NYSE$BWA
BorgWarner Inc · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
BorgWarner reported third quarter results with net sales up 35% and secured awards for North American and German inverter programs.
BorgWarner's third quarter 2021 results showed a 35% increase in net sales compared to Q3 2020, driven by the acquisition of Delphi Technologies and increased product demand. The company also secured new inverter program awards with a Global OEM and a German OEM, expecting significant annual revenue by 2025.
- Net sales increased by 35% to $3,416 million compared to Q3 2020.
- U.S. GAAP net earnings were $0.40 per diluted share, with adjusted net earnings at $0.80 per diluted share.
- The company secured an award for a North American inverter program with a Global OEM, expected to launch in 2024.
- An 800V SiC inverter award was announced with a German OEM, expected to launch in early 2025.
Headline financials
Revenue & EPS history
BorgWarner · Revenue · Quarterly
$3.42B
Forward guidance
For the full-year 2021, BorgWarner expects net sales in the range of $14.4 billion to $14.7 billion, with organic sales increasing by 8.5% to 11%. Adjusted operating margin is expected to be in the range of 9.6% to 10.0%, and adjusted net earnings are expected to be within a range of $3.65 to $3.95 per diluted share. Full-year free cash flow is expected to be in the range of $600 million to $700 million.
Tailwinds
- Net sales are expected to be in the range of $14.4 billion to $14.7 billion.
- Year-over-year increase in organic sales of 8.5% to 11%.
- Acquisition of AKASOL is expected to increase year-over-year sales by approximately $70 million.
- Foreign currencies are expected to result in a year-over-year increase in sales of approximately $425 million.
- Adjusted net earnings are expected to be within a range of $3.65 to $3.95 per diluted share.
Headwinds
- Semiconductor supply issues could worsen.
- Potential for additional production disruptions arising from COVID-19.
- Weighted light and commercial vehicle markets are expected to be in the range of down approximately 2.5% to flat in 2021.
- Operating margin for the full year is expected to be in the range of 7.9% to 8.7%.
- Capital expenditures, including tooling outlays, affects Free cash flow.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2021
+0.6%
Avg return
Earnings day
+1.1%
Avg return
5 days after
+0.7%
Avg return
30 days after
54%
39 / 72 earnings
Positive
+22.5%
Q4 2025
Best reaction
-11.1%
Q2 2008
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +1.0% | +10.2% | +26.9% | |
| Q4 2025 | +22.5% | +16.3% | -6.3% | |
| Q3 2025 | +3.2% | +3.0% | +0.5% | |
| Q1 2025 | +4.7% | +12.5% | +11.4% | |
| Q4 2024 | -3.0% | -5.6% | -4.4% | |
| Q3 2024 | -0.3% | +1.4% | +2.3% | |
| Q2 2024 | +4.9% | -0.2% | +5.0% | |
| Q1 2024 | +10.9% | +12.0% | +8.5% | |
| Q4 2023 | -6.0% | -8.2% | -5.3% | |
| Q3 2023 | -10.1% | -12.1% | -8.5% | |
| Q2 2023 | -10.9% | -8.8% | -11.1% | |
| Q1 2023 | -4.0% | -4.2% | +2.6% | |
| Q4 2022 | +3.6% | +6.6% | +2.8% | |
| Q3 2022 | +3.5% | +2.1% | +15.6% | |
| Q2 2022 | -0.5% | -0.3% | -4.0% | |
| Q1 2022 | -0.1% | -3.5% | +3.0% | |
| Q4 2021 | +5.8% | +1.9% | -10.3% | |
| Q3 2021 | -1.0% | -0.6% | -6.7% | |
| Q2 2021 | -5.8% | -7.7% | -12.6% | |
| Q1 2021 | +7.7% | +9.1% | +12.3% | |
| Q4 2020 | -3.9% | +0.2% | +15.2% | |
| Q3 2020 | -4.6% | -0.8% | +7.8% | |
| Q2 2020 | +4.1% | +9.0% | +13.2% | |
| Q1 2020 | +3.3% | +8.5% | +38.3% | |
| Q4 2019 | -1.5% | -1.0% | -26.0% | |
| Q3 2019 | +11.2% | +14.9% | +7.2% | |
| Q2 2019 | -7.8% | -10.4% | -27.3% | |
| Q1 2019 | -2.4% | -4.1% | -18.2% | |
| Q4 2018 | +3.8% | +3.5% | -6.4% | |
| Q3 2018 | +6.3% | +8.7% | +10.3% | |
| Q2 2018 | +4.1% | +4.5% | +0.9% | |
| Q1 2018 | -6.2% | -8.3% | -2.7% | |
| Q4 2017 | -4.3% | -4.9% | -6.3% | |
| Q3 2017 | +2.3% | +2.1% | +2.4% | |
| Q2 2017 | +2.3% | -0.1% | -3.7% | |
| Q1 2017 | +3.0% | -0.4% | -0.2% | |
| Q4 2016 | +2.9% | +2.6% | +3.3% | |
| Q3 2016 | +0.7% | -0.3% | +0.8% | |
| Q2 2016 | -3.0% | -6.1% | -1.6% | |
| Q1 2016 | -7.0% | — | — | |
| Q4 2015 | +4.6% | — | — | |
| Q3 2015 | -6.0% | — | — | |
| Q2 2015 | -5.2% | — | — | |
| Q1 2015 | -2.3% | — | — | |
| Q4 2014 | +3.7% | — | — | |
| Q3 2014 | +0.3% | — | — | |
| Q2 2014 | -5.6% | — | — | |
| Q1 2014 | -2.4% | — | — | |
| Q4 2013 | +4.5% | — | — | |
| Q3 2013 | -1.7% | — | — | |
| Q2 2013 | +0.4% | — | — | |
| Q1 2013 | +3.7% | — | — | |
| Q4 2012 | +1.2% | — | — | |
| Q3 2012 | +4.9% | — | — | |
| Q2 2012 | -0.3% | — | — | |
| Q1 2012 | -0.9% | — | — | |
| Q4 2011 | +2.2% | — | — | |
| Q3 2011 | -0.2% | — | — | |
| Q2 2011 | +11.1% | — | — | |
| Q1 2011 | +3.1% | — | — | |
| Q4 2009 | +7.4% | — | — | |
| Q4 2010 | +7.4% | — | — | |
| Q3 2010 | +3.7% | — | — | |
| Q2 2010 | +8.5% | — | — | |
| Q1 2009 | +8.5% | — | — | |
| Q1 2010 | +5.4% | — | — | |
| Q4 2007 | +1.1% | — | — | |
| Q3 2008 | -3.1% | — | — | |
| Q3 2009 | -3.1% | — | — | |
| Q4 2008 | -11.1% | — | — | |
| Q2 2009 | -11.1% | — | — | |
| Q2 2008 | -11.1% | — | — |
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