BorgWarner Q3 Earnings Surpass Estimates, Increase Y/Y

BorgWarner BWA reported adjusted earnings of $1.24 per share for the third quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.16 and increased from $1.09 recorded in the prior-year quarter. Better-than-expected adjusted operating income from the Turbos & Thermal Technologies segment drove the outperformance. The automotive equipment supplier reported net sales of $3.59 billion, up 4.1% year over year. The figure, however, missed the Zacks Consensus Estimate of $3.63 billion.BorgWarner Inc. Price, Consensus and EPS Surprise BorgWarner Inc. price-consensus-eps-surprise-chart | BorgWarner Inc. QuoteBWA’s Segmental PerformanceTurbos & Thermal Technologies: Net sales totaled $1.44 billion in the reported quarter, up from $1.39 billion in the year-ago period. The figure also beat the Zacks Consensus Estimate of $1.38 billion. Adjusted operating income of $219 million increased from $202 million recorded in the year-ago quarter and topped the Zacks Consensus Estimate of $213.3 million.Drivetrain & Morse Systems: Net sales totaled $1.45 billion in the reported quarter, up from $1.37 billion in the year-ago period. The metric also outpaced the Zacks Consensus Estimate of $1.36 billion. Adjusted operating income of $267 million increased from $251 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $299.4 million.PowerDrive Systems: Sales from the segment were $582 million, up from $512 million in the year-ago period, but missed the Zacks Consensus Estimate of $670 million. The segment incurred an adjusted operating loss of $35 million, wider than the loss of $19 million in the corresponding period of 2024 and the Zacks Consensus Estimate of loss of $33 million.Battery & Charging Systems: Sales from the segment were $132 million, which decreased from $197 million a year ago and missed the Zacks Consensus Estimate of $172 million. The segment incurred an adjusted operating loss of $7 million, narrower than the loss of $8 million in the corresponding period of 2024 and the Zacks Consensus Estimate of a loss of $15 million.Balance Sheet, Cash Flow, Dividend & BuybackAs of Sept. 30, 2025, BorgWarner had $2.17 billion in cash/cash equivalents/restricted cash compared with $2.09 billion as of Dec. 31, 2024. As of the end of third-quarter 2025, long-term debt was $3.9 billion, up from $3.8 billion recorded as of Dec. 31, 2024.Net cash provided by the operating activities from continuing operations was $368 million in the quarter. Capital expenditures totaled $111 million. FCF totaled $266 million.2025 Guidance RevisedFor full-year 2025, the company now anticipates net sales in the band of $14.1-$14.3 billion compared with the previous estimate of $14-$14.4 billion. Adjusted operating margin is expected in the band of 10.3-10.5%, up from 10.1-10.3% guided earlier.Adjusted earnings per share are estimated in the range of $4.60-$4.75 compared with the previous estimate of $4.45-$4.65. Operating cash flow is forecasted in the range of $1,434- $1,484 million compared with the prior projected range of $1,368-$1,418 million. Free cash flow is projected in the band of $850-$950 million, up from the previous forecast of $700-$800 million.BWA Zacks Rank & Key PicksBorgWarner carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Cooper-Standard Holdings Inc. CPS, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CPS’ 2025 sales and earnings implies year-over-year growth of 2.5% and 137.8%, respectively. EPS estimates for 2025 and 2026 have improved 36 cents and 23 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. The same for fiscal 2026 has improved 13 cents in the past 30 days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 8 cents and 18 cents, respectively, in the past seven days. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BorgWarner Inc. (BWA): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks