Jul. 10 at 1:07 AM
S&P Global Ratings revised its outlook on Magna International to stable from negative while affirming its 'A-' long-term issuer credit rating and unsecured debt rating, citing stronger-than-expected margin expansion, solid free cash flow generation, and lower debt. The agency expects Magna to maintain adjusted debt-to-EBITDA below 1.5x and adjusted free operating cash flow-to-debt above 30% over the next several years, supported by steady EBITDA growth of 2%–5% annually.
S&P also forecasts Magna's adjusted EBITDA margin to improve to around 11% from 10.2% in 2025, driven by growth in higher-margin businesses, operational efficiency initiatives, lower engineering costs, and reduced restructuring expenses. Free operating cash flow is projected at
$1.8 billion to
$1.9 billion annually, while the company is expected to significantly increase share repurchases to
$1.0 billion–
$1.3 billion per year through 2028. As North America's largest automotive supplier and the world's third largest
$MGA