Magna International Inc. (MGA) 2026 Q3 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to Magna International Third Quarter (inaudible) fiscal year 2026 financial results conference call.

各位好。感謝各位參與，歡迎加入麥格納國際 2026 會計年度第三季（聽不清）財務業績電話會議。

(Operator Instructions) I will now hand the conference over to Louis Tonelli, Vice President of Investor Relations. Please go ahead.

（接線員指示）我現在把會議交給投資人關係副總裁 Louis Tonelli。請開始。

Thanks, operator. Hello, everyone, and welcome to our conference call covering our Q3 2026 results. Joining me today are Swamy Kotagiri and Phil Fracassa. Yesterday, our Board of Directors met and approved our financial results for the third quarter of 2026 and our updated outlook. We issued a press release this morning outlining both of these.

謝謝，接線員。各位好，歡迎參加我們針對 2026 年第三季（Q3）業績的電話會議。今天與我一同出席的有 Swamy Kotagiri 與 Phil Fracassa。昨天，我們董事會召開會議並核准了 2026 年第三季的財務結果以及更新後的展望。我們今天早上發布新聞稿，說明上述兩項內容。

You'll find today's press release, conference call webcast, the slide presentation that go along with the call and our updated quarterly financial review all in the Investor Relations section of our website at magna.com.

您可在 magna.com 我們網站的投資人關係專區找到今日新聞稿、電話會議網路直播、隨會議提供的簡報投影片，以及更新後的季度財務回顧。

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 of slides included in our presentation that relates to our commentary today.

在開始之前提醒各位，今天的討論可能包含依適用證券法規定義之「前瞻性資訊」或「前瞻性陳述」。此類陳述涉及若干風險、假設與不確定性，可能導致公司實際或未來的結果與表現與這些陳述所明示或暗示者存在重大差異。請參閱今日新聞稿，以取得我們安全港聲明的完整說明。也請參閱我們簡報中與今日評論相關的提醒投影片。

With that, I'll pass it over to Swamy.

接下來我把時間交給 Swamy。

Thank you, Louis. Good morning, everyone, and thank you for joining us today. We appreciate your time and interest. Let's get started. I am pleased with our performance this quarter.

謝謝你，Louis。各位早安，感謝今天加入我們。我們感謝各位撥冗與關注。我們開始吧。我對本季的表現感到滿意。

We delivered another strong quarter with continued margin expansion, reflecting disciplined execution and progress across a number of areas. In the quarter, sales were down 4%, reflecting lower light vehicle production and our previously announced dispositions. However, weighted organic growth over market was positive.

我們再度交出強勁的一季，利潤率持續擴張，反映出紀律性的執行力以及在多個領域的進展。本季銷售額下滑 4%，主要反映輕型車產量下降以及我們先前公告的處分案。然而，加權後的有機成長相對於市場仍為正值。

Adjusted EBIT was up 11%, while adjusted EBIT margin expanded 90 basis points to 6.8%, and adjusted EPS rose 38% to $1.83. These results reflect continued progress in our operational excellence initiatives and success in resolving commercial items, including some pull forward from Q4. Most notably, we continue to see improvement in the underlying operating performance of the business. Our strong free cash flow is further evidence of the continued improvement in our operating performance and the cash-generating capability of the business.

調整後 EBIT 成長 11%，調整後 EBIT 利潤率擴張 90 個基點至 6.8%，調整後 EPS 上升 38% 至 1.83 美元。這些結果反映我們在營運卓越計畫上的持續進展，以及在解決商務事項上的成果，其中包含部分自第四季提前認列的項目。最重要的是，我們持續看到業務基礎營運表現的改善。我們強勁的自由現金流，進一步證明營運表現持續改善，以及業務的現金創造能力。

During the quarter, we generated $950 million in operating cash flow and $584 million in free cash flow. And we ended the quarter with leverage well within our targeted range and $1.4 billion in cash on hand, which provides continued financial flexibility. Supported by our strong year-to-date performance, we updated our full year 2026 outlook. We lowered our sales expectations to reflect reduced vehicle production in China and unfavorable program mix and narrowed our range for adjusted EBIT margin. However, we maintained the midpoint of our outlook range for adjusted EPS.

本季我們產生 9.5 億美元的營運現金流，以及 5.84 億美元的自由現金流。季末槓桿水準仍明顯落在我們的目標區間內，且手上現金達 14 億美元，提供持續的財務彈性。在今年迄今強勁表現的支持下，我們更新了 2026 全年展望。我們下調銷售預期，以反映中國車輛產量下修與不利的專案組合，並收斂調整後 EBIT 利潤率的區間。不過，我們維持調整後 EPS 展望區間的中位數不變。

In addition, we raised our outlook range for free cash flow, again, reflecting our year-to-date momentum and confidence in our cash flow trajectory. Together, these updates demonstrate our ability to absorb lower production and still deliver improved profitability and cash generation. We remain steadfast in executing our proven cash allocation framework. We continue to invest in our business to support further profitable organic growth while returning significant capital to shareholders. During the quarter, we returned $658 million to shareholders, including $529 million through share repurchases.

此外，我們上調自由現金流展望區間，再次反映今年迄今的動能以及我們對現金流走勢的信心。綜合而言，這些更新展現我們有能力吸收較低的產量，同時仍能交出更佳的獲利能力與現金創造。我們仍堅定執行已驗證的現金配置框架。我們持續投資於業務，以支持進一步的獲利性有機成長，同時向股東回饋可觀資本。本季我們向股東回饋 6.58 億美元，其中包含透過庫藏股回購 5.29 億美元。

We completed our existing buyback authorization in October, repurchasing the remaining 1.3 million shares and our Board approved a new NCIB for 25.8 million shares.

我們已於 10 月完成既有的回購授權，回購剩餘的 130 萬股，且董事會核准新的 NCIB（正常發行人買回）計畫，回購上限為 2,580 萬股。

And lastly, we closed on the sales of our rooftop and North American lighting businesses in Q3 and expect to complete the remaining divestitures in the fourth quarter. I would like to take a moment to highlight our Complete Vehicle segment, which is ramping up business globally and demonstrating the value of our flexible vehicle manufacturing model.

最後，我們已於第三季完成屋頂系統與北美照明業務的出售，並預期在第四季完成其餘的資產剝離。我想花點時間強調我們的整車（Complete Vehicle）事業部，其正於全球擴大爬坡，並展現我們彈性整車製造模式的價值。

In Mesa, Arizona, we are launching and ramping up 2 new vehicle programs for Waymo in our existing upfitting facility. In Grand Austria, we assembled 6 vehicles in total for Shaping and GSE. We are launching the G9L, our port model in graphs supporting Shop Bank's European localization strategy. We also produced 2 GSE models, including the [ Aon UT launched ] earlier this year. And in China, our joint venture is ramping up production of all new Alpha T7, the fifth (inaudible) model produced by the joint venture.

在亞利桑那州梅薩（Mesa），我們正於既有的改裝（upfitting）廠房為 Waymo 啟動並爬坡兩個新車專案。在奧地利格拉茲（Graz），我們共為 Shaping 與 GSE 組裝了 6 輛車。我們正推出 G9L，這是我們的港口（port）車型，於圖表中顯示以支持 Shop Bank 的歐洲在地化策略。我們也生產了兩款 GSE 車型，其中包含今年稍早推出的 [ Aon UT launched ]。在中國，我們的合資企業正爬坡生產全新的 Alpha T7，這是合資企業生產的第五款（聽不清）車型。

These programs demonstrate our ability to support new and established customers across regions through flexible state-of-the-art manufacturing.

這些專案展現我們透過先進且具彈性的製造能力，在各區域同時支援新客戶與既有客戶的能力。

They are also generating discussions with additional customers and creating opportunities to bring more Magna systems content to new vehicle programs. We also continue to win new business across our core product areas. We were awarded a transfer case rear-drive module and front-drive unit for a North American-based global OEM. This new program, which launches in 2028, adds to our leading market position in 4-wheel drive. We were also awarded incremental actuator content for a smart lab system, we currently supply to a North America-based global OEM.

它們也促成與更多客戶的討論，並創造機會，將更多麥格納系統內容導入新的車輛專案。我們也持續在核心產品領域贏得新業務。我們獲得一家以北美為基地的全球 OEM 的分動箱後驅模組（transfer case rear-drive module）與前驅單元（front-drive unit）訂單。此新專案將於 2028 年量產，進一步鞏固我們在四輪驅動領域的領先市場地位。我們也獲得智慧實驗室系統（smart lab system）的額外致動器（actuator）內容；該系統目前由我們供應給一家以北美為基地的全球 OEM。

The global program launches in 2027 spans our 3 key markets and supports new global regulation requirements. The wins reinforce Magna's strong technology position in leading product areas. Lastly, our commitment to innovation continues to be recognized by the industry. Three of our technologies are finalists for automotive news, Pace awards and two, are finalists for PACE pilot awards. Winners will be announced in November.

此全球專案將於 2027 年啟動，涵蓋我們三大主要市場，並支援新的全球法規要求。這些得標案強化了麥格納在領先產品領域的強勁技術地位。最後，我們對創新的承諾持續獲得產業肯定。我們有三項技術入圍《Automotive News》PACE 大獎決選，另有兩項入圍 PACE Pilot 大獎決選。得獎名單將於 11 月公布。

These finalists span a number of our capabilities demonstrating our strong position across our portfolio.

這些入圍項目涵蓋我們多項能力，展現我們在整體產品組合上的強勁地位。

With that, I'll turn the call over to Phil.

接下來我把電話會議交給 Phil。

Thanks, Swamy, and good morning, everyone. I'm going to begin on slide 15 with a summary of our strong third quarter results. Sales were $10.1 billion in the quarter, down approximately 4% from last year. Adjusted EBIT margin improved 90 basis points to 6.8%. Adjusted earnings increased 38% to $1.83 per share.

謝謝你，Swamy，各位早安。我將從第 15 頁投影片開始，總結我們強勁的第三季業績。本季銷售額為 101 億美元，較去年約下降 4%。調整後 EBIT 利潤率提升 90 個基點至 6.8%。調整後盈餘增加 38% 至每股 1.83 美元。

And free cash flow was strong at $584 million. Each of these metrics exceeded our expectations and continued the momentum we saw in the first 6 months of the year.

自由現金流亦表現強勁，達 5.84 億美元。上述各項指標皆超出我們的預期，並延續我們在今年前 6 個月所見的動能。

Now I'll take you through some of the details. Let's start with sales on slide 16. As I mentioned, third quarter sales were down about 4% overall compared to last year. Excluding divestitures and foreign currency translation, sales declined 2.1% organically. By comparison, global light vehicle production declined about 3% in the quarter.

接下來我將帶各位看一些細節。我們先從第 16 頁投影片的銷售額開始。如我所提，第三季銷售額整體較去年下降約 4%。若排除資產剝離與外幣換算影響，銷售額有機下滑 2.1%。相較之下，本季全球輕型車產量約下降 3%。

On a Magna-weighted basis, we estimate light vehicle production was down 2.6%. This translates to a positive growth over market for Magna of about 0.5% on a consolidated basis and 1% excluding complete vehicles.

以麥格納加權口徑估算，輕型車產量下降 2.6%。換算後，麥格納合併口徑相對市場的正向成長約為 0.5%，若排除整車業務則約為 1%。

Looking at the sales walk, volumes, launches and other reduced sales by $150 million. The decrease mainly reflects lower light vehicle production, the end of production on certain programs, including the (inaudible) normal course customer price concessions. These factors were offset partially by new program launches, including the Jeep Cherokee and the Mercedes-Benz GLB and GLC. Complete vehicle sales declined $74 million organically despite higher unit volumes. The higher volumes were driven by new programs Xiaopeng and GAC and (inaudible) where sales are recognized on a value-added basis.

從銷售橋（sales walk）來看，銷量、量產導入（launches）及其他因素使銷售額減少1.5億美元。此降幅主要反映輕型車產量下降、部分專案結束生產，以及（聽不清）例行性的客戶價格讓利。上述因素部分被新專案導入所抵銷，包括Jeep Cherokee以及Mercedes-Benz GLB與GLC。儘管單位銷量較高，整車銷售仍在有機基礎上下降7,400萬美元。較高的銷量主要由小鵬與廣汽的新專案以及（聽不清）所帶動，該等專案的銷售以增值（value-added）基礎認列。

Volumes with other customers, where sales are generally recognized on a full cost basis, declined year-over-year. including end of production for the BMW Z4 and Toyota Supra. This mix shift resulted in net lower assembly sales dollars but at higher margins. Engineering revenue was also lower, in line with our expectations. The rooftop systems and completed lighting divestitures reduced sales by $165 million in the quarter.

其他客戶的銷量（其銷售通常以全成本（full cost）基礎認列）較去年同期下降。其中包括BMW Z4與Toyota Supra的停產。此產品組合轉變導致組裝銷售金額淨額下降，但毛利率較高。工程收入亦較低，符合我們的預期。車頂系統與已完成的照明業務剝離，使本季銷售額減少1.65億美元。

And lastly, foreign currency translation reduced sales by $14 million, reflecting a net stronger U.S. dollar. Now let's move to EBIT on slide 17. I Third quarter adjusted EBIT was $683 million, an increase of $70 million or 11% versus last year. Adjusted EBIT margin was 6.8%, an improvement of 90 basis points.

最後，外幣換算使銷售額減少1,400萬美元，反映美元整體走強。現在我們看第17頁的EBIT。第三季調整後EBIT為6.83億美元，較去年增加7,000萬美元或11%。調整後EBIT利潤率為6.8%，提升90個基點。

Operational volumes and other contributed about 120 basis points to margin in the quarter. The improvement mainly reflects net favorable commercial items, and the impact of operational excellence initiatives, net of normal course customer price concessions. We also benefited from prior restructuring actions as well as the divestitures, which were running at margins below (inaudible). These factors were offset partially by lower earnings on reduced organic sales volumes, unfavorable net foreign exchange impacts and higher profit sharing and incentive compensation.

本季營運銷量及其他因素對利潤率貢獻約120個基點。改善主要反映商業條款項目淨利多，以及營運卓越（operational excellence）計畫的影響，扣除例行性的客戶價格讓利後的淨效益。我們亦受惠於先前的重整措施，以及剝離的業務（其利潤率低於（聽不清））。上述因素部分被以下項目抵銷：有機銷量下降導致獲利降低、外匯淨不利影響，以及較高的利潤分享與獎酬性薪酬。

In addition, lower net tariff costs contributed approximately 30 basis points to margins. Costs were slightly lower, and we're getting recoveries faster than we did last year. While the tariff situation continues to evolve, we currently expect that our full year net tariff headwind will be similar to what we experienced last year. Higher commodity costs reduced margins by about 50 basis points. As we have noted in prior quarters, we continue to experience inflation across several key commodities.

此外，關稅淨成本下降約為利潤率貢獻30個基點。成本略有下降，且我們取得補償（recoveries）的速度比去年更快。雖然關稅情勢仍在演變，我們目前預期全年關稅淨逆風將與去年經歷的水準相近。較高的大宗商品成本使利潤率下降約50個基點。如同我們在前幾季所提到的，我們在多項關鍵大宗商品上仍持續面臨通膨。

While this was a headwind in the quarter, we do expect to substantially mitigate or recover these increased costs over time.

雖然這在本季形成逆風，但我們預期隨時間推移將大幅緩解或回收這些增加的成本。

Lower equity income reduced margins by around 10 basis points. This mainly reflects the impact of lower sales, unfavorable product mix and higher income tax expense at certain affiliates accounted for under the equity method. Looking below the EBIT line on slide 18. Interest expense was $30 million lower than last year. The improvement was driven by some discrete interest expense last year that did not recur as well as reduced seasonal short-term borrowings supported by our strong cash flow.

權益法投資收益較低使利潤率下降約10個基點。這主要反映銷售下降、不利的產品組合，以及對以權益法核算之部分關聯企業較高的所得稅費用。接著看第18頁EBIT以下的項目。利息費用較去年減少3,000萬美元。改善主要由去年部分一次性利息費用未再發生，以及在強勁現金流支持下季節性短期借款減少所帶動。

Our third quarter adjusted tax rate was 22.4%, an improvement of 410 basis points versus last year and better than our expectations.

第三季調整後有效稅率為22.4%，較去年改善410個基點，且優於我們的預期。

For the full year, we now expect an adjusted tax rate of approximately 22%. And third quarter adjusted EPS increased 38% to $1.83, reflecting the higher net income and a 6% reduction in diluted shares outstanding from share repurchases completed over the past 12 months.

就全年而言，我們目前預期調整後有效稅率約為22%。第三季調整後每股盈餘（EPS）成長38%至1.83美元，反映淨利增加，以及過去12個月完成庫藏股回購使稀釋後流通股數減少6%。

Next, let's take a brief look at our business segment performance, which is summarized on slide 19. We were impacted by lower global light vehicle production across the business. In Power & Vision, Reported sales also reflect the rooftop and completed lighting divestitures. Excluding divestitures and foreign currency translation, PV sales increased approximately 2% organically in the quarter. In Seating, sales were negatively impacted by a major changeover at Ford's Louisville plant as well as retooling at BMW Spartanburg plant for upcoming planned program launches.

接下來，我們簡要看看各事業部門表現，摘要於第19頁。我們的各項業務均受到全球輕型車產量下降的影響。在動力與視覺（Power & Vision）方面，報告銷售亦反映車頂系統與已完成的照明業務剝離。排除剝離與外幣換算影響後，PV本季有機銷售約成長2%。在座椅（Seating）方面，銷售受到Ford路易斯維爾（Louisville）工廠重大換線（changeover）以及BMW斯帕坦堡（Spartanburg）工廠為即將到來的計畫量產導入進行改造（retooling）的負面影響。

And in complete vehicles, sales declined 8% as expected despite higher unit volumes as lower sales on full cost programs and lower engineering revenue were only partially offset by new value-added programs and higher margins with Chinese OEMs in crops.

而在整車（complete vehicles）方面，儘管單位銷量較高，銷售仍如預期下降8%，原因是全成本專案的銷售較低及工程收入較低，僅部分被新的增值型專案以及與中國OEM在（聽不清）方面較高的利潤率所抵銷。

Turning to EBIT. On the Exteriors & Structures Power & Vision and Complete vehicles all posted notable year-over-year improvements in adjusted EBIT dollars in merchant, reflecting strong operational execution. C&V also benefited on the margin line from the divestitures and complete vehicles benefited from favorable mix. And in Seating, margins were down as expected, mainly reflecting the decline in sales for the program changeovers I mentioned earlier.

接著看EBIT。外飾與結構（Exteriors & Structures）、動力與視覺（Power & Vision）以及整車（Complete vehicles）在調整後EBIT金額方面均呈現顯著的年對年改善，反映強勁的營運執行。C&V在利潤率方面亦受惠於剝離，而整車業務則受惠於有利的產品組合。座椅業務的利潤率如預期下滑，主要反映我先前提到的專案換線導致銷售下降。

Now let's look at cash flow on slide 20. In the third quarter, we generated $950 million in cash from operations, an increase of $38 million from last year, driven by higher earnings and improved working capital. Investment activities in the quarter included $307 million in CapEx and $75 million for investments, other assets and intangibles, offset partially by proceeds from normal course asset disposals. Netting everything out, we generated free cash flow of $584 million in the quarter, which was slightly above last year and ahead of our expectations. We continue to return cash to shareholders in the third quarter with $129 million in dividends, along with $529 million through share repurchases.

現在看第20頁的現金流。第三季我們自營運活動產生9.5億美元現金，較去年增加3,800萬美元，主要由較高獲利與營運資金改善所帶動。本季投資活動包括3.07億美元資本支出（CapEx）以及7,500萬美元用於投資、其他資產與無形資產，部分被例行性資產處分所得所抵銷。綜合上述，本季我們產生5.84億美元自由現金流，略高於去年且優於我們的預期。第三季我們持續回饋股東，包括1.29億美元股利，以及透過股票回購回饋5.29億美元。

During the quarter, we repurchased 7.9 million shares under our current NCIB buyback authorization, which left us with just over 1 million shares remaining at the end of September. As of today, we will have repurchased all remaining shares. That's a total of over 25 million shares over the past 12 months. And as Swamy mentioned, yesterday, our Board approved a new NCIB buyback authorization, which is expected to take effect in November.

本季我們依據現行NCIB回購授權回購了790萬股，使我們在9月底剩餘可回購股數略高於100萬股。截至今日，我們將已回購所有剩餘股數。這代表過去12個月合計回購超過2,500萬股。此外，如Swamy所提，昨天董事會核准新的NCIB回購授權，預計於11月生效。

Turning to slide 21. Our balance sheet and capital structure remain strong. At the end of September, we had close to $5 billion in total liquidity, including $1.4 billion of cash on hand. This is despite the significant return of capital during the first 9 months of the year. Looking at leverage.

接著看第21頁。我們的資產負債表與資本結構仍然穩健。截至9月底，我們的總流動性接近50億美元，其中包括14億美元的手頭現金。即便在今年前9個月進行了大規模資本回饋，仍能維持此水準。再看槓桿水準。

Our net debt to adjusted EBITDA was under 1x, and our rating agency leverage was 1.4x at quarter end. These are both within our targeted ranges, which provides significant financial flexibility and puts Magna in a great position to continue investing in the business and returning capital to shareholders.

我們的淨負債對調整後EBITDA低於1倍，而評級機構口徑的槓桿倍數在季末為1.4倍。兩者皆落在我們的目標區間內，提供顯著的財務彈性，並使Magna處於極佳位置，得以持續投資業務並回饋股東資本。

Next, let me cover the macro assumptions underpinning our current outlook on slide 22. Compared to our July outlook, we've reduced our China production estimate by 800,000 units. We also updated our foreign currency assumptions to reflect recent exchange rates. Our full year outlook now assumes a slightly stronger Canadian dollar, euro and (inaudible) relative to the U.S. dollar.

接下來，我說明支撐我們目前展望的總體假設，見第22頁。相較於7月的展望，我們將中國產量估計下調80萬輛。我們也更新外匯假設以反映近期匯率。我們目前的全年展望假設加幣、歐元及（聽不清）相對美元略為走強。

Moving to slide 23. We are revising our full year sales outlook primarily to reflect our assumption through lower vehicle production in China and unfavorable program mix compared to our previous outlook. Despite the lower sales outlook, we continue to expect strong year-over-year margin expansion. We are narrowing our outlook for adjusted EBIT margin to a range of between 6.3% and 6.5%. Our midpoint of 6.4% represents an improvement of 80 basis points from last year on slightly lower sales at the midpoint.

接著看第23頁。我們正在修正全年銷售展望，主要反映我們對中國車輛產量較低的假設，以及相較先前展望更不利的專案組合。儘管銷售展望下調，我們仍預期利潤率將強勁年對年擴張。我們將調整後EBIT利潤率展望區間收斂至6.3%至6.5%。其中值6.4%代表在中值銷售略低的情況下，較去年提升80個基點。

We are also narrowing our adjusted EPS outlook to a range of between $6.85 and $7.15 per share. The midpoint, which is unchanged at $7 per share, represents an increase of 22% versus last year.

我們也將調整後每股盈餘（adjusted EPS）展望收斂至每股 6.85 美元至 7.15 美元的區間。中點維持不變，仍為每股 7 美元，較去年成長 22%。

And finally, we are raising our free cash flow outlook to between $1.85 billion and $1.9 billion, an increase of $75 million at the midpoint, mainly reflecting lower planned capital spending. The updated outlook represents free cash conversion of approximately 100% of adjusted net income. With respect to other key assumptions, we expect CapEx to be approximately $1.5 billion compared to our previous range of $1.5 billion to $1.6 billion. We're planning for slightly lower interest expense and we expect a lower adjusted tax rate of approximately 22% compared to 23% previously, reflecting a more favorable mix of earnings. And finally, our assumptions for equity income at the midpoint and diluted shares remain unchanged.

最後，我們將自由現金流展望上調至 18.5 億美元至 19 億美元之間；以中點計增加 7,500 萬美元，主要反映計畫中的資本支出較低。更新後的展望代表自由現金轉換率約為調整後淨利的 100%。就其他關鍵假設而言，我們預期資本支出（CapEx）約為 15 億美元，相較於先前 15 億至 16 億美元的區間。我們規劃利息費用略低，並預期調整後有效稅率約為 22%，低於先前的 23%，反映獲利組合更有利。最後，我們對權益法投資收益（equity income）中點與稀釋後股數的假設維持不變。

That's it for the financial review.

以上是財務回顧。

And now I'll turn it back to Swamy to wrap things up. Swamy?

接下來我把時間交還給 Swamy 做總結。Swamy？

Thank you, Phil. Before we take your questions, let me summarize. We delivered a strong third quarter with meaningful growth in adjusted EBIT margin and adjusted EPS. Just as importantly, we generated strong free cash flow, reinforcing the quality and sustainability of our earnings. These results reflect the continued progress we are making through disciplined execution and operational excellence across the company.

謝謝你，Phil。在回答各位提問之前，我先做個總結。我們第三季表現強勁，調整後 EBIT 利潤率與調整後 EPS 都有顯著成長。同樣重要的是，我們產生了強勁的自由現金流，進一步印證我們獲利的品質與可持續性。這些成果反映我們透過全公司範圍內的嚴謹執行與卓越營運，持續取得進展。

Looking ahead, our updated 2026 outlook reflects our confidence in Magna's ongoing operating performance. We remain focused on sustaining our momentum in margin expansion, earnings growth and free cash flow, while continuing to execute our disciplined capital allocation strategy.

展望未來，我們更新後的 2026 年展望反映我們對 Magna 持續營運表現的信心。我們仍將聚焦於維持利潤率擴張、獲利成長與自由現金流的動能，同時持續執行我們嚴謹的資本配置策略。

We completed our previous share repurchase program, and the Board has approved a new authorization. This positions us to continue returning significant capital to shareholders while investing in the business. Overall, we believe Magna is well positioned to deliver continued margin expansion, EPS growth and attractive shareholder returns. We hope to see many of you in November at our investor event in New York City, where we will go into detail on our strategy, key initiatives and long-term financial outlook.

我們已完成先前的庫藏股回購計畫，而董事會也已核准新的授權。這使我們能在投資業務的同時，持續向股東回饋可觀的資本。整體而言，我們相信 Magna 已具備良好條件，可持續帶來利潤率擴張、EPS 成長以及具吸引力的股東報酬。我們希望在 11 月於紐約市的投資人活動中見到各位，屆時我們將深入說明我們的策略、關鍵舉措與長期財務展望。

Thanks for your attention. Now operator, let's open it up for questions.

感謝各位的關注。接下來請接線員開放提問。

(Operator Instructions) Dan Levy from Barclays.

（接線員指示）Barclays 的 Dan Levy。

First, just wondering if you could unpack maybe some of the items within the quarter, you said there was timing of commercial recoveries. Maybe you could just outline a bit more the magnitude of those? And maybe just give us a little more sense those were for commodities, if those are 4 vehicle programs? And then what's onetime versus maybe the right sort of on a run rate basis going forward, the right way to think of it?

首先，想請教你們是否能拆解一下本季的一些項目；你們提到商業補償（commercial recoveries）的時點因素。能否再多說明一下其規模大概是多少？另外也請讓我們更了解，這些是針對大宗商品（commodities），還是針對 4 個車輛專案？以及哪些屬於一次性（onetime），哪些可能是未來以常態化（run rate）來看比較合理的水準、該如何理解？

Yes. Maybe I'll start off with the high level and Phil can jump in with some of the details. The commercial and tariff recoveries benefited Q3 and some favorable commercial items moved forward from Q4. But I would say that's not the full explanation of the full improvement. We delivered meaningful productivity and efficiency gains, operational excellence benefits and restructuring benefits, which helped absorb significant commodity pressures.

是的。我先從較高層次說明，Phil 也可以補充一些細節。商業與關稅補償在第三季帶來助益，且有一些有利的商業項目從第四季提前到第三季。但我會說，這並不是整體改善的全部原因。我們實現了顯著的生產力與效率提升、卓越營運帶來的效益，以及重整效益，這些都有助於吸收相當大的大宗商品成本壓力。

So if I had to summarize it, I would say, timing helped the quarter, but the underlying operating performance is what held the improvement and will serve as a trajectory going forward.

如果要我總結，我會說：時點確實對本季有幫助，但真正支撐改善、並將成為未來走勢基礎的，是底層的營運表現。

Yes. The only thing I would add there, Dan, is you're right, the operational volume and other bucket, if you will, added 120 basis points overall to margins. The 2 biggest positives would have been commercial and operational excellence. Swamy talked about the operational excellence. As we've said many times, we're still in the early innings there and expect that momentum to continue.

是的。Dan，我唯一想補充的是，你說得沒錯：若以「營運量與其他」這個類別來看，整體對利潤率貢獻了 120 個基點。其中兩個最大的正面因素是商業項目與卓越營運。Swamy 已談到卓越營運。正如我們多次提到的，我們在這方面仍處於早期階段，並預期這股動能會持續。

On commercial, I would say it was in that particular bucket, it was probably a combination of volume-related commercial and some commodity-related commercial, although commodities was a net headwind in the quarter. We actually show that in the different buckets. So it was mainly commercial related or volume-related commercial some pull ahead from Q4. The only thing I would say is we still expect margins in Q4 despite the pull ahead into Q3 still expect margins in Q4 to step up from Q3 despite lower volume despite commodity cost despite actually commercial probably flipping negative on us in Q4.

至於商業項目，我會說在那個類別中，可能是與出貨量相關的商業項目，加上一些與大宗商品相關的商業項目組合；不過大宗商品在本季整體仍是淨逆風。我們其實在不同類別中有呈現這點。因此主要是商業相關或與出貨量相關的商業項目，並且有部分從第四季提前。我要補充的是，即使有部分提前到第三季，我們仍預期第四季利潤率會較第三季再上升，儘管出貨量較低、儘管有大宗商品成本、而且商業項目在第四季可能會對我們轉為負面。

So we do believe the margin performance when you peel it all back, is sustainable. And as we've said before, we think the midpoint of the full year guide when you look at 6.4% to midpoint, we do believe that is a structural (inaudible) Jumping off point as we head into 2027.

因此我們確實相信，把所有因素拆開來看後，利潤率表現是可持續的。而且如同我們先前所說，當你看全年指引 6.4% 的中點時，我們確實相信那是我們邁向 2027 年時的結構性（聽不清）起跳點。

And just to clarify, within that, the commodity cost that you said was a net headwind. Is the view I assume, over time, is that you should get full recovery to make it EBIT dollar neutral. And so it's just a matter of the timing. Is that correct?

再確認一下，在你提到的大宗商品成本是淨逆風這件事上。我理解你們的看法是，隨時間推進應該能取得完全補償，使其在 EBIT 金額上大致中性。所以只是時點問題。這樣理解正確嗎？

Yes, that is correct. We signaled it probably last quarter was modest impact in Q2. It stepped up in Q3 to the 50 basis points that you see. We're expecting probably a comparable headwind maybe even a little bit higher in Q4. And it is a timing issue.

是的，正確。我們大概在上一季就已提示：第二季影響不大；第三季則上升到你看到的 50 個基點。我們預期第四季可能會有相近、甚至略高的逆風。而這確實是時點問題。

It really is across think of DRAM and related electronic components, you can think of resins and some aluminum that we buy from Tier 2 and the like that's embedded in components, if you will. And that is where we -- it does take some time to get recoveries from customers.

這其實涵蓋多個面向，例如 DRAM 與相關電子元件，也包括樹脂，以及我們從二階供應商（Tier 2）等採購、並內嵌在零組件中的部分鋁材等。而在這些項目上，我們確實需要一些時間才能從客戶端取得補償。

I would tell you, we've gotten some 50 bps you see as sort of the net headwind for the quarter. Conversations, I would say, are constructive. But what we don't recover this year, the plan would be to substantially mitigate or recover in 2027.

我會說，你看到的 50 個基點可視為本季的淨逆風。就目前的對話而言，我會說進展是建設性的。但今年未能補償回收的部分，計畫是在 2027 年大幅緩解或回收。

Great. As a follow-up, one of the automakers mentioned on their call that for one of their new vehicles, they want to bring castings in-house. And we've heard this from others as well, this idea to do sort of gate casting. So BES, obviously, you've got some big customer relationships there, and it's pretty chunky content. Maybe you could just talk about the trend by some of the automakers to bring some of the casting in-house and whether that's at all a risk to you?

很好。追問一下，有一家車廠在他們的電話會議上提到，針對他們某款新車，想把鑄件（castings）內製。我們也從其他車廠聽到類似說法，也就是想做所謂的「一體式鑄造／大型鑄造」（gigacasting）。因此在 BES 方面，你們顯然與一些大客戶關係很深，而且單車價值量也相當可觀。能否談談部分車廠把部分鑄造內製的趨勢，以及這是否會對你們構成任何風險？

The simple answer, Dan, no. The reason I say that is as we continue to have conversations with various customers, actually in all regions of the world, North America, Europe and China. If anything, we are continuing to see more interest in our capability and bringing forward some inventive or innovative ideas on doing castings on a pretty large scale, right, in the 6,000, 7,000 ton type machines. And some of the technologies we are bringing, which we got Pace Awards last time in terms of the OI development in terms of joining technologies and so on.

Dan，簡單答案是：不會。我之所以這麼說，是因為我們持續與各類客戶對話，實際上涵蓋全球各區域：北美、歐洲與中國。如果說有什麼趨勢，反而是我們持續看到客戶對我們能力更感興趣，並希望我們提出一些在相當大規模鑄造上的發明或創新想法，例如使用 6,000、7,000 噸等級的機台。以及我們帶來的一些技術——例如我們上次因 OI 開發、接合技術等而獲得 Pace Awards 的那些技術。

And we're able to show some solutions there where 2 or 3 castings, which bring together significant consolidation of parts, but at the same time, take into account reparability and maintenance and so on and so forth. So all in all, a lot of interest, we are not seeing any negative influence. We are actually pretty enthusiastic about that process and product.

我們也能在那裡展示一些解決方案，例如以 2 或 3 個鑄件來實現顯著的零件整合，但同時也把可修復性、維護等因素一併納入考量。因此整體而言，市場興趣很高，我們沒有看到任何負面影響。事實上，我們對這個流程與產品都相當振奮。

Your next question comes from the line of James Picariello from BNP Paribas.

下一個問題來自 BNP Paribas 的 James Picariello。

All right. Second (inaudible) sorry about that. So I know we're going to get all the details we want in just 2 weeks at the Investor Day. But as we think about free cash flow and consider the strength in Magna's free cash flow and buyback commitment. Can you confirm the amount of EV recoveries in the outlook, in the free cash flow outlook for this year?

好的。第二個（聽不清），抱歉。我知道兩週後的投資人日我們就能拿到想要的所有細節。但當我們思考自由現金流，並考量 Magna 自由現金流的強勁表現與回購承諾時，你能否確認今年自由現金流展望中所包含的電動車（EV）回收款金額？

And just high level, how you're thinking about the puts and takes for the trajectory into next year?

另外從高層次來看，你們如何思考明年走勢的各項利多與利空因素？

Yes, sure, James. I would -- we talked in the first quarter that we had a large EV recovery from a North American OEM, and we had talked at that time that it was north of $450 million. We got probably a little bit more in Q3. So as we're sitting here today, I'd probably round the number to about million in the year. And again, some of the -- and that would have been sort of cash received.

好的，當然可以，James。我們在第一季提到，來自一家北美 OEM 的 EV 回收款金額很大，當時也說過金額超過 4.5 億美元。我們在第三季可能又多拿到一些。所以以目前來看，我大概會把全年金額四捨五入到約……百萬美元。再說一次，其中一部分——那會是已收到的現金。

We do have some go-forward impacts as well.

我們也確實有一些對未來的延續性影響。

But as we look at the free cash flow, it's been very strong earnings, very good working capital management. And then obviously, CapEx coming in at the full year guided around kind of 3.6-ish percent of sales. So feel really good about the free cash flow not only in 2026. I'll talk about go forward in a moment. But balance sheet is in great shape.

但就自由現金流來看，主要來自非常強勁的獲利、非常好的營運資金管理。此外，資本支出（CapEx）全年指引約為銷售額的 3.6% 左右。因此我們對 2026 年的自由現金流感到非常有信心。我稍後會談談未來走勢。同時，我們的資產負債表狀況非常好。

So we ended the quarter with great liquidity, the balance sheet is in really good shape. We renewed the NCIB. So we feel really good about the cash generation of the business and the ability to continue returning significant capital to shareholders moving forward.

我們在本季末擁有很好的流動性，資產負債表狀況非常穩健。我們也續期了 NCIB（正常發行人買回）。

And as you step forward to 2027, obviously, those recoveries won't repeat, but the combination of stronger earnings, again, continued focus on working capital and CapEx. We do believe the free cash flow of the business will remain strong, and we'll continue to be supportive of everything we want to do.

展望 2027 年，顯然這些回收款不會重複出現，但在更強的獲利、持續聚焦營運資金與資本支出（CapEx）的組合之下，我們相信公司的自由現金流仍將維持強勁，並會持續支持我們想做的所有事情。

Got it. That's great to hear. And then the Power & Vision, the growth over market was a clear positive again this quarter. with the full year guide implying another strong showing for the fourth. Can you speak to any key factors driving this improvement either from a product or a favorable customer mix perspective?

了解。很高興聽到這點。接著談 Power & Vision，本季再次明顯優於市場的成長是個正面訊號。而全年指引也意味著第四季會再有一次強勁表現。你能否談談推動這項改善的關鍵因素——不論是產品面或較有利的客戶組合？

Or is the growth mainly driven by new business backlog contribution? Just any color on the Power & Vision growth inflection would be helpful.

或者成長主要是由新業務在手訂單（backlog）的貢獻所帶動？任何關於 Power & Vision 成長拐點的補充說明都會很有幫助。

I think you have summarized a Power & region, as you saw, declined 2% in the sales side of things, including the devestiture effects, and the margin improved about 150 basis points and standing at 6.6. The improvement in this case or in this segment definitely was less about commercial recoveries and more about strong operational execution. I would say it's continued traction from our operational excellence initiatives, and it's truly becoming foundational, and we are starting to see that.

我想你已經把 Power & Vision 的情況總結得很好。如你所見，該區塊銷售端下滑 2%，其中包含了資產剝離（divestiture）的影響，而利潤率提升約 150 個基點，達到 6.6。這次的改善，在這個案例或這個事業群中，確實較少來自商業回收款（commercial recoveries），更多是來自強勁的營運執行。我會說，這是我們營運卓越（operational excellence）計畫持續發揮成效，而且它正真正成為基礎能力，我們開始看到成果。

It's definitely a trajectory going forward. And I don't think there is any one particular product that stands out. Definitely, the launches of some of the programs that we've been working being a normal cadence and normal run rates definitely helps. And the discipline in engineering and launches is the other 1/3. So all in all, I would sum it up as the different headings under the operational excellence is what's giving us the jump in the profitability.

這絕對是未來的發展軌跡。而我不認為有任何單一產品特別突出。我們一直在推進的一些專案，其量產導入（launch）以正常節奏、正常產能爬坡（run rates）進行，確實有幫助。另外三分之一則是工程與導入的紀律。總結來說，我會把獲利能力的跳升歸因於營運卓越之下的各項措施。

Yes. No, it's great to see that low to mid-single-digit core growth.

是的。看到核心成長維持在低到中個位數，確實很不錯。

Your next question comes from the line of Tamy Chen from BMO Capital Markets.

下一個問題來自 BMO Capital Markets 的 Tamy Chen。

First, I just want to start on the Seating side. Can you remind us again, in North America, I think there is the fairly sizable replacement or a refresh program that will come. When do you launch that? And when we think about overall Seating margins as we go towards that launch, like is this refresh or a new program meaningful enough to potentially move those segment margins back to pre-pandemic? Is that how we could think about it?

首先我想從 Seating（座椅）業務談起。能否再提醒我們一次，在北美我記得有一個規模相當大的替換或改款（refresh）專案即將到來。你們什麼時候開始導入（launch）？以及當我們思考座椅業務整體利潤率在導入前後的走勢時，這次改款或新專案是否重要到足以把該事業群利潤率拉回疫情前水準？我們可以這樣理解嗎？

I think a couple of things, right? The program change over at Ford Louisville and BMW Spartenburg, are the ones that are having impact. As they come back into come back online, you'll see the sitting -- come back to what I would call the normal cadence. If you look at it from last year to how we've been progressing, we are satisfied and seeing what we expected there other than the program changeovers. And the October full year margin outlook is 3.1% to 3.3%, right?

我想有幾點。在 Ford Louisville 與 BMW Spartanburg 的專案切換（program changeover）是造成影響的主因。當它們恢復、重新上線後，你會看到座椅業務回到我所說的正常節奏。如果從去年到目前的進展來看，除了專案切換之外，我們對表現感到滿意，也符合我們的預期。而 10 月給出的全年利潤率展望是 3.1% 到 3.3%，對吧？

So if you take the midpoint 3.2, that's in line with what we've been talking about. And with the program launches coming in play and the one big program that you mentioned, will be fully launched by this time next year.

所以如果取中位數 3.2%，這與我們一直在談的方向一致。隨著專案導入陸續展開，以及你提到的那個大型專案，到明年這個時候就會完成全面導入。

It started now, and it's phasing, right? And we feel pretty confident in how the launch is going, how the economics are working out. And when all of this comes back, I would say kind of go back to what I always said about seeing good returns business. We are seeing the trajectory we wanted. So this quarter seems a little bit off, but that's because of the changeovers.

它現在已經開始了，而且是分階段推進。我們對導入進度與經濟效益的落地情況都相當有信心。當這些都恢復後，我會說會回到我一直強調的：座椅是一門能帶來良好報酬的業務。我們正看到我們想要的那條軌跡。所以本季看起來有點偏離，但那是因為切換所致。

All in all, it's following the trajectory we had in plan.

整體而言，它仍然沿著我們計畫中的軌跡前進。

Yes. the only thing I would add is that we'll still -- it's still more of the impact of the BMW because that's sort of launching kind of as we speak, but we'll feel it's more than 27%, whereas Ford Louis will be sort of mid-next year. So that will be kind of a midyear ramp, if you will. But as Swamy said, the margin this quarter, while they were down year-over-year, we're actually better than we anticipated coming into the quarter because obviously, that's a lot of volume to lose albeit it's temporary, if you will. But the team did a great job on operational excellence and some commercial items to kind of protect margins and moving forward.

是的。我唯一想補充的是，我們仍然——目前影響較大的是 BMW，因為它幾乎就在我們講話的同時正在導入，但我們感受到的影響會延續到 27% 以上；而 Ford Louisville 大概會在明年年中左右。所以那會是年中爬坡（ramp）。但如 Swamy 所說，本季利潤率雖然年減，但其實比我們在進入本季前預期的還要好，因為顯然短期內會少掉不少產量，雖然是暫時性的。不過團隊在營運卓越以及一些商業面事項上做得很好，得以保護利潤率並持續向前。

As Swamy said, with the new economics and the volumes coming back, we feel really good about the ability of seeding margins to get back where they were.

如 Swamy 所說，隨著新的經濟條件與產量回升，我們對座椅利潤率回到先前水準的能力感到非常有信心。

Good to hear. Got it. And my follow-up question is the bigger picture, I think you'll talk more about it at the Investor Day as well. But curious if you can give any insights right now. Your overall operational excellence journey.

很高興聽到。了解。我的追問是更宏觀的問題，我想你們在投資人日也會談更多。但想知道你現在是否能先分享一些看法。關於你們整體的營運卓越（operational excellence）旅程。

If you had to describe what inning do you think we're at? What's still to come? I think one of the areas is your factor in the future. just continuing to roll out in more facilities. So if you can give any sort of numbers to help us assess how far along?

如果要你形容一下，你覺得我們現在處於哪一局？接下來還有哪些事情會發生？我認為其中一個面向是你們未來的因素。就是持續在更多設施中推展。所以如果你能提供任何數字，幫助我們評估目前進展到什麼程度？

And how much more there is to come from there.

以及從那裡開始，後續還有多少成長空間。

Tamy. At the Investor Day, you'll definitely hear from us about a little bit more detail on how our strategy is evolving. We'll talk about our growth over market priorities and definitely more color on the operational excellence initiatives. I won't put a number on it, but I would still say it's early innings. We are enthused about, and you've seen the traction of what shout out to the Magna team, everybody on the shop floor, they're sticking to it, doing it.

Tamy。在投資人日上，你一定會聽到我們更進一步說明我們的策略如何演進的一些細節。我們會談到我們在市場優先事項上的成長，並且肯定會就營運卓越（operational excellence）計畫提供更多說明。我不會給出一個具體數字，但我仍會說現在還在早期階段。我們感到很振奮，而且你也看到進展；也要特別肯定 Magna 團隊、現場產線的每一位同仁，他們持續堅持、把事情做成。

So with all gratitude towards them, we still feel pretty good about how we're doing. And then we'll also obviously touch on the medium- to long-term financial framework when we come to the Investor Day.

因此，對他們滿懷感謝，我們對目前的執行情況仍然相當有信心。另外，等到投資人日，我們也會當然談到中長期的財務框架。

Your next question comes from the line of Alex Perry from Bank of America.

下一個問題來自美國銀行（Bank of America）的 Alex Perry。

I guess first, I just wanted to ask a little bit more about the change in the guide for this year. Specifically on China, is there any visibility on China improving. How conservative is -- would you say the outlook is at this point with the volatility and visibility you have in that region? And then maybe just walk us through how China sort of varies versus the other regions in terms of the visibility profile given some of the fragmentation there in the market?

我想先問一下今年指引調整的部分。特別是中國方面，對中國市場改善是否有任何能見度？在該地區你們所面臨的波動與能見度之下，你會說目前的展望有多保守？另外，也請你帶我們了解一下：考量到市場較為碎片化，中國相較其他地區在能見度輪廓上有何不同？

Alex, as you said, China is pretty dynamic in terms of local consumption versus exports, the dynamics between the Chinese OEMs and the Western OEMs and so on. From our perspective, China vehicle production declined 7% in Q3, and our impact was roughly about 10%. And if you filled onion back a little bit, you'll see that the 3 German OEM grew collectively declined approximately 28% in the quarter. So contextually, Magna, when we started, we had a much bigger share with the Western OEMs. But over the last decade, I would say we've grown at 10-plus percent CAGR in China.

Alex，正如你所說，中國在本地消費與出口之間、以及中國 OEM 與西方 OEM 之間等方面的動態都相當多變。從我們的角度看，中國第三季（Q3）整體汽車產量下滑 7%，而對我們的影響大約是 10%。如果你再往回看一點，你會看到三家德國 OEM 在該季度合計下滑約 28%。就背景而言，Magna 一開始在西方 OEM 的占比更高；但在過去十年，我會說我們在中國以 10% 以上的年複合成長率（CAGR）成長。

And today, we are about 65% business revenue is with the Chinese OEMs in China.

而今天，我們在中國的業務營收約有 65% 來自中國 OEM。

So we have evolved pretty well. We continue to grow in the long term, pretty good. It's an important market for us. And from a financial metrics, I would say we are satisfied and continue to be good and accretive. It's a little bit lumpy is how I would characterize it, but our focus remains on the right customers, platforms, products and definitely returns.

所以我們的演進相當不錯。長期來看我們仍會持續成長，表現相當好。這對我們而言是個重要市場。就財務指標而言，我會說我們感到滿意，並且持續維持良好且具增益（accretive）。我會用「波動較不平順（lumpy）」來形容，但我們的重點仍放在正確的客戶、平台、產品，當然還有報酬。

Really helpful. And then I wanted to ask a little bit about what you're doing with some of the AV players. So maybe help us think about contextualizing the size of the Waymo business, what you're doing there. Could that become significant over time? And then are you targeting other robotaxi and AV players that are trying to integrate a lot of pieces in the various tech stacks?

非常有幫助。接著我想問一下你們與一些自動駕駛（AV）業者的合作。所以也許請你幫我們把 Waymo 業務的規模放在脈絡中理解，你們在那邊做些什麼？它是否可能隨時間變得重要？另外，你們是否也在鎖定其他 robotaxi 與 AV 業者，他們正嘗試在各種技術堆疊（tech stacks）中整合許多零組件？

Yes. I think generally, (inaudible) first of all, I think from a component systems perspective, we've been pretty clear that our focus really is on, call it, the driver assist systems, right? And if there is alignment in terms of our product strategy where we can support the AV players in sensors and systems and so on, absolutely, yes, and we continue to explore that opportunity. specifically with (inaudible) it's our complete vehicle group that has brought value in terms of the upfitting for Waymo.

是的。我想整體而言，（聽不清）首先，從零組件系統的角度，我們一直很清楚：我們的重點其實是在所謂的駕駛輔助系統（driver assist systems），對吧？如果在產品策略上能夠對齊、讓我們可以在感測器與系統等方面支援 AV 業者，當然可以，而且我們也持續探索這個機會。就（聽不清）而言，是我們的整車事業群（complete vehicle group）在為 Waymo 進行改裝（upfitting）方面帶來了價值。

And as we talked about, we are adding more models there. That model will continue to be explored in other areas, but with other customers and other regions. But again, it's got to be something long term, something that's more partnership and value driven. But we continue to look at it, but we are very call disciplined and cautious in how we go about it.

而且如同我們談到的，我們正在那裡增加更多車型。這種模式也會在其他領域持續探索，但會是與其他客戶、其他地區。但同樣地，它必須是長期的、偏向夥伴關係且以價值驅動的合作。我們會持續看這個方向，但在推進方式上我們非常講求紀律，也相當審慎。

Your next question comes from the line of Tom Norian from RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Tom Norian。

The first one is on European capacity. It looks like you took a charge in P&V, $76 million in Q3, just curious what was behind that? We know Jim Farley on the forward call was saying that Europe has just too much capacity. And this is coupled with Chinese export coming into Europe. So Curious if you expect to see more capacity cuts in Europe at P&V in Europe or perhaps in other segments?

第一個問題是關於歐洲產能。看起來你們在 P&V 部門第三季認列了一筆費用 7,600 萬美元，想了解背後原因是什麼？我們知道 Jim Farley 在先前的電話會議上提到，歐洲的產能就是過剩。再加上中國出口進入歐洲。所以想請教：你們是否預期在歐洲的 P&V（或許也包括其他事業部）會看到更多產能削減？

And then I have a follow-up.

然後我還有一個追問。

I think like we've been talking about, call it, consolidation, restructuring closures, all of it over the last 4 years, and we've done that with 41-plus divisions. A significant portion of that was in Europe. My point being, it's been a continuing journey. So we have been flexing from the times when Europe saw like 21 million, 21.5 million units to the current 17 million plus units. So we work along with it.

我想就像我們一直在談的，過去四年我們做了所謂的整併、重整、關閉等各種措施，而且我們已經在 41 個以上的事業部門做了這些事。其中很大一部分是在歐洲。我的意思是，這是一段持續進行的旅程。因此，我們一直在因應歐洲從大約 2,100 萬到 2,150 萬輛的水準，調整到目前 1,700 萬輛以上的水準。所以我們會配合市場一起調整。

We still are very careful and continue to watch it. I feel pretty comfortable. Again, this is part of the operational excellence, right, being able to react (inaudible) agile and be resilient. So there's a little bit more work, but nothing that I would call a heavy lift from Magna perspective for Europe.

我們仍然非常謹慎，並持續觀察。我覺得相當放心。同樣地，這也是營運卓越的一部分，對吧？能夠反應（聽不清）、保持敏捷並具韌性。所以還有一些工作要做，但就 Magna 在歐洲而言，沒有我會稱之為「非常吃力」的事情。

Okay. And then on the buyback plan that I think is 10% of the float through, I think, November next year. Your leverage is quite low. I know we'll hear more on the Investor Day on this. But the implication is potentially that you're maybe leaving some room for M&A and reinvesting in the business, perhaps in some nonautomotive areas.

好的。接著關於庫藏股回購計畫，我想是到明年 11 月為止回購約流通股的 10%。你們的槓桿相當低。我知道在投資人日會聽到更多細節。但這是否意味著你們可能也保留一些空間，用於併購（M&A）以及再投資於業務，或許是在一些非汽車領域？

Again, I don't want to steal the thunder here, but is that a fair assumption to make that the buyback plan, which is big but it is maybe potentially leaving some room for other things, too?

同樣地，我不想在這裡搶先爆料，但這樣的假設是否合理：回購計畫雖然規模很大，但也可能同時保留一些空間做其他事情？

So I think for us, the capital allocation principles were pretty straightforward. So I think focused really on the organic profitable growth that remains very disciplined in terms of going after programs and how we grow. As I said before, Tom, and I think it still holds we are pretty happy with the portfolio the way we have it today. I don't really see a significant or transformative M&A could we see some small tuck-ins that would help our strategy, yes. So it would be looking at externalities that dynamics of their economic conditions and so on and so forth, maintain our financial flexibility and leverage ratios.

我想對我們而言，資本配置原則相當明確。我們真正聚焦在有機且具獲利性的成長，並在爭取專案與擴張方式上保持高度紀律。如我之前對你說的，Tom，而且我認為現在仍然適用：我們對目前的投資組合配置相當滿意。我不太看到會有重大的或具轉型性的併購；但是否可能有一些小型補強式併購（tuck-ins）來支持我們的策略？是的。因此，我們會考量外部因素、經濟情勢的變化等等，同時維持我們的財務彈性與槓桿比率。

And the rest, I think, would be share buybacks and dividends as we see it, as we have done.

其餘部分，我想就會如同我們所看到、也如同我們過去所做的：進行股票回購與發放股利。

I would only add that I would probably look at it a little bit different. So we had 10% available to buyback this year, and we've bought back the entire 10%. We have been able to take leverage down. We have been working to bring our leverage down within our range. We're slightly below the top end of our targeted range.

我只想補充一點，我可能會用稍微不同的角度來看這件事。所以我們今年有 10% 的額度可用於回購，而我們已經把這 10% 全部回購完畢。我們也已經能夠降低槓桿。我們一直在努力把槓桿降到我們的區間範圍內。目前我們略低於目標區間的上緣。

We don't feel a need to certainly from here. And I do think it puts us -- if anything, puts us in great position as we look ahead to next year from a capital return standpoint. And as Swamy said, continue to invest in the business and then maybe a tuck-in here or there. But I do feel like the balance sheet capacity we have, we certainly we certainly intend to put it to use similar to what we did this year.

我們不覺得從現在這個位置還有必要再做什麼。而且我確實認為，這讓我們——如果說有什麼的話——在展望明年資本回饋的角度上處於非常有利的位置。同時如 Swamy 所說，持續投資於業務，然後也許不時做一些小型併購（tuck-in）。但我確實覺得，我們目前的資產負債表承載能力，我們當然、我們當然打算以類似今年的方式加以運用。

Your next question comes from the line of Jonathan Goldman from Scotiabank.

您的下一個問題來自 Scotiabank 的 Jonathan Goldman。

Could you just remind us if you've updated your expectations for growth over market this year?

能否請您提醒一下，您是否已更新今年相對於市場的成長預期？

Yes. Great question, Jonathan. So given the updates to the volumes that we made in this current outlook, in the quarter, we were slightly above 1%, growth over market, roughly 1%, excluding complete vehicles. Right now, for the full year, we're probably looking at closer to flattish all in and up 1%, excluding complete vehicles. So a little bit little bit down from what we would have guided to last quarter, mainly as a result of the updated volume estimates.

是的，Jonathan，問得很好。因此，鑑於我們在本次展望中對出貨量所做的更新，在本季，我們的「高於市場成長」略高於 1%，若排除整車（complete vehicles），約為 1%。目前就全年而言，我們可能更接近整體持平，而若排除整車，則成長 1%。所以相較於我們上季給出的指引略有下修，主要是因為更新後的出貨量估計。

And then as we peel the onion back in terms of programs that we're on, Swamy talked about the dynamic in China and then as well as we do -- we did have a customer in North America and a customer in Europe adds some planned downtime in the fourth quarter where we do have quite a bit of content with those customers.

接著當我們進一步拆解、從我們所參與的各項專案來看時，Swamy 談到了中國的動態；此外，我們——我們確實在北美有一位客戶、在歐洲也有一位客戶，在第四季增加了一些原先規劃的停工時間，而我們在這些客戶身上有相當多的內容（content）配置。

So as we kind of pulled it all together, it did bring it down. But if you take a step back, as we've said all along, really, the downtime and some of the impacts in China. China is going to move around a little bit. The downtime is really temporary, if you will. We still feel really good about our ability to generate positive growth over market.

因此當我們把所有因素彙整起來時，確實把數字拉低了一些。但如果退一步看，正如我們一直以來所說，主要是停工以及中國的一些影響。中國的表現會有一些波動。而停工基本上是暫時性的。我們仍然對自己能夠實現正向的「高於市場成長」感到非常有信心。

We've talked about low to mid-single digits in the past. It's not going to be that number every quarter or every year, but really nothing has changed in terms of our long-term view on that.

我們過去談過低到中個位數的成長。它不會每一季或每一年都剛好是那個數字，但就我們的長期看法而言，真的沒有任何改變。

And that's a good dovetail to my next question. Maybe by this point in the year, would you describe your level of visibility on Q4 production? And do you have any early reads on light vehicle production in the environment based on some of the commentary you're talking about downtime and kind of that something coming back and kind of the macro environment you're seeing in your various regions?

這也很好地銜接到我的下一個問題。到了今年這個時間點，您會如何描述您對第四季產量的能見度？另外，基於您提到的停工、某些因素回歸，以及您在各區域看到的總體環境，您是否對當前環境下的輕型車產量有任何初步觀察？

Yes. I think as we go through the planning process as we're going through right now for 27, we consider, call it, the tribal knowledge of the programs that we have, obviously, discussions with the customers and looking at the outside -- kind of seems to be a little bit softer. We haven't gotten a final answer to that yet. We'll get through the planning process and know it. And that's how we are going into it planning.

是的。我認為當我們進入規劃流程——也就是我們現在正在進行的 27 年規劃——我們會考量我們所掌握的、可以說是各專案的「內部經驗（tribal knowledge）」，當然也包括與客戶的討論，並觀察外部情況——看起來確實稍微偏弱一些。我們目前還沒有得到最終答案。我們會完成規劃流程並掌握結果。而這就是我們目前進行規劃時的方式。

But we will get back a little bit more detail, Jonathan, when we come into February, right? Right now, it will be premature to put numbers on it.

不過，Jonathan，等到我們二月再回來時，我們會提供更多細節，好嗎？目前就把數字說死還為時過早。

But I would say our biggest focus is assuming it flattish market and how do we continue the momentum we have in our self-help or operational initiatives. And that's what I think will give us the confidence, right, of moving forward. So more color to come.

但我會說，我們最大的重點是假設市場持平，並思考我們如何延續在自助改善（self-help）或營運改善措施上的動能。我認為這將帶給我們繼續向前的信心。所以後續會再提供更多說明。

No, that's fair and definitely see the progress from the operational excellence is coming through. And I guess related to that, if I can squeeze one more in on free cash flow. I think it's going to be the second year in a row, you're doing close to $2 billion, maybe $1.875 billion, $1.9 billion. Is there anything that sticks out that's unusual in this year, last year? Or should this be kind of like the go-forward run rate free cash flow conversion and maybe upside if you're able to squeeze more out on the operational excellence.

不，這很合理，而且確實看到營運卓越的進展正在反映出來。另外我想就自由現金流再追問一個問題。我想這將是連續第二年，你們做到接近 20 億美元，可能是 18.75 億或 19 億美元。今年或去年是否有什麼特別不尋常的因素？還是說這大致就是未來可持續的自由現金流轉換率（run rate），而如果你們能在營運卓越上再擠出更多改善，可能還有上行空間？

Yes. No, great question, Jonathan. So if you look at last year and this year free cash flow, we're quite good in both years, over 100% conversion on adjusted net income last year and the midpoint of the guide would imply right around 100% conversion on adjusted net income this year. So really strong performance. We did have some recoveries last year related to some EV investments.

是的，Jonathan，這問題很好。如果你看去年與今年的自由現金流，我們兩年表現都相當不錯：去年調整後淨利的現金轉換率超過 100%，而今年指引中位數意味著調整後淨利的現金轉換率大約也在 100% 左右。所以表現非常強勁。去年我們確實有一些與電動車（EV）投資相關的回收款（recoveries）。

We had some -- we did have some recoveries, as I talked about earlier, this year. But moving forward, as we've talked about with earnings growth, strong working capital management and discipline around CapEx. We do expect a strong free cash flow to continue. It's a little early to talk about 2027.

今年我們也有一些回收款——如我先前提到的。但展望未來，正如我們談到的：隨著獲利成長、強勁的營運資金管理，以及對資本支出（CapEx）的紀律控管，我們預期強勁的自由現金流將會持續。現在談 2027 年還稍早。

But even with those recoveries not recurring, we do expect to continue to generate strong conversion on net income, strong free cash flow, which should be very supportive of our capital allocation strategy.

但即使這些回收款未來不再重複發生，我們仍預期能持續維持對淨利的強勁現金轉換、強勁的自由現金流，這將對我們的資本配置策略提供非常有力的支持。

Your next question comes from the line of Rajat Gupta from JPMorgan.

您的下一個問題來自 JPMorgan 的 Rajat Gupta。

I just -- I wanted to follow up on the AV and robo-taxi opportunity. we keep hearing a lot from both Western and Chinese OEMs about insourcing a lot of the work, particularly the higher value software there, et cetera. I'm curious as your conversations have progressed on the opportunity. What has changed versus what has been intact in terms of where you're playing across that ADAS stack, and are there any opportunities either from an M&A side that can help you and have your stack in the future. Just curious what's (inaudible) there?

我想——我想追問一下自動駕駛（AV）與無人計程車（robo-taxi）的機會。我們一直聽到西方與中國的 OEM 都在談把很多工作內製（insourcing），特別是更高價值的軟體等。我很好奇，隨著你們在這個機會上的對話推進，在你們參與 ADAS 技術堆疊（stack）的哪些環節方面，有哪些改變、哪些仍維持不變？另外，是否有任何來自併購（M&A）面的機會能在未來幫助你們、強化你們的技術堆疊？只是好奇那邊的情況（聽不清）。

I have a quick follow-up.

我有一個簡短的追問。

I think the way -- again, I've said we kind of looked at domain as driver assist systems and colleagues with autonomy. As you look into the story of the driver assist depending on who we talk to, let's say, the in generic terms, L3 or L3s scenario. There's a lot of discussions, as you said. And it depends on the region and also depends on the type of the vehicle, whether you have sensors that have edge compute and that architecture there, some which are talking about zonal architecture, and then there are some which is complete central compute.

我認為我們的看法——我之前也說過——我們把這個領域看作是駕駛輔助系統，以及與自動化相關的部分。當你深入到駕駛輔助的故事，取決於我們與誰交流，譬如用比較通用的說法，L3 或 L3s 的情境。正如你所說，這裡有很多討論。而且這取決於地區，也取決於車型：你是否採用具備邊緣運算（edge compute）的感測器及其架構；有些在談分區式架構（zonal architecture）；也有一些是完全的中央運算（central compute）。

If you sit back and look at it from the ability to provide either a compute or sensors that support the central or zonal architecture, I would say we are pretty well positioned in being able to support that. not just giving them the pieces of it, but actually the integration of all of these systems put together and be able to provide a feature that our customers want and ultimately the consumers want, I think we're in a decent place.

如果你退一步看，從提供運算平台或感測器、以支援中央式或分區式架構的能力來說，我會說我們在支援這些方面的布局相當到位。不只是把各個零組件提供給他們，而是把所有這些系統整合在一起，並能提供客戶想要、最終消費者也想要的功能；我認為我們處於相當不錯的位置。

We have to be a little disciplined, like you said, until there is a little bit of a clearer path on which way it goes and it's different by regions and what the chip strategies are. So I think they're a little bit cautious at this point in time. I would be focused on continuing to expand our strength rather than look at any inorganic activity at this point in time. We feel pretty good where we are. We'll stay disciplined and focused, and we deliberate on the customers and programs we pick, and we're watching.

我們必須稍微自律一些，正如你所說，直到對走向有更清晰一點的路徑；而且各地區情況不同，也取決於晶片策略是什麼。所以我認為他們在目前這個時間點上是有點謹慎的。此時此刻，我會把重點放在持續擴大我們的優勢，而不是去看任何非有機的活動。我們對目前的位置感覺相當不錯。我們會保持自律並專注，我們會審慎挑選我們選擇的客戶與專案，並且持續觀察。

Understood. That's helpful. And then just wanted to follow up on the commodities headwind. I'm curious versus the prior outlook, how much higher is the margin headwind from commodities? And within that, what parts are just indexed and easily recoverable versus -- which is what you might have to offset with more internal initiatives?

了解。這很有幫助。接著我想追問一下大宗商品帶來的逆風。我好奇相較於先前的展望，大宗商品對毛利率的逆風高了多少？另外在這之中，哪些部分是有指數連動、容易回收的；相對地，哪些部分是你們可能必須透過更多內部措施來抵消的？

This is Phil. So I would say it definitely got worse since the last outlook. I don't have the exact number, but certainly incrementally worse, both in Q3 and Q4 versus the prior outlook. And obviously, we actually are doing a little bit better on operational excellence, which is helping to mitigate that a little bit. But when you take a step back, you look across key commodities, steel and aluminum were pretty well covered with resale programs with customers or index pass-throughs, if you will.

我是Phil。我會說，自上次展望以來情況確實變得更糟。我沒有確切數字，但肯定是邊際上更差了，無論是第三季或第四季，相較於先前的展望都是如此。而且很明顯地，我們在營運卓越方面其實做得稍微更好一些，這有助於在一定程度上緩解影響。但如果你退一步看，檢視主要大宗商品，鋼與鋁基本上透過與客戶的轉售方案或指數化轉嫁機制（如果你願意這麼說）已經覆蓋得相當充分。

We do have some exposure on aluminum from Tier 2s, if it's embedded in components and the like.

我們在鋁方面確實有一些曝險，來自二階供應商（Tier 2），例如鋁成本被嵌入在零組件等之中。

On resins, we've said we have about 40% that's protected through indexes, the rest we would have to negotiate commercially with the customer to get recoveries for. And then the bigger thing that really is continuing to escalate probably the biggest driver behind what we saw in the second half has been the DRAM and the related electronic components, whether it's the boards and the like, we're seeing increases there as well and on most of that, the vast majority of that is where we have to negotiate with our customers for recoveries.

至於樹脂，我們說過大約有40%是透過指數機制受到保護，其餘部分我們必須與客戶進行商務談判以取得回收。而更大的因素、也是持續升溫、可能是我們在下半年所看到情況背後最大的驅動因素，是DRAM以及相關電子元件，不論是電路板等，我們也看到那裡的漲價；而其中絕大多數都需要我們與客戶談判以取得回收。

And as I've said, that's ongoing. We've actually secured some already. The conversations have been real constructive. But the headwind we saw in Q3, we'd expect another headwind, I would say, of a, call it, similar size in Q4 and then obviously work to recover or mitigate the impact of those items as we move into next year.

如我所說，這仍在進行中。我們其實已經先拿到了一部分。對話一直非常具建設性。但我們在第三季看到的逆風，我會說第四季預期還會有另一個逆風，規模大致相近；然後隨著我們進入明年，當然會努力回收或減輕這些項目的影響。

Your next question comes from the line of Joe Spak from UBS.

下一個問題來自UBS的Joe Spak。

Maybe, Phil, if we could just sort of recap. I mean, you sort of made the 6% and 6.4% sort of jumping off point and like we could all make our own volume assumptions. And then you talked about operational excellence, which is still in the early innings, but that some of that might get eaten away by the inflation headwinds. I guess the question is really on that operational excellence. I think you were targeting $35 million to $40 million this year and Swamy, you still sort of said it's early innings, but isn't -- and correct me if I'm wrong, but isn't some of the like the new contracts rolling on versus the old ones rolling off like part of that operational excellence.

Phil，也許我們可以簡單回顧一下。我的意思是，你把6%和6.4%當作一個起跳點，然後我們都可以各自做自己的量的假設。接著你談到營運卓越，仍在早期階段，但其中一部分可能會被通膨逆風吃掉。我想問題其實是在營運卓越這塊。我記得你們今年的目標是3,500萬到4,000萬美元，而Swamy你也仍然說還在早期階段，但——如果我沒搞錯的話——像是新合約上線、舊合約下線，這不也是營運卓越的一部分嗎？

And shouldn't we -- are we through most of that? Or is there still more just more favorable contracts that still continue along that still support that operational excellence?

而且我們是不是——這部分大多已經走完了？還是仍有更多、更有利的合約會持續推進，並且仍然支撐營運卓越？

So Joe, I'll make a few points. No, it's not just in the economics (inaudible) When we talk about operational excellence, this is on top of that. d I don't think it's the right way to characterize that whatever we do is being eaten away by inflation. I think some of the inflation is the recoveries and the economics that we talked about. On the other hand, what we talk about operational excellence is the self-help activities, right.

Joe，我講幾點。不，這不只是經濟條款（聽不清）。當我們談營運卓越時，這是在那之上的。而且我不認為把它描述成「我們做的事情都被通膨吃掉」是正確的方式。我認為通膨的一部分是我們談到的回收與經濟條款。另一方面，我們所說的營運卓越是自助式的改善活動，對吧。

So the rest -- at least the way we are looking at it is from last year to this year, about 1.5% less of revenue and about 80 basis points better in margin, right? So and that will continue, what I said was 35 to 40 basis points is what we said last time.

所以其餘部分——至少我們的看法是——從去年到今年，營收大約少了1.5%，但毛利率（利潤率）大約好80個基點，對吧？所以這會持續；我上次說的是35到40個基點。

We're kind of tracking more towards 50 this year from the margin benefit. And if you ask me, like Phil said, if you take the midpoint of 6.4% on a flattish production environment, I would venture to say it's very likely for us to look at another 35 to 40 basis points going into next year on operational excellence. Now you talked about externalities. That's anybody's guess, right? Production mix, interest rates, yes, that's industry driven.

我們今年在毛利率改善的貢獻上，追蹤下來更接近50個基點。而如果你問我，就像Phil說的，如果以6.4%的中位數、在產量大致持平的生產環境下，我會推測我們明年很可能還能再有35到40個基點的營運卓越改善。你提到外部因素。那就很難說了，對吧？產品組合、利率，是的，那些是產業驅動的。

So we are really focused on what can we do that's in our control, and that's what I'm talking about.

所以我們真正聚焦的是：我們能做哪些在我們可控範圍內的事情，而這就是我在說的。

Yes. Absolutely. That's helpful. And then Phil, maybe just one point on the NCIB. I think last year, when you need it, there was some commentary about a commitment to sort of fully executed.

是的，完全同意。這很有幫助。接著Phil，關於NCIB（正常發行人買回）我再問一點。我記得去年在你們需要的時候，有一些評論提到會承諾大致上把它完全執行完。

Can we assume that again? Or is this a little bit play by a year as to sort of how much of that authorization you'll attack this year?

我們可以再次這樣假設嗎？還是說今年會比較像是視年度情況而定，看看你們今年會動用多少授權額度？

Yes. No, thanks, Joe. What I would say is we -- you're right, back in February, we did indicate our intention to exhaust the current NCIB, which we've done -- we put the new one in place, it will take effect in a week or 2. I'm probably a little bit early to talk specifically about it. But as I said earlier, when we think about strong free cash flow and our expectation for that to continue.

是的。不，謝謝你，Joe。我會說——你說得對——回到二月，我們確實表示有意用完當時的NCIB，而我們也已經做到了——我們已經設立了新的，將在一到兩週內生效。我現在可能有點太早去具體談它。但如我先前所說，當我們考量強勁的自由現金流，以及我們預期這種狀況會持續。

And the balance sheet being in great shape, I mean, we are in a great position to continue to buy back a substantial amount of shares. And I would expect that we will have buybacks certainly in the fourth quarter that we'll be talking about next call, if you will. But in terms of being more specific in that, it's probably a little early and probably have some more to come on that.

再加上資產負債表狀況非常好，我的意思是，我們處於非常有利的位置，可以持續回購相當數量的股票。而我預期我們在第四季肯定會有回購，我們會在下一次電話會議再談到。但就更具體的細節而言，現在可能還稍早，之後應該還會有更多資訊。

Okay. If I could squeeze one quick one in. Like just, your fourth quarter at the midpoint of the range, right, we could all sort of calculate that. But it is still like plus or minus like 9% on either side, which are 2 months left seems a little bit wide. So any color commentary about just sort of how we should expect the year to finish up.

好的。如果我可以再塞一個很快的問題。像是，你們第四季在區間中位數的情況下，我們大概都可以算得出來。但它仍然在中位數上下大約正負9%，而現在只剩兩個月，這看起來有點寬。所以能否提供一些補充說明，讓我們理解今年最後會如何收尾？

Yes. I mean I think you're right, we narrowed the adjusted EBIT margin down to 6% to 6.5%, which probably 20 basis points on the full year with 1 quarter ago, it was maybe a little bit wide. But again, I think we feel I would say, feel very confident in our ability to land in that range. And I would focus -- I would probably focus mainly on the midpoint of that range, plus or minus. And yes, and I think when you think about the headwinds that got layered into the fourth quarter between volumes between mix, between commodity costs, et cetera, I think we feel really confident in the full year guide.

是的。我想你說得對，我們把調整後EBIT利潤率收斂到6%到6.5%，就全年而言大概是20個基點；一個季度前，區間可能稍微寬了一點。但再說一次，我想我們對落在這個區間內的能力非常有信心。而我會——我可能主要會聚焦在該區間的中位數，上下浮動。是的，而且我想當你考量第四季疊加進來的逆風，包括量、組合、大宗商品成本等等，我們對全年指引非常有信心。

And the midpoint would imply roughly 7.3% margins in Q4, which is a step-up from Q3 despite incremental headwinds and then down only 20 bps from last year and you remember last year was a bit of a tough comp given the significant recoveries we got last year that we don't expect to recur.

而中點值意味著第四季毛利率約為 7.3%，即使面臨額外逆風，仍較第三季有所提升，且僅較去年下降 20 個基點；你也記得去年因為我們取得了顯著復甦、使得比較基期偏具挑戰性，而這些復甦我們不預期會再度出現。

Your next question comes from the line of Brian Morrison from TD Cowen.

下一個問題來自 TD Cowen 的 Brian Morrison。

I just have a couple of housekeeping. Phil or Swamy, can you just remind me what the complete vehicle assembly through the (inaudible) capacities in Europe. I think it was like 150,000 units several years back. And what is the volume capacity in Arizona and Asia. And then second question, just quickly for housekeeping.

我有幾個例行性的問題。Phil 或 Swamy，你們能否提醒我，歐洲的整車組裝（inaudible）產能是多少？我記得幾年前大概是 150,000 輛。那亞利桑那與亞洲的產能規模是多少？然後第二個問題，也是一個簡單的例行問題。

Why the increase in the value of the euro in your updated guide? I realize that most of the year is over, but at $1.11 now directionally a little bit surprised it went out.

為什麼你們更新後的指引中，歐元價值假設提高了？我知道今年大部分時間已經過去了，但現在在 1.11 美元左右，方向上我有點意外你們把它調高。

You're right about the action approximately 150,000 units, right, in our Europe facility. One in Arizona, it's not based on paint and body shop and so on. So it's flexible, I would say. So it's just based on a little bit of footprint, but could be very agile. It's not as asset heavy or capital intensive.

你說得對，我們歐洲廠的產能大約是 150,000 輛，對。至於亞利桑那那座廠，它不是以塗裝、車身車間等等為基礎配置。所以我會說它很有彈性。基本上是取決於一些占地規模，但可以非常敏捷。它不像那麼資產密集或資本密集。

So that could flex pretty easily. So it's not constrained by anything.

因此那邊的產能可以很容易地彈性調整。所以不會受到任何因素的限制。

And then on the currency, Brian, I would say -- I would just add, we generally tend to snap the line kind of at the end of the quarter, and that's kind of what we did this time around currency is going to move around. You're right. the dollar euro probably sitting in a probably 1.12 today, if you will. So a little bit little bit weaker than what we had guided. But my experience, I think we consistently let this snap the line at the end of the quarter, and that's kind of what we did in this case.

至於匯率方面，Brian，我會說——我補充一下，我們通常傾向在季度末把假設「定錨」在當時的水準，這次也是這麼做；匯率本來就會波動。你說得沒錯。如果你看今天，美元兌歐元大概在 1.12 左右。所以比我們先前指引的假設稍微弱一點。但以我的經驗，我們一向都是在季度末把假設定下來，這次也是如此。

And Brian, just to add one other thing in China, the complete vehicle assembly capacity is roughly about 180,000 just to complete the picture.

另外 Brian，再補充一點：在中國，整車組裝產能大約是 180,000 輛，讓整體圖像更完整。

Your next question comes from the line of Mark Delaney from Goldman Sachs.

下一個問題來自高盛的 Mark Delaney。

I'm looking forward to seeing you soon at the Investor Day. I had another one on complete vehicles. I think EBIT for '26 for your current guidance is relatively flat year-on-year. Given all the work Magna is doing an AV fitting as well as the growing business you're speaking about with the Chinese OEMs, including in Europe, can you help contextualize what that all means for the ability to grow complete vehicles EBIT from here?

期待很快在投資人日見到你們。我還有一個關於整車的問題。我看到你們目前對 2026 年的指引中，EBIT 大致上年對年相對持平。考量到 Magna 在 AV 裝配方面所做的工作，以及你們提到與中國 OEM（包含在歐洲）的業務成長，你能否協助我們理解，這些對於從現在起提升整車業務 EBIT 的能力意味著什麼？

Yes, sure. Sure, Mark. So basically, what we're seeing in complete vehicles, obviously, this year has been impacted by lower engineering revenue has certainly been the negative. But on the positive side, the launches that we've seen with Chinese OEMs and grades have gone very well. Those contracts are on a value-added basis.

可以，當然。當然，Mark。基本上，我們在整車業務看到的是：今年明顯受到工程收入較低的影響，這確實是負面因素。但正面來看，我們與中國 OEM 的新車型導入與爬坡（ramp）進展非常順利。那些合約是以增值（value-added）模式為基礎。

And that's really the model we're going to work going forward and complete vehicles is more on a value-added basis. So the margins will be higher revenue dollars will be a little bit lower. That's what's giving you the dynamic of lower revenue but higher margins, if you will.

而這也正是我們未來在整車業務要採用的模式——更多以增值為基礎。因此毛利率會更高，但營收金額會稍微低一些。這就是你看到的動態：營收較低、但毛利率較高。

But moving forward, again, I do see -- we do see a path for continued growth in complete vehicles, whether it's (inaudible) in Arizona with the AV business in Asia with some of the work we do there. And then again, with new programs coming in on value add, coupled with operational excellence and continuing to try to get better economics on programs that we launch. We do continue to see, I would say, upside on the margin in complete vehicles from here.

但展望未來，我確實看到——我們也看到——整車業務持續成長的路徑，不論是在亞利桑那（inaudible）的 AV 業務、在亞洲我們所做的一些工作。此外，隨著新的增值型專案導入，再加上營運卓越，以及持續努力在我們導入的專案上取得更好的經濟效益。我們確實持續看到，我會說，整車業務的利潤率從這裡往上仍有上行空間。

Helpful color, Phil. My other question was on the PES business. Just wondering, you already mentioned the roll back that can play with castings and bringing innovative ideas there to OEMs. Could you also clarify whether you're seeing any change in how much stamping business may be available and how Magna can bring value to OEMs as one of the large European OEMs to speak about doing more in-house stampings on their earnings call this week.

很有幫助的說明，Phil。我另一個問題是關於 PES 業務。我想問的是，你已經提到回收（roll back）可以與鑄件搭配，並把創新想法帶給 OEM。你也能否釐清，你們是否看到可取得的沖壓業務量有任何變化？以及 Magna 作為供應商如何為 OEM 創造價值？因為本週有一家大型歐洲 OEM 在他們的法說會上提到要把更多沖壓改為內製。

Mark, to be short and simple, we are not seeing anything significant. I think it's one of our core groups, long-standing -- and we continue to have discussions and inquiries from customers. I would say if there is a big program or if there is any consolidation, if there is any issues, we typically see customers reach out to us. So I would say we definitely have a seat at the table, and we haven't seen, call it, any negative impact on the type of insourcing that anything. We are one of the -- if not the only one that can do some of the things that OEMs do and they depend and ask us to be partners with them.

Mark，簡單說，我們沒有看到任何顯著變化。我認為這是我們的核心事業群之一，長期以來——我們也持續與客戶進行討論並收到詢問。我會說，如果有大型專案、或有任何整併、或出現任何問題，客戶通常會主動聯繫我們。所以我會說我們絕對在談判桌上有一席之地，而且我們沒有看到所謂內製（insourcing）對我們造成任何負面影響。我們是少數——甚至可能是唯一——能做到 OEM 能做的一些事情的供應商，而他們也依賴並要求我們成為他們的合作夥伴。

So I'm pretty comfortable and optimistic about continuing that.

所以我對於這方面的延續性相當有信心，也很樂觀。

At this time, there are no further questions. I would like to turn the call back to Louis Tonelli for closing remarks.

目前沒有其他問題。我想把電話交回給 Louis Tonelli 做結語。

Okay. Thanks, everyone, for listening today. If you have any follow-up questions, please don't hesitate to reach out to me. That gives your interest in Magna, and have a great day.

好的。謝謝各位今天收聽。如果你們有任何後續問題，請隨時與我聯繫。感謝你們對 Magna 的關注，祝各位有美好的一天。

This concludes today's call. Thank you all for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。現在可以掛線。