NYSE$BWA

BorgWarner Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

BorgWarner reported a decrease in net sales but an increase in adjusted net earnings per diluted share, with an adjusted operating margin of 10.2%.

BorgWarner's fourth quarter 2024 results showed a decrease in net sales by 2.4% compared to the previous year, but an increase in adjusted net earnings per diluted share from $0.90 to $1.01. The company achieved an adjusted operating margin of 10.2% and generated $539 million in free cash flow. Despite market challenges, BorgWarner expects continued sales outgrowth and strong free cash flow in 2025.

  • Net sales decreased by 2.4% to $3,439 million compared to Q4 2023.
  • Adjusted net earnings per diluted share increased to $1.01, up from $0.90 in Q4 2023.
  • Adjusted operating margin was 10.2%, compared to a U.S. GAAP operating margin of (9.2)%.
  • Free cash flow was $539 million for the quarter.
  • The company secured multiple new business awards expected to support long-term profitable growth.

Headline financials

Total Revenue

$3.44B

Previous: $3.52B-2.4%
EPS (adj)

$1.01

Previous: $0.90+12.2%
Operating Margin

-9.2%

No prior period
Adjusted Operating Income

$352M

No prior period
Adjusted Operating Margin

10.2%

No prior period
Gross Margin

19.9%

No prior period
Capital Expenditures

-$161M

Previous: -$208M+22.6%
Net Income

-$403M

Previous: $149M-370.5%
Operating Income

-$316M

Previous: $281M-212.5%
Gross Profit

$683M

Previous: $659M+3.6%

Revenue & EPS history

BorgWarner · Revenue · Quarterly

$3.44B

Q4 2024-2.4%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

BorgWarner anticipates net sales between $13.4 billion and $14.0 billion for 2025. The company expects organic sales to change between -2% and +2%, with an adjusted operating margin between 10.0% and 10.2%. Full-year free cash flow is projected to be in the range of $650 million to $750 million.

Tailwinds

  • Net sales are expected to be in the range of $13.4 billion to $14.0 billion.
  • Organic sales are expected to change between -2% to +2%.
  • Adjusted operating margin is expected to be in the range of 10.0% to 10.2%.
  • Net earnings are expected to be within a range of $3.84 to $4.12 per diluted share.
  • Full-year free cash flow is expected to be in the range of $650 million to $750 million.

Headwinds

  • Weighted light and commercial vehicle markets are expected to be down 1% to 3% in 2025.
  • Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $410 million.
  • Operating margin is expected to be in the range of 9.1% to 9.2% in 2025.
  • The Company’s sales guidance implies a year-over-year change in organic sales of down 2% to up 2%.
  • The Company expects its weighted light and commercial vehicle markets to be in the range of down 3.0% to down 1.0% in 2025.

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 Q4 2024

Historical avgQ4 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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