BorgWarner(US:BWA)2026-02-11 13:20Financial Performance - U.S. GAAP net sales for 2025 were $14,316 million, an increase of 1.6% compared to 2024[12]. - Adjusted net earnings per diluted share for 2025 were $4.91, up approximately 14% compared to 2024[4]. - Operating cash flow increased to $1,648 million, up approximately 19% compared to 2024[4]. - Free cash flow increased to $1,208 million, up approximately 66% compared to 2024[4]. - BorgWarner reported net sales of $3,572 million for Q4 2025, a 3.9% increase from $3,439 million in Q4 2024[20]. - Adjusted operating income for 2025 was $1,537 million, compared to $1,417 million in 2024, reflecting a year-over-year increase of 8.5%[36]. - The company reported a net sales increase to $14,316 million in 2025 from $14,086 million in 2024, marking a growth of 1.6%[39]. Cash Flow and Capital Expenditures - Net cash provided by operating activities from continuing operations increased to $1,648 million in 2025 from $1,382 million in 2024, representing a growth of 19.3%[25]. - Free cash flow for the year ended 2025 was $1,208 million, up from $729 million in 2024, indicating a significant increase of 65.5%[37]. - Capital expenditures for 2025 were $469 million, down from $671 million in 2024, indicating a reduction of 30.1%[25]. - The company anticipates a free cash flow of $900 million to $1,100 million for 2026, reflecting continued strong cash generation capabilities[42]. Market Outlook - For 2026, net sales are expected to be in the range of $14.0 billion to $14.3 billion, implying a year-over-year change in organic sales of down 3.5% to down 1.5%[13]. - BorgWarner expects adjusted net earnings for 2026 to be within a range of $5.00 to $5.20 per diluted share[14]. - The estimated year-over-year change in production for light vehicles in 2026 is projected to be between -5% to -1% in North America, indicating potential challenges in the market[44]. Segment Performance - Light vehicle eProducts grew approximately 23% in 2025 compared to 2024, driven by demand for hybrid and electric technologies[4]. - The PowerDrive Systems segment saw a revenue increase to $623 million in Q4 2025, up from $525 million in Q4 2024, representing an 18.7% growth[21]. - Organic net sales change for 2025 was 0.5%, with notable performance in PowerDrive Systems, which saw a 20.0% increase in net sales[39]. Challenges and Impairments - The company is facing challenges related to supply disruptions, competitive pressures, and the need for innovation in rapidly changing technologies[19]. - The company incurred impairment charges of $582 million in Q4 2025, slightly down from $646 million in Q4 2024[20]. - Net loss attributable to BorgWarner Inc. for Q4 2025 was $262 million, compared to a net loss of $405 million in Q4 2024[20]. Assets and Liabilities - Total assets decreased to $13,769 million as of December 31, 2025, down from $13,993 million as of December 31, 2024[24]. - Cash and cash equivalents increased to $2,313 million in Q4 2025, compared to $2,094 million in Q4 2024[24]. - The company’s total liabilities decreased to $8,155 million in Q4 2025 from $8,287 million in Q4 2024[24]. - BorgWarner's segment adjusted operating income for Q4 2025 was $499 million, an increase from $435 million in Q4 2024[23]. Awards and Recognition - The company secured a Turbine Generator System Award for the AI-driven data center market, with estimated sales of more than $300 million during the first year of production[3][5].