Description

BorgWarner: Reinventing Its Growth Model Through Electrification and Power Solutions!

BorgWarner delivered a mixed but structurally resilient performance in 2025, combining modest top-line growth with meaningful margin expansion, strong cash generation, and visible portfolio diversification efforts. Net sales reached approximately $14.3 billion, supported by a notable increase in light vehicle electrified product sales, even as overall organic growth remained constrained by continued weakness in the battery business. Excluding Battery and Charging Systems, organic sales growth was positive, highlighting underlying stability in the Foundational and light vehicle portfolios. Operating execution was a key feature of the year, with adjusted operating margin expanding by 60 basis points despite tariff headwinds, reflecting cost controls, customer recoveries, and favorable mix. Free cash flow generation exceeded $1.2 billion, enabling the return of more than half of cash flow to shareholders through repurchases and dividends, while still funding ongoing investments. Strategically, BorgWarner continued to reposition its portfolio toward electrification, hybrid systems, and advanced propulsion technologies.