Mr. Swamy Kotagiri reports

MAGNA OUTLINES PATH TO TURN ENTERPRISE STRENGTH INTO LASTING VALUE AT INVESTOR DAY

Magna International Inc. earlier today held its 2026 investor day, The Power of Magna: Turning Enterprise Strength into Lasting Value, in New York. At the event, the company detailed how it plans to deliver above-market organic sales growth and continued margin expansion through 2030, supported by largely booked business, deeper customer relationships, operational improvements and disciplined capital allocation.

The company's new 2030 targets are compelling and include organic sales growth of 2 to 4 per cent above market, adjusted EBIT (earnings before interest and taxes) margin expansion of at least 200 basis points, and adjusted EPS (earnings per share) growth of 15 per cent or more.

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

Growth that is already taking shape

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

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

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

Margin expansion in the early innings

Magna is on track to expand adjusted EBIT margin by approximately 190 basis points (1) from 2022 through 2026. Building on that progress, the company sees further margin opportunity through the Magna business system and the expanded use of data connectivity, automation and AI (artificial intelligence), which it expects to deploy across facilities representing approximately 70 per cent of its sales by 2029.

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

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

Disciplined capital, returned to shareholders

Magna is on pace to generate approximately $5-billion (1) of free cash flow over the 2022-2026 period, while returning about $5.5-billion to shareholders through dividends and share repurchases. The company expects even greater free cash flow over the 2027-2030 period.

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

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

A replay of Magna's 2026 investor day webcast, presentation materials and supporting videos will be available on the company's website.

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

About Magna International Inc.

Magna is one of the world's largest automotive suppliers and a trusted partner to automakers in the industry's most critical markets globally. With operations in 27 countries, the company combines global scale with trusted reliability and proven execution. Backed by nearly seven decades of experience, Magna brings together deep manufacturing expertise with innovative vehicle systems to deliver performance, safety and quality.

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