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Dec 31, 2024
BorgWarner Q4 2024 Earnings Report
BorgWarner reported a decrease in net sales but an increase in adjusted net earnings per diluted share, with an adjusted operating margin of 10.2%.
Key Takeaways
BorgWarner's fourth quarter 2024 results showed a decrease in net sales by 2.4% compared to the previous year, but an increase in adjusted net earnings per diluted share from $0.90 to $1.01. The company achieved an adjusted operating margin of 10.2% and generated $539 million in free cash flow. Despite market challenges, BorgWarner expects continued sales outgrowth and strong free cash flow in 2025.
Net sales decreased by 2.4% to $3,439 million compared to Q4 2023.
Adjusted net earnings per diluted share increased to $1.01, up from $0.90 in Q4 2023.
Adjusted operating margin was 10.2%, compared to a U.S. GAAP operating margin of (9.2)%.
Free cash flow was $539 million for the quarter.
The company secured multiple new business awards expected to support long-term profitable growth.
Revenue by Segment
Forward Guidance
BorgWarner anticipates net sales between $13.4 billion and $14.0 billion for 2025. The company expects organic sales to change between -2% and +2%, with an adjusted operating margin between 10.0% and 10.2%. Full-year free cash flow is projected to be in the range of $650 million to $750 million.
Positive Outlook
- Net sales are expected to be in the range of $13.4 billion to $14.0 billion.
- Organic sales are expected to change between -2% to +2%.
- Adjusted operating margin is expected to be in the range of 10.0% to 10.2%.
- Net earnings are expected to be within a range of $3.84 to $4.12 per diluted share.
- Full-year free cash flow is expected to be in the range of $650 million to $750 million.
Challenges Ahead
- Weighted light and commercial vehicle markets are expected to be down 1% to 3% in 2025.
- Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $410 million.
- Operating margin is expected to be in the range of 9.1% to 9.2% in 2025.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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