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Dec 31, 2025
BorgWarner Q4 2025 Earnings Report
BorgWarner reported higher fourth quarter 2025 sales with an operating loss driven by impairment charges, while adjusted operating income and margin improved year-over-year.
Key Takeaways
In Q4 2025, BorgWarner generated net sales of 3572000000 with a GAAP operating loss of -238000000 and net loss attributable to BorgWarner of -262000000. Adjusted operating income was 427000000, resulting in a 12.0% adjusted operating margin, as strong PowerDrive growth offset weakness in Battery & Charging Systems.
Net sales increased 3.9% year-over-year to 3572000000, with organic growth of 0.8%.
GAAP operating loss was -238000000, impacted by 582000000 of impairment charges.
Adjusted operating income rose to 427000000, with adjusted operating margin of 12.0%.
PowerDrive Systems delivered strong double-digit organic growth, while Battery & Charging Systems declined.
Revenue by Segment
Forward Guidance
For 2026, BorgWarner expects net sales between 14000000000 and 14300000000, adjusted operating margin of 10.7% to 10.9%, adjusted EPS of 5.00 to 5.20, and free cash flow of 900000000 to 1100000000 despite softer light vehicle markets.
Positive Outlook
- Expected adjusted operating margin improvement to 10.7%–10.9%.
- Projected adjusted EPS growth to 5.00–5.20.
- Strong expected operating cash flow of 1600000000–1700000000.
- Foreign currency tailwind of approximately 200000000.
- Continued focus on cost controls and margin expansion.
Challenges Ahead
- Organic sales expected to decline 1.5%–3.5% year-over-year.
- Battery & Charging Systems sales expected to decline by approximately 210000000.
- Weighted light vehicle markets expected to be down 3% to flat.
- Ongoing restructuring expenses expected in 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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