Net cash provided by operating activities from continuing operations (USD, millions)

Capital expenditures, including tooling outlays (USD, millions)

Customer advances related to capital expenditures (USD, millions)

Proceeds from sale of businesses, net of cash divested (USD, millions)

Proceeds from settlement of net investment hedges, net (USD, millions)

(Payments for) proceeds from investments in debt and equity securities, net (USD, millions)

Proceeds from asset disposals and other, net (USD, millions)

Net cash used in investing activities from continuing operations (USD, millions)

Additions to debt (USD, millions)

Repayments of debt, including current portion (USD, millions)

Payments for debt issuance costs (USD, millions)

Payments for purchase of treasury stock (USD, millions)

Payments for stock-based compensation items (USD, millions)

Payments for business acquired, net of cash acquired (USD, millions)

Payments for contingent consideration (USD, millions)

Dividends paid to BorgWarner stockholders (USD, millions)

Dividends paid to noncontrolling stockholders (USD, millions)

Net cash used in financing activities from continuing operations (USD, millions)

Operating activities of discontinued operations (USD, millions)

Net cash (used in) provided by discontinued operations (USD, millions)

Effect of exchange rate changes on cash (USD, millions)

Net increase (decrease) in cash, cash equivalents and restricted cash (USD, millions)

Net decrease in cash, cash equivalents and restricted cash (Q1 2024) (USD, millions)

Net cash (used in) provided by operating activities of continuing operations (Q1 2024) (USD, millions)

Net cash used in investing activities from continuing operations (Q1 2024) (USD, millions)

Net cash used in financing activities from continuing operations (Q1 2024) (USD, millions)

Net cash used in discontinued operations (Q1 2024) (USD, millions)

Cash, cash equivalents and restricted cash at beginning of year (USD, millions)

Cash, cash equivalents and restricted cash at end of year (USD, millions)

Cash, cash equivalents and restricted cash of continuing operations at end of year (USD, millions)

Cash and cash equivalents at beginning of year (9M 2024) (USD, millions)

Cash and cash equivalents at end of period (9M 2024) (USD, millions)

Cash and cash equivalents of continuing operations at end of period (9M 2024) (USD, millions)

Cash, cash equivalents and restricted cash at beginning of year (H1 2024) (USD, millions)

Cash, cash equivalents and restricted cash at end of period (H1 2024) (USD, millions)

Cash, cash equivalents and restricted cash of continuing operations at end of period (H1 2024) (USD, millions)

Cash, cash equivalents and restricted cash at beginning of year (Q1 2024) (USD, millions)

Cash, cash equivalents and restricted cash at end of period (Q1 2024) (USD, millions)

Cash, cash equivalents and restricted cash of continuing operations at end of period (Q1 2024) (USD, millions)

b20cf035af8fb5d27b7be954f96884623693b97c891d98302976bba938243b91

BorgWarner’s **Cash and Cash Equivalents** spiked in Q3 2024 primarily due to a combination of factors. The company generated **strong free cash flow** of **$201 million**—a notable increase from previous periods—which substantially bolstered its cash reserves.  **[20241031DE44317:0]** **[20241031DE44317:8]**  This was further supported by **net cash provided by operating activities** of **$356 million** and relatively lower **capital expenditures** of **$155 million**, meaning that cash outflows were kept under control. Additionally, despite **$300 million** in share repurchases, the inflows from operations more than offset these outlays, and the absence of borrowings under credit facilities ensured that the increase was a result of genuine operational performance.  **[20241031DE44317:0]** **[0000908255-24-000043_bwa-20240930.htm:65]** **[0000908255-24-000040_a20240930ex991pressrelease.htm:0]** 

Why did Cash and Cash Equivalents spike in Q3 2024?

The documents indicate that the **Notes Payable and Other Short-Term Debt** increased from **$73 million** in Q4 2023 to **$445 million** in Q1 2024. However, the documents do not provide specific details about what drove this surge in short-term debt.  **[0000908255-24-000023_bwa-20240331.htm:5]** 

What drove the surge in short-term debt in Q1 2024?

The significant decline in **Total Assets** in Q1 2024 was mainly due to a sharp reduction in **cash, cash equivalents, and restricted cash**, which fell from **$1,534 million** to **$1,037 million** (a decrease of **$497 million**). This drop was influenced by **net cash used in operating activities (−$118 million), investing activities (−$175 million due to capital expenditures), and financing activities (−$183 million, including share repurchases and dividend payments)**. Additionally, there was a smaller decline in **other non-current assets** by **$54 million**. These factors outweighed the modest increases in receivables and inventories, leading to an overall reduction of **$331 million** in Total Assets for Q1 2024.  **[0000908255-24-000019_a20240331ex991pressrelease.htm:5]** **[0000908255-24-000023_bwa-20240331.htm:5]** **[20240502DE03210:0]** 

Why did Total Assets decline significantly in Q1 2024?

The drop in **Long-Term Debt in Q1 2024** was driven primarily by two factors. First, there was a **reclassification of the current portion of long-term debt**, which included the **3.375% Senior Notes due March 15, 2025** (with a par value of **$384 million**) being shifted from long-term debt to the current portion as they became due within one year.  **[0000908255-24-000023_bwa-20240331.htm:19]** **[0000908255-24-000019_a20240331ex991pressrelease.htm:5]**  Additionally, the company made **$12 million in debt repayments** during the quarter, which also contributed to the reduction in long-term debt.  **[0000908255-24-000023_bwa-20240331.htm:46]** 

What factors contributed to the drop in Long-Term Debt in Q1 2024?

3d8ccd54e068abd80aece756dee8509a4b87668448602983d859aaffb511fe1d

The documents indicate that there was no significant surge in net sales in Q3 2024. Instead, BorgWarner’s **Q3 2024 net sales of $3,449 million** represented a **5% decline** from **$3,622 million** in Q3 2023. This decline was primarily driven by **organic sales decreases** across most segments—most notably a **12.3% drop in the PowerDrive Systems segment**—as well as weaker market production, despite some offsetting contributions such as a **34.2% increase in Battery & Charging Systems** and a **$9 million acquisition impact**.  **[20241031DE44317:0]** **[20241031DE44317:8]** 

What drove the significant surge in Net Sales in Q3 2024?

The negative operating income in Q4 2024 was primarily driven by **$646 million of goodwill and fixed asset impairment charges** recorded during the quarter. These non-cash impairment charges, which mainly impacted the **PowerDrive Systems** and **Battery & Charging Systems** business units, resulted from a reassessment of the discounted cash flow estimates amid continuing delays in the **battery electric vehicle (BEV) adoption** across the Western world.  **[BWA_3414672_6]** **[0000908255-25-000007_bwa-20241231.htm:122]** **[20250206DE12835:7]** **[20250206DE12835:0]** 

Why was Operating Income negative in Q4 2024?

The documents do not indicate a strong increase in gross profit for Q3 2024. In fact, one source shows that gross profit in Q3 2024 was **$636 million** compared to **$652 million** in Q3 2023—a decrease of **$16 million**. The change was primarily driven by **lower sales volume and mix** (approximately **5.1%** organic sales decline), **foreign currency fluctuations** (with an increase in cost of sales by about **$4 million** due to a stronger Euro and Renminbi), partially offset by **purchasing savings** and a modest improvement in gross margin (from **18.0%** to **18.4%**).  **[20241031DE44317:0]** **[0000908255-24-000043_bwa-20240930.htm:53]** **[20241031DE44317:8]** **[0000908255-24-000043_bwa-20240930.htm:57]** 

What contributed to the strong increase in Gross Profit in Q3 2024?

Net Earnings from Continuing Operations plunged in Q4 2024 primarily due to **substantial impairment charges**, with **$646 million** in impairments—of which **$577 million** was for goodwill and **$69 million** for fixed assets—driven by delayed BEV adoption. This was compounded by a **decline in net sales by 2.4%**, a **higher effective tax rate** due to restructuring efforts, and **non-cash adjustments** that further impacted the U.S. GAAP results, collectively resulting in a significant net loss for the quarter.  **[BWA_3414672_6]** **[20250206DE12835:0]** **[20250206DE12835:1]** 

Why did Net Earnings from Continuing Operations plunge in Q4 2024?

The negative EPS in Q4 2024 was primarily caused by **substantial impairment charges of $646 million**—including **$577 million for goodwill** and **$69 million for fixed assets**—which significantly eroded net earnings. Additionally, a marked decline in operating income and overall net earnings, along with market challenges such as lower organic sales in key regions, further contributed to EPS turning negative.  **[BWA_3414672_6]** **[20250206DE12835:0]** **[0000908255-25-000007_bwa-20241231.htm:82]** **[BWA_3414672_5]** 

What caused Earnings per Share to turn negative in Q4 2024?

e50572f96d77441fb0166c59b57df0a3168b8cf06e573f2a26a8eae5c64cf86a

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Restructuring Expense (USD, millions)

Other Operating Expense (Income), Net (USD, millions)

Impairment Charges (USD, millions)

Operating Income (USD, millions)

Equity in Affiliates’ Earnings, Net of Tax (USD, millions)

Unrealized and Realized Loss on Equity and Debt Securities (USD, millions)

Interest Expense, Net (USD, millions)

Earnings from Continuing Operations Before Income Taxes and Noncontrolling Interest (USD, millions)

Provision for Income Taxes (USD, millions)

Net Earnings from Continuing Operations (USD, millions)

Net (Loss) Earnings from Discontinued Operations (USD, millions)

Net Earnings (USD, millions)

Net Earnings from Continuing Operations Attributable to the Noncontrolling Interest, Net of Tax (USD, millions)

Net Earnings Attributable to BorgWarner Inc. (USD, millions)

(Loss) Earnings per Share from Discontinued Operations - Basic (USD)

Earnings per Share Attributable to BorgWarner Inc. - Basic (USD)

Earnings per Share from Continuing Operations - Basic (USD)

(Loss) Earnings per Share from Discontinued Operations - Diluted (USD)

Earnings per Share Attributable to BorgWarner Inc. - Diluted (USD)

Earnings per Share from Continuing Operations - Diluted (USD)

Weighted Average Shares Outstanding - Basic (millions)

Weighted Average Shares Outstanding - Diluted (millions)

b7924d8b93cf38991c5bbc94da6e7bd291594037f5baeea9bcb944765f93ba39

Cash and Cash Equivalents (USD, millions)

Receivables Net (USD, millions)

Inventories Net (USD, millions)

Prepayments and Other Current Assets (USD, millions)

Total Current Assets (USD, millions)

Property, Plant and Equipment Net (USD, millions)

Other Non-Current Assets (USD, millions)

Total Assets (USD, millions)

Notes Payable and Other Short-Term Debt (USD, millions)

Accounts Payable (USD, millions)

Other Current Liabilities (USD, millions)

Total Current Liabilities (USD, millions)

Long-Term Debt (USD, millions)

Other Non-Current Liabilities (USD, millions)

Total Liabilities (USD, millions)

Total BorgWarner Inc. Stockholders’ Equity (USD, millions)

Noncontrolling Interest (USD, millions)

Total Equity (USD, millions)

Total Liabilities and Equity (USD, millions)

b30a21b45caec047228c0c7bcd0391aa0cf89c7dbcd25a16001ee6406af7345c

f70356c61b8d01eecf6b11d49f498cbdfbffe58d7376859debf63f11dca69dc7

Adjustments for Non-Cash Items

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

b5076c44bc27793b73458222bc6f985eed9f960ff6c26389fb9d9e2ae98185f0

635d84070a1575908db7688ce751cd251bf1ee03af15ee44c33243af25551aa7

Percentage of total revenue from eProducts (percent)

78c68de6cccc9adc269970278323c80ded9d71ee8566b6fa429235bc4c271e32

05cea9d0d32a30528b3abd73d1042170d58b1b41b98b10a654b3c2a7204491cc

6fe36c05a1d02b34d31c1d128a10f3fa8215aa37a92558c33620432aacc28741

BORGWARNER (BWA)

Financials