net effect of these adjustments is an increase to income tax expense in the fourth quarter of 2024.

**The following table reconciles Diluted weighted average number of Common Shares outstanding to Adjusted Diluted weighted average number of Common Shares outstanding:**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Diluted weighted average number of Common Shares outstanding during the period (in millions):** |  | **287.1** | **287.3** | **287.3** | **285.9** | **286.9** | **282.0** | **281.7** | **281.8** | **281.2** | **282.5** | **278.1** |
| Adjusted Dilutive impact of stock option and share awards | [iv] |  |  |  |  | **-** |  |  |  | 1.5 | **-** | 1.8 |
| **Adjusted Diluted weighted average number of Common Shares outstanding during the period (in millions):** |  | **287.1** | **287.3** | **287.3** | **285.9** | **286.9** | **282.0** | **281.7** | **281.8** | **282.7** | **282.5** | **279.9** |

---

[iv] For the first quarter of 2026 and fourth quarter of 2025, the Company generated Adjusted Net Income attributable to Magna International Inc. while reporting a net loss attributable to Magna International Inc. As a result, certain stock-based compensation awards have a dilutive effect for adjusted EPS and are included in the adjusted diluted weighted average number of Common Shares.

Q1 2026 Financial Review of Magna International Inc. Page 6 of 7 Prepared as at 4/30/2026

**Note 2:** **NON-GAAP MEASURES (Continued)**

**The following table shows the calculation of Rating Agency Adjusted Debt to Adjusted EBITDA:**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  |  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt and leases per balance sheet |  | 7924 | 7460 | 7586 | 7068 | 7558 | 8116 | 7478 | 6689 | 6700 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-Term Employee Benefit Liabilities | [i] | 125 | 125 | 125 | 127 | 127 | 127 | 127 | 131 | 131 |
| **Adjusted Debt** | **[A]** | **8049** | **7585** | **7711** | **7195** | **7685** | **8243** | **7605** | **6820** | **6831** |
| &nbsp;&nbsp;&nbsp;&nbsp;Rolling four quarter Adjusted EBITDA |  | 3718 | 3699 | 3704 | 3839 | 3716 | 3737 | 3761 | 3911 | 4149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized operating lease expense | [i] | 353 | 353 | 353 | 410 | 410 | 410 | 410 | 428 | 428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension adjustment | [i], [ii] | 4 | 4 | 4 | (20) | (20) | (20) | (20) | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | [i] | 86 | 86 | 86 | 98 | 98 | 98 | 98 | 66 | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rolling four quarter cash portion of other expense, net |  | (94 | (161 | (149 | (219 | (203 | (161 | (196 | (106 | (90 |
|  | **[B]** | **4067** | **3981** | **3998** | **4108** | **4001** | **4064** | **4053** | **4301** | **4555** |
| **Adjusted Debt to Adjusted EBITDA** | **[A] / [B]** | **1.98** | **1.91** | **1.93** | **1.75** | **1.92** | **2.03** | **1.88** | **1.59** | **1.50** |

---

[i] The long-term employee benefit liabilities, capitalized operating lease expense, interest income and pension adjustment figures included in the Adjusted EBITDA calculations are based on the annual figures for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.

[ii] Pension adjustment calculated as Net Periodic Pension Benefit Cost less Current Service Cost for defined benefit pension plans.

**The following table reconciles cash provided from operating activities to Free Cash Flow:**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Cash provided from operating activities** | **261** | **736** | **727** | **1910** | **3634** | **77** | **627** | **912** | **1982** | **3598** | **677** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Add (deduct):** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed asset additions | (493) | (500) | (476) | (709) | **(2178)** | (268) | (246) | (267) | (532) | **(1313)** | (219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in investments, other assets and intangible assets | (125) | (170) | (115) | (207) | **(617)** | (148) | (94) | (100) | (157) | **(499)** | (168) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposition | 87 | 57 | 38 | 37 | **219** | 26 | 14 | 27 | 54 | **121** | 82 |
| **Free Cash Flow** | **(270)** | **123** | **174** | **1031** | **1058** | **(313)** | **301** | **572** | **1347** | **1907** | **372** |

---

---

| | |
|:---|:---|
| **Note 3:** | **SEGMENTED INFORMATION** |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **TOTAL** | **1st Q** |
| **Body Exteriors & Structures** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 4429 | 4465 | 4038 | 4067 | **16999** | 3966 | 4253 | 4147 | 4252 | **16618** | 4079 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 298 | 341 | 273 | 371 | **1283** | 230 | 347 | 305 | 465 | **1347** | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT as a percentage of sales | 6.7% | 7.6% | 6.8% | 9.1% | **7.5%** | 5.8% | 8.2% | 7.4% | 10.9% | **8.1%** | 6.7% |
| **Power & Vision** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 3842 | 3926 | 3837 | 3786 | **15391** | 3646 | 3857 | 3854 | 3841 | **15198** | 3881 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 98 | 198 | 279 | 235 | **810** | 124 | 162 | 236 | 166 | **688** | 252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT as a percentage of sales | 2.6% | 5.0% | 7.3% | 6.2% | **5.3%** | 3.4% | 4.2% | 6.1% | 4.3% | **4.5%** | 6.5% |
| **Seating Systems** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 1455 | 1455 | 1379 | 1511 | **5800** | 1312 | 1433 | 1520 | 1633 | **5898** | 1340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 52 | 53 | 51 | 67 | **223** | (30) | 42 | 62 | 136 | **210** | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT as a percentage of sales | 3.6% | 3.6% | 3.7% | 4.4% | **3.8%** | -2.3% | 2.9% | 4.1% | 8.3% | **3.6%** | 1.9% |
| **Complete Vehicles** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 1383 | 1242 | 1159 | 1402 | **5186** | 1276 | 1226 | 1085 | 1261 | **4848** | 1224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 27 | 20 | 27 | 56 | **130** | 44 | 28 | 29 | 50 | **151** | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT as a percentage of sales | 2.0% | 1.6% | 2.3% | 4.0% | **2.5%** | 3.4% | 2.3% | 2.7% | 4.0% | **3.1%** | 2.6% |
| **Corporate and other** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intercompany eliminations | (139) | (130) | (133) | (138) | **(540)** | (131) | (138) | (144) | (139) | **(552)** | (143) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | (6) | (35) | (36) | (40) | **(117)** | (14) | 4 | (19) | (3) | **(32)** | (25) |
| **Total** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 10970 | 10958 | 10280 | 10628 | **42836** | 10069 | 10631 | 10462 | 10848 | **42010** | 10381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT | 469 | 577 | 594 | 689 | **2329** | 354 | 583 | 613 | 814 | **2364** | 558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBIT as a percentage of sales | 4.3% | 5.3% | 5.8% | 6.5% | **5.4%** | 3.5% | 5.5% | 5.9% | 7.5% | **5.6%** | 5.4% |

---

---

| | |
|:---|:---|
| **Note 4:** | **CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS** |

---

A reconciliation of Cash and cash equivalents and Restricted cash equivalents (included in prepaid expenses) to Total cash, cash equivalents and restricted cash equivalents is as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** | **2025** | **2025** | **2026** |
|  | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** | **2nd Q** | **3rd Q** | **4th Q** | **1st Q** |
| Cash and cash equivalents | 1517 | 999 | 1061 | 1247 | 1059 | 1536 | 1327 | 1612 | 1605 |
| Restricted cash equivalents included in prepaid expenses | - | - | - | - | - | - | - | - | 23 |
| Total cash, cash equivalents and restricted cash equivalents | 1517 | 999 | 1061 | 1247 | 1059 | 1536 | 1327 | 1612 | 1628 |

---

Q1 2026 Financial Review of Magna International Inc. Page 7 of 7 Prepared as at 4/30/2026

## Exhibit 99.2

**Exhibit 99.2**

![](tm2612872d2_ex99-2img001.jpg)

May 1, 2026 Q1 2026 Results Q1 2026 Results Webcast 01MAY26 1

![](tm2612872d2_ex99-2img002.jpg)

Vice President, Investor Relations Louis Tonelli Q1 2026 Results Webcast 01MAY26 2

![](tm2612872d2_ex99-2img003.jpg)

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 includ e 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 hi sto rical 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 expressio ns suggesting future outcomes or events to identify forward - looking statements. The following table identifies the material forward - looking statements contained in this document, together with the material potential risks that we currently believe could cau se 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 Potential Risks Related to Applicable Forward - Looking Statement Material Forward - Looking Statement 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 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 Light Vehicle Production 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 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 Total Sales Segment Sales Restructuring costs and/or impairment charges Inflation Ability to secure planned cost recoveries from our customers and/or otherwise offset higher input costs Price concessions Commodity cost volatility Scrap steel price volatility 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 Adjusted EBIT Margin Adjusted Diluted EPS Free Cash Flow Legal and regulatory proceedings Changes in law Same risks as Adjusted EBIT Margin above Risks related to conducting business through joint ventures Risks of doing business in foreign markets Equity Income 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 Share Repurchases Weighted Average Diluted Shares Outstanding Q1 2026 Results Webcast 01MAY26 3

![](tm2612872d2_ex99-2img004.jpg)

Forward - Looking Statements (cont.) 4 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 : M&A 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. 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; 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; In evaluating forward - looking statements or forward - looking information, we caution readers not to place undue reliance on any f orward - 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, assu mptions 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 th e 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 als o 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 Syst em (EDGAR), which can be accessed at www.sec.gov . Q1 2026 Results Webcast 01MAY26

![](tm2612872d2_ex99-2img005.jpg)

Today's discussion excludes the impact of other expense (income), net ("Unusual Items") and amortization of acquired intangible assets. Please refer to the reconciliation of Non - GAAP measures in our press release dated May 1, 2026 for further information. "Organic", in the context of sales movements, means "excluding the impact of foreign exchange, acquisitions and divestitures". Weighted Sales Growth over Market (GoM) compares Magna organic sales growth (%) to vehicle production change (%) after applying Magna - specific geographic sales weighting, excluding Complete Vehicles, to regional production. All amounts are in U.S. Dollars Reminders Q1 2026 Results Webcast 01MAY26 5

![](tm2612872d2_ex99-2img006.jpg)

Chief Executive Officer Swamy Kotagiri Q1 2026 Results Webcast 01MAY26 6

![](tm2612872d2_ex99-2img007.jpg)

Key Takeaways Q1 2026 Results Webcast 01MAY26 7 Strong Q1 results, with margin expansion driven by disciplined execution 1 • Sales up 3%, weighted Growth over Market of +3% (ex - Complete Vehicles: +5%) • Adjusted EBIT up 58% , Adjusted EBIT margin expanded 190 bps to 5.4% • Adjusted EPS rose 77% to $1.38 • Continued traction on operational excellence activities across the Company

![](tm2612872d2_ex99-2img008.jpg)

Key Takeaways Q1 2026 Results Webcast 01MAY26 8 Robust free cash flow reflects improved operating performance 2 • Generated operating cash flow of $677 million and free cash flow of $372 million in Q1 • Moody's reaffirmed "A3" credit rating with a stable outlook • Ended Q1 with strong balance sheet, including $1.6 billion in cash

![](tm2612872d2_ex99-2img009.jpg)

Key Takeaways Q1 2026 Results Webcast 01MAY26 9 Outlook reinforces confidence in margin, EPS and cash flow trajectory 3 • Weighted sales growth over market of +1.5% at midpoint • Affirming FY 2026 Outlook ranges for Adjusted EBIT margin expansion (up 40 to 100 bps), Adjusted EPS ($6.25 – $7.25), and Free Cash Flow ($1.6 – 1.8B)

![](tm2612872d2_ex99-2img010.jpg)

Key Takeaways Q1 2026 Results Webcast 01MAY26 10 Executing our proven capital allocation framework 4 • Continue to invest in business to support profitable growth • Returned $575 million in capital to shareholders in Q1, through share repurchases and dividends • ~17 million shares remaining at March 31, 2026 under current buyback authorization (NCIB); Company plans to repurchase remaining shares • Announced dispositions of Lighting and Rooftop Systems businesses

![](tm2612872d2_ex99-2img011.jpg)

Q1 2026 Results Webcast 01MAY26 11 Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long - standing guiding principles around portfolio management

![](tm2612872d2_ex99-2img012.jpg)

Q1 2026 Results Webcast 01MAY26 12 Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long - standing guiding principles around portfolio management Guiding Principles • Culture of accountability with compensation aligned with short - term execution, long - term value creation • Solutions - oriented approach to building durable partnerships with OEMs • Investment decisions based on long - term ownership mindset Long - Term Ownership Mentality • Target meaningful or growing markets with stable or growing profit pools • Strong (or path towards) market positioning and profitable growth • Sustainable competitive advantage from differentiated technology and/or manufacturing capabilities • Exit businesses that do not align with portfolio criteria Portfolio Management • Maintain flexibility to navigate industry cyclicality and to invest for profitable growth • Preserve liquidity and solid investment grade credit ratings Maintain Strong Balance Sheet • Disciplined approach to investments that support long - term free cash flow per share growth: 1. Invest for Profitable Growth: • Organic/inorganic investment in product capabilities, customer diversification, or geographic footprint 2. Return Capital to Shareholders: • Continued dividend growth over time • Repurchase shares with excess liquidity Capital Allocation Strategy

![](tm2612872d2_ex99-2img013.jpg)

Q1 2026 Results Webcast 01MAY26 13 Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long - standing guiding principles around portfolio management • Allow us to streamline our portfolio and focus on businesses that advance our long - term growth, margin and return objectives

![](tm2612872d2_ex99-2img014.jpg)

Q1 2026 Results Webcast 01MAY26 14 Announced Dispositions of Lighting and Rooftop Systems Businesses • Transactions consistent with our long - standing guiding principles around portfolio management • Allow us to streamline our portfolio and focus on businesses that advance our long - term growth, margin and return objectives • Transactions expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals » Removed ~ $350m in sales from outlook with minimal earnings, FCF impact

![](tm2612872d2_ex99-2img015.jpg)

Expanding Advanced Hybrid Technology Offerings Dedicated REX Hybrid Drive 15 • Reduced size, weight and system cost • Multiple operating modes: electric driving, generating mode and optional parallel hybrid mode for improved highway performance • Applicable to B through E segments in AWD layouts • Further demonstrates our commitment to adaptable driveline solutions that support a wide range of vehicle performance and market expectations Q1 2026 Results Webcast 01MAY26

![](tm2612872d2_ex99-2img016.jpg)

Electric Vehicle Launches for China - based OEMs 16 • Launched second model (AION UT) for GAC in March '26 • Launched third model (P7+) for XPENG in April '26 • Five EV models now launched for these two OEMs since September 2025 • Recently awarded 4 th program with XPENG • Reinforces Magna's strong position in complete vehicle manufacturing • Demonstrates the value of flexible, state - of the art production processes Q1 2026 Results Webcast 01MAY26

![](tm2612872d2_ex99-2img017.jpg)

Named to Ethisphere's World's Most Ethical Companies List 17 • Ethisphere's annual recognition honours global leaders in ethical business practices • 2026 represents 5 th consecutive year Magna has been recognized • Reflects Magna's commitment to integrity, ethical decision - making and doing what's right Q1 2026 Results Webcast 01MAY26

![](tm2612872d2_ex99-2img018.jpg)

EVP & Chief Financial Officer Phil Fracassa Q1 2026 Results Webcast 01MAY26 18

![](tm2612872d2_ex99-2img019.jpg)

Q1 2026 Results Webcast 01MAY26 19 Q1 2026 Performance Highlights Consolidated Sales $10.4B Weighted GoM 1 of +3% (+5% excl. Complete Vehicles) +3% Adjusted EPS $1.38 +77% Free Cash Flow 2 $372M 1 Weighted Growth over Market (GoM) compares organic sales growth (%) to vehicle production change (%) after applying Magna geo gra phic sales weighting, excluding Complete Vehicles, to regional production 2 Free Cash Flow (FCF) is Cash from Operations plus Proceeds from normal course Dispositions of fixed and other assets minus Fi xed Asset Additions and Increase in Investment in other assets Adjusted EBIT 5.4% +190 bps $558M +58% +$685M

![](tm2612872d2_ex99-2img020.jpg)

Q1 2026 Financial Results Q1 2026 Results Webcast 01MAY26 20 1 Weighted Sales Growth over Market (GoM) compares Magna organic sales growth (%) to vehicle production change (%) after applying Magna - specific geographic sales weighting, excluding Complete Vehicles, to regional production 2 "Other" i ncludes customer price increases to recover certain higher input costs and tariffs, the net impact of commercial items, and net customer price concessions Q1 2026 LV Production - 4% North America - 4% Europe - 12% China - 7% Global - 5% Magna Weighted Weighted Sales GoM 1 : +3% (+5% excl. Complete Vehicles) Consolidated Sales ($Millions) +3% 10,069 520 - 36 - 172 10,381 Q1 2025 Foreign Exchange Volumes, Launches & Other Complete Vehicles excl. FX Q1 2026 2 (Organic: - 2%)

![](tm2612872d2_ex99-2img021.jpg)

• Operational, Volumes & Other Operational excellence activities driving productivity and efficiency improvements (+) Benefits of prior restructuring actions (+) Net transactional foreign exchange gains (+) Reduced earnings on lower organic sales, including engineering (-) Unfavourable product mix (-) • Equity Income Net favourable commercial items (+) Earnings on higher sales and favourable product mix (+) Productivity and efficiency improvements (+) • Discrete Items 1 Lower warranty costs (+) N et impact of commercial items (+) • Tariffs Costs incurred, net of customer recoveries (-) Q1 2026 Results Webcast 01MAY26 21 Q1 2026 Financial Results 1 Includes items from both Q1 2026 and Q1 2025. Represents the net change year over year. 0.80% 0.70% 0.55% - 0.15% 3.5% 5.4% Q1 2025 Operational, Volumes & Other Equity Income Discrete Items Tariffs Q1 2026 $558 $354 Adjusted EBIT & Margin ($Millions and %) Note: bps changes are approximate 1

![](tm2612872d2_ex99-2img022.jpg)

Q1 2026 Results Webcast 01MAY26 22 Q1 2026 Financial Results Change Q1 2026 Q1 2025 ($Millions, unless otherwise noted) 312 10,381 10,069 Sales 204 558 354 Adjusted EBIT 13 37 50 Interest Expense 217 521 304 Adjusted Pre - Tax Income (46) (124) (78) Adjusted Income Taxes (4) (11) (7) Income Attributable to Non - Controlling Interests 167 386 219 Adjusted Net Income Attributable to Magna (2.1) 279.9 282.0 Diluted Shares Outstanding (millions of shares) 0.60 1.38 0.78 Adjusted EPS ($) 25.7% 23.8% 3.5% 5.4%

![](tm2612872d2_ex99-2img023.jpg)

Q1 2026 Segment Performance Q1 2025 Q1 2026 Seating Power & Vision Complete Vehicles Body Exteriors & Structures $3,966 $4,079 $0,000 $0,500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $230 $274 5.8% 6.7% 0.0 0.1 0.1 0.2 0.2 0.3 0.3 $0 $100 $200 $300 $400 $500 Sales +3% EBIT +19% $1,312 $1,340 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 - $30 $25 - 2.3% 1.9% -0.1 -0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.1 -$50 -$40 -$30 -$20 -$10 $0 $10 $20 $30 $40 $50 Sales +2% EBIT +183% $3,646 $3,881 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $124 $252 3.4% 6.5% 0.0 0.1 0.1 0.2 0.2 0.3 0.3 $0 $50 $100 $150 $200 $250 $300 $350 $400 Sales +6% EBIT +103% $1,276 $1,224 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $44 $32 3.4% 2.6% 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 $0 $10 $20 $30 $40 $50 $60 $70 Sales - 4% EBIT - 27% +90 bps +420 bps +310 bps $Millions 23 Q1 2026 Results Webcast 01MAY26 Q1'25 includes warranty accrual - 80 bps Q1'26 includes favourable commercial settlement in Equity Income

![](tm2612872d2_ex99-2img024.jpg)

Q1 2026 Results Webcast 01MAY26 24 Q1 Free Cash Flow Free Cash Flow 1 ($Millions) - 313 372 -400 -300 -200 -100 0 100 200 300 400 500 Q1'25 Q1'26 1 Free Cash Flow (FCF) is Cash from Operations plus Proceeds from normal course Dispositions of fixed and other assets minus Fixed Asset Additions and Increase in Investment in other assets Key Sources (uses) of cash 135 322 Net Debt Activity (440) (51) Repurchase of Common Shares (135) (136) Dividends paid Q1 2026 Q1 2025 ($Millions) 637 547 Cash from Operations Before Changes in Operating Assets & Liabilities 40 (470) Changes in Operating Assets & Liabilities 677 77 Cash from Operations (219) (268) Fixed Asset Additions (168) (148) Increase in Investments, Other Assets and Intangible Assets 82 26 Proceeds from Normal Course Dispositions (305) (390) Investment Activities 372 (313) Free Cash Flow 1 Q1'26 Includes Customer Recoveries for Certain EV Investments in North America

![](tm2612872d2_ex99-2img025.jpg)

Maintaining Strong Balance Sheet and Financial Flexibility Q1 2026 Results Webcast 01MAY26 25 Rating Agency Leverage Ratio (LTM, 31MAR26) ($millions) 6,831 Adjusted Debt 4,555 Adjusted EBITDA 1.50x Rating Agency Leverage Total Liquidity (31MAR26) ($millions) 1,605 Cash and Cash Equivalents 3,364 Available Term & Operating Lines of Credit 4,969 Total Liquidity Long - Standing Investment - Grade Ratings with Moody's, S&P and DBRS • Strong liquidity of $5B, including $1.6B cash • Rating agency leverage 1.50x at 03/31/26, better than expected due to strong Q1 cash flow • Moody's affirmed Magna's "A3" rating and updated outlook to "Stable" • Company well - positioned to continue significant share repurchases in 2026

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Q1 2026 Results Webcast 01MAY26 26 Updated 2026 Outlook – Key Assumptions May 2026 February 2026 2025 Light Vehicle Production: (millions of units) 14.9 15.0 15.317 • North America 16.6 16.8 16.771 • Europe 32.0 32.0 33.035 • China Foreign Exchange Rates: 0.730 0.720 0.716 • 1 CDN dollar equals USD 1.178 1.160 1.130 • 1 EURO equals USD 0.145 0.143 0.139 • 1 RMB equals USD We continue to actively manage input costs volatility through commercial recoveries and cost actions; Outlook based on our current visibility into the balance of the year

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Q1 2026 Results Webcast 01MAY26 27 Updated 2026 Outlook May 2026 February 2026 2025 ($Billions, unless otherwise noted) 41.5 – 43.1 41.9 – 43.5 42.010 Sales 6.0% – 6.6% 6.0% – 6.6% 5.6% Adjusted EBIT Margin % 1 160M – 195M 160M – 195M 143 Equity Income (included in Adj. EBIT) ~165M ~180M 209 Interest Expense ~23% ~23% 22.4% Income Tax Rate 2 6.25 – 7.25 6.25 – 7.25 5.73 Adjusted EPS 3 1.5 – 1.6 1.5 – 1.6 1.313 Capital Spending 1.6 – 1.8 1.6 – 1.8 1.907 Free Cash Flow 4 1 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Sales 2 Income Tax Rate has been calculated using Adjusted EBIT less interest expense, and is based on current tax legislation 3 Adjusted EPS represents Net Income excluding Other expense (income), net / Diluted weighted average number of shares outstand in g 4 Free Cash Flow (FCF) is Cash from Operations plus Proceeds from normal course Dispositions of fixed and other assets minus Fi xed Asset Additions and Increase in Investments, Other assets and Intangibles

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Chief Executive Officer Swamy Kotagiri Q1 2026 Results Webcast 01MAY26 28

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• Delivered meaningful Adjusted EBIT Margin expansion, despite a declining production environment • Achieved solid weighted sales growth over market • Generated strong free cash flow, reinforcing the quality and sustainability of earnings Strong start to 2026 with margin expansion and cash generation In Summary Q1 2026 Results Webcast 01MAY26 29

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• 2026 outlook largely unchanged, reflecting confidence in operating performance • Continued focus on margin expansion, EPS growth and strong free cash flow • Executing a disciplined capital allocation strategy, including significant return of capital and portfolio actions aligned with long - term value creation Positioned for continued margin expansion and shareholder returns In Summary Q1 2026 Results Webcast 01MAY26 30

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Magna Investor Day Wednesday, November 11, 2026 Save The Date New York, NY

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Q1 2026 Results Webcast 01MAY26 32 Q&A

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Q1 2026 Results Webcast 01MAY26 33 Q1 2026 Results Appendix

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Q1 2026 Results Webcast 01MAY26 34 Q1 2026 Reconciliation of Reported Results Adjusted (2) (1) Reported Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures $521 $19 $415 $87 Income Before Income Taxes 5.0% 0.8% % of Sales $124 $2 $34 $88 Income Tax Expense 23.8% 101.1% % of Pretax $(11) $- $- $(11) Income Attributable to Non - Controlling Interests $386 $469 $(71) $(12) Adjusted Net Income Attributable to Magna 1 $1.38 $1.67 $(0.25) $(0.04) Adjusted Diluted Earnings Per Share 1 Adjusted Net Income Attributable to Magna represents Net Income excluding Other expense (income), net and Amortization of Acquired Int ang ible Assets

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Q1 2026 Results Webcast 01MAY26 35 Q1 2025 Reconciliation of Reported Results Adjusted (2) (1) Reported Excluding: (1) Other Expense (Income), Net and (2) Amortization of Acquired Intangible Assets $Millions, except for share figures $304 $26 $53 $225 Income Before Income Taxes 3.0% 2.2% % of Sales $78 $5 $1 $72 Income Tax Expense 25.7% 32.0% % of Pretax $(7) $- $- $(7) Income Attributable to Non - Controlling Interests $219 $21 $52 $146 Adjusted Net Income Attributable to Magna 1 $0.78 $0.08 $0.18 $0.52 Adjusted Diluted Earnings Per Share 1 Adjusted Net Income Attributable to Magna represents Net Income excluding Other expense (income), net and Amortization of Acquired Int ang ible Assets

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Q1 2026 Results Webcast 01MAY26 36 Q1 2025 vs Q1 2026 Sales Performance vs Market Performance vs Weighted Global Production (Weighted GoM) Organic 1 Reported 4% (1%) 3% Body Exteriors & Structures 6% 1% 6% Power & Vision 3% (2%) 2% Seating Systems (9%) (14%) (4%) Complete Vehicles 3% (2%) 3% TOTAL SALES (7%) Unweighted Production Growth (5%) Weighted Production Growth 2 1 Organic Sales represents sales excluding acquisitions net of divestitures and FX movements 2 Calculated by applying Magna geographic sales weighting, excluding Complete Vehicles, to regional production

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Q1 2026 Results Webcast 01MAY26 37 Q1 2025 vs Q1 2026 Segment Impact on Adjusted EBIT % of Sales Adjusted EBIT as a Percentage of Sales Adjusted EBIT Sales ($Millions) 3.5% $354 $10,069 1 st Quarter of 2025 Increase (Decrease) Related to: 0.4% $44 $113 Body Exteriors & Structures 1.2% $128 $235 Power & Vision 0.5% $55 $28 Seating Systems (0.1%) $(12) $(52) Complete Vehicles (0.1%) $(11) $(12) Corporate and Other 5.4% $558 $10,381 1 st Quarter of 2026

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Q1 2026 Results Webcast 01MAY26 38 Q1 2025 vs Q1 2026 Geographic Sales Q1 2025 Q1 2026 China China Production (12%) $1.2B $1.1B $0.00B $0.20B $0.40B $0.60B $0.80B $1.00B $1.20B $1.40B $1.60B $1.80B $2.00B $4.9B $4.9B $0.0B $1.0B $2.0B $3.0B $4.0B $5.0B $6.0B North America Production (4%) $4.0B $4.4B $0.0B $0.5B $1.0B $1.5B $2.0B $2.5B $3.0B $3.5B $4.0B $4.5B $5.0B Europe Production (4%) $220M $227M $0M $50M $100M $150M $200M $250M Asia Production (8%) ROW Production (15%) South America Production 5% Rest of World 1 1 Rest of World represents Asia (excluding China) plus all other regions not included above.

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Q1 2026 Results Webcast 01MAY26 39 2026 Segment Adjusted EBIT Margin 2025 February 2026 Outlook May 2026 Outlook Seating Power & Vision Complete Vehicles Body Exteriors & Structures 8.1% 8.2 - 8.8% 8.2 - 8.8% 3.6% 3.1 - 3.7% 3.1 - 3.7% 4.5% 6.0 - 6.6% 6.0 - 6.6% 3.1% 2.0 - 2.6% 2.0 - 2.6%

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Q1 2026 Results Webcast 01MAY26 40 Leverage Ratios as of March 31, 2026 Rating Agency Debt/EBITDA 1 Net Debt/ Adj. EBITDA ($Millions) $- $(1,605) Cash and Cash Equivalents 4,799 4,799 ST and LT Debt per Balance Sheet 2,032 - Leases and Other Credit Rating Agency Adjustments $6,831 $3,194 Net Debt / Rating Agency Debt $4,149 $4,149 LTM Adjusted EBITDA 406 - Credit Rating Agency Adjustments $4,555 $4,149 Adjusted EBITDA / Rating Agency EBITDA 1.50x 0.77x Leverage at March 31, 2026 1 "Rating Agency" Debt/EBITDA reflects estimated Moody's adjustments and resulting calculation as of March 31, 2026

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Q1 2026 Results Webcast 01MAY26 41

## Exhibit 99.3

**Exhibit 99.3**

**Magna International Inc.**

**Q1 2026 RESULTS WEBCAST TRANSCRIPT** 

**DISCLAIMER:**

*This transcript is derived from a recording of the webcast. While efforts have been made to transcribe accurately, the following transcription may still contain inaccuracies, errors, or omissions. Readers are advised to refer to the webcast itself together with additional information about Magna, including in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F with the United States Securities and Exchange Commission, and subsequent filings, 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.*

 

**CORPORATE SPEAKERS:**

**Louis Tonelli**

*Magna International Inc.; Vice President of Investor Relations*

**Seetarama Kotagiri**

*Magna International Inc.; Chief Executive Officer & Director*

**Philip Fracassa**

*Magna International Inc.; Executive Vice President & Chief Financial Officer* 

**PARTICIPANTS:**

**Alex Perry**

*Bank of America; Director, Head of North American Autos Equity Research*

**James Picariello**

*BNP Paribas; Analyst*

**Dan Levy**

*Barclays Bank; Analyst*

**Chris McNally**

*Evercore ISI Institutional Equities; Senior Managing Director*

**Joseph Spak**

*UBS; Managing Director* 

**Thomas Ito**

*RBC Capital Markets; Analyst*

**Emmanuel Rosner**

*Wolfe Research; Analyst*

**Colin Langan**

*Wells Fargo Securities; Director*

**Andrew Percoco**

*Morgan Stanley; Head of North America Autos and Shared Mobility Research*

**Jonathan Goldman**

*Scotiabank Global Banking and Markets; Analyst*

**Mark Delaney**

*Goldman Sachs Group, Inc.; Analyst*

**Michael Glen**

*Raymond James; Managing Director*

Magna International Inc.

First Quarter 2026 Results Webcast

**PRESENTATION:**

Operator^ Ladies and gentlemen, thank you for standing by. (Operator Instructions) At this time, I would like to welcome everyone to Magna International First Quarter 2026 Results Webcast and Conference Call. (Operator Instructions)

I would now like to turn the conference over to Louis Tonelli, Vice President of Investor Relations. Louis, please go ahead.

Louis Tonelli^ Thanks, Operator. Hello everyone. And welcome to our conference call covering our Q1 2026 results.

Joining me today are Swamy Kotagiri and Phil Fracassa.

Yesterday our Board of Directors met and approved our financial results for the first quarter of '26 and our updated outlook. We issued a press release this morning outlining both of these.

You'll find today's press release, the conference call webcast, the slide presentation to go along with the call and our updated quarterly financial review all in the Investor Relations section of our website at magna.com.

Before we get started, just as a reminder, the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation. Such statements involve certain risks, assumptions and uncertainties which may cause the company's actual or future results and performance to be materially different from those expressed or implied in these statements.

Please refer to today's press release for a complete description of our safe harbor disclaimer.

Please also refer to the reminder slide included in our presentation that relates to our commentary today.

With that, I'll pass it over to Swamy.

Magna International Inc.

First Quarter 2026 Results Webcast

Seetarama Kotagiri^ Thank you, Louis. Good morning everyone. And thank you for joining us today. We appreciate your time and interest.

Let's get started.

Overall, I was very pleased with our strong Q1 2026 results, where we drove margin expansion with disciplined execution.

In the quarter, sales were up 3% with weighted growth over market of 3%. Adjusted EBIT was up 58% with adjusted EBIT margin expanding 190 basis points to 5.4%, and adjusted EPS rose 77% to $1.38.

We continue to demonstrate traction from our operational excellence initiatives across the company.

Our robust cash flow reflects improved operating performance. We generated $677 million in operating cash flow and $372 million in free cash flow.

In addition to strong earnings growth, our team did a great job securing additional commercial recoveries related to previous EV investments.

Moody's recently reaffirmed its A3 credit rating for Magna and improved the outlook to stable. We ended the quarter with a 1.5x rating agency leverage ratio ahead of our expectations with $1.6 billion in cash on hand.

Our 2026 outlook reinforces our confidence in our margin, EPS and cash flow trajectory. We continue to expect weighted sales growth over market of about 1.5% at the midpoint. We are reaffirming our prior outlook ranges for adjusted EBIT margin, adjusted EPS and free cash flow.

While the situation in the Middle East introduces some uncertainty, we have a track record of navigating external disruptions, and we are confident in our ability to execute on what's within our control. Importantly, we expect to mitigate most cost headwinds over time.

Magna International Inc.

First Quarter 2026 Results Webcast

We remain focused on executing our proven capital allocation framework. We continue to invest in our business to support further profitable organic growth while returning $575 million in capital including $440 million in stock repurchases to shareholders in the quarter.

At the end of March, we had about 17 million shares remaining and available for repurchase under our NCIB. We plan to repurchase the remaining shares during 2026.

We recently announced the margin accretive dispositions of our lighting and rooftop systems businesses. The transactions are consistent with our long-standing principles around portfolio management.

We have highlighted in the past that we manage our portfolio using an objective set of criteria and regularly assess our product lines based on their addressable markets, market positions and returns.

Specifically, we want to participate in meaningful or growing markets with stable, or growing profit pools, strong or a clear path to strong market positions, profitable growth and sustainable competitive advantage. This has long been a key principle that ensures that we manage Magna for long-term success.

The dispositions allow us to streamline the portfolio and focus on businesses that advance our long-term growth, margin and return objectives. The transactions are expected to close in the second half of the year.

In our outlook, we have removed about $350 million of sales with minimal earnings and free cash flow impact.

One example of our team's execution and innovation is the recent expansion of our hybrid driveline portfolio with the introduction of a dedicated hybrid drive for range-extended electric vehicles. The new system offers several advantages including reduced size, weight and system cost, multiple operating modes and applicability across a broad range of vehicle segments. It underscores our commitment to providing OEMs with adaptable driveline solutions that support a wide range of vehicle performance and market expectations.

Magna International Inc.

First Quarter 2026 Results Webcast

Our team continues to partner closely with our OEM customers to deliver solutions that support Magna's growth.

With that in mind, I would like to highlight a couple of recent complete vehicle EV program launches in Austria for China-based OEMs. This past quarter, we launched a second complete vehicle program for GAC, we also recently launched a third model, the P7+ for XPENG.

Since September of 2025, we have now launched five vehicle models for these two China-based OEMs.

More recently, we were awarded a fourth program with XPENG which will launch later this year. This reinforces Magna's strong position in vehicle manufacturing and highlights the value of our flexible state-of-the-art production process, enabling fast-to-market, high-quality vehicles for any customer in the European market.

Recently, Magna was once again recognized by Ethisphere as one of the World's Most Ethical Companies marking our fifth consecutive year of recognition. This reflects our ongoing commitment to integrity, ethical decision-making and doing what's right, something we are very proud of.

With that, I'll turn the call over to Phil.

Philip Fracassa^ Thank you, Swamy. And good morning, everyone.

I will begin on Slide 19 with a summary of our strong first quarter results.

Sales were $10.4 billion in the first quarter, up 3% from last year. Adjusted EBIT margin improved 190 basis points to 5.4%. Adjusted earnings were $1.38 per share, up 77%. And free cash flow was very strong at $372 million, up $685 million from last year. Each of these metrics came in ahead of our expectations.

Now I'll take you through some of the details.

Magna International Inc.

First Quarter 2026 Results Webcast

Let's start with sales on Slide 20.

First quarter sales were up 3% overall compared to last year. Excluding foreign currency translation, sales were down about 2%.

Global light vehicle production declined 7% in the quarter. On a Magna-weighted basis, we estimate light vehicle production was down about 5%. This translates to 3% growth over market for Magna consolidated and 5% growth over market, excluding complete vehicles.

Looking at the sales bridge, foreign currency translation was positive $520 million or about 5%, driven by a weaker U.S. dollar compared to last year.

Volumes, launches and other was relatively flat as lower light vehicle production, the end of production on certain programs including the Ford Escape and normal course customer price concessions were largely offset by the launch of new programs including the Ford Expedition Navigator, Mercedes-Benz CLA and Jeep Cherokee Recon and net favorable program sales mix.

Sales in complete vehicles, excluding foreign currency, declined $172 million despite higher unit volumes. The higher unit volumes reflected new assembly programs in Graz including with XPENG and GAC, where sales are recognized on a value-added basis. Volumes with other customers where sales are generally recognized on a full cost basis, declined year-over-year collectively. This resulted in net lower assembly sales dollars.

Engineering revenue was also lower, in line with our expectations.

Now let's move to EBIT on Slide 21.

First quarter adjusted EBIT was $558 million, an increase of $204 million or 58% from last year. Adjusted EBIT margin was 5.4%, up 190 basis points.

Looking at the pluses and minuses, our largest benefit came from operational performance, volume and other items, about 80 basis points. This reflects continued momentum from operational excellence and other cost reduction initiatives.

Magna International Inc.

First Quarter 2026 Results Webcast

We also benefited from prior restructuring actions and favorable net foreign exchange gains. These positives more than offset the impact of lower organic sales and unfavorable mix.

Equity income contributed around 70 basis points in the quarter, reflecting a favorable commercial settlement at one of our Power & Vision joint ventures that was originally planned for the second quarter.

Margins were also supported by higher sales, favorable mix as well as productivity and efficiency improvements.

Discrete items added around 55 basis points, driven mainly by lower warranty costs as we had a large expense accrual last year in Seating.

We also benefited from net favorable commercial items year-over-year in the quarter.

And finally, tariff costs net of recoveries, reduced margins by about 15 basis points. While recovery mechanisms are in place with some customers, discussions with most OEMs for 2026 are ongoing, and we are following the frameworks we established last year. We remain confident that our net tariff impact for 2026 will be similar to 2025. In other words, a roughly neutral impact to EBIT margin for the full year.

Looking below the EBIT line on Slide 22.

Interest expense was $13 million lower than last year due mainly to our strong first quarter free cash flow. This led to lower short-term borrowings and higher cash balances, resulting in lower net interest expense for the quarter.

Our first quarter adjusted tax rate was 23.8%, an improvement of 190 basis points versus last year. For the full year, we continue to forecast an adjusted tax rate of approximately 23%.

Magna International Inc.

First Quarter 2026 Results Webcast

Adjusted net income was $386 million, up $167 million or 76% from last year, driven mostly by the higher EBIT. And first quarter adjusted EPS was $1.38, up 77% from last year, mainly reflecting the higher net income as well as a slightly lower share count.

Next, let's take a brief look at our business segment performance which is summarized on Slide 23.

Three of our four segments posted higher sales year-over-year and growth above market in the quarter with a notable 6% year-over-year increase in Power & Vision. The exception on the sales line was complete vehicles, where sales declined 4% as net lower volumes on full cost programs and lower engineering revenue were only partially offset by favorable foreign currency translation and the benefit of recent value-added program launches with China-based OEMs.

Turning to EBIT. Body Exteriors & Structures, Power & Vision and Seating all posted notable year-over-year improvements in adjusted EBIT dollars and margins, reflecting strong operational execution.

Power & Vision also benefited from a favorable commercial settlement in equity income, while Seating benefited from lower warranty costs.

Complete Vehicles margin was lower than last year, but in line with our expectations, reflecting the impact of lower engineering revenue, offset partially by productivity and efficiency improvements.

Now let's look at cash flow on Slide 24.

In the first quarter, we generated $677 million in cash from operations, an increase of $600 million from last year. Operating cash flow in the current period includes over $450 million in balance sheet-related customer recoveries for certain EV programs in North America. We had originally expected to receive most of these recoveries later in 2026.

Magna International Inc.

First Quarter 2026 Results Webcast

Investment activities in the quarter included $219 million in CapEx, representing 2.1% of sales and $168 million for investments, other assets and intangibles, offset partially by proceeds from normal course asset dispositions.

Netting everything out, we generated free cash flow of $372 million in the quarter, above our expectations and the most cash we have ever generated in the first three months of the year.

We continue to return capital to shareholders in the first quarter with $135 million in dividends, along with $440 million in share buybacks.

We repurchased 7.6 million shares during the quarter under our NCIB authorization which left us with close to 17 million shares remaining at the end of March. We're planning to repurchase those shares before the NCIB expires in early November.

Turning to Slide 25.

Our balance sheet and capital structure remain strong. At the end of March, we had almost $5 billion in total liquidity including $1.6 billion of cash on hand. Our rating agency leverage ratio was 1.5x on March 31, better than we anticipated three months ago. This puts Magna in a great position to continue our share repurchase strategy in 2026 and beyond.

And we're pleased to note that Moody's recently affirmed Magna's A3 investment-grade credit rating with an improved outlook of stable.

Next, let me cover our current outlook on Slide 26.

Compared to our February outlook, we've reduced our North American production forecast by around 100,000 units to $14.9 million, and we reduced Europe by 200,000 units to $16.6 million, both reflecting current market conditions.

Our China production assumptions remain unchanged.

Magna International Inc.

First Quarter 2026 Results Webcast

We've also updated our currency assumptions to reflect recent exchange rates. We're now expecting a slightly stronger euro, Canadian dollar and Chinese yuan in 2026 as compared to our February outlook.

We continue to actively manage input costs and other volatility through commercial recoveries and cost actions. Our outlook reflects our current visibility into the balance of the year, and does not assume a prolonged geopolitical conflict in the Middle East.

Moving to Slide 27.

We are reaffirming our prior outlook ranges across key metrics including adjusted EBIT margin, adjusted EPS and free cash flow.

We have slightly lowered our sales outlook range for the updated light vehicle production estimate revisions we covered earlier along with the expected second half closings of the lighting and rooftop systems divestitures within Power & Vision, offset partially by the benefit of foreign currency translation from a weaker U.S. dollar.

We're also forecasting lower interest expense, reflecting the favorable timing of commercial recoveries which should result in less borrowings throughout the year. All other outlook metrics from February are unchanged.

Note that we continue to expect strong margin expansion with adjusted EBIT margin between 6% and 6.6% despite slightly lower sales. Adjusted EPS between $6.25 and $7.25 per share and free cash flow between $1.6 billion and $1.8 billion.

And while we don't provide a quarterly outlook, I would like to offer a framework for how we're thinking about EBIT and margin cadence for the rest of 2026.

We expect 2026 adjusted EBIT to be back half weighted with first half EBIT just under 45% of full year EBIT. We're taking a measured approach to the second quarter, given the ongoing geopolitical dynamics and the potential for near-term volatility with adjusted EBIT margins expected to be relatively flat with the second quarter of last year. That's it for the financial review.

Magna International Inc.

First Quarter 2026 Results Webcast

Now I'll turn it back to Swamy to wrap things up. Swamy?

Seetarama Kotagiri^ Thank you, Phil.

Before we take your questions, let me recap a couple of key points.

We had a strong start to 2026 with adjusted EBIT margin expansion, cash generation and solid weighted sales growth over market.

We are positioned for continued margin expansion and shareholder returns, supported by a solid 2026 outlook that is largely unchanged from February, reflecting our confidence in our operating performance.

We are executing a disciplined capital allocation strategy including significant return of capital and portfolio actions aligned with long-term value creation.

Most importantly, we remain highly confident in Magna's future.

We hope to see many of you in November at our investor event in New York City, where we will go into detail on our strategy, key initiatives and long-term financial outlook.

Thank you for your attention. Now operator, let's open it up for questions.

Operator^ (Operator Instructions) Your first question comes from Alex Perry with Bank of America.

Alex Perry^ Congrats on all the progress. I guess just first, I wanted to ask, can you give us an update on your raw material exposure. I guess, particularly on the resin side, what impact is expected on margins. Were there any other offsets that allowed you to keep your EBIT margin guidance? And how should we think about the flow-through there?

Philip Fracassa^ Sure, Alex. This is Phil. I'll start and then Swamy can chime in.

Magna International Inc.

First Quarter 2026 Results Webcast

Relative to raws, if we take a step back, if we look at exposures like steel and aluminum, as an example, we're largely protected through OEM resell programs and other pass-through mechanisms. The vast majority of our exposure here is covered.

On resins, it would be a little bit less. A meaningful portion would be covered by pass-throughs as well – not resale, but more pass-throughs. But think of it as sub-50%, so a little bit exposed there. But as resins move, we would do what we normally do, which is work with customers to recover the higher input costs.

Looking at the first quarter, I'd say we saw minimal impact on all of that. We saw a little bit of higher freight costs in the quarter, but minimal impact across other input costs. And as we talked about many times as we see input costs move, we typically recover on a lag basis.

So, to the extent oil stays high and resin stays high. We would work with our customers to recover that over time. And frankly, we would expect to recover the bulk of any swings over the course of the rest of the year.

Last comment I would make on we get a lot of questions on energy, particularly in Europe, but we're in a much better position now than we were, say, in 2022, we're hedged for about two-thirds of both our electricity and natural gas spend in Europe for this year and about 50% hedged for next year.

So, swings in costs near term, we're pretty well protected there as well.

Swamy anything?

Seetarama Kotagiri^ No. I think you covered it, Phil.

One thing that you might look at is the logistics and freight cost. But that's the reason why we talk in terms of ranges. We feel pretty confident based on everything that you said we would be able to contain it.

Alex Perry^ Really helpful. And then I guess, just my follow-up question. So the production outlook came down a bit, but you kept sort of all the segments the same other than Power & Vision which came down a bit. Maybe walk us through why that is and sort of how you're thinking about production and the various segments?

Magna International Inc.

First Quarter 2026 Results Webcast

Philip Fracassa^ Sure, Alex.

So what happened there was we had three things that happened in the outlook. First, we took the production estimates down, as you referenced which was a slight downward revision in the revenue, if you will. We took foreign currency up as we're modeling a slightly weaker U.S. dollar than before. And that sort of offset one another as compared to February across most of the segments.

And the one exception was P&V, where we also layered in the anticipated closing of lighting and rooftop systems in the second half, call it, near the end of the third quarter, of what we modeled. And that had the effect of bringing P&V revenue down about $40 million or so if you look at the outlook. But it was really FX and vehicle production offsetting one another in the other segments.

And honestly, the fact that we held the margins despite that because often times when foreign currency improves, we don't get the same incremental that we do when volume goes up or down. So we were able to offset that, hold the margin range where it was, hold the EPS range where it was. Just given how well the business was performing particularly in the first quarter of the year.

Alex Perry^ Best of luck going forward.

Operator^ Your next question comes from the line of James Picariello with BNP Paribas.

James Picariello^ Can you just speak to the favorable commercial item? Can you just provide more color on what actually took place? Was it unexpected for the full year? Or was it more of a timing shift within the year in terms of the ability to get that recovery which showed up in equity income, right?

Philip Fracassa^ Yes, exactly, James.

Magna International Inc.

First Quarter 2026 Results Webcast

So two things there, it was a recovery in the first quarter in equity income. It hit P&V, we had initially planned for it in the second quarter. So it wasn't a variance to the full year. It was a timing shift between Q2 and Q1. And it really related to recoveries for past investments in EV programs.

And just to kind of give you an order of magnitude, it was the bulk of the equity income improvement in margins year-over-year was probably 60 basis points of that improvement, was that item.

And again, hitting in P&V, you'll note that P&V had really strong performance in the quarter, revenue up, strong incremental margin on the revenue. But even excluding that item, the incrementals in P&V would have been quite strong on the order of 30% even without that item.

So P&V performed really well. Good growth across several different launches, good growth in some of our camera businesses, et cetera. And -- but to answer the question, it was a onetime item, but it was timing between Q2 and Q1.

James Picariello^ Okay. That's crystal clear. I appreciate that.

My apologies if I missed this in the prepared remarks. But for the lighting and rooftop divestiture, should we expect any proceeds from that? Or is it more of a partnership handoff type of an arrangement because it has neutral EBIT?

Seetarama Kotagiri^ James, as I said in the remarks, the transactions will be closing later this year, obviously subject to approvals. They are margin accretive because they were below the Magna average, I would say.

But it is a -- going back to the guiding principles, if you look at it from a strategic perspective in terms of market position, in terms of returns. We did not feel it was the right home and not the right path with us. That was the reason why the divestiture was done.

We'll continue to look at portfolio just like we've always said with an objective lens.

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First Quarter 2026 Results Webcast

Philip Fracassa^ Yes. Maybe just to round that out, James.

I would want to point out that on our GAAP results, we did have -- we did book the loss related to those divestitures in the first quarter just given where they were in terms of negotiations at the end of the quarter. So that was over a $400 million impairment that we took in the first quarter which would be in the GAAP results excluded from adjusted.

Seetarama Kotagiri^ And there are some modest proceeds that will be used in the normal course, James, right, in terms of the cash flow, looking at the balance sheet. And how it will be used for share repurchases.

James Picariello^ Is this the beginning of an ongoing pruning of the portfolio of smaller businesses? Or is this mainly a one-off? I'm just curious if there's anything strategic and sustained behind this type of sale for you guys?

Seetarama Kotagiri^ Yes. I don't think it is a onetime or it's -- if you go back into the last 10 years, you would have seen fuel pressure controls you have seen in a few years.

Honestly, James, is an ongoing process. We continue to look at it every year. Can't speculate or won't comment on future actions, but I can tell you this is really a very rigorous ongoing process.

Operator^ Your next question comes from the line of Dan Levy with Barclays.

Dan Levy^ So your guide assumes 35 to 40 basis points of operational excellence. And you just did in the first quarter, I think it's 80 basis points. I know there's other stuff in that category in your earnings bridge. But maybe you can just give us a sense within the quarter, why you were out punching on that 35 to 40 basis points, and what changes in subsequent quarters? Or is there potential upside on that 35 to 40 basis points?

Seetarama Kotagiri^ Yes. Dan, the 35 to 40 basis points that we talked about obviously encompasses a lot of things that go on. The specific larger operational excellence initiatives that I've mentioned in the past are really specific, for example, enterprise-wide digital architecture, data backbone, real-time performance management through data streaming, dashboards and scalable automation of material handling and so on and so forth.

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First Quarter 2026 Results Webcast

But beyond that, there are thousands of initiatives that every division looks at in terms of material savings, in terms of OEE improvements. You can't really put an exact cadence, definitely with some of the programs in place and feel comfortable the proliferation is a little bit accelerated. And it also depends on the cadence of how many ideas or VA/VE initiatives are in place in the fourth quarter and how they can materialize in Q1, right?

But all in all, I would say we feel pretty good about the 35, 40 basis points. And if the macros hold good, yes, we feel pretty good that we'll hit that and continue the path.

Philip Fracassa^ Yes. Dan, just two things I might add there.

We did accelerate really well last year with the operational excellence initiative. So probably a bit of a easier comp in the first quarter than maybe the comps will have as we move through the year, that would be one.

But I would say, stepping back, stronger than we expected performance on the operational excellence front in Q1.

So to your point about if we can keep that going, I would agree with you that, that would present some upside for us.

Seetarama Kotagiri^ And that's why I keep saying, as we look at the proliferation, we are still in the early innings of the Factory of the Future.

Dan Levy^ Great. Okay. And then I just wanted to follow up on James' question on the divestitures here. So I get there's constantly a portfolio review process to make sure that the products that you're in that you have a strong market position, that it's a relevant market and these businesses didn't clear that threshold.

I guess I would just ask more broadly, the broader Magna portfolio, what percent of that would you deem to be in a market position that is not where it should be and where it's a tougher path to sort of getting to an appropriate market position? And how would you characterize Seating as it relates to your market position and path to improving the market position?

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First Quarter 2026 Results Webcast

Seetarama Kotagiri^ Yes. It's a long question, Dan. And you know it's a complex one.

As you look at most of the products, right, we're not really saying we have to be number one, but you need to have a meaningful market position. But along with it also good returns and good profitability. And it's not at any one point in time you have to look at it, you invest, you go through cycles. And if you see a good path and if you see good progress, we continue to stay on it.

Specifically to Seating's position, we -- again, it's not just looking at it broadly at the global market. In North America, we have a good position. We have a good position in Europe. We have really a good position now in China. And more importantly, we have some really good innovation in terms of not just the product, but how we assemble the seat and how we take it forward.

And as part of this operational excellence or Factory of the Future initiatives, you'll start seeing that, hopefully, we can talk to you a little bit more when we see you in November for the Investor Day. But we feel pretty good, and we'll continue to see the traction of the profitability and the returns in that segment.

Operator^ Your next question comes from the line of Chris McNally with Evercore ISI.

Chris McNally^ Swamy, a little bit of a broader question around some of the risks in the second half of the year. And I know this is -- it's a high-arching question that I think everyone is getting asked.

But I'm curious your perspective, if you're more worried about sort of the known, unknowns in the second half or the unknown, unknown. So when I think about known unknowns, raw materials transport, second half volumes sort of the typical that you're truest duration of the issue of the conflict.

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First Quarter 2026 Results Webcast

But the unknown unknowns is the one that we are having the hardest time grappling with as investors in the sell side, things like memory availability, ship availability or just other disruptions.

Just maybe you could opine on those two buckets for what you're seeing sitting here in April?

Seetarama Kotagiri^ Yes. Chris, I'm going to use your terminology, knowns unknowns and unknowns.

Honestly, I think if it's a known entity variable like, for example, things that you just mentioned, at least have a scenario analysis and a playbook to say how we are going to address it. And that's the reason why we talk about Outlook in ranges and not specific numbers. The bigger question is the unknown unknowns, right?

Because you haven't thought about it. You might have some scenario planning, but it's not as granular. So those are the bigger questions.

If you look at DRAM. We are focused on it. We are tracking it. We're monitoring it. We're working with our customers. Continuity is the most important in terms of supply, we are doing that.

We are managing costs through sourcing actions and customer alignment. That we believe, if the world doesn't flip upside down, we can manage it within our outlook ranges. That's an example of something that is a scenario planning and we can address. Things that we don't know in terms of complete volatility, big macro issues, lack of certainty and volatility are the two things that you have to constantly worry about.

Chris McNally^ That's great. And if we could just double click on the one on memory because we obviously get this question a lot. We see obviously everything going on with AI and the hyperscalers.

But is it fair to summarize that the industry's view because I think that many companies have been asked is that right now on memory, there's more of an issue around price, meaning you may have had some contracts and basically memory providers are coming back and asking for closer to spot as opposed to contract. And that's some of the risk as opposed to literally pulling the volume which would not allow for cars to be made.

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Is that a fair summary of where the industry view is right now that there's a little bit more of this price discussion that want to be paid for spot as opposed to pulling volumes?

Seetarama Kotagiri^ The short answer, Chris, I would say your summary is correct in the short term, right? It's more a pricing and how we manage that, in terms of demand and keeping capacity and so on and so forth.

In the long term, you've got to look at design options and so on. In short, your summary is correct.

Operator^ Your next question comes from the line of Joe Spak with UBS.

Joseph Spak^ Phil, just sorry to go back to this, I just want to make sure I understand some of your comments on recoveries because it sounded like maybe it was on $60 million, $70 million of EBIT. I'm trying to just sort of figure out how that relates to in the report, it said the recovery for investments in the quarter was like $475 million in cash flow. So I just want to make sure those numbers are correct, but part of that recovery and the cash flow was not in the operating income.

And then on that recovery in the cash flow, just want to make sure that is what you sort of expected? And is that mostly done? Or do you still expect more cash recovery to come down the pike?

Philip Fracassa^ Yes. Thanks, Joe. Great question.

So I think you've got it right. So first of all, the 60 basis points or call it, $60-ish million, the equity income item was they did run through the P&L. But the $475 million that we called out in our MD&A was really balance sheet only.

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First Quarter 2026 Results Webcast

So the vast majority of that recovery was a balance sheet recovery. So getting sort of reimbursed for prior investments that we made that were sort of sitting on the balance sheet. So very little P&L impact from that.

And we did largely expect that in 2026, but just later in the year. There's maybe a little bit overall, for the full year, maybe a little bit higher than we previously anticipated. But so is there any more to come?

There's it's -- there's a little bit more we would expect between now and the end of the year, not of that same order of magnitude. It's reflected in the full year outlook as we continue to work with customers on other negotiations that are ongoing.

But the -- beyond that $60 million that ran through equity income, we had very little running through the P&L for the other recoveries. It was really just cash only.

Joseph Spak^ Okay. Really appreciate that clarification because I was having trouble connecting those two.

Second question, Swamy, and I apologize in advance because I don't want to put you in the middle of the geopolitical storm, but there have been reports of Chinese OEMs looking to maybe build vehicles in Canada. And I was wondering if you were able to comment on any conversations you might have or even more broadly, how you would view that potential opportunity?

Because obviously you mentioned some of the wins with the domestic Chinese, whether it's complete vehicles or others. So you have that good relationship there, and I was wondering how that could sort of spill over to this region?

Seetarama Kotagiri^ Yes. Joe, for the exact reason that you mentioned, I would like to remain a businessman and a capital allocator and not a policy commentator. So I won't comment on speculation.

I can say that Magna's model used to be neutral global partner to all OEMs. And we are not -- as you've heard me talk about it, we continue to win business in Europe with our complete vehicle assembly with all OEMs, today, it happens to be the Chinese OEMs and we continue to win business in China with Chinese OEMs.

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First Quarter 2026 Results Webcast

Any OEM continue -- that continues to grow in the ecosystem, we have an opportunity to supply Magna systems and components and also do vehicle assembly where possible.

Operator^ Your next question comes from the line of Tom Narayan with RBC Capital Markets.

Thomas Ito^ This is Thomas Ito on for Tom.

It looks like your guidance implies some pretty substantial margin uplift in B&S and Seating for the remainder of 2026. Just wondering, is this sort of just the timing of customer recoveries or are there other factors going on in these segments?

Philip Fracassa^ No. I mean I would say it's really continued progress on the operational excellence initiatives and then obviously getting really strong pull-through on revenue. The P&V was a -- we're expecting strong growth in P&V for the full year. We did have the item in the first quarter. So for the full year, the margins will be on the implied guide would be pretty close to the first quarter performance, but still really solid growth year-over-year.

And then in BES and Seating over the course of the rest of the year, I would expect the operational excellence really being the biggest item that's kind of sticking out relative to the improvement from Q1 through to Q4.

I don't know, Louis, anything else to that?

Louis Tonelli^ No.

Thomas Ito^ Okay. Got it. And I guess as a quick follow-up, we saw another supplier announce some revenue impacts related to the IEEPA tariff adjustments. Could you just comment on whether any such adjustments are incorporated in that '26 guidance?

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First Quarter 2026 Results Webcast

Philip Fracassa^ Yes. I mean it's a great question and I figured we would get it.

So on tariffs, let's just take a step back. We came into the year based on last year's rate, if you will. We had about $160 million gross impact last year with run rate would have put us at around $200 million this year, again, looking to recover that from our customers, we had a lot of developments, IEEPA came out. 122 came in, we had some changes in 232.

Net-net, our gross exposures come down. So from $200 million, now we're thinking it's closer to last year's number actually right around $160 million.

Our net exposure relatively unchanged, and we still expect maybe a little bit better, but relatively unchanged. We still expect a margin headwind of less than 10 basis points, but year-over-year would be neutral in that scenario.

And then relative to the last element would be the refunds, I would say we are working to file those recent claims sort of as we speak. We're in the midst of filing them as we speak. And it's a good size number we talked about. It was probably over half of our tariff exposure, roughly half of our tariff exposure was IEEPA.

So as those refunds are filed, as those refunds come in, we didn't book any of those refunds in the first quarter. As refunds come in, we'll obviously work with our customers on that given that they funded -- they covered about 80% of our tariff costs last year. So we'll work with them as those refunds come in to make sure that they're allocated appropriately.

Operator^ Your next question comes from the line of Emmanuel Rosner with Wolfe Research.

Emmanuel Rosner^ I was hoping to follow up on the comments you made in the prepared remarks about the expected cadence of earnings this year. And in particular, I think you said Q2 margins would be broadly stable year-over-year.

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First Quarter 2026 Results Webcast

Can you just give us a few of the puts and takes in there? Is it -- is there some timing of things that shifted from Q2 into Q1? Or I guess, how should we think about the stable margin year-over-year this quarter?

Philip Fracassa^ Yes. I think it's relative to expectations, we had that equity income item that kind of moved from Q2 to Q1. But as we sort of set up the cadence for the rest of the year, we did -- we did, I would say, deliberately take a little bit more measured view on the second quarter, a little bit more cautious view, if you will. And so as you look at year-over-year at sort of the midpoint of the guide, we'd probably see a little bit of increase in revenue year-over-year with kind of a proportionate incremental margins, kind of keeping margins relatively flat.

We've got foreign currency as a positive in there which kind of come through us with a little bit lower margin, and then the volumes kind of coming down a little bit with a little bit bigger impact.

So really nothing more than that. The operational excellence continues, but it was really more just trying to be a little bit more measured in how we were thinking about the second quarter as kind of we're sitting here in time and space.

But as we look out to the rest of the year, still very confident in the full year guide, I'm very confident in the margins and earnings, et cetera.

And if you remember, in February, we talked about first half EBIT being kind of slightly above 40%. In this time around, we're probably seeing a little bit more front-half weighting on the EBIT, maybe sub 45%. So I think 43-ish kind of percent first half, second half, and that should kind of get you in the ballpark.

Emmanuel Rosner^ Okay. That's helpful. And then I was hoping to ask about your growth over market which I think you said you measure this as like three points for this quarter, I guess, for Q1 or 5x complete vehicle, still good conviction in -- I think 0% to 3% for the full year. Can you talk about some of the upcoming big launches that you have that will drive this growth of the market and potentially serve any sort of cadence within that?

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First Quarter 2026 Results Webcast

Seetarama Kotagiri^ Yes. Emmanuel, I think like you said, it's really a reflection of the launch activity. It's a bit of good program mix and also content growth across all our core segments.

So net-net, if you look at the end of production programs and compare it to the new production launches that we have which is many across these different geographic regions, different customers, different programs. And if you take the content, so that's positive in that math, right?

So that's the reason why we are seeing that. And the company's vehicles, you heard me talk about the specific program launches with GAC, with XPENG and the discussions continue.

Operator^ Your next question comes from the line of Colin Langan with Wells Fargo.

Colin Langan^ I just want to follow up again on the recovery impact. You mentioned the 60 basis points from JV. If I look at the slides in discrete items, it looks like half of the discrete items are also recoveries. So is there another $25 million, $30 million outside of the JV recoveries?

And then I thought last quarter, you had said that recoveries for the year were neutral, and yet we have a big help in Q1. So does that mean as we go into the second half, that there's headwinds as those recoveries are down year-over-year?

Philip Fracassa^ Yes. Thanks, Colin.

So on the first part of the question, yes, in the discrete items, we did see the favorable warranty costs which was a big item. And then we also had the net impact of -- we did have favorable commercial items as well which sort of spans the gamut of not just EV-related recoveries, but recoveries or other commercial matters as well.

And as you know that can sort of vary quarter-to-quarter. I think we did talk about coming into the year thinking we'd be largely neutral for the full year on the P&L with respect to recoveries.

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First Quarter 2026 Results Webcast

But on the cash, we did get a fair amount of cash for EV-related recoveries last year. I remember in the fourth quarter, we had a big cash inflow in the fourth quarter. So we did expect recoveries as it related to the EVs to be a fair bit comparable. So we do expect to be that way for the full year.

So we had -- it was more front-loaded this year with a little bit more backward than last year. But our guide of free cash flow of kind of $1.7 billion at the midpoint sort of implies about $1.3 billion for the rest of the year, and that will be, as always, is kind of back half weighted.

Louis Tonelli^ Yes. On the recovery -- the recovery related to equity income was kind of in the equity income in the [roll] between '25 and '26. So I guess it's just bucketing, we have that an equity income is part of the reason why we had higher margins this year, not in this kind of recovery. Recoveries we're talking about here are on a consolidated basis.

Colin Langan^ So you still expect recoveries to be neutral for the year and the initial anticipated (multiple speakers) around -- okay. And the initial guide did incorporate the JV help from (multiple speakers).

Philip Fracassa^ Yes.

Colin Langan^ And then just broadly, if I go into the second, I mean Q2 is supposed to be flat. Organic sales are -- I think the guide implies a fairly slightly down actually. You have $100 million sort of implied EBIT improvement. Kind of like we're out of some of the puts and takes outside of warranty JV incomes already kind of most of that good news in the initial guide is done.

So is it all just operational efficiencies or other items that are kind of going to add some help to kind of offset the -- at least at the midpoint, weaker sales?

Seetarama Kotagiri^ I would say some of it is as you talked about operational excellence, but as new programs come in, they have different economic terms, and there is a mix of, as I said, launches, right, that are happening towards the second half of the year. So I would say the combination of the two, Colin.

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Operator^ Your next question comes from the line of Andrew Percoco with Morgan Stanley.

Andrew Percoco^ I wanted to start out on your disposing of your lighting and rooftop systems business. But I kind of want to get a sense for, is there anything -- as we think about the evolving landscape, particularly around ADAS and AVs, are there any areas where you might want to grow your portfolio or add to the offerings that you currently have around that ecosystem?

Seetarama Kotagiri^ Yes. Andrew, I think I said that in the last couple of quarters, and we feel pretty good where we stand with our portfolio right now. I think the focus is really on organic growth and trying to get efficiencies up, get the traction that we have in operational excellence continue, focus on the cash flow and continue the journey right now.

But if there is some really good opportunity in terms of small tuck-ins that add value here and there. Obviously, we would be open to it. But our focus really is on continuing to keep the roadmap that we have in front of us for cash flow and good value.

Andrew Percoco^ Okay. That makes sense. And then maybe just around these recoveries. I'm curious like if you or the industry in general are planning to adjust how you maybe strike these contracts with your OEM partners going forward? I know there's been a big kind of rightsizing exercise in the industry around EV manufacturing capacity, but the OEMs are still very much committed to exploring new vehicle platforms.

So I'm just curious, as you guys think about that next cycle, how you might evolve that contracting structure to maybe avoid some of the overinvestment that we've seen in prior cycles?

Seetarama Kotagiri^ Yes. I don't know if we can change the decision of the OEMs, but we definitely can bring our opinion to the table. And there are cases where we have looked at different terms, right, that there is a sharing of capital deployment, let's say, looking at volumes and how we bank them there. In how we look at the step function of cadence as you go into the program rather than putting all the capacity upfront. There's several of those discussions, we are fortunate to have those strategic discussions with the customers.

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And as an industry, I think the big elephant in the room is like, how do you become good stewards of the capital, right? How do you extrapolate what's there? What's capacity that's existing, how to use it more efficiently rather than just adding more. But like you said, it's a two-way traffic, and we have many of those discussions.

Operator^ Your next question comes from the line of Jonathan Goldman with Scotiabank.

Jonathan Goldman^ Most of them have been asked already. I guess just one on the guidance. I think you talked about the rooftop and lighting business being below the Magna consolidated margin levels, but you maintained the margin guidance for the year. I would have thought the divestiture may have been margin accretive. So I just want to know what are the offsets there?

Seetarama Kotagiri^ So I think, Jonathan, good question. But we are looking at the broad picture of Magna, given the uncertainty in the market that we have. And what we're looking at, that's the range we are talking about.

Philip Fracassa^ Yes. The only -- yes, that's exactly right. The only thing I would add, Jonathan, is it was really we're talking about, call it, call it, three to four months of the year, so not a big number in the current year.

And the other point to keep in mind, too, is we took revenue up for currency which comes through at an EBIT margin, if you will. We took revenue down a little bit for volume which sort of comes out at an incremental or decremental if the case may be.

So there's a little bit of echo going on there, too, but there's no question to both P&V and to Magna as a whole that the divestitures would be modestly accretive to margins just given where they were operating.

Jonathan Goldman^ Okay. That's good color. And then maybe just circling back on that one, Phil, the revenue guidance, maybe switching to mix, maybe more currency in the sales this year? Is the offset the lower production volumes that you've updated the guide for?

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First Quarter 2026 Results Webcast

Philip Fracassa^ Yes. I would say when you think about -- so we're kind of holding the EBIT -- we're holding the EPS guide, we did see a little bit of a benefit on the interest line below EBIT as the free cash flow in the first quarter was much sooner than we anticipated that cash coming in. So it does -- will result in lower borrowings throughout the year, a little bit of interest benefit.

So while revenue is down a little bit with holding margins would bring EBIT down a little bit, got a little bit of offset in interest expense which kind of enables us to hold the range where it was before. And again, kind of holding the range despite the strong Q1 was really as much just being a little bit prudent on the rest of the year at this point.

Operator^ Your next question comes from the line of Mark Delaney with Goldman Sachs.

Mark Delaney^ One on margins. When considering the efficiency efforts that the company has underway for this year, the expectation of 35 to 40 bps as well as the portfolio optimization you announced relative to lighting and the rooftop part of the business. Maybe put that into the context of where Magna thinks its EBIT margins can go over the medium to longer term. And in the past, the company has spoken about the potential to get to a 7% plus type range. I'm curious where you think you are in that journey especially in light of some of the decisions and progress you reported today?

Seetarama Kotagiri^ Mark, I think I can tell you we are in a good path to the roadmap that we laid out. Right now, we are focused on executing like we did in Q1 over the last two or three quarters, and we see a good path into '26. That's why we were able to reaffirm the outlook of 2026.

Now regarding the midterm and long term, I would say the best time to get through that without confusing anything at the November Investor Day, we will be able to lay out the next three to five years.

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Mark Delaney^ Looking forward to that. My last question was around the production environment. You already described your view on overall production volumes by region, but you -- but I hope you can share a bit more around mix then. And curious if you're seeing any changes in the kind of vehicles your OEM customers are looking to manufacture, and perhaps is there some increase in the number of EVs and hybrids that they're planning to make in light of the recent increase in gasoline prices?

Seetarama Kotagiri^ It's not really a significant shift than what's been talked about. Obviously there is an increased interest in hybrids and it's very regional. In China, we continue to see the EV proliferation. In Europe, it's a little bit more hybrids, and EVs continue there at a slower pace maybe. In North America, we are seeing renewed interest in hybrids.

But in terms of vehicle segments, no, not really. We are not seeing a material shift in anything else.

Operator^ Your next question comes from the line of Michael Glen with Raymond James.

Michael Glen^ Swamy, with the wins happening in Europe with the Chinese OEMs, are you at all supplying any parts to those vehicles yet? Or is it strictly assembly? Is there an opportunity to expand and supply parts?

Seetarama Kotagiri^ Yes. I think, Michael, right now, it is just assembly. Obviously the conversations as this expands into volume, there is a localization discussion, and that's where we see the opportunity for other system and component supply.

Michael Glen^ Okay. And then just following on that, maybe just broadly with Europe. I know you don't break Europe out separately as a segment. But how do we sort of think about gains with new entrant OEMs into Europe? And then what appears to be the lagging legacy OEMs as a whole, is this a net negative to Magna? Or are the gains being made with the new entrants offsetting a difficult legacy business?

Seetarama Kotagiri^ Yes. Difficult to break down at that granularity for sure, Michael. I think I would say with the presence of Magna in China, and as we continue to build that relationships, we believe as they come to different parts of the world, we will have a seat at the table.

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At this point of time, it's very difficult to talk at that level to say how much and how it's offsetting and so on. But overall, we still continue to grow our business in Europe.

Operator^ That concludes our question and answer session. I will now turn it back to Louis Tonelli for closing comments.

Louis Tonelli^ All right. Thanks, everyone, for listening in today. If you have any follow-up questions, please don't hesitate to reach out to me. Thanks. And have a great day.

Operator^ Ladies and gentlemen, this does conclude today's conference call. Thank you all for joining. And you may now disconnect.