How BorgWarner Makes Money

BorgWarner is a Tier 1 supplier. It engineers components to an automaker's specification, wins a production award for a vehicle program, and then earns revenue on every unit built over the program's life, often five years or more. Most sales go to makers of light vehicles, with the rest to commercial-vehicle and off-highway manufacturers and other Tier 1 suppliers. In FY2025 Turbos & Thermal Technologies sold $5.77 billion and Drivetrain & Morse Systems $5.65 billion; together they produced $1.92 billion of segment adjusted operating income. PowerDrive Systems (e-motors, inverters and integrated drive modules) sold $2.35 billion but posted an $83 million segment adjusted operating loss, and Battery & Charging Systems sold $590 million at a $39 million loss. Volkswagen accounted for about 13% of net sales and Ford about 12%; no other customer exceeded 10%.

BorgWarner's strategy has narrowed since 2021. The original Charging Forward plan aimed to lift electric-vehicle revenue from under 3% of sales to about 45% by 2030, funded by acquisitions (Delphi Technologies in 2020, AKASOL in 2021, Santroll's e-motor business and Rhombus Energy Solutions in 2022) and by spinning off fuel systems and aftermarket as PHINIA in 2023. With eProducts at about $2.6 billion, or 18% of 2025 sales, the company now describes a balanced portfolio: keep investing in eProducts that can earn a return, protect the cash-generating Foundational products, and exit what does not work, as it did with EV charging in 2025. The newest leg is industrial and data center power, where it plans higher 2026 R&D spending to prepare the turbine generator and related products.