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]

Core Insights - The company reported a decrease in U.S. GAAP net sales of approximately 2% for the first quarter of 2025 compared to the same period in 2024, with net sales totaling $3,515 million [5][6][14] - Adjusted earnings per diluted share increased by approximately 8% to $1.11 in Q1 2025, up from $1.03 in Q1 2024, despite a decline in net earnings per diluted share from $0.93 to $0.72 [4][6] - The company has provided full-year 2025 guidance, expecting net sales between $13.6 billion and $14.2 billion, reflecting slight growth from 2024 sales of approximately $14.1 billion [7][8] Financial Performance - U.S. GAAP net earnings for Q1 2025 were $157 million, down from $213 million in Q1 2024, while adjusted net earnings were $1.11 per diluted share, an increase from $1.03 [6][14] - The company achieved an adjusted operating margin of 10.0% in Q1 2025, compared to a U.S. GAAP operating margin of 6.7%, reflecting a 60 basis point improvement year-over-year [5][6] - The company reported net cash provided by operating activities of $82 million for Q1 2025, a significant improvement from a net cash used of $(118) million in Q1 2024 [17] Business Developments - The company secured multiple new business awards, including a high-volume hybrid eMotor award and a high-voltage coolant heater award, which are expected to support long-term profitable growth [2][5] - The company plans to exit its Charging business, which is anticipated to eliminate approximately $30 million in annualized adjusted operating losses [5][6] - The company is consolidating its North American Battery Systems business, aiming for annual cost savings of approximately $20 million by 2026 [5] Market Outlook - The company expects its weighted light and commercial vehicle markets to decline by 4% to 2% in 2025, a revision from the previous estimate of down 3% to down 1% [7][8] - The sales guidance implies a year-over-year change in organic sales of down 2% to up 2%, with an estimated outgrowth above market production of approximately 200 to 400 basis points [7][8] - The company anticipates operating margins in the range of 8.1% to 8.6% for 2025, with adjusted operating margins expected to be between 9.6% and 10.2% [8]