Magna International on Friday lifted its full-year sales outlook and posted better-than-expected second-quarter results, helped by cost-cutting initiatives aimed at easing the impact of U.S. tariffs.
The Canadian auto parts supplier now expects 2025 sales between $40.4 billion and $42.0 billion, up from a prior range of $40.0 billion to $41.6 billion. The company announced in May it would restructure operations and scale back capital and engineering spending to preserve margins.
Tariffs imposed by U.S. President Donald Trump have pressured automotive suppliers across the production chain, forcing companies to absorb higher costs or renegotiate with automakers. Peers Aptiv (APTV.BN) and BorgWarner (BWA.N) also raised annual guidance this week on the back of robust demand for parts.
For the three months ended June 30, Magna earned $1.44 per share on an adjusted basis, topping analysts’ expectations of $1.14, according to LSEG data. Revenue fell 3% from a year earlier to $10.63 billion but was still ahead of the $10.23 billion consensus forecast.
