BorgWarner Inc.
Automotive Components & Propulsion SystemsFounded 1928- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
BorgWarner Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$14.3B
Market Cap
$14.9B
Net Income
$335M
Employees
37,500
BorgWarner's revenue has held near $14 billion for three consecutive years — $14.2 billion in 2023, $14.1 billion in 2024, $14.3 billion in 2025 — while the underlying mix has shifted considerably. EProducts grew from 14% of revenue in 2023 to 18% in 2025, not because combustion-related revenue collapsed but because electrification products grew faster than the overall company. Net income of $335 million in 2025 was depressed by $646 million in goodwill and asset impairments, largely tied to the charging infrastructure business the company exited. Strip out those charges, and the underlying profitability picture looks considerably different. The company achieved 2% revenue growth despite essentially flat global automotive production rates — meaning it gained content per vehicle, which is the key metric for any supplier trying to grow through electrification. The market capitalization of $14.9 billion places BorgWarner at roughly 1x revenue, a valuation that reflects ongoing uncertainty about the pace of EV adoption and its impact on the combustion business. The company generated enough free cash flow in 2025 to fund $646 million in impairments and still deliver net income. That is not a company in financial distress; it is a company managing a technology transition at scale. Voluntary employee turnover of 10.2% in 2025 — 7.4% for salaried staff, 11.8% for hourly workers — reflects the competitive labor market for automotive engineering talent. Every percentage point of turnover in engineering represents institutional knowledge that takes years to rebuild, a cost that does not appear directly in the income statement but shapes execution quality over time.
Revenue Trend Analysis
YoY Change
+1.6%
2-Year CAGR
+0.4%
Peak Year
2025
Trend
Mostly Growing
BorgWarner Inc. has reported revenue across 3 fiscal years, compounding at +0.4% annually over 2 years. The most recent year saw a 1.6% increase versus the prior year. Revenue peaked in 2025 at $14.3B. Out of 2 reported periods, 1 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $14.3B | $335M | +1.6% |
| FY2024 | $14.1B | — | -0.8% |
| FY2023 | $14.2B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
BorgWarner's $335 million 2024 net income (5% margin) reflects significant pressure from EV transition costs, EV market slowdown affecting customer volumes, PHINIA separation transaction costs, and pricing pressure from automakers seeking 4-6% annual price reductions despite supplier raw material inflation. Underlying operating margins of 8-10% trail historical 11-13% levels as EV investments are not yet generating profitable returns at scale, and ICE business has faced volume declines as EV transition begins. The reported earnings include restructuring costs, transaction expenses, and goodwill impairments related to EV acquisition integration, with adjusted EBITDA of $1.8 billion (12% margin) providing better view of underlying performance. Management projects margin recovery as EV scale improves and ICE business stabilises.
BorgWarner allocates capital approximately 60% to organic operational investment (R&D, capacity), 25% to acquisitions (primarily EV-focused since 2020), and 15% to shareholder returns through dividends ($0.44/share annually, 1.5% yield) and buybacks ($600 million authorized 2024). The shift from historical balanced allocation toward growth investment reflects EV transition urgency, with R&D spending increased to 5.5% of revenue (vs 4.5% historically) targeting electric motor and power electronics development. Acquisitions have prioritised EV capabilities including Akasol (battery systems, €727M), Delphi Technologies powertrain divisions, and various smaller motor and power electronics specialists, with cumulative EV M&A exceeding $4 billion since 2020. Capital discipline remains, with management rejecting more expensive EV acquisitions during 2021-2022 peak valuations.
BorgWarner's ICE business revenue has declined from peak levels as automakers reduce ICE-vehicle production preparing for electrification, with the company managing the decline through aggressive cost reduction, pricing discipline on remaining ICE products, and accelerating margin extraction from mature programs. ICE revenue contributed approximately $8 billion in 2024 versus $11 billion peak, with margins maintained at 18-20% despite volume pressure through fixed-cost reduction and consolidation of manufacturing footprint (closing or downsizing ICE-focused facilities). The PHINIA spinoff in 2023 separated fuel systems and aftermarket emissions ($3.5B revenue) into independent company, allowing remaining BorgWarner ICE business to focus on technologies that extend through hybrid powertrain transition (turbochargers, transmissions for HEVs/PHEVs).
BorgWarner maintains conservative debt profile with $4 billion in long-term debt and $1.5 billion cash, generating $1+ billion annual free cash flow that supports continued M&A and shareholder returns without leverage stress. The net debt of $2.5 billion represents approximately 1.5x EBITDA, well within investment-grade credit metrics and providing flexibility for additional acquisitions if attractive EV opportunities emerge. Management has maintained dividend through cyclical pressures and EV transition costs, demonstrating commitment to balanced capital allocation, though the relatively modest 1.5% dividend yield reflects emphasis on growth reinvestment over income payments. The financial position would withstand significant cyclical downturn in ICE business if EV transition accelerates faster than planned.
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CorpDigest. "BorgWarner Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/borgwarner/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>BorgWarner Inc. reported $14B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/borgwarner/financials" target="_blank" rel="noopener">CorpDigest — BorgWarner Inc. financials</a></div>