The earnings call highlighted BorgWarner's strong margin performance, increased EPS, successful product awards, and robust free cash flow. However, it also acknowledged challenges such as a decline in organic sales and reduced full-year sales guidance. Despite these challenges, the company's strong operational execution and positive outlook for margins and EPS suggest a positive overall sentiment.

Company Guidance

During BorgWarner's third-quarter earnings call for 2024, the company provided guidance reflecting strong operational performance despite a challenging market environment. The company reported $3.4 billion in organic sales, down 5% year-over-year, yet still outperforming a 6% market decline, achieving a 270 basis points year-to-date outgrowth over the market. BorgWarner's adjusted operating margin rose to 10.1%, a 50 basis points improvement from the previous year, while earnings per share increased by $0.11 to $1.09. The company raised its full-year margin guidance to 9.8%-10.0% due to robust cost controls and restructuring benefits, with expectations to outgrow market production by 200-300 basis points. BorgWarner completed a $400 million share repurchase plan for 2024 and projects a free cash flow range of $475 million to $575 million, with a significant portion already deployed to shareholders.

Strong Margin Performance

BorgWarner achieved a 10.1% operating margin in Q3 2024, up 50 basis points from the previous year, attributed to cost controls and restructuring benefits.

Earnings Per Share Increase

Earnings per share increased by $0.11 to $1.09 compared to the prior year, driven by operational performance and share repurchases.

Successful Product Awards

Secured multiple new product awards, including high-voltage coolant heaters in Asia and turbochargers for GM's Corvette ZR1, enhancing their market presence.

Share Repurchase Completion

Completed the planned $400 million share repurchase for 2024, reflecting strong cash generation and capital deployment strategies.

Free Cash Flow Growth

Generated $201 million in free cash flow during Q3, up $165 million from the previous year due to strong working capital and capex performance.

Increased Margin and EPS Guidance

Raised full-year margin outlook to 9.8%-10.0% and EPS guidance to $4.15-$4.30, highlighting strong operational performance despite market challenges.

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BorgWarner (BWA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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BWA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 06, 2025	2024 (Q4)	0.94 / -	0.9	―	―	―
Oct 31, 2024	2024 (Q3)	0.93 / 1.09	0.98	11.22% (+0.11)
Jul 31, 2024	2024 (Q2)	1.01 / 1.19	1.05	13.33% (+0.14)
May 02, 2024	2024 (Q1)	0.87 / 1.03	0.959	7.40% (+0.07)
Feb 08, 2024	2023 (Q4)	0.94 / 0.90	1.108	-18.77% (-0.21)
Nov 02, 2023	2023 (Q3)	0.94 / 0.98	1.091	-10.17% (-0.11)
Aug 02, 2023	2023 (Q2)	1.05 / 1.05	0.924	13.64% (+0.13)
May 04, 2023	2023 (Q1)	0.97 / 0.96	0.924	3.79% (+0.03)
Feb 09, 2023	2022 (Q4)	0.95 / 1.11	0.932	18.88% (+0.18)
Oct 27, 2022	2022 (Q3)	0.91 / 1.09	0.704	54.97% (+0.39)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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BWA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$33.44	$33.52	+0.24%
Jul 31, 2024	$32.24	$35.08	+8.81%
May 02, 2024	$32.56	$35.29	+8.38%
Feb 08, 2024	$33.39	$31.07	-6.95%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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