Magna International, Inc.

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Magna International fourth quarter and year-end 2024 results and 2025 Outlook webcast and conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star 1 again. I would now like to turn the conference over to Louis Tonelli, Vice President of Investor Relations. Please go ahead.

Thanks, Operator. Hello, everyone, and welcome to our conference call covering our 2024 results and our 2025 outlook. Joining me today are Swami Kodagiri and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for the fourth quarter of 2024, as well as our 2025 financial outlook. We issued a press release this morning outlining both of these. You'll find the press release, today's conference call webcast, the slide presentations go along with the call, and our updated quarterly financial review, all in the investor relations section of our website at magna.com. Before we get started, just as a reminder, the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation. Such statements involve certain risks assumptions and uncertainties which may cause the company's actual or future results and performance to be materially different from those expressed or implied in these statements. Please refer to today's press release for a complete description of our safe harbor disclaimer. Please also refer to the reminder slide included in our presentation that relates to our commentary today. With that, I'll pass it over to Swami.

Thank you, Louis. Good morning, everyone. I appreciate you joining our call today and let's jump right in. Overall, I was pleased with our 2024 operating performance relative to our initial 2024 expectations as we once again navigated a challenging industry production environment. Highlights include strong launch execution and continued traction on operational excellence activities. successful efforts across the company to secure commercial recoveries largely related to delays, lower-than-expected volumes, and cancellations associated with EB programs. Ongoing restructuring actions to right-size our business and lower our fixed-cost structure have started to show results for margin expansion and are expected to further benefit future years. a disciplined effort resulting in reduced capital and discretionary costs compared to our expectation at start of 2024. We ended 2024 with solid Q4 results, our best quarter of the year as we expected. As you can see from the slide, we performed well for the quarter and more importantly for the full year. In the fourth quarter of 2024, our sales increased 2% year-over-year to $10.6 billion for a 2% weighted growth over market. EBIT margin increased 120 basis points, and adjusted EBIT increased 23%. EPS was up 27% year-over-year to $1.69, and we generated over $1 billion in free cash flow well ahead of 2023. Pat will take you through the specifics on the quarter. For the year, sales of $42.8 billion were essentially level with 2023, despite lower volumes in our two largest markets, North America and Europe. EBIT margin increased 20 basis points to 5.4%, and EBIT increased 4% to over 2.3 billion. EPS for 2024 was down slightly versus 23, while free cash flow increased 849 million in 2024. Our team achieved several noteworthy accomplishments in 2024. With respect to our financial performance, we outgrew weighted global vehicle production despite negative production mix at some of our largest customers. We grew our sales in China by 15%, well ahead of the China market, reflecting our approximately 60% exposure to fast-growing domestic OEMs in China. We improved margins year-over-year in each operating segment, reflecting our focus on cost controls and margin expansion. And we returned $746 million to shareholders through dividends and share repurchases. Other noteworthy accomplishments on the innovation front. We continue to win program awards across our business based on our pipeline of technologies. And over the last ten years, they have won seven automotive new pace awards in 2024. Specifically, we've won both pace and PACE pilot awards. We continue to execute on our operational excellence activities, which contributed about 40 basis points to margin expansion this past year, with a further 75 basis points combined expected over the next two years. Our efforts in operational excellence and innovation are recognized by our customers. Last year, we received 109 customer awards in recognition of quality and operational performance, one reason why we continue to win business. Our success is enabled by our ongoing focus on people development, and in 2024 was the inaugural year of our operational management accelerator program aimed at identifying and cultivating future leaders from within Magna. The first group graduated and a second group started in the program late last year. And Magna is regularly recognized as one of the world's most ethical and admired companies. As you can see, our team has a lot to be proud of for their efforts in 2024. With that, I'll pass it over to Pat to cover our Q4 financials in more detail.