Magna International, Inc.

Good morning and thank you for standing by. My name is John and I will be your conference operator today. At this time, I would like to welcome everyone to the Magna International fourth quarter full year 2025 results and 2026 outlook. All lines have been placed in 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 followed by the number one on your telephone keypad and to withdraw your question, simply press star one again. As a reminder, this conference call is being recorded. I would now like to turn the call over to Luis Pinnelli, Vice President of Investor Relations. Please go ahead.

Thanks, Operator. Hello, everyone, and welcome to our conference call covering our fourth quarter and full year 2025 results and our 2026 outlook. Joining me today are Swami Kodagiri and Phil Fricasa. Yesterday, our Board of Directors met and approved our financial results for the fourth quarter of 2025, as well as our 2026 financial outlook. We issued a press release this morning outlining both of these. You'll find today's press release, conference call webcast, the slide presentation to 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, Luis. Good morning, everyone. I appreciate you joining our call today. Let's get started. Overall, I was very pleased with our strong fourth quarter and full year 2025 operating performance. These results reflect the resilience of our business model and the continued traction of our operational excellence initiatives. Throughout 2025, We delivered meaningful margin benefits from operational excellence. We secured important commercial recoveries. And across Magna, we executed our tariff mitigation plans, offsetting the vast majority of direct impacts. Together, these efforts contributed to our third consecutive year of adjusted EBIT margin expansion. Our relentless focus on cash generation delivered strong results. We generated $3.6 billion in operating cash flow and $1.9 billion in free cash flow for the full year. This reflects a disciplined approach to capital spending, improving to 3.1% of sales last year, and continued improvements in our cost structure, and engineering optimization. As a result, we ended the year with 1.58 times leverage ratio ahead of our expectations and 1.6 billion cash on hand. Now, looking ahead to 2026, our outlook reflects continued improvements in our operating performance. Rated sales growth over market of 1.5% at the midpoint. Adjusted EBIT margin expansion of 40 to 100 basis points. And free cash flow of 1.6 to 1.8 billion. We remain confident in executing our deliberate and proven capital allocation strategy and driving EPS growth together with strong free cash flow. As of today, we have approximately 22 million shares available for repurchase under our NCIB, and we plan to repurchase all remaining shares during 2026, all while maintaining our strong balance sheet and financial flexibility. Now turning to our financial highlights. As you can see from the slide, we delivered solid performance in both the fourth quarter and the full year. In Q4, sales increased 2% to 10.8 billion, despite a 1% decline in global production. Adjusted EBIT margin expanded 100 basis points to 7.5%. Adjusted EBIT increased 18%. Adjusted EPS rose 29%, coming in at $2.18. And we generated more than $1.3 billion in free cash flow well ahead of a strong 2024. For the full year, sales were $42 billion, down slightly due to softer volumes in north america and europe adjusted ebit margin rose 20 basis points to 5.6 percent adjusted ebit grew two percent reaching 2.4 billion despite lower sales and tariff headwinds adjusted eps rose six percent to five dollars and 73 cents Free cash flow increased $849 million, reaching $1.9 billion. Bill will take you through the quarterly details shortly. Our 2025 results were strong relative to both our initial and most recent outlooks. Sales, adjusted EBIT margin, adjusted net income, free cash flow, and capital spending all landed within or better than our stated ranges. Our teams also achieved several important milestones in 2025. We hit our annual bookings target across multiple product areas. Our 2028 business is already about 90% secured. We strengthened our collaboration with NVIDIA, advancing AI-powered active safety solutions. And we were recognized with an Automotive New Space Pilot Award for our thermal sensing technology. Let me take a moment to expand on the operational excellence work underway across the company. This contributed meaningfully to margin expansion in 2025 and is expected to add an additional 35 to 40 basis points of margin benefit in 2026, bringing our cumulative contribution to almost 200 basis points over the 23 to 26 period. We have built a unified digital architecture that now covers about 80% of our divisions, giving us clean, consistent data and real-time visibility into performance. Our material flow optimization program continues to expand, supported by our internal fleet management platform and is delivering safer, more reliable material flow while reducing operating costs. We continue to launch and scale AI solutions to provide valuable insights into scheduling, process quality control, and condition-based monitoring. The common thread across all these initiatives is standardization, scalability, and measurable outcomes. We expect them to support durable margin expansion going forward. And we received an all-time record, 151 customer awards for quality and operating performance, another clear sign of our execution. Our performance is driven by our people. Our operational management accelerator program earned a best manager development award in just its second year. And Magna was recognized again as one of the world's most ethical companies and one of the world's most admired companies. Our team has a lot to be proud of. With that, I'll turn the call over to Phil.