Magna International ( MGA )  shares gained on Friday after the second-quarter fiscal 2025 earnings. The auto parts maker reported a quarterly revenue decline of 3% year-on-year to $10.63 billion, beating the analyst consensus estimate of $10.08 billion.

The decrease in sales was primarily due to a 6% drop in light vehicle production in North America and a 2% drop in Europe. This decline was partially offset by a 5% increase in China.

Further contributing to lower sales were reduced complete vehicle assembly volumes, mainly because the Jaguar I-Pace and E-Pace, along with some other programs, ceased production.

Also Read: Magna Shares Fall As Profit Miss Overshadows Strong Sales, Higher Outlook

However, global light vehicle production was up 1%. Sales in the Body Exteriors & Structures segment decreased by 4.7%, Power & Vision fell by 1.8%, Seating Systems declined by 1.5%, and Complete Vehicles dropped by 1.3%.

Operating income before income taxes for the quarter was $496 million, and the operating margin was 4.7%.

Adjusted EBIT was $583 million with an adjusted EBIT margin of 5.5%. Adjusted EPS of $1.44 beat the analyst consensus estimate of $1.13.

The operating cash flow for the quarter totaled $762 million. The company paid $137 million in dividends to shareholders during the quarter. Magna held $1.54 billion in cash and equivalents as of June 30, 2025.

The company’s board declared a dividend of $0.485 per share, payable on August 29, 2025, to shareholders of record as of the close of business on August 15, 2025.

Magna CEO Swamy Kotagiri said the company delivered stronger-than-expected operating results in the second quarter of 2025 by executing performance initiatives across operational excellence, restructuring, commercial recoveries, and capital and engineering spending cuts.

He added that Magna’s updated 2025 outlook shows the company remains on track for solid execution in the year’s second half, despite persistent industry challenges such as weak volumes in North America and Europe and continued trade policy uncertainty.

Outlook

Magna raised its fiscal 2025 sales outlook from $40.00 billion-$41.60 billion to $40.40 billion-$42.00 billion, versus the analyst consensus estimate of $40.04 billion. Magna sees an adjusted EBIT margin of 5.2%-5.6% (prior 5.1%-5.6%).

Price Action: MGA stock is trading higher by 1.13% to $41.47 at last check on Friday.

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