BORGWARNER (BWA) Company Report

Q4 supply impacts include a stabilized JLR cyber-attack drag of $35 million in Q3, a Ford aluminum supply issue costing $50–100 million in Q4, and improving semiconductor availability.
Backlog and growth: after modest ~1% outgrowth in 2024–25, BorgWarner added 17 new programs over the past six months, expecting similar outgrowth in 2026 and accelerated growth in 2027–28.
Foundational business aims to outgrow the combined combustion + hybrid market via recent turbocharger “Conquest” awards in North America and Europe, share gains in all-wheel-drive, and longer ICE/hybrid lifespan.
E-products (PowerDrive) delivered mid- to high-teens revenue growth through Q3, driven by share gains in motors and inverters in Europe and China, and is on track for mid-teens margin conversion.
Battery segment runs at ~$130–150 million revenue per quarter, is EBITDA- and FCF-positive, faces short-term headwinds but targets long-term energy-storage growth.

Nov 19, 2025, 2:20 PM

Transcript

BorgWarner discusses supply disruptions, growth strategy, and capital allocation at Barclays conference

BWA

Experiencing Q4 supply headwinds from JLR’s cyber attack ($35 M impact) and Ford’s aluminum supplier issue ($50–100 M), while semiconductor conditions have improved but remain monitored.
Maintains ~1% organic outgrowth for 2024–25, expecting similar in 2026; announced 17 new programs across foundational and e-product portfolios in the past six months, setting up 2027–28 growth.
Foundational units aim to outgrow combustion+hybrid markets via turbocharger share gains and all-wheel-drive tailwinds; hybrids offer 4–5× the content of pure combustion and the e-products (PowerDrive) business is up 27% YTD, converting at mid-teens margins, led by Europe and China.
Sustains mid-teens operating margins in foundational segments through cost controls, supply chain savings, and productivity ; free cash flow targeted at $900 M with CapEx around 4–5% of revenue , returning ~$420 M to shareholders and maintaining capacity for accretive M&A.

Nov 19, 2025, 2:20 PM

Transcript

BorgWarner outlines Q4 supply impacts and 2026 outlook at Barclays conference

BWA

Share Buyback

M&A

Q4 supply headwinds included a stabilized JLR cyber-attack impact after a $35 million sales hit in Q3, a $50 million–$100 million Ford aluminum supplier disruption, and improving Nexperia semiconductor constraints.
Foundational segment aims to outgrow the combustion + hybrid market, backed by two turbocharger Conquest awards in North America and Europe and a tailwind from all-wheel drive orders in China exports.
PowerDrive e-product growth reached 27% year-to-date, driven by new motor and inverter programs in Europe and China, on track for mid-teens conversion of incremental margin.
Free cash flow is guided to $900 million, with CapEx at 4% of sales (targeting 4.5%–5% in 2026–27), $420 million+ earmarked for share buybacks, and M&A focused on accretive deals tied to core competencies at fair prices.

Nov 19, 2025, 2:20 PM

Transcript

BorgWarner outlines growth priorities and financial performance at Baird conference

BWA

Share Buyback

M&A

Driving performance and RFQ wins: CEO Joe Fadool emphasized the top priorities are to optimize financial performance by effectively launching awarded programs, capturing increased RFQ flow in combustion and e-product technologies, and balancing capital allocation between buybacks and inorganic investments.
17 global program awards secured in the last six months spanning turbochargers, EGR, inverters, motors and drive systems, positioning future growth in 2027-2028.
2025 operational results include a ~30 bp year-to-date margin expansion, flat revenue, EPS growth, $900 M free cash flow, and $420 M+ returned to shareholders through buybacks/dividends.
China market strength: ~20% of sales (75% domestic OEM), with light-vehicle e-product revenue up 27% YoY, supported by localized teams and rapid product launches.
Disciplined M&A focus: pursuing acquisitions aligned with BorgWarner’s core competencies in rotating mechanics, electrics, software and system engineering, ranging from large strategic deals to small technology tuck-ins.

Nov 13, 2025, 4:15 PM

Transcript

BorgWarner outlines growth strategy and M&A focus at Baird Industrial Conference

BWA

M&A

CEO Joe Fadool detailed three priorities: driving financial performance through strong launch execution, capitalizing on elevated RFQ award flow across combustion and e-product portfolios, and expanding earnings power via balanced capital allocation and selective inorganic investments .
The company has secured 17 program wins in the past six months across turbochargers, EGR, inverters, motors and drive systems, with ~50% of its light-vehicle e-product revenue coming from China’s accelerated EV and hybrid market ** **.
CFO Craig Aaron highlighted 30 bps of operating-margin expansion YTD on flat sales, $900 million in free cash flow generation, and $420 million+ returned to shareholders through buybacks so far in 2025 ** **.
BorgWarner expects tariff recoveries to turn positive in Q4 after finalizing audits on 80% of its ~1% sales exposure, and views recent supply-chain disruptions as manageable within existing guidance .
The company is pursuing disciplined M&A to leverage its core competencies in high-speed rotating electrics, software and system engineering, adhering to strict industrial-logic and valuation criteria .

Nov 13, 2025, 4:15 PM

Transcript

BorgWarner outlines strategy and financial priorities at Baird conference

BWA

Share Buyback

M&A

CEO Joe Fadool highlighted three priorities: driving financial performance by launching new business, winning RFQs across combustion and e-products, and expanding earnings power with balanced capital allocation for buybacks and inorganic investments.
Management reported 17 awards in the last six months spanning turbochargers, EGR, inverters, motors, and drive systems, positioning new business to contribute in 2027 and beyond amid regional EV adoption disparities.
CFO Craig Aaron emphasized margin expansion through cost controls in foundational units and mid-teens conversion in Power Drive Systems, delivering $900 million free cash flow and 30 bps operating margin improvement, with full tariff recovery expected in Q4.
China accounts for 20% of sales (75% with domestic OEMs) and 50% of light-vehicle e-product revenue, leveraging a decentralized model for “China speed” that drove 27% year-over-year growth in E-products.
The company returned $500 million to shareholders in 2024 and plans $420 million+ in 2025, maintaining a disciplined M&A approach focused on leveraging core competencies in rotating electrics, software, and system engineering.

Nov 13, 2025, 4:15 PM

Transcript

BorgWarner reports Q3 2025 results

BWA

Earnings

Guidance Update

Net sales of $3.591 billion in Q3, up 4% year-over-year with 2.1% organic growth.
Adjusted diluted EPS of $1.24, a 14% increase versus prior year.
Free cash flow of $266 million, up 32% year-over-year.
Revised 2025 guidance: adjusted EPS raised to $4.60–$4.75, free cash flow to $850–$950 million, and operating margin to 10.3%–10.5%.

Oct 30, 2025, 1:30 PM

Presentation

BorgWarner reports Q3 2025 results

BWA

Earnings

Guidance Update

Share Buyback

Third-quarter sales were $3.6 B (+2% YoY ex FX) with organic growth of just over 2% and foundational/eProducts excluding battery sales up ~4%.
Adjusted operating margin improved to 10.7% (up 60 bps YoY) with adjusted operating income of $385 M, despite a $17 M tariff headwind.
Free cash flow reached $266 M (up 32% YoY); the company returned $136 M to shareholders in Q3 via share repurchases and dividends.
Raised full-year 2025 outlook: sales of $14.1–$14.3 B, adjusted operating margin of 10.3–10.5%, EPS of $4.60–$4.75, and free cash flow of $850–$950 M.
Secured new contracts including a 7-in-1 integrated drive module for a leading Chinese OEM and battery systems for the Holon Urban autonomous shuttle.

Oct 30, 2025, 1:30 PM

Transcript

BorgWarner announces Q3 2025 results and raises guidance

BWA

Earnings

Guidance Update

Share Buyback

BorgWarner reported Q3 2025 sales of $3.6 billion, up 2% organically, with an adjusted operating margin of 10.7%, a 60 bp YoY improvement.
Q3 free cash flow was $266 million, up 32% YoY, and the company returned $136 million (>50% of Q3 FCF) to shareholders via share repurchases and dividends.
2025 guidance was raised: sales narrowed to $14.1–$14.3 billion, adjusted operating margin to 10.3–10.5%, EPS to $4.60–$4.75, and free cash flow to $850–$950 million.
Secured 8 new business awards in Q3 (17 in last six months), including eProducts and foundational drivetrain contracts with Chery and Stellantis for 2026–2027 launches.

Oct 30, 2025, 1:30 PM

Transcript

BorgWarner reports Q3 2025 results

BWA

Earnings

Guidance Update

Share Buyback

BorgWarner’s Q3 sales were $3.6 billion, up 2% year-over-year excluding FX; adjusted operating margin was 10.7%, a 60 bp improvement.
Free cash flow totaled $266 million, a 32% increase year-over-year, with $136 million returned to shareholders via share repurchases and dividends.
2025 guidance narrowed, with full-year sales of $14.1 billion–$14.3 billion, adjusted operating margin of 10.3%–10.5%, EPS of $4.60–$4.75, and free cash flow of $850 million–$950 million.
Secured eight new business awards across foundational and e-product portfolios, including contracts with Chery, Stellantis, leading Chinese OEMs, and autonomous shuttle battery systems.

Oct 30, 2025, 1:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for BORGWARNER.

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