The Borgwarner Autotes provider raised its annual sales prognosis, trusting a greater production of favorable vehicles and exchange rates.
Although the tariffs imposed on automotive companies throughout the supply chain forced suppliers to absorb more expenses, Borgwarner benefited from a sustained demand for efficient hybrid systems and turbocharger as cars manufacturers increased their production.
Borgwarner now expects income for the entire year of between 14,000 and 14.4 billion dollars, compared to its previous forecast of between $ 13,600 and 14.200 million.
On an adjusted base, the company earned $ 1.21 per share in the quarter until June, compared to estimates of $ 1.08 per share, according to data compiled by LSEG.
Total sales of the second quarter increased approximately 1%, to 3,640 million dollars, compared to the previous year. Analysts expected the company to reach quarterly sales of 3.610 million dollars.
Results of the second quarter and business update
- Net sales according to GAAP accounting principles in the US increased approximately 1% compared to the second quarter of 2024, while organic sales remained practically stable. This performance was aligned with the combined behavior of light and commercial vehicles markets in which the company participates. Sales of electrical products for light vehicles grew 31% year -on -year.
- The company reached a 7.9% GAAP operating margin in the second quarter of 2025, which is equivalent to an adjusted operational margin of 10.3%. The solid performance is attributed to the increase in sales of electrical products for light vehicles and its focus on cost control, despite the negative impact of 40 base points derived from tariffs.
- As part of its balanced capital allocation strategy, Borgwarner announced several measures aimed at generating long -term value for his shareholders. These actions include:
- The repurchase of approximately 108 million dollars in own shares during the second quarter.
- The authorization by the Board of Directors to expand its sharing repurchase program up to 1,000 million dollars, in force until 2028.
- The approval of a 55% increase in the quarterly dividend in cash per action.
Outstanding aspects of the second quarter (based on continuous operations):
- Net sales according to GAAP standards in the US for 3,638 million dollars, which represents an increase of approximately 1% compared to the second quarter of 2024.
- Excluding the impact of currencies, organic sales remained relatively stable compared to the same period of the previous year.
- Net GAAP utility of $ 1.03 per diluted action.
- Excluding a loss of (0.18 dollars) per diluted action related to non -comparable items (detailed below), the net adjusted profit was $ 1.21 per diluted action.
- GAAP operational income of 289 million dollars, equivalent to 7.9% of net sales.
- Excluding $ 84 million in expenses before taxes for non -comparable concepts, the adjusted operational income was $ 373 million, that is, 10.3% of net sales.
- Net cash flow for operational activities: 579 million.
- Free cash flow: 507 million dollars
With Reuters information.
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