• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    BorgWarner Reports Third Quarter 2024 Results; Increases Full-Year Adjusted Operating Margin and EPS Guidance; Completes $400 Million Share Repurchase Plan

    10/31/24 6:30:00 AM ET
    $BWA
    Auto Parts:O.E.M.
    Consumer Discretionary
    Get the next $BWA alert in real time by email

    AUBURN HILLS, Mich., Oct. 31, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) today reported third quarter results.

    BorgWarner logo. (PRNewsfoto/BorgWarner)

    Third Quarter and 2024 Guidance Update

    • BorgWarner achieved an adjusted operating margin of 10.1% during the third quarter, which equated to a U.S. GAAP operating margin of 7.8%. The Company also generated net cash provided by operating activities of $356 million or $201 million in free cash flow, despite a 5.6% decline in the Company's weighted light and commercial vehicle markets.
    • The Company increased the midpoint of its full year adjusted operating margin guidance by 20 basis points and adjusted earnings per share guidance by approximately $0.18 or 4% per diluted share. This increase is being driven by strong third quarter operational performance, continued cost controls, a lower effective tax rate, and the Company's third quarter share repurchases. The Company reduced its full year mid-point net sales guidance by $150 million primarily due to a lower market production outlook.
    • BorgWarner completed the repurchase of $300 million of the Company's outstanding shares during the third quarter. BorgWarner has now repurchased $400 million of its outstanding shares during 2024.

    New Business Update

    The Company secured multiple new business awards that are expected to support its future long-term profitable growth including: 

    • Two transfer case awards with a major North American OEM for their next generation full-size pickup trucks. This business is expected to launch in 2027 and 2028.
    • Three high-voltage coolant heater awards with a Chinese electric vehicle OEM, a Korean OEM and a Japanese OEM. This business is expected to launch in 2025, 2025 and 2028, respectively.
    • A General Motors turbocharger award for use on their Corvette ZR1 sports car platform. This is expected to be the largest passenger car twin turbochargers on the market.

    Third Quarter Highlights (continuing operations basis):

    • U.S. GAAP net sales of $3,449 million, a decrease of approximately 5% compared with third quarter 2023.
      • Excluding the impact of foreign currencies and the impact of net M&A, organic sales declined 5.1% compared with third quarter 2023.
    • U.S. GAAP net earnings of $1.08 per diluted share.
      • Excluding $(0.01) of net gains per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.09 per diluted share.
    • U.S. GAAP operating income of $270 million, or 7.8% of net sales.
      • Excluding $80 million of pretax expenses related to non-comparable items, adjusted operating income was $350 million, or 10.1% of net sales.
    • Net cash provided by operating activities of $356 million.
      • Free cash flow of $201 million.

    Financial Results (continuing operations basis):

    The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations, and related tax effects.



    Three Months Ended September 30,



    Nine Months Ended September 30,



    2024



    2023



    2024



    2023

    Earnings per diluted share

    $                1.08



    $                0.37



    $                3.40



    $                2.06

















    Non-comparable items:















    Restructuring expense

    0.07



    0.17



    0.21



    0.21

    Accelerated depreciation

    0.10



    —



    0.13



    0.01

    Commercial contract settlement

    0.02



    —



    0.06



    —

    Adjustments associated with Spin-Off related balances

    0.01



    —



    0.06



    —

    Loss (gain) on sale of businesses

    0.03



    —



    0.02



    (0.02)

    Collective bargaining agreement ratification bonus

    0.01



    —



    0.01



    —

    Gain on debt extinguishment

    (0.01)



    (0.09)



    (0.01)



    (0.09)

    Merger and acquisition expense, net

    (0.02)



    0.01



    —



    0.07

    Asset impairment and lease modification

    —



    —



    —



    0.03

    Gain on sale of assets

    —



    (0.03)



    —



    (0.04)

    Unrealized and realized (gain) loss on equity and debt securities

    (0.01)



    0.32



    —



    0.55

    Corporate synergy from Spin-Off

    —



    —



    —



    0.03

    Tax adjustments

    (0.23)



    0.18



    (0.65)



    —

    Other non-comparable items

    0.04



    0.05



    0.07



    0.03

















    Adjusted earnings per diluted share

    $                1.09



    $                0.98



    $                3.30



    $                2.84

    Net sales were $3,449 million for the third quarter 2024, a decrease of approximately 5% compared with the third quarter 2023, primarily due to declining market production volumes. Net earnings for the third quarter 2024 were $242 million, or $1.08 per diluted share, compared with net earnings of $87 million, or $0.37 per diluted share for the third quarter 2023. Adjusted net earnings per diluted share for the third quarter 2024 were $1.09, up from adjusted net earnings per diluted share of $0.98 for the third quarter 2023. Adjusted net earnings for the third quarter 2024 excluded net non-comparable items of $(0.01) per diluted share, while adjusted net earnings for the third quarter 2023 excluded net non-comparable items of $(0.61) per diluted share. These items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to strong operational performance, continued cost controls, customer recoveries, a lower effective tax rate, and the Company's share repurchases.

    Full Year 2024 Guidance: The Company has updated full year sales, margin, and EPS guidance. Net sales for 2024 are expected to be in the range of $14.0 billion to $14.2 billion, compared to the Company's prior guidance of $14.1 billion to $14.4 billion and 2023 sales of approximately $14.2 billion. The Company expects its weighted light and commercial vehicle markets to be in the range of down 3.5% to down 3% year-over-year in 2024, a decrease from the Company's prior guidance of down 3% to down 2%. The Company's sales guidance implies a year-over-year decrease in organic sales of approximately (1.5)% to flat, or estimated outgrowth above market production of approximately 200 to 300 basis points. The Company expects its 2024 eProduct sales to be approximately $2.4 billion, up from approximately $2.0 billion in 2023. Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $20 million primarily due to strengthening of the Euro, offset by the weakening of the Korean Won and Chinese Renminbi against the U.S. dollar. The acquisitions of SSE and the Electric Hybrid Systems business segment of Eldor Corporation are expected to increase year-over-year sales by approximately $30 million.

    Operating margin for the full year is expected to be in the range of 8.1% to 8.2%. Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 9.8% to 10.0%, up from the Company's prior guidance of 9.6% to 9.8%. Net earnings are expected to be within a range of $4.17 to $4.28 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be in the range of $4.15 to $4.30 per diluted share, up from the Company's prior guidance of $3.95 to $4.15 per diluted share. Full-year operating cash flow is expected to be in the range of $1,325 million to $1,375 million, while free cash flow is expected to be in the range of $475 million to $575 million.

    At 9:30 a.m. ET today, a brief conference call concerning third quarter 2024 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.

    For more than 130 years, BorgWarner Inc. (NYSE:BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility -- to help build a cleaner, healthier, safer future for all.

    Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

    You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: supply disruptions impacting us or our customers, commodity availability and pricing, and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, particularly as they relate to electric vehicles, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; impacts from any potential future acquisition or disposition transactions; and the other risks noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

     

    BorgWarner Inc.















    Condensed Consolidated Statements of Operations (Unaudited)









    (in millions, except per share amounts)















    Three Months Ended September 30,



    Nine Months Ended September 30,



    2024



    2023



    2024



    2023

    Net sales

    $           3,449



    $           3,622



    $        10,647



    $        10,676

    Cost of sales

    2,813



    2,970



    8,682



    8,767

    Gross profit

    636



    652



    1,965



    1,909

    Gross margin

    18.4 %



    18.0 %



    18.5 %



    17.9 %

















    Selling, general and administrative expenses

    340



    330



    1,010



    963

    Restructuring expense

    21



    56



    65



    68

    Other operating expense (income), net

    5



    (6)



    28



    (1)

    Operating income

    270



    272



    862



    879

















    Equity in affiliates' earnings, net of tax

    (6)



    (10)



    (23)



    (23)

    Unrealized and realized (gain) loss on equity and debt securities

    (2)



    60



    —



    129

    Interest expense (income), net

    4



    (19)



    17



    3

    Other postretirement expense

    4



    3



    10



    8

    Earnings from continuing operations before income taxes and noncontrolling interest

    270



    238



    858



    762

















    Provision for income taxes

    13



    133



    44



    230

    Net earnings from continuing operations

    257



    105



    814



    532

    Net loss from discontinued operations

    (8)



    (37)



    (27)



    (12)

    Net earnings

    249



    68



    787



    520

    Net earnings from continuing operations attributable to noncontrolling interest

    15



    18



    44



    49

    Net earnings attributable to BorgWarner Inc. 

    $              234



    $                50



    $              743



    $              471

















    Amounts attributable to BorgWarner Inc.:















    Net earnings from continuing operations

    $              242



    $                87



    $              770



    $              483

    Net loss from discontinued operations

    (8)



    (37)



    (27)



    (12)

    Net earnings attributable to BorgWarner Inc.

    $              234



    $                50



    $              743



    $              471

















    Earnings per share from continuing operations — basic

    $             1.08



    $             0.37



    $             3.41



    $             2.07

    Loss per share from discontinued operations — basic

    (0.04)



    (0.16)



    (0.12)



    (0.05)

    Earnings per share attributable to BorgWarner Inc. — basic

    $             1.04



    $             0.21



    $             3.29



    $             2.02

















    Earnings per share from continuing operations — diluted

    $             1.08



    $             0.37



    $             3.40



    $             2.06

    Loss per share from discontinued operations — diluted

    (0.04)



    (0.16)



    (0.12)



    (0.05)

    Earnings per share attributable to BorgWarner Inc. — diluted

    $             1.04



    $             0.21



    $             3.28



    $             2.01

















    Weighted average shares outstanding:















    Basic

    223.1



    233.4



    225.7



    233.2

    Diluted

    224.5



    235.3



    226.8



    234.6

     

    BorgWarner Inc.















    Net Sales by Reportable Segment (Unaudited)*













    (in millions)

















    Three Months Ended September 30,



    Nine Months Ended September 30,



    2024



    2023



    2024



    2023

    Turbos & Thermal Technologies

    $              1,386



    $              1,474



    $              4,475



    $              4,570

    Drivetrain & Morse Systems

    1,365



    1,449



    4,226



    4,146

    PowerDrive Systems

    512



    571



    1,412



    1,624

    Battery & Charging Systems

    197



    146



    567



    395

    Inter-segment eliminations

    (11)



    (18)



    (33)



    (59)

    Net sales

    $              3,449



    $              3,622



    $            10,647



    $            10,676

















    Segment Adjusted Operating Income (Loss) (Unaudited)*









    (in millions)

































    Three Months Ended September 30,



    Nine Months Ended September 30,



    2024



    2023



    2024



    2023

    Turbos & Thermal Technologies

    $                  202



    $                  214



    $                  654



    $                  660

    Drivetrain & Morse Systems

    251



    253



    770



    700

    PowerDrive Systems

    (19)



    (20)



    (130)



    (74)

    Battery & Charging Systems

    (8)



    (26)



    (33)



    (76)

    Segment Adjusted Operating Income

    426



    421



    1,261



    1,210

    Corporate, including stock-based compensation

    76



    72



    196



    194

    Restructuring expense

    21



    56



    65



    68

    Intangible asset amortization expense

    17



    17



    51



    51

    Accelerated depreciation

    27



    1



    35



    4

    Commercial contract settlement

    —



    —



    15



    —

    Adjustments associated with Spin-Off related balances

    3



    —



    14



    —

    Collective bargaining agreement ratification bonus

    4



    —



    4



    —

    Loss (gain) on sale of businesses

    6



    —



    3



    (5)

    Merger and acquisition expense, net

    (5)



    2



    —



    18

    Asset impairment and lease modification

    —



    2



    —



    11

    Gain on sale of assets

    —



    (7)



    —



    (13)

    Other non-comparable items

    7



    6



    16



    3

    Equity in affiliates' earnings, net of tax

    (6)



    (10)



    (23)



    (23)

    Unrealized and realized (gain) loss on equity and debt securities

    (2)



    60



    —



    129

    Interest expense (income), net

    4



    (19)



    17



    3

    Other postretirement expense

    4



    3



    10



    8

    Earnings from continuing operations before income taxes and noncontrolling interest

    $                  270



    $                  238



    $                  858



    $                  762

    ____________________________

    *

    Effective July 1, 2024, the Company implemented a new business unit and management structure designed to further enhance the execution of the Company's Charging Forward strategy. The Company now reports its results in the following four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems (formerly ePropulsion) and Battery & Charging Systems. The reportable segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.

     

    BorgWarner Inc.







    Condensed Consolidated Balance Sheets (Unaudited)

    (in millions)









    September 30,

    2024



    December 31,

    2023

    ASSETS







    Cash and cash equivalents

    $              2,000



    $              1,534

    Receivables, net

    3,215



    3,109

    Inventories, net

    1,366



    1,313

    Prepayments and other current assets

    275



    261

    Total current assets

    6,856



    6,217









    Property, plant and equipment, net

    3,814



    3,783

    Other non-current assets

    4,467



    4,453

    Total assets

    $            15,137



    $            14,453









    LIABILITIES AND EQUITY







    Short-term debt

    $                  398



    $                    73

    Accounts payable

    2,176



    2,546

    Other current liabilities

    1,144



    1,148

    Total current liabilities

    3,718



    3,767









    Long-term debt

    4,195



    3,707

    Other non-current liabilities

    872



    913

    Total liabilities

    8,785



    8,387









    Total BorgWarner Inc. stockholders' equity

    6,156



    5,828

    Noncontrolling interest

    196



    238

    Total equity

    6,352



    6,066

    Total liabilities and equity

    $            15,137



    $            14,453

     

    BorgWarner Inc.







    Condensed Consolidated Statements of Cash Flows (Unaudited)

    (in millions)









    Nine Months Ended September 30,



    2024



    2023

    OPERATING ACTIVITIES OF CONTINUING OPERATIONS







    Net cash provided by operating activities from continuing operations

    $                  700



    $                  510

    INVESTING ACTIVITIES OF CONTINUING OPERATIONS







    Capital expenditures, including tooling outlays

    (510)



    (624)

    Payments for businesses acquired, net of cash acquired

    —



    (31)

    Proceeds from settlement of net investment hedges, net

    46



    25

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

    (7)



    63

    Proceeds from the sale of business, net

    8



    —

    Proceeds from asset disposals and other, net

    3



    29

    Net cash used in investing activities from continuing operations

    (460)



    (538)

    FINANCING ACTIVITIES OF CONTINUING OPERATIONS







    Net increase in notes payable

    —



    3

    Additions to debt

    1,000



    4

    Payments for debt issuance costs

    (9)



    (3)

    Repayments of debt, including current portion

    (175)



    (444)

    Payments for purchase of treasury stock

    (401)



    —

    Payments for stock-based compensation items

    (23)



    (25)

    Payments for businesses acquired, net of cash acquired

    (4)



    —

    Payments for contingent consideration

    (1)



    (23)

    Purchase of noncontrolling interest

    —



    (15)

    Net distribution from PHINIA

    —



    401

    Dividends paid to BorgWarner stockholders

    (74)



    (105)

    Dividends paid to noncontrolling stockholders

    (63)



    (71)

    Net cash provided by (used in) financing activities from continuing operations

    250



    (278)

    CASH FLOWS FROM DISCONTINUED OPERATIONS







    Operating activities of discontinued operations

    (27)



    (66)

    Investing activities of discontinued operations

    —



    (86)

    Financing activities of discontinued operations

    —



    84

    Net cash used in discontinued operations

    (27)



    (68)

    Effect of exchange rate changes on cash

    3



    (15)

    Net increase (decrease) in cash and cash equivalents

    466



    (389)

    Cash and cash equivalents at beginning of year

    1,534



    1,338

    Cash and cash equivalents at end of period

    $              2,000



    $                  949

    Less: Cash and cash equivalents of discontinued operations at end of period

    $                    —



    $                    —

    Cash and cash equivalents of continuing operations at end of period

    $              2,000



    $                  949









    Supplemental Information (Unaudited)







    (in millions)









    Nine Months Ended September 30,



    2024



    2023

    Depreciation and tooling amortization

    $                  444



    $                  376

    Intangible asset amortization

    $                    51



    $                    51

    Non-GAAP Financial Measures

    This press release contains information about BorgWarner's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures below and in the Financial Results table above. The provision of these comparable GAAP financial measures for 2024 is not intended to indicate that BorgWarner is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

    Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

    Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by BorgWarner may not be comparable to similarly titled measures reported by other companies.

    Adjusted Operating Income and Adjusted Operating Margin

    The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

    Adjusted Net Earnings

    The Company defines adjusted net earnings as net earnings attributable to BorgWarner Inc. adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company's ongoing operations, and related tax effects. The impact of intangible asset amortization expense will continue to be included in adjusted net earnings.

    Adjusted Earnings per Diluted Share

    The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations, and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

    Free Cash Flow

    The Company defines free cash flow as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

    Organic Net Sales Change

    The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange (FX) and the acquisitions of the smart grid and smart energy businesses of Hubei Surpass Sun Electric and the Electric Hybrid Systems business segment of Eldor Corporation.

    Outgrowth

    The Company defines outgrowth as organic net sales change versus the year-over-year change in light and commercial vehicle production weighted for the Company's geographic exposure, as estimated by the Company.

    Adjusted Operating Income and Adjusted Operating Margin (Unaudited)











    Three Months Ended September 30,



    Nine Months Ended September 30,

    (in millions)

    2024



    2023



    2024



    2023

    Net sales

    $           3,449



    $           3,622



    $        10,647



    $        10,676

















    Operating income

    $              270



    $              272



    $              862



    $              879

    Operating margin

    7.8 %



    7.5 %



    8.1 %



    8.2 %

















    Non-comparable items:















    Restructuring expense

    $                21



    $                56



    $                65



    $                68

    Intangible asset amortization expense

    17



    17



    51



    51

    Accelerated depreciation

    27



    1



    35



    4

    Commercial contract settlement

    —



    —



    15



    —

    Adjustments associated with Spin-Off related balances

    3



    —



    14



    —

    Collective bargaining agreement ratification bonus

    4



    —



    4



    —

    Loss (gain) on sale of businesses

    6



    —



    3



    (5)

    Merger and acquisition expense, net

    (5)



    2



    —



    18

    Asset impairment and lease modification

    —



    2



    —



    11

    Gain on sale of assets

    —



    (7)



    —



    (13)

    Corporate synergy from Spin-Off

    —



    —



    —



    10

    Other non-comparable items

    7



    6



    16



    3

    Adjusted operating income

    $              350



    $              349



    $           1,065



    $           1,026

    Adjusted operating margin

    10.1 %



    9.6 %



    10.0 %



    9.6 %

     

    Free Cash Flow Reconciliation (Unaudited)

















    Three Months Ended September 30,



    Nine Months Ended September 30,

    (in millions)

    2024



    2023



    2024



    2023

    Net cash provided by operating activities from continuing operations

    $                  356



    $                  221



    $                  700



    $                  510

    Capital expenditures, including tooling outlays

    (155)



    (185)



    (510)



    (624)

    Free cash flow

    $                  201



    $                    36



    $                  190



    $                (114)

     

    Third Quarter 2024 Organic Net Sales Change (Unaudited)





    (in millions)

    Q3 2023

    Net Sales



    FX



    Acquisition

    Impact



    Organic

    Net Sales

    Change



    Q3 2024

    Net Sales



    Organic

    Net Sales

    Change %

    Turbos & Thermal Technologies

    $   1,474



    $       (1)



    $          —



    $     (87)



    $   1,386



    (5.9) %

    Drivetrain & Morse Systems

    1,449



    2



    —



    (86)



    1,365



    (5.9) %

    PowerDrive Systems

    571



    2



    9



    (70)



    512



    (12.3) %

    Battery & Charging Systems

    146



    1



    —



    50



    197



    34.2 %

    Inter-segment eliminations

    (18)



    —



    —



    7



    (11)



    (38.9) %

    Net sales

    $   3,622



    $          4



    $           9



    $   (186)



    $   3,449



    (5.1) %







    Year to Date 2024 Organic Net Sales Change (Unaudited)





    (in millions)

    Q3 2023

    YTD Net

    Sales



    FX



    Acquisition

    Impact



    Organic

    Net Sales

    Change



    Q3 2024

    YTD Net Sales



    Organic

    Net Sales

    Change %

    Turbos & Thermal Technologies

    $   4,570



    $     (21)



    $          —



    $     (74)



    $   4,475



    (1.6) %

    Drivetrain & Morse Systems

    4,146



    (52)



    —



    132



    4,226



    3.2 %

    PowerDrive Systems

    1,624



    (17)



    21



    (216)



    1,412



    (13.3) %

    Battery & Charging Systems

    395



    —



    5



    167



    567



    42.3 %

    Inter-segment eliminations

    (59)



    —



    —



    26



    (33)



    (44.1) %

    Total

    $ 10,676



    $     (90)



    $         26



    $        35



    $ 10,647



    0.3 %

     

    Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)









    Full-Year 2024 Guidance

    (in millions)

    Low



    High

    Net sales

    $        14,000



    $        14,200









    Operating income

    1,128



    1,158

    Operating margin

    8.1 %



    8.2 %









    Non-comparable items:







    Restructuring expense

    $                90



    $              100

    Intangible asset amortization expense

    70



    70

    Accelerated depreciation

    35



    35

    Commercial contract settlement

    15



    15

    Adjustments associated with Spin-Off related balances

    14



    14

    Collective bargaining agreement ratification bonus

    4



    4

    Loss on sale of businesses

    3



    3

    Other non-comparable items

    16



    16

    Adjusted operating income

    $           1,375



    $           1,415

    Adjusted operating margin

    9.8 %



    10.0 %









    Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)









    Full-Year 2024 Guidance



    Low



    High

    Earnings per Diluted Share from Continuing Operations

    $                4.17



    $                4.28









    Non-comparable items:







    Restructuring expense

    0.29



    0.33

    Accelerated depreciation

    0.13



    0.13

    Commercial contract settlement

    0.06



    0.06

    Adjustments associated with Spin-Off related balances

    0.06



    0.06

    Loss on sale of businesses

    0.02



    0.02

    Collective bargaining agreement ratification bonus

    0.01



    0.01

    Gain on debt extinguishment

    (0.01)



    (0.01)

    Tax adjustments

    (0.65)



    (0.65)

    Other non-comparable items

    0.07



    0.07

    Adjusted Earnings per Diluted Share from Continuing Operations

    $                4.15



    $                4.30









    Free Cash Flow Guidance Reconciliation (Unaudited)









    Full-Year 2024 Guidance

    (in millions)

    Low



    High

    Net cash provided by operating activities

    $             1,325



    $             1,375

    Capital expenditures, including tooling outlays

    (850)



    (800)

    Free cash flow

    $                475



    $                575

     

    Full Year 2024 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation From Continuing Operations (Unaudited)

































    (in millions)

    FY 2023 Net

    Sales



    FX



    FY 2024

    Acquisition

    Impact



    Organic Net

    Sales

    Change



    FY 2024 Net

    Sales



    Organic Net

    Sales

    Change %



    LV/CV

    Weighted

    Market



    Outgrowth

    Low

    $     14,198



    $         (20)



    $            30



    $       (208)



    $     14,000



    (1.5) %



    (3.5) %



    2.0 %

    High

    $     14,198



    $         (20)



    $            30



    $            (8)



    $     14,200



    (0.1) %



    (3.0) %



    2.9 %

     

    Full Year 2024 Estimated Year-Over-Year Change in Production (Unaudited)























    North America



    Europe



    China



    Total

    Light vehicle



    (1.5)% to (0.5)%



    (5.5)% to (5)%



    1% to 1.5%



    (2.5)% to (2)%

    Commercial vehicle



    ~(4.5)%



    ~(15)%



    ~2%



    ~(2.5)%

    BorgWarner-Weighted



    (2)% to (1)%



    (7)% to (6.5)%



    1 to 1.5%



    (3.5)% to (3)%

    Recast Reportable Segment Information

    Effective July 1, 2024, the Company implemented a new business unit and management structure designed to further enhance the execution of the Company's Charging Forward strategy. The Company now reports its results in the following four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems (formerly ePropulsion) and Battery & Charging Systems. The reportable segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure. For informational purposes only, in the following tables, the Company has recast the quarterly segment information for fiscal 2024 and 2023 to align with this presentation.

    BorgWarner Reportable Segment Information (Unaudited)



    2024

    (in millions)

    Three Months

    Ended March 31,

    2024



    Three Months

    Ended June 30,

    2024

    Revenue







    Turbos & Thermal Technologies

    $            1,574



    $            1,515

    Drivetrain & Morse Systems

    1,419



    1,442

    PowerDrive Systems

    436



    464

    Battery & Charging Systems

    177



    193

    Inter-segment eliminations

    (11)



    (11)

    Net Sales

    $            3,595



    $            3,603









    Cost of sales

    2,951



    2,918

    Gross Profit

    644



    685

    Gross Margin

    17.9 %



    19.0 %









    Selling, general and administrative expenses

    329



    341

    Restructuring expense

    19



    25

    Other operating expense, net

    1



    22

    Operating income

    295



    297









    Non-comparable items

    44



    79









    Adjusted Operating Income (Loss)







    Turbos & Thermal Technologies

    $                228



    $                224

    Drivetrain & Morse Systems

    253



    266

    PowerDrive Systems

    (62)



    (49)

    Battery & Charging Systems

    (15)



    (10)

    Corporate & Non-Operating

    (65)



    (55)

    Adjusted Operating Income

    $                339



    $                376

     

    BorgWarner Reportable Segment Information (Unaudited)



    2023

    (in millions)

    Three Months

    Ended March 31,

    2023



    Three Months

    Ended June 30,

    2023



    Three Months

    Ended September 30,

    2023



    Three Months

    Ended December 31,

    2023



    Year Ended

    December 31,

    2023

    Revenue



















    Turbos & Thermal Technologies

    $            1,541



    $            1,555



    $            1,474



    $            1,442



    $            6,012

    Drivetrain & Morse Systems

    1,266



    1,431



    1,449



    1,403



    5,549

    PowerDrive Systems

    487



    566



    571



    542



    2,166

    Battery & Charging Systems

    110



    139



    146



    151



    546

    Inter-segment eliminations

    (21)



    (20)



    (18)



    (16)



    (75)

    Net Sales

    $            3,383



    $            3,671



    $            3,622



    $            3,522



    $          14,198





















    Cost of sales

    2,806



    2,991



    2,970



    2,863



    11,630

    Gross Profit

    577



    680



    652



    659



    2,568

    Gross Margin

    17.1 %



    18.5 %



    18.0 %



    18.7 %



    18.1 %





















    Selling, general and administrative expenses

    299



    334



    330



    353



    1,316

    Restructuring expense

    3



    9



    56



    11



    79

    Other operating expense (income), net

    1



    4



    (6)



    14



    13

    Operating income

    274



    333



    272



    281



    1,160





















    Non-comparable items

    31



    39



    77



    51



    198





















    Adjusted Operating Income (Loss)



















    Turbos & Thermal Technologies

    $                218



    $                228



    $                214



    $                214



    $                874

    Drivetrain & Morse Systems

    201



    246



    253



    258



    958

    PowerDrive Systems

    (35)



    (19)



    (20)



    (16)



    (90)

    Battery & Charging Systems

    (23)



    (27)



    (26)



    (40)



    (116)

    Corporate & Non-Operating

    (56)



    (56)



    (72)



    (84)



    (268)

    Adjusted Operating Income

    $                305



    $                372



    $                349



    $                332



    $            1,358

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-reports-third-quarter-2024-results-increases-full-year-adjusted-operating-margin-and-eps-guidance-completes-400-million-share-repurchase-plan-302291907.html

    SOURCE BorgWarner

    Get the next $BWA alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $BWA

    DatePrice TargetRatingAnalyst
    4/10/2025$38.00 → $31.00Buy → Neutral
    UBS
    4/10/2025$34.00Neutral → Buy
    Goldman
    3/18/2025$36.00Neutral → Outperform
    Exane BNP Paribas
    3/7/2025$31.00Buy → Hold
    TD Cowen
    9/10/2024$36.00Hold
    Deutsche Bank
    9/5/2024Peer Perform
    Wolfe Research
    3/15/2024$43.00Overweight
    Piper Sandler
    2/20/2024$43.00 → $35.00Outperform → Neutral
    Exane BNP Paribas
    More analyst ratings

    $BWA
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • BorgWarner Reports Strong First Quarter 2025 Results; Announces Exit of Charging Business; Secures New Business Across Portfolio to Support Future Growth

      AUBURN HILLS, Mich., May 7, 2025 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) today reported first quarter results. First Quarter Results and Business Update BorgWarner's (the "Company") organic sales were relatively flat compared with first quarter 2024, which equated to a U.S. GAAP net sales decrease of approximately 2%. This performance was despite a 3.6% decrease in the Company's weighted light and commercial vehicle markets. The Company's outgrowth of approximately 3.7% was primarily driven by strong light vehicle eProduct sales, which increased 47% year over year.The Comp

      5/7/25 6:37:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner Extends Four Exhaust Gas Recirculation Contracts with Major North American OEM

      BorgWarner to supply Exhaust Gas Recirculation (EGR) components for OEM's passenger and light commercial vehicle platforms for combustion and hybrid applicationsEGR system reduces NOx emissions and improves fuel economy to help meet environmental standardsEGR production extends through 2029AUBURN HILLS, Mich., May 6, 2025 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is extending its business with a major North American OEM by finalizing extensions of four EGR system volume contracts. The EGR systems are used on several of the automaker's passenger and light commercial vehicle platforms for combustion and hybrid applications.

      5/6/25 8:00:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner Obtains High-Voltage Coolant Heater Contract with Global OEM

      400V high-voltage coolant heater (HVCH) technology to be used in series of plug-in hybrid electric vehiclesHVCH offers flexible and compact design with high thermal power densityMarks the company's largest eHeater contract for plug-in hybrid electric vehicles in North AmericaAUBURN HILLS, Mich., May 6, 2025 /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured a contract with a major, global OEM to deliver its 400-volt HVCH on a series of the automaker's plug-in hybrid electric vehicle (PHEV) platforms. This HVCH PHEV deal spans mid-size pickup trucks, SUVs and minivans, and production is expected to begin production in 2

      5/6/25 8:00:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    Leadership Updates

    Live Leadership Updates

    See more
    • DoorDash, TKO Group Holdings, Williams-Sonoma and Expand Energy Set to Join S&P 500; Others to Join S&P 100, S&P MidCap 400 and S&P SmallCap 600

      NEW YORK, March 7, 2025 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") will make the following changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, March 24, to coincide with the quarterly rebalance. The changes ensure each index is more representative of its market capitalization range. All companies being added to the S&P 100 are more representative of the mega-cap market space. All companies being added to the S&P 500 are more representative of the large-cap market space, all companies being added to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies being added to the S&P

      3/7/25 6:19:00 PM ET
      $ALK
      $AMBC
      $ATI
      $BBWI
      Air Freight/Delivery Services
      Consumer Discretionary
      Property-Casualty Insurers
      Finance
    • BorgWarner Announces Appointment of Joseph Fadool as Chief Operating Officer

      • Company Also Establishes New Business Unit Structure AUBURN HILLS, Mich., May 30, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) today announced that Joseph Fadool, current Vice President of BorgWarner Inc. and President and GM, Emissions, Thermal and Turbo Systems, has been promoted to Executive Vice President and Chief Operating Officer of BorgWarner Inc., effective July 1, 2024. As Chief Operating Officer, Mr. Fadool will be responsible for the operations of the Company with the business unit presidents reporting to him. Mr. Fadool will report to Frédéric Lissalde, President and Chief Executive Officer.

      5/30/24 8:00:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner Announces Appointment of Chief Accounting Officer

      AUBURN HILLS, Mich., March 1, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) ("the Company") today announced that Amy Kulikowski has been appointed Vice President and Chief Accounting Officer. Ms. Kulikowski reports directly to Craig Aaron, whose appointment as Chief Financial Officer is effective today. Ms. Kulikowski comes to BorgWarner with more than 25 years of experience in finance and accounting, most recently with Cooper-Standard Holdings Inc. as its Chief Accounting Officer. Ms. Kulikowski is a CPA and member of the American Institute of Certified Public Accountants. She holds a Bachelor of Business Administration from the University of Michigan. 

      3/1/24 8:00:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • SEC Form SC 13G filed by BorgWarner Inc.

      SC 13G - BORGWARNER INC (0000908255) (Subject)

      11/14/24 4:05:13 PM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • SEC Form SC 13G/A filed by BorgWarner Inc. (Amendment)

      SC 13G/A - BORGWARNER INC (0000908255) (Subject)

      2/13/24 5:00:45 PM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • SEC Form SC 13G/A filed by BorgWarner Inc. (Amendment)

      SC 13G/A - BORGWARNER INC (0000908255) (Subject)

      2/9/23 11:12:41 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    Financials

    Live finance-specific insights

    See more
    • BorgWarner Reports Strong First Quarter 2025 Results; Announces Exit of Charging Business; Secures New Business Across Portfolio to Support Future Growth

      AUBURN HILLS, Mich., May 7, 2025 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) today reported first quarter results. First Quarter Results and Business Update BorgWarner's (the "Company") organic sales were relatively flat compared with first quarter 2024, which equated to a U.S. GAAP net sales decrease of approximately 2%. This performance was despite a 3.6% decrease in the Company's weighted light and commercial vehicle markets. The Company's outgrowth of approximately 3.7% was primarily driven by strong light vehicle eProduct sales, which increased 47% year over year.The Comp

      5/7/25 6:37:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BORGWARNER DECLARES QUARTERLY DIVIDEND

      AUBURN HILLS, Mich., May 1, 2025 /PRNewswire/ -- On April 30, 2025, the Board of Directors of BorgWarner Inc. (NYSE:BWA) declared a quarterly cash dividend of $0.11 per share of common stock.  The dividend is payable on June 16, 2025, to stockholders of record on June 2, 2025. For more than 130 years, BorgWarner Inc. (NYSE:BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility -- to help build a cleaner, healthier, safer future for all.   View original content

      5/1/25 6:30:00 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • Webcast Alert: BorgWarner 2025 First Quarter Results Conference Call

      AUBURN HILLS, Mich., April 30, 2025 /PRNewswire/ -- BorgWarner Inc. (NYSE:BWA) announces the following Webcast: What:               BorgWarner 2025 First Quarter Results Conference CallWhen:              May 7, 2025 @ 9:30am Eastern TimeWhere:            www.borgwarner.com/investors  How:                Live over the Internet -- Simply log on to the web at the address above. If you are unable to participate during the live webcast, the call will be archived at (www.borgwarner.com/investors) For more than 130 years, BorgWarner Inc. (NYSE:BWA) has been a transformative global pr

      4/30/25 4:15:00 PM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • BorgWarner downgraded by UBS with a new price target

      UBS downgraded BorgWarner from Buy to Neutral and set a new price target of $31.00 from $38.00 previously

      4/10/25 12:22:24 PM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner upgraded by Goldman with a new price target

      Goldman upgraded BorgWarner from Neutral to Buy and set a new price target of $34.00

      4/10/25 8:27:57 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner upgraded by Exane BNP Paribas with a new price target

      Exane BNP Paribas upgraded BorgWarner from Neutral to Outperform and set a new price target of $36.00

      3/18/25 8:37:33 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    SEC Filings

    See more
    • SEC Form 10-Q filed by BorgWarner Inc.

      10-Q - BORGWARNER INC (0000908255) (Filer)

      5/7/25 11:31:53 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

      8-K - BORGWARNER INC (0000908255) (Filer)

      5/7/25 7:51:58 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • BorgWarner Inc. filed SEC Form 8-K: Submission of Matters to a Vote of Security Holders, Regulation FD Disclosure, Financial Statements and Exhibits

      8-K - BORGWARNER INC (0000908255) (Filer)

      5/1/25 8:13:46 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary

    $BWA
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Director Mcalmont Shaun was granted 5,814 shares, increasing direct ownership by 37% to 21,740 units (SEC Form 4)

      4 - BORGWARNER INC (0000908255) (Issuer)

      5/2/25 9:51:54 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • Director Michas Alexis P was granted 5,814 shares, increasing direct ownership by 7% to 87,675 units (SEC Form 4)

      4 - BORGWARNER INC (0000908255) (Issuer)

      5/2/25 9:51:57 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary
    • Director Mcwhinney Deborah D was granted 5,814 shares, increasing direct ownership by 22% to 31,878 units (SEC Form 4)

      4 - BORGWARNER INC (0000908255) (Issuer)

      5/2/25 9:51:56 AM ET
      $BWA
      Auto Parts:O.E.M.
      Consumer Discretionary