Research Reports

Key takeaways

Operating income surged 41.8% to $336M, driven by restructuring savings, supply chain efficiencies, and absence of prior-year impairment charges.

Net income +54.1% to $242M, EPS $1.16 vs $0.72, aided by lower restructuring and no charging exit costs.

Revenue was essentially flat at $3.5B, as unfavorable volume and mix in Europe and lower Battery Energy Systems sales offset other gains.

Operating cash flow was $152M, supporting capital allocation priorities including share repurchases and dividends.

Battery Energy Systems sales declined, but segment losses narrowed due to restructuring and exit from charging business.

Full analysis

Revenue Growth Masked by Volume Headwinds

Profitability Surge on Cost Actions and Lower Charges

Segment Divergence: Foundational Strength, EV Weakness

The Company's foundational combustion and hybrid businesses benefited from cost reduction initiatives and supply chain savings, which more than offset lower production volumes. In contrast, the Battery Energy Systems segment continued to face declining sales, though segment losses narrowed sharply due to restructuring actions and the exit from the charging business. The CODM uses segment adjusted operating margin to assess performance and allocate resources, and the overall margin improved year-over-year.

BWA · BorgWarner Inc.

Summary

Key takeaways

Full analysis

Revenue Growth Masked by Volume Headwinds

Profitability Surge on Cost Actions and Lower Charges

Segment Divergence: Foundational Strength, EV Weakness

Cash Flow and Capital Allocation

Outlook and Risks