Magna International Inc at Wolfe Research Global Auto and Auto Tech Conference Transcript
All right. We'll try to speak over the -- with the noise outside. Our next presentation is -- our next fireside chat is with Magna.
So during the earnings call last week, Magna's management team indicated that they see revenue climbing from $43 billion in 2023 to $50 billion by 2025. So $7 billion of growth. Of that $7 billion of growth, roughly 2/3, so $4.5 billion is coming from megatrend growth areas like ADAS, EV, drivelines and battery enclosures. That business generated $2.5 billion last year. It's expected to reach the low $7 billion by 2026.
But I think even more notably, at least from my perspective, they anticipate significant margin expansion as those businesses ramp. The -- right now, those businesses, and you can just imagine a $2.5 billion business that's consuming $1.2 billion of R&D. So profitability is not very good right now. But as they start to generate revenue, that actually is very meaningful to the bottom line. Their margins at Magna have already improved from 4.4% in 2022 to 5.2% in 2023, they
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