BorgWarner(US:BWA)2025-10-30 12:17Financial 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].