Core Insights - BorgWarner has been recognized for its sustainability efforts by being included in Corporate Knights' Global 100 index and the USA 25 Most Sustainable Corporations list for 2026 [1][2] Group 1: Recognition and Rankings - This is the second consecutive year that BorgWarner has been named to the Global 100, ranking first in the auto components industry, eighth in the cars and trucks manufacturing peer group, and third among U.S.-based automotive companies [2][7] - In the inaugural USA 25 Most Sustainable Corporations list, BorgWarner ranked 21st overall and third within the automotive industry [2][7] Group 2: Sustainability Metrics - The rankings were based on three key performance indicators (KPIs): sustainable revenue, sustainable investment, and sustainable revenue momentum [3] - Sustainable revenue is defined as the percentage of total revenue derived from sustainable products, while sustainable investment refers to the percentage of total investment in sustainable projects or research [3] Group 3: Company Vision and Commitment - BorgWarner's President and CEO, Joseph Fadool, emphasized the company's commitment to innovation in clean mobility solutions and the importance of a resilient product portfolio that aligns with a vision of a clean, energy-efficient world [4][5]

Core Insights - BorgWarner achieved a full-year 2025 adjusted operating margin of 10.7%, with margin expansion across all business units and a reduction in corporate overhead [1][4] - The company returned approximately $630 million to shareholders in 2025, representing about 52% of free cash flow [1][7] - BorgWarner reported 2025 net sales of $14.3 billion, an increase of roughly $200 million year-over-year, driven by a 23% rise in light vehicle e-product sales [3][7] Financial Performance - In 2025, BorgWarner expanded its adjusted operating margin by 60 basis points despite a 20 basis point net tariff headwind, achieving 14% EPS growth year-over-year and generating over $1.2 billion of free cash flow [2][7] - The fourth quarter sales were just under $3.6 billion, up from just over $3.4 billion a year earlier, attributed to stronger foreign currencies and modest organic growth [8] - Adjusted operating income in Q4 was $427 million, with a 12.0% adjusted operating margin, up from $352 million and a 10.2% margin a year ago [9] 2026 Outlook - For 2026, management guided sales of $14.0–14.3 billion, with organic sales expected to decline by 3.5% to 1.5% due to a headwind from the battery business [5][14] - The adjusted operating margin is expected to be between 10.7% and 10.9%, with EPS projected at $5.00 to $5.20, indicating about 4% growth at the midpoint [5][15] - Free cash flow is anticipated to be between $900 million and $1.1 billion, reflecting higher capital spending for new product launches [15] Strategic Initiatives - BorgWarner signed a master supply agreement with TurboCell to supply a modular turbine generator system for data centers, with expected first-year sales exceeding $300 million [6][12] - The company expects to control about 65% of the content through vertical integration and plans to leverage existing plants globally for subcomponents [13] - Management emphasized the importance of new product awards across its foundational and e-product portfolios, including significant contracts with major OEMs [11][16] Market Trends and Challenges - The company noted challenges in its battery business, with near-term sales trends difficult to predict, but remains optimistic about future opportunities in commercial vehicle battery packs [18] - Management reiterated expectations for low double-digit growth in light vehicle e-products in 2026, supported by customer recoveries [17]