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Mar 31, 2024
BorgWarner Q1 2024 Earnings Report
BorgWarner reported first quarter results and increased full-year EPS guidance.
Key Takeaways
BorgWarner reported a 6% increase in net sales to $3,595 million and an adjusted EPS of $1.03 for the first quarter of 2024. The company has increased full-year EPS guidance and announced an additional share repurchase authorization of up to $500 million.
Net sales increased by 6% to $3,595 million compared to Q1 2023.
U.S. GAAP net earnings were $0.93 per diluted share, with adjusted net earnings at $1.03 per diluted share.
The company secured contracts with Polestar and a major European OEM to supply electric Torque Vectoring Disconnect (eTVD) systems.
BorgWarner authorized an additional share repurchase program of up to $500 million.
BorgWarner
BorgWarner
BorgWarner Revenue by Segment
Revenue by Segment
Turbos & Thermal Revenue
CapyFin.comDrivetrain & Morse Revenue
CapyFin.comPowerDrive Revenue
CapyFin.comBattery & Charging Revenue
CapyFin.com Forward Guidance
BorgWarner has maintained full year sales and margin guidance, while EPS guidance has increased.
Positive Outlook
- Net sales for 2024 are expected to be in the range of $14.4 billion to $14.9 billion.
- Implies a year-over-year increase in organic sales of 2% to 5%.
- 2024 eProduct sales to be $2.5 billion to $2.8 billion, up from approximately $2.0 billion in 2023.
- Operating margin for the full year is expected to be in the range of 8.2% to 8.5%.
- Adjusted net earnings are expected to be within a range of $3.80 to $4.15 per diluted share.
Challenges Ahead
- Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $100 million.
- Weighted light and commercial vehicle markets to be in the range of down 2.5% to roughly flat in 2024.
- Net earnings are expected to be within a range of $3.54 to $3.86 per diluted share.
- Full-year operating cash flow is expected to be in the range of $1,325 million to $1,375 million.
- Free cash flow is expected to be in the range of $475 million to $575 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income