AUBURN HILLS, Michigan - BorgWarner Inc. (NYSE:BWA) reported fourth-quarter earnings that surpassed analyst expectations, while revenue slightly beat estimates.
However, the auto parts supplier provided a mixed outlook for fiscal year 2025.
BorgWarner posted adjusted earnings per share of $1.01 for the fourth quarter, exceeding the analyst consensus of $0.95. Revenue came in at $3.44 billion, marginally above the $3.43 billion analysts had forecast.
The company’s sales decreased 2.4% YoY, primarily due to lower industry production compared to the prior year.
For the full year 2025, BorgWarner expects earnings per share between $4.05 and $4.40, compared to the analyst estimate of $4.23. The company projects revenue in the range of $13.4 billion to $14 billion, below the consensus of $14.12 billion.
"BorgWarner achieved an adjusted operating margin of 10.2% during the fourth quarter, despite an approximately 4% decline in our weighted light and commercial vehicle markets," said Frédéric Lissalde, President and CEO of BorgWarner.
The company anticipates its weighted light and commercial vehicle markets to be down 1% to 3% in 2025. Despite this challenging outlook, BorgWarner expects to deliver continued sales outgrowth, with an adjusted operating margin above 10% and strong free cash flow in 2025.
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