Strong Organic Sales Growth
BorgWarner achieved organic sales growth of just over 2% in the third quarter, despite challenges such as downtime at a European customer due to a cyber-related shutdown. Excluding the decline in the CV battery and Charging Systems segment, organic sales were up approximately 4% year-over-year.
New Business Awards
BorgWarner secured 8 new business awards across foundational products and e-products, demonstrating the strength of their portfolio and demand for efficient powertrain technology globally.
Improved Adjusted Operating Margin
The adjusted operating margin for the third quarter was 10.7%, a 60 basis point increase year-over-year despite a 60 basis point net tariff headwind.
Strong Free Cash Flow
Free cash flow for the third quarter was $266 million, a 32% increase from the previous year.
Increased Financial Guidance
BorgWarner increased its full-year guidance for adjusted margin, adjusted EPS, and free cash flow.
Significant Shareholder Returns
BorgWarner returned approximately $136 million, or over 50% of its third-quarter free cash flow, to shareholders through share repurchases and dividends.