BorgWarner Increases 2025 Revenue Forecast to $14-$14.4B, Updates Guidance

BorgWarner has increased its 2025 revenue forecast to $14-14.4 bln, up from $13.6-14.2 bln, driven by higher industry production and favorable foreign exchange rates. The company expects a 0.5-2.5% decline in light and commercial vehicle markets, with organic sales shifting between a 1.5% decline and 1% growth. Operating margin is forecast between 8.3-8.5% under US GAAP and 10.1-10.3% adjusted, with net earnings per diluted share at $3.80-3.97 and adjusted figures at $4.45-4.65.

Auto parts supplier BorgWarner Inc. (BWA) has raised its annual sales forecast for 2025, driven by robust vehicle production and favorable exchange rates. The company now expects full-year revenue between $14 billion and $14.4 billion, up from its prior forecast of $13.6 billion to $14.2 billion [1].

Despite the challenges posed by tariffs and increased expenses, BorgWarner benefited from sustained demand for efficient hybrid systems and turbochargers. The company reported adjusted earnings of $1.21 per share for the second quarter of 2025, surpassing the Zacks Consensus Estimate of $1.06 and increasing from $1.19 in the prior-year quarter [2].

BorgWarner's revenue for the second quarter rose about 1% to $3.64 billion compared to the previous year, exceeding analysts' expectations of $3.61 billion. The company expects a 0.5% to 2.5% decline in light and commercial vehicle markets, with organic sales shifting between a 1.5% decline and 1% growth. Operating margin is forecast between 8.3% and 8.5% under US GAAP and 10.1% and 10.3% adjusted, with net earnings per diluted share at $3.80 to $3.97 and adjusted figures at $4.45 to $4.65 [3].

The company also declared a quarterly cash dividend of 17 cents per share, representing a 55% increase from the previous payout, and boosted its buyback authorization to $1 billion [2].

References:
[1] https://www.reuters.com/markets/europe/borgwarner-raises-annual-sales-forecast-strong-vehicle-production-2025-07-31/
[2] https://www.nasdaq.com/articles/borgwarner-beats-q2-earnings-boosts-dividend-buyback
[3] https://seekingalpha.com/news/4475246-borgwarner-non-gaap-eps-of-1_21-beats-by-0_13-revenue-of-3_64b-beats-by-20m