BorgWarner vs Toyota: Revenue, Profit and Business Model
BorgWarner reported $14.3B of revenue in FY2025 and $277M of net income. Toyota reported ~$339.6B of revenue in FY2026 and ~$25.8B of net income.
Latest financial snapshot
BorgWarner
- Latest revenue
- $14.3B (FY2025)
- Net income
- $277M
- Net margin
- 1.9%
- Revenue growth
- +0.4% a year, FY2023–FY2025
Toyota
- Latest revenue
- ~$339.6B (FY2026)
- Net income
- ~$25.8B
- Net margin
- 7.6%
- Revenue growth
- +6.0% a year, FY2016–FY2026
Financial summary
BorgWarner
BorgWarner's revenue has been flat for three years: $14.198 billion in 2023, $14.086 billion in 2024 and $14.316 billion in 2025, as weaker industry production offset eProduct growth. Profit has swung on non-cash charges. Net earnings attributable to the company fell from $625 million in 2023 to $338 million in 2024 and $277 million in 2025, driven by impairments of $646 million and $624 million. Underneath, the business improved: the adjusted operating margin rose 60 basis points to 10.7% in 2025, adjusted EPS grew about 14% to $4.91, operating cash flow reached $1.648 billion and free cash flow rose about 66% to $1.208 billion. BorgWarner returned about $630 million to shareholders in 2025, including more than $500 million of buybacks. In Q2 2026 net sales were $3.648 billion, the adjusted operating margin was 11.3%, and the board added $1 billion to the repurchase authorization, bringing it to about $1.35 billion through 2029.
Toyota
Toyota's fiscal 2026 showed record revenue alongside sharply lower profit. Sales revenues reached ~$340 billion (¥50.68 trillion) while operating margin narrowed to about 7.4% from 10.0% a year earlier, mostly because of roughly $9.25 billion (¥1.38 trillion) in U.S. tariff costs. North America swung to a much weaker profit, Japan remained the largest profit contributor, and financial services kept growing. For fiscal 2027, Toyota's August 2026 forecast calls for ~$362 billion (¥54.0 trillion) in revenue, ~$22.8 billion (¥3.4 trillion) in operating income and ~$21.8 billion (¥3.25 trillion) in net income, assuming 160 yen per dollar.
Revenue and profit by year
BorgWarner
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $14.3B | $277M | 1.9% | +1.6% | Source |
| FY2024 | $14.1B | $338M | 2.4% | -0.8% | Source |
| FY2023 | $14.2B | $625M | 4.4% | — | Source |
Toyota
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$339.6B | ~$25.8B | 7.6% | +5.5% | Source |
| FY2025 | ~$321.8B | ~$31.9B | 9.9% | +6.5% | Source |
| FY2024 | ~$302.1B | ~$33.1B | 11.0% | +21.4% | Source |
| FY2023 | ~$248.9B | ~$16.4B | 6.6% | +18.4% | Source |
| FY2022 | ~$210.2B | ~$19.1B | 9.1% | +15.3% | Source |
| FY2021 | ~$182.3B | ~$15B | 8.3% | -9.1% | Source |
| FY2020 | ~$200.5B | ~$13.9B | 6.9% | -1.0% | Source |
| FY2019 | ~$202.5B | ~$12.6B | 6.2% | +2.9% | Source |
| FY2018 | ~$196.8B | ~$16.7B | 8.5% | +6.5% | Source |
| FY2017 | ~$184.9B | ~$12.3B | 6.6% | -2.8% | Source |
| FY2016 | ~$190.3B | ~$15.5B | 8.1% | — | Source |
Where the revenue comes from
BorgWarner
- Turbos & Thermal Technologies~40%
$5.772B of FY2025 sales and $879M of segment adjusted operating income. Turbochargers, eTurbos, high-voltage coolant heaters and other thermal and emissions products.
- Drivetrain & Morse Systems~39%
$5.654B of FY2025 sales and $1.041B of segment adjusted operating income, the most profitable segment. Timing chains, variable cam timing, transfer cases, clutches and drivetrain modules.
- PowerDrive Systems~16%
$2.347B of FY2025 sales, up from $1.937B in 2024, with an $83M segment adjusted operating loss. E-motors, inverters and integrated drive modules for hybrids and EVs.
- Battery & Charging Systems (Battery Energy Systems in 2026)~4%
$590M of FY2025 sales, down from $729M, with a $39M segment adjusted operating loss. Mainly commercial-vehicle battery packs and battery management systems after the 2025 charging exit.
Toyota
- Automotive~89%
Toyota, Lexus, Daihatsu and Hino vehicles, plus parts and service
- Financial services~9%
Retail loans, leases and dealer financing
- All other~2%
Housing-related, telecommunications and other businesses
Business model and strategy
BorgWarner
How it 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.
Growth strategy
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.
Competitive advantage
BorgWarner's edge is engineering depth in parts that are hard to make at automotive volume and quality: turbochargers, variable cam timing, timing chains, transfer cases and wet clutches. These Foundational products earn steady margins and give it long relationships with nearly every major automaker.
Toyota
How it makes money
Toyota makes most of its money building and selling vehicles under the Toyota and Lexus brands (plus Daihatsu and Hino), led by high-volume models such as the RAV4, Corolla, Camry and Hilux. A large financial services arm earns interest and lease income on loans and leases to Toyota buyers and dealers, and parts, service and other value-chain businesses add recurring revenue from the installed base of vehicles.
Growth strategy
Toyota's strategy centers on hybrid leadership, battery EV scaling, software improvement, localized manufacturing, Lexus and truck/SUV profitability, financial services, and disciplined capital allocation.
Competitive advantage
Toyota's advantage is manufacturing discipline, hybrid technology, global supplier relationships, brand trust, reliability, and scale. Those strengths are durable, but they must be paired with faster software and EV execution.
Questions about BorgWarner vs Toyota
Which company has higher revenue — BorgWarner Inc. or Toyota Motor Corporation?
BorgWarner Inc. reported $14.3B (FY2025), while Toyota Motor Corporation reported ~$339.6B (FY2026). By last reported revenue, Toyota Motor Corporation is the larger business, with BorgWarner Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of BorgWarner Inc. vs Toyota Motor Corporation?
BorgWarner Inc.'s market capitalisation stands at $12.4B, while Toyota Motor Corporation's is $258.0B. Toyota Motor Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to BorgWarner Inc..
Which is more financially efficient — BorgWarner Inc. or Toyota Motor Corporation?
BorgWarner Inc. generates $382k / employee in revenue per employee, while Toyota Motor Corporation generates $905k / employee. Toyota Motor Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do BorgWarner Inc. and Toyota Motor Corporation make money?
BorgWarner Inc. and Toyota Motor Corporation generate revenue in fundamentally different ways. BorgWarner Inc.: BorgWarner is a Tier 1 supplier. Toyota Motor Corporation: Toyota makes most of its money building and selling vehicles under the Toyota and Lexus brands (plus Daihatsu and Hino), led by high-volume models such as the RAV4, Corolla, Camry and Hilux.
Which company is valued higher relative to revenue — BorgWarner Inc. or Toyota Motor Corporation?
On a price-to-sales (P/S) basis, BorgWarner Inc. trades at 0.9x P/S and Toyota Motor Corporation at 0.8x P/S. BorgWarner Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Toyota Motor Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is BorgWarner Inc. bigger than Toyota Motor Corporation?
By last reported revenue, Toyota Motor Corporation (~$339.6B (FY2026)) is the larger company compared to BorgWarner Inc. ($14.3B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the BorgWarner vs Toyota overview