BorgWarner Q1 2025 Earnings Report
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
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