Q3 2025 Financial Performance - Net sales increased to $3591 million from $3449 million in Q3 2024[11] - Organic sales increased by approximately 2.1%[11, 33] - Adjusted EPS increased by approximately 14% from $1.09 to $1.24[11] - Free cash flow improved by approximately 32% from $201 million to $266 million[11] - Adjusted operating margin increased from 10.1% to 10.7%[11, 35] 2025 Outlook - Full-year net sales outlook is $14300 million[38] - Adjusted operating margin is expected to be between 10.3% and 10.5%[38, 39] - Adjusted diluted EPS is projected to be between $4.60 and $4.75[39] - Free cash flow is expected to be between $850 million and $950 million[39] - Organic growth is forecasted to be between -1% and 0%[39]

Group 1: Borg Warner and Autonomous Vehicles - Borg Warner has secured its first North American contract to supply battery technology for autonomous vehicles, specifically providing its NMC 157 cylindrical cell battery system for the fully electric level 4 Holan urban shuttle [1] Group 2: Plug Power and Electrolyzer Agreements - Plug Power has signed a binding agreement to supply up to 2 gigawatts of its Gen Eco electrolyzers to Allied Bofuels for a major sustainable aviation fuel and green diesel project [2] - Combined with an earlier 3 gigawatt deal with Allied Green Ammonia in Australia, Plug Power now has a total of 5 gigawatts of contracted capacity with allied partners, marking one of 2025's largest electrolyzer supply agreements [2] Group 3: Clean Energy Fuels and Renewable Natural Gas - Clean Energy Fuels has announced new nationwide agreements to expand the use of renewable natural gas and bulk liquefied natural gas, including partnerships with several space companies [3] - The agreements cover fuel supply, operations, and infrastructure development, highlighting the growing demand for cost-effective, low-emission solutions across transportation sectors [3] Group 4: Aduro Clean Technologies and Pilot Plant - Aduro Clean Technologies has provided an update on its next-generation process pilot plant, which is a major milestone in advancing its hydrochimmolytic technology [4] - The pilot will validate continuous operations across various feedstocks, generate key performance and environmental data, and support design planning for Aduro's upcoming 8,000 ton per year recycling plant [4]

Core Insights - BorgWarner reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, and showing an increase from $1.09 per share a year ago, resulting in an earnings surprise of +6.90% [1] - The company posted revenues of $3.59 billion for the quarter ended September 2025, which was 1.07% below the Zacks Consensus Estimate, but an increase from $3.45 billion year-over-year [2] - BorgWarner's stock has increased by approximately 34.7% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of BorgWarner's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $3.51 billion, and for the current fiscal year, it is $4.58 on revenues of $14.3 billion [7] Industry Context - The Automotive - Original Equipment industry, to which BorgWarner belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5]

Financial Performance - BorgWarner's U.S. GAAP net sales for Q3 2025 were $3,591 million, representing a year-over-year increase of approximately 4.1% compared to Q3 2024[10]. - Adjusted net earnings per diluted share for Q3 2025 were $1.24, an increase of 14% from $1.09 in Q3 2024[12]. - BorgWarner's U.S. GAAP operating margin for Q3 2025 was 6.9%, with an adjusted operating margin of 10.7%, reflecting a 60 basis point improvement year-over-year[6]. - Net sales for Q3 2025 reached $3,591 million, a 4.1% increase from $3,449 million in Q3 2024[20]. - Gross profit for Q3 2025 was $664 million, with a gross margin of 18.5%, compared to $636 million and 18.4% in Q3 2024[20]. - Operating income for Q3 2025 decreased to $248 million from $270 million in Q3 2024[20]. - Net earnings attributable to BorgWarner Inc. for Q3 2025 were $158 million, down from $234 million in Q3 2024[20]. - Adjusted operating income for Q3 2025 was $385 million, with an adjusted operating margin of 10.7%, compared to $350 million and 10.1% in Q3 2024[33]. - The adjusted operating margin for the first nine months of 2025 was 10.3%, compared to 10.0% in the same period of 2024[33]. Cash Flow and Shareholder Returns - The company returned $136 million to stockholders in Q3 2025, including approximately $100 million in share repurchases and a $36 million cash dividend[6]. - Free cash flow for Q3 2025 was $266 million, an increase from $201 million in Q3 2024, with year-to-date free cash flow reaching $738 million compared to $190 million in the same period last year[35]. - Free cash flow for 2025 is expected to be in the range of $850 million to $950 million, reflecting a $150 million increase from prior guidance[14]. - The company anticipates free cash flow for full-year 2025 to be between $850 million and $950 million, with net cash provided by operating activities projected at $1,434 million to $1,484 million[40]. Guidance and Projections - Full-year 2025 net sales guidance is now projected to be between $14.1 billion and $14.3 billion, compared to approximately $14.1 billion in 2024[13]. - The company expects its U.S. GAAP operating margin for 2025 to be in the range of 7.8% to 7.9%, with an adjusted operating margin of 10.3% to 10.5%[14]. - The company anticipates a year-over-year change in organic sales for 2025 to be down 1% to approximately flat, in line with estimated market production[13]. - Full-year 2025 net sales guidance is projected between $14,100 million and $14,300 million, with an operating income guidance of $1,104 million to $1,134 million[38]. - Adjusted earnings per diluted share for full-year 2025 is expected to be between $3.52 and $3.63, reflecting various non-comparable items[39]. - Year-to-date organic net sales change for 2025 shows a slight increase of 0.4%, totaling $10,744 million compared to $10,647 million in 2024[37]. Business Developments - BorgWarner secured multiple new business awards, including contracts for all-wheel drive systems and turbocharger technology, with production expected to begin in 2026 and 2027[6]. - The company expects a year-over-year production change in light vehicles in North America to decline by 3% to 1.5%[42]. Assets and Liabilities - Total assets increased to $14,496 million as of September 30, 2025, up from $13,993 million at the end of 2024[22]. - Total liabilities stood at $8,346 million as of September 30, 2025, compared to $8,287 million at the end of 2024[22]. Restructuring Expenses - The company reported a restructuring expense of $23 million for Q3 2025, slightly up from $21 million in Q3 2024[21]. - The company reported a restructuring expense of $71 million for the first nine months of 2025, up from $65 million in the same period last year[33]. Segment Performance - The PowerDrive Systems segment reported a net sales increase to $582 million in Q3 2025, up from $512 million in Q3 2024[21]. - Organic net sales for Q3 2025 increased by 2.1% year-over-year, totaling $3,591 million, with notable growth in PowerDrive Systems at 11.9%[36]. Operating Activities - Net cash provided by operating activities for Q3 2025 was $368 million, with free cash flow of $266 million[10]. - Cash provided by operating activities from continuing operations for the nine months ended September 30, 2025, was $1,029 million, compared to $700 million in the same period of 2024[24]. Earnings Per Share - The company’s diluted earnings per share from continuing operations for Q3 2025 was $0.73, down from $1.08 in Q3 2024[20].

Core Insights - BorgWarner has secured multiple contracts with Chery to supply advanced All-Wheel Drive (AWD) technologies, including the torque-on-demand transfer case with mechanical lock (Mlock TOD) and Gen VI Cross Wheel Drive (XWD) system, with mass production set to begin in 2027 [1][2][8] Group 1: Product Details - The Mlock TOD transfer case will be featured in Chery's pickup trucks, enhancing efficiency under high-speed conditions and supporting both 2-Wheel-Drive High Range (2H) and AUTO modes for improved fuel efficiency [3][8] - The Gen VI XWD system will be supplied for Chery's SUV models, incorporating a modular piston pump, brushless DC motor, and integrated controller to reduce weight and cost while improving efficiency and vehicle stability [4][8] Group 2: Strategic Implications - This collaboration aims to leverage BorgWarner's extensive product portfolio and technical expertise to support Chery's growth in both domestic and international markets [2][8]

Core Insights - BorgWarner exceeded analysts' profit expectations for the third quarter, driven by robust demand for its turbochargers and powertrains [1] Company Performance - The strong performance in the third quarter is attributed to increased demand for specific product lines, particularly turbochargers and powertrains [1]

Core Insights - BorgWarner Inc. reported a third quarter net sales increase of approximately 4.1% year-over-year, reaching $3,591 million, with organic sales growth of about 2.1% [4][5] - The company returned $136 million to stockholders in the third quarter, which included approximately $100 million in share repurchases and $36 million in cash dividends [4][5] - BorgWarner has increased its full-year 2025 guidance for net sales, operating margin, EPS, and free cash flow, expecting net sales to be between $14.1 billion and $14.3 billion [6][7] Financial Performance - U.S. GAAP net earnings for the third quarter were $0.73 per diluted share, down from $1.08 in the same quarter of 2024, while adjusted net earnings per diluted share increased by 14% to $1.24 [4][5] - The U.S. GAAP operating margin for the third quarter was 6.9%, with an adjusted operating margin of 10.7%, reflecting a 60 basis point increase compared to the previous year [4][5] - Net cash provided by operating activities was $368 million, with free cash flow of $266 million for the third quarter [4][5] Business Developments - The company secured multiple new business awards, including contracts for all-wheel drive systems with Chery and a variable turbine geometry turbocharger with Stellantis [4][5] - Production for several new contracts is expected to begin between 2026 and 2027, indicating a focus on long-term growth [4][5] Guidance Update - BorgWarner expects its U.S. GAAP operating margin for 2025 to be in the range of 7.8% to 7.9%, with adjusted operating margin projected between 10.3% and 10.5% [6][7] - The company anticipates net earnings per diluted share for 2025 to be between $3.52 and $3.63, with adjusted net earnings expected to range from $4.60 to $4.75 per diluted share [6][7]

Company Overview - BorgWarner, Inc. is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, producing products such as four-wheel-drive and all-wheel-drive transfer cases, automatic transmission systems, and timing chain systems aimed at improving vehicle performance and air quality [11]. Investment Insights - BorgWarner has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12]. - The company has a Momentum Style Score of B, with shares increasing by 0.2% over the past four weeks [12]. - Recent upward revisions in earnings estimates by three analysts for fiscal 2025 have led to an increase in the Zacks Consensus Estimate by $0.02 to $4.58 per share, with an average earnings surprise of +13.9% [12][13].

Core Insights - BorgWarner Inc. (BWA) is expected to report third-quarter 2025 results on October 30, with earnings per share (EPS) estimated at $1.15 and revenues at $3.60 billion, indicating a 5.5% growth in earnings year-over-year [1][2] - The consensus estimate for quarterly revenues suggests a year-over-year growth of 4.4%, with the company having beaten earnings estimates in the last four quarters, averaging a surprise of 13.9% [2][3] Financial Performance - In Q2 2025, BorgWarner reported an adjusted EPS of $1.21, surpassing the Zacks Consensus Estimate of $1.06, and net sales of $3.64 billion, exceeding the estimate of $3.55 billion, reflecting a 1% year-over-year increase [2][4] - The company experienced a 31% year-over-year increase in light vehicle eProduct sales, contributing to sales growth in Q2 2025 and expected to continue in Q3 [3][4] Operational Efficiency - BorgWarner's focus on productivity, restructuring, supply chain efficiencies, and cost management helped mitigate tariff impacts on its combustion business, leading to an increased adjusted operating margin outlook for 2025 to 10.1-10.3% [4][5] - The updated margin forecast accounts for a 10-basis-point dilution from tariffs, indicating improved operational performance [4] Earnings Prediction - The company's Earnings ESP stands at +1.38%, suggesting a favorable outlook for an earnings beat in the upcoming quarter, supported by a Zacks Rank of 3 [5][6] - Other automotive companies, such as Aptiv PLC, also show potential for earnings beats, indicating a positive trend in the automotive sector [7][8]

Company Overview - BorgWarner, Inc. is a global leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, producing products such as four-wheel-drive and all-wheel-drive transfer cases, automatic transmission, and timing chain systems aimed at improving vehicle performance and air quality [11]. Investment Potential - BorgWarner has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid investment potential [12]. - The company is forecasted to achieve year-over-year earnings growth of 5.8% for the current fiscal year, supported by seven analysts revising their earnings estimates higher in the last 60 days [12]. - The Zacks Consensus Estimate for BorgWarner's earnings has increased by $0.31 to $4.57 per share, with an average earnings surprise of +13.9% [12][13].