BorgWarner(BWA) - 2024 Q4 - Annual Results

Financial Performance - BorgWarner reported Q4 2024 net sales of $3,439 million, a decrease of 2.4$14,086 million, a decrease of 0.8% from 2023[5] - Adjusted net earnings per diluted share for Q4 2024 were $1.01, up from$0.90 in Q4 2023[7] - The company reported a net loss attributable to BorgWarner Inc. of $405 million in Q4 2024, compared to net earnings of$154 million in Q4 2023[16] - Adjusted operating income for the year ended December 31, 2024, was $1,417 million, reflecting an increase from$1,358 million in 2023, with an adjusted operating margin of 10.1%[30] Operating Margins and Earnings Guidance - The adjusted operating margin for Q4 2024 was 10.2%, while the U.S. GAAP operating margin was (9.2)%, impacted by $646 million in impairment charges[3] - BorgWarner anticipates an adjusted operating margin of 10.0$3.84 and $4.12 per diluted share[9] - BorgWarner's adjusted earnings per diluted share for FY 2025 is expected to range from$4.05 to $4.40, reflecting a solid earnings outlook[35] Cash Flow and Capital Expenditures - Free cash flow for 2025 is expected to be in the range of$650 million to $750 million[9] - BorgWarner generated$682 million in net cash from operating activities in Q4 2024, with free cash flow of $539 million[5] - Free cash flow for the year ended December 31, 2024, was$729 million, compared to $565 million in 2023, indicating a strong cash generation capability[31] - Capital expenditures for the year ended December 31, 2024, were$671 million, down from $832 million in 2023[20] Business Outlook and Market Expectations - The company expects 2025 net sales to be between$13.4 billion and $14.0 billion, implying a year-over-year organic sales change of down 2$13,400 million and $14,000 million, with an adjusted operating income guidance of$1,345 million to $1,430 million[34] Impairment Charges and Asset Management - The company incurred impairment charges of$646 million in Q4 2024, compared to $29 million in Q4 2023[16] - Total assets decreased to$13,993 million as of December 31, 2024, down from $14,453 million at the end of 2023[19] - Cash and cash equivalents increased to$2,094 million at the end of 2024, compared to 1,534 million at the end of 2023[19] Segment Performance - Segment Adjusted Operating Income for Turbos & Thermal Technologies was 223 million in Q4 2024, up from $214 million in Q4 2023[18] - In Q4 2024, the Battery & Charging Systems segment showed a strong organic net sales growth of 8.6%, contrasting with declines in other segments[32] Strategic Initiatives - BorgWarner secured multiple new business awards, including a Variable Cam Timing systems award for next-generation hybrid engines expected to launch in Q1 2026[3] - The company plans to continue focusing on market expansion and new technology development in the upcoming year[21]