BorgWarner Inc. Revenue & Financials

BorgWarner reported net sales of $14.086 billion for FY2024, a decrease of $112 million or 1% from FY2023's $14.198 billion, with the decline driven primarily by foreign currency fluctuations that reduced sales by approximately $122 million, partially offset by favorable volume, mix, and net new business that added $116 million. For FY2025, net sales increased to $14.316 billion, up $230 million or 2% from 2024, driven by currency tailwinds ($154 million), tariff-related customer recoveries ($80 million), and favorable volume/mix ($52 million), partially offset by the exit of the charging business ($56 million) and unfavorable customer pricing. The gross profit for FY2024 was $2.648 billion, yielding a gross margin of 18.8%, up from 18.1% in 2023, reflecting improved manufacturing efficiency and cost management. Operating income for FY2024 was $546 million, down from $1.160 billion in 2023, with the decline driven by $646 million in impairment charges related to asset write-downs and restructuring actions, compared to only $29 million in impairment charges in 2023. Excluding these non-comparable items, adjusted operating income was approximately $1.192 billion, yielding an adjusted operating margin of approximately 8.5%. Net earnings attributable to BorgWarner Inc. for FY2024 were $338 million, down from $625 million in 2023, with diluted earnings per share of $1.63 compared to $2.70 in 2023. The effective tax rate for FY2024 was approximately 20.6%, down from 29.2% in 2023. For FY2025, net earnings from continuing operations were $335 million, with diluted EPS of $1.28, reflecting the impact of restructuring expenses, accelerated depreciation, and costs related to the charging business exit. The company's balance sheet as of December 31, 2024, showed total assets of $14.5 billion, with cash and cash equivalents of approximately $1.1 billion and total debt of approximately $4.2 billion. The debt-to-equity ratio was 0.74x, and the interest coverage ratio was 10.28x, reflecting a conservative leverage profile. Net cash provided by operating activities from continuing operations was $1.371 billion in 2024 and $1.207 billion in 2025, demonstrating strong cash generation capability. Capital expenditures were approximately $650 million annually, focused on electrification capacity expansion and manufacturing efficiency improvements. The company's return on invested capital (ROIC) has historically been in the mid-teens, though the recent impairments and restructuring costs have depressed near-term returns. Free cash flow—defined as operating cash flow less capital expenditures—was approximately $700 million in 2024 and $550 million in 2025, providing the capital necessary for dividends, share repurchases, and strategic investments. The company returned approximately $627 million to stockholders in 2025 through quarterly dividends ($0.17 per share, increased 55% from $0.11) and share repurchases. The $1 billion share repurchase program authorized in 2020 has been executed methodically, with repurchases designed to offset dilution from the Delphi acquisition while reducing shares outstanding over time. The company's financial profile is characterized by strong cash generation, conservative leverage, and disciplined capital allocation. The investment-grade credit rating—supported by gross debt to adjusted EBITDA of approximately 1.6x—provides access to capital markets at favorable rates and signals financial stability to OEM customers. The primary financial risk is the margin compression during the electrification transition, where eProducts currently generate lower margins than mature combustion products. Management has guided toward adjusted operating margins improving to approximately 11% as electrification scales and launch costs normalize, but this target depends on achieving volume targets and executing cost synergies from the Delphi integration. The company's financial narrative is one of stability amid transformation: maintaining strong cash flows and balance sheet metrics while investing heavily in the technologies that will define the next decade of automotive propulsion.