Financial Data and Key Metrics Changes - BorgWarner's Q2 2024 sales were approximately $3.6 billion, reflecting a year-over-year decrease of almost 2% or $62 million due to a strengthening US dollar [16] - Adjusted operating income for Q2 was $376 million, resulting in a margin of 10.4%, an increase from 10.1% in the prior year [17][31] - Free cash flow from continuing operations was $297 million, up $267 million from the previous year, attributed to strong working capital and capital expenditure performance [19][45] Business Line Data and Key Metrics Changes - BorgWarner secured multiple new product awards across combustion, hybrid, and electric powertrains, indicating strong product leadership [30] - The eFan systems for commercial vehicles represent the largest eFan business win in North America, with production expected to start in Q4 2027 [5] - The company is restructuring its ePropulsion segment to adjust its cost structure, expecting annual run rate cost savings of about $100 million by 2026 [32][43] Market Data and Key Metrics Changes - The full-year sales guidance for 2024 has been reduced to a range of $14.1 billion to $14.4 billion, down from previous guidance of $14.4 billion to $14.9 billion, primarily due to weaker foreign currencies and a lower market production outlook [20][22] - The company expects to outgrow market production by 350 to 450 basis points, despite a projected decline in market production of 2% to 3% [21][22] Company Strategy and Development Direction - BorgWarner is focused on powertrain efficiency, including combustion fuel efficiency and electron efficiency for hybrids and BEVs [12][14] - A new business unit structure has been introduced to enhance cost synergies and improve clarity for stakeholders [8][10] - The company plans to allocate all free cash flow to shareholders through share repurchases and dividends, with an intention to repurchase $300 million of stock in the second half of 2024 [38][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sales performance through organic growth above market production, despite a challenging production environment [14][45] - The restructuring actions in the ePropulsion segment are expected to improve near-term earnings and position the business for future growth [43] - Management highlighted the importance of maintaining a strong product portfolio to navigate the volatile propulsion mix environment [102] Other Important Information - BorgWarner has reduced its greenhouse gas emissions by 32% from the 2021 baseline, progressing towards its goal of an 85% reduction by 2030 [35] - The company is experiencing strong interest in its EGR product portfolio, which supports the need for efficient combustion engines [7] Q&A Session Summary Question: What is the rationale behind the eProduct restructuring not including Europe? - The restructuring is focused on North America and China due to the business unit's engineering and footprint concentration in these regions [50] Question: Are there any benefits expected from the ICE and hybrid side of the business? - Management indicated that they are focusing on converting additional revenue from various propulsion mixes, including hybrids and BEVs [51] Question: How does the company view its margin outlook for the second half of the year? - The company expects to maintain a strong margin profile, with an increase in full-year margin guidance to 9.6% to 9.8% [40] Question: What is the impact of tariffs on the eProduct business in China? - Management noted that the eProduct business in China is growing, with a significant portion of products used for hybrids and BEVs, and the impact of tariffs is still uncertain [98][113] Question: How does the company plan to allocate capital moving forward? - The focus will be on shareholder returns through stock repurchases, with M&A being less likely in the near term [115]

10 Countries eProduct Growth eProduct Profitability Maximize Foundational Value $2.5-$2.8B 2024E eProduct Sales Guidance ▪ 88% of 2022 sales from clean and emissionsreducing products ▪ Commitment to carbon neutrality by 2035 ▪ 338 engineers enrolled in three cohorts Combustion Combustion + Advanced Hybrid Resilient Product Portfolio Well-Positioned for Growth Believe Foundational Portfolio Positioned for Outgrowth 11 | --- | --- | --- | --- | --- | --- | |--------|--------|---------------------------------| ...

BorgWarner (BWA) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 21.43%. A quarter ago, it was expected that this auto parts supplier would post earnings of $0.87 per share when it actually produced earnings of $1.03, delivering a surprise of 18.39%. Over the last four quarters, the c ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|----------------------------| | | | | | | Immediate Release | | | | | | | Contact: Patrick Nolan | | | | | | | 248.754.0884 | Auburn Hills, Michigan, July 31, 2024 – BorgWarner Inc. (NYSE: BWA) today reported second quarter results. Business Update Second Quarter Highlights (continuing operations basis): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Earnings per diluted share $ 1.39 $ 0.97 $ 2.32 $ 1.6 ...

| --- | --- | --- | --- | |--------------------------------------------|---------------|-------------------|-------| | | June 30, 2024 | December 31, 2023 | | | ASSETS | | | | | Cash, cash equivalents and restricted cash | $ 1,288 | $ 1,534 | | | Receivables, net | 3,111 | 3,109 | | | Inventories, net | 1,322 | 1,313 | | | Prepayments and other current assets | 283 | 261 | | | Total current assets | 6,004 | 6,217 | | | --- | --- | --- | --- | |--------------|-------|-------|--------------------------------- ...

Earning 87% of revenue from EV and emissions-reducing hybrid and combustion products, positioning the company as a leader in clean mobility; Reducing Scope 1 and 2 greenhouse gas (GHG) emissions by 32% from the 2021 baseline, making progress on its Science Based Targets initiative (SBTi)-validated goal to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 85% by 2030; Engaging supply chain management and engineering teams to advance the company's goal of reducing Scope 3 emissions 25% by 2030 comp ...

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Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either BorgWarner (BWA) or Gentex (GNTX) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong ea ...

For more than 130 years, BorgWarner Inc. (NYSE: BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility -- to help build a cleaner, healthier, safer future for all. For more information, please visit borgwarner.com. AUBURN HILLS, Mich., June 20, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) announces the following Webcast: What: BorgWarner 2024 Second Quarter Results Conference Call When: July 31 ...

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