BorgWarner Increases 2025 Guidance Following Strong Q3 Performance

BorgWarner Reports a Robust Third Quarter for 2025

BorgWarner Inc. (NYSE: BWA) recently announced strong results for the third quarter of 2025, revealing a significant uptick in net sales and an optimistic forecast for the year ahead. The company’s performance not only highlights its resilience but also its commitment to returning value to shareholders.

Key Financial Highlights

In the third quarter, BorgWarner achieved a net sales figure of approximately $3.59 billion, which marks an increase of about 4.1% from the same time last year. Excluding currency fluctuations, organic sales saw a growth of 2.1%, demonstrating the company's ability to thrive in a competitive market.

The U.S. GAAP operating margin stood at 6.9%, supplemented by an adjusted margin of 10.7%, an increase of 60 basis points compared to the previous year. This performance was aided by prudent cost management strategies, which mitigated a 60 basis point net headwind from tariffs that threatened profit margins.

Returning to its investors has also been a priority for BorgWarner, which returned $136 million to shareholders in the quarter. This included the repurchase of about $100 million in outstanding shares and a cash dividend payout of $36 million.

Business Expansion and New Contracts

BorgWarner secured several promising new business awards expected to drive long-term profitability. Notable contracts include:
1. All-Wheel Drive Contracts: Two contracts with Chery for all-wheel drive systems, which aim to enhance the performance of their vehicles, targeting production starts in 2027.
2. Turbocharger Award: A variable turbine geometry turbocharger award with Stellantis for their Hurricane 4 engine to be featured in the 2026 Jeep® Grand Cherokee.
3. Integrated Drive Module: A 7-in-1 integrated drive module designed for a prominent Chinese OEM’s hybrid SUV, with production set to kick off in 2026.
4. Electric Vehicle Projects: Contracts for a battery system for the HOLON Urban, an autonomous electric shuttle, and dual inverter programs with Great Wall Motor for HEV and PHEV vehicles.

These contracts underscore BorgWarner's strategic focus on electrical components and sustainability, thereby positioning the company favorably within the evolving automotive landscape.

Increased Guidance for 2025

Following the success of the third quarter, BorgWarner has adjusted its guidance for the full year 2025, anticipating a net sales range between $14.1 billion and $14.3 billion. This revision reflects positive industry production forecasts, enhanced foreign exchange impact, and improved operational performance. The prior sales expectation range was between $14.0 billion and $14.4 billion.

The company expects the U.S. GAAP operating margin to be between 7.8% and 7.9%, with an adjusted operating margin projected between 10.3% and 10.5%. Net earnings per diluted share are expected to fall within $3.52 to $3.63, indicating a strong year-on-year performance.

Future Outlook

BorgWarner’s robust third-quarter performance reflects its strategic initiatives and commitment to innovative products that meet the needs of a transitioning automotive market. The shift towards electric and hybrid vehicles is becoming increasingly pivotal, and BorgWarner appears well-equipped to navigate this dynamic environment. As the company continues to invest in sustainable technologies, it remains poised for growth in a rapidly evolving industry.

With a conference call scheduled for today at 9:30 a.m. ET, BorgWarner’s leadership will elaborate further on their impressive third-quarter outcomes and the enhanced guidance for 2025, providing stakeholders with insights into the company's strategic direction moving forward.

For over 130 years, BorgWarner has been a leader in mobility innovation, and its ongoing focus on sustainability and technology positions it for continued success in the years to come.