Magna International Inc. (NYSE:MGA), a leading automotive supplier, held its second quarter 2024 earnings call, reporting robust sales of $11 billion and an adjusted EBIT margin of 5.3%.   Despite facing headwinds due to slower battery electric vehicle (BEV) adoption rates and subsequent program delays, the company remains on track with its 2024 margin outlook.

Magna International is tightening its adjusted EBIT margin range for 2024 and is taking strategic steps to address market changes, aiming for continued margin expansion and strong free cash flow by 2026.

Magna International is updating its 2026 outlook to reflect slower BEV adoption, program delays, and reduced volumes, particularly in North America and Europe.

The company expects adjusted EBIT margin improvement and strong free cash flow in 2026.

In light of the revised outlook, Magna is exploring opportunities to offset the impact of declining EV programs.

Source: Investing.com