BorgWarner Inc. reported third‑quarter 2025 results with net sales of $3.591 billion, up 4.1% year‑over‑year, and net earnings of $158 million, down 34% year‑over‑year. Adjusted earnings per diluted share were $1.24, a 14% increase from $1.09 in the same quarter of 2024, and the adjusted operating margin for the quarter was 10.7%.
In the third quarter of 2024, the company generated net sales of $3.449 billion, net earnings of $242 million, adjusted EPS of $1.09, and an adjusted operating margin of 10.1%.
The quarter’s performance was driven by robust demand for turbochargers and powertrain components, higher production volumes, and growth in light‑vehicle eProduct sales. The gains were partially offset by lower battery and charging sales and a temporary shutdown at a European customer caused by a cyber incident. One‑time restructuring and impairment charges contributed to the decline in net earnings.
BorgWarner raised its full‑year 2025 outlook. Management now projects net sales of $14.1 billion to $14.3 billion, a U.S. GAAP operating margin of 7.8% to 7.9%, an adjusted operating margin of 10.3% to 10.5%, adjusted earnings per diluted share of $4.60 to $4.75, and free cash flow of $850 million to $950 million. The guidance lift is supported by cost‑control measures, favorable foreign‑exchange effects, continued demand for turbocharger and powertrain businesses, and the expected stabilization of margins after the company exits its charging business.
The company returned $136 million to shareholders in the quarter, comprising $100 million in share repurchases and a $36 million cash dividend. It also experienced a 60‑basis‑point net headwind from tariffs, with a recovery expected in the fourth quarter. BorgWarner secured new business awards, including contracts for all‑wheel‑drive systems with Chery, turbochargers for Stellantis’ Jeep Grand Cherokee, and integrated drive modules for a Chinese OEM, which are expected to support long‑term growth.
BorgWarner’s adjusted EPS beat analyst expectations of $1.16, while net sales of $3.591 billion missed the consensus estimate of $3.63 billion.
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