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Mar 31
BorgWarner Q1 2025 Earnings Report
BorgWarner reported a 2% decline in net sales and strong adjusted EPS growth in Q1 2025, while announcing strategic portfolio changes including exiting the Charging business.
Key Takeaways
BorgWarner's Q1 2025 results showed solid performance with $3.515 billion in revenue and strong adjusted EPS of $1.11. The company delivered a 10% adjusted operating margin, despite a decline in total net income and negative free cash flow. It also announced plans to exit its Charging business and secured major new business awards.
Reported revenue of $3.515 billion, down 2% YoY.
Adjusted EPS reached $1.11, up from $1.03 in Q1 2024.
Free cash flow was negative at -$35 million due to higher capital expenditures.
Company to exit Charging business, eliminating $30 million in annual losses.
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
For FY2025, BorgWarner expects net sales between $13.6B and $14.2B, with adjusted EPS between $4.00 and $4.45 and adjusted operating margin in the range of 9.6% to 10.2%.
Positive Outlook
- Sales guidance raised slightly due to FX and tariff recoveries.
- Estimated outgrowth increased to 200–400 basis points.
- Adjusted operating margin guidance of up to 10.2%.
- Expected strong contributions from new eProduct awards.
- Foreign currencies expected to add $250 million in revenue.
Challenges Ahead
- Industry production expected to decline up to 4%.
- Charging business exit creates short-term cost impact.
- Free cash flow outlook remains flat at $650M–$750M.
- Tariff recoveries expected to dilute operating margin.
- Market volatility due to geopolitical and EV adoption risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income