Magna looks to grow faster than overall automotive market

Detailed summary

Auto parts company eyes compounded adjusted-earnings-per-share growth of at least 15% through 2030

Magna International Inc. MG-T says it’s aiming for compounded annual growth for its adjusted earnings per share of at least 15 per cent through 2030.

In releasing its latest financial targets, the auto parts company says it’s also looking for organic sales growth of 2 to 4 per cent above market on a compounded annual basis over the same time period.

Magna says the targets reflect a strategy to grow faster than the overall automotive market.

The company says the increase is expected to come from expanding its content per vehicle with its current customers, adding new customers and regions and growth in markets beyond the automotive sector.

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It is also looking to raise its profitability with an increase in its adjusted earnings before interest and taxes margin of 200 basis points or more from 2026 through 2030.

Magna CEO Swamy Kotagiri says the targets represent the company’s confidence in its strategy, capabilities and the opportunities that lie ahead.

Opening of the article, excerpted from The Globe and Mail (Report on Business). To read the rest, open the article on the publisher's site.