Wed, May 7, 3:33 PM (8 days ago)
**BorgWarner Inc. (BWA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $3.515 billion, down 2% YoY due to foreign currency fluctuations and lower market production. - **Gross Profit:** $639 million, with an 18.2% margin, slightly up from 17.9% in Q1 2024. - **Operating Income:** $237 million, down from $295 million in Q1 2024. - **Net Earnings:** $171 million, down from $221 million in Q1 2024. - **EPS:** $0.72, down from $0.93 in Q1 2024. **Profit Margins:** - **Gross Margin:** 18.2%, up from 17.9% in Q1 2024. - **Operating Margin:** 6.7%, down from 8.2% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $82 million, up from a negative $118 million in Q1 2024. - **Capital Expenditures:** $119 million, down from $190 million in Q1 2024. **Earnings Changes:** - **Restructuring Expense:** $31 million, up from $19 million in Q1 2024. - **Impairment Charges:** $39 million, due to the exit of the charging business. - **Interest Expense:** $12 million, up from $5 million in Q1 2024. **Segment Performance:** - **Turbos & Thermal Technologies:** Sales down 8%, but adjusted operating income up 7%. - **Drivetrain & Morse Systems:** Sales down 4%, adjusted operating income down 4%. - **PowerDrive Systems:** Sales up 29%, adjusted operating loss down 19%. - **Battery & Charging Systems:** Sales down 15%, adjusted operating loss up 7%. **Trends and Uncertainties:** - **Market Production:** Down approximately 4% YoY. - **Commodities and Inflation:** Expected to be relatively flat in 2025, but uncertainty remains due to potential tariffs. - **Outlook:** Expects global industry production to decrease YoY, but net new business-related sales growth and cost recovery actions to mitigate the impact. **Future Operations Impact:** - **Charging Business Exit:** Expected to be completed in Q2 2025, aiming to eliminate approximately $30 million of annualized adjusted operating losses by 2026. - **North American Battery Systems Consolidation:** Expected to result in annual cost savings of approximately $20 million by 2026. - **Acquisitions:** Continued focus on strategic acquisitions to enhance product leadership.