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Jun 30, 2025
BorgWarner Q2 2025 Earnings Report
BorgWarner reported a modest increase in revenue and delivered solid earnings in Q2 2025, with strong eProduct sales and disciplined cost control helping offset tariff headwinds.
Key Takeaways
BorgWarner's Q2 2025 results showed a 1% increase in revenue year-over-year with solid adjusted earnings and strong free cash flow, despite modest declines in gross profit and margins. Growth was driven by eProduct performance and disciplined cost controls.
Revenue reached $3.638 billion, up 1% from Q2 2024
Adjusted EPS was $1.21, slightly higher than the prior year
Free cash flow came in strong at $507 million
Turbo and PowerDrive segments showed contrasting performance, with PowerDrive growing over 23%
Revenue by Segment
Forward Guidance
BorgWarner raised its full-year 2025 guidance across revenue, margin, EPS, and free cash flow based on stronger-than-expected industry production and FX tailwinds.
Positive Outlook
- Revenue guidance raised to $14.0B–$14.4B from $13.6B–$14.2B
- Adjusted EPS outlook increased to $4.45–$4.65
- Free cash flow guidance raised by $50M to $700M–$800M
- Adjusted operating margin expected between 10.1% and 10.3%
- Positive FX impacts, especially from Euro and Korean Won
Challenges Ahead
- Ongoing tariff headwinds affecting margins
- Customer tariff cost recoveries still a drag
- Battery & Charging Systems segment showed a 20% revenue decline
- Organic sales growth expected to range from −1.5% to +1%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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