Nov. 25 at 12:06 PM
$MG.TSX
$MGA
Why Magna Is Rising Despite Tariff Headwinds:
Key Reasons for the Rally:
1. China EV Expansion - Major Growth Driver
Magna secured major wins with China-based OEMs, including XPENG and a second unnamed brand TIKR. Serial production of XPENG's new smart electric vehicles began in Q3 2025 at Magna's Graz, Austria facility, marking the start of a long-term collaboration for future models
2. Improved Operational Performance
North American and European vehicle production improved in 2025, helping Magna deliver higher sales and stronger adjusted EBIT
3. Tariff Impact Less Than Feared
In August, Magna lowered its estimated annualized tariff-related cost projections to US
$200 million from earlier estimates of US
$250 million Yahoo!.
4. Strong Dividend + Attractive Valuation
Magna has increased its payout for 15 straight years, with the current 5.5% yield
5. Margin Expansion Trajectory
Operating margins may rise steadily, reaching 6.5–7.2% by 2026.
