BWANYSEMotor Vehicle Parts & AccessoriesUS GAAP · USD

BorgWarner Inc

BorgWarner Inc. designs and manufactures propulsion and thermal management components for vehicles, with a portfolio spanning combustion, hybrid and electric powertrains. Its products are used by global automakers, commercial vehicle makers and off-highway equipment manufacturers to improve efficiency, performance, stability and emissions. The company operates as a tiered automotive supplier with manufacturing facilities across Europe, the Americas and Asia, and it sells into both original equipment and aftermarket channels. A major part of its business is tied to long vehicle program cycles, customer engineering requirements and the pace of electrification across regions.

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Revenue14.3bn USD
+1.6 %y/y
Operating profit (EBIT)536m USD
−1.8 %y/y
EBIT margin3.7%
−0.1 ppy/y
Net income277m USD
−18.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

051015bn USD2020: 10.2 bn USD2020: EBIT 0.62 bn USD20202021: 11.8 bn USD2021: EBIT 0.91 bn USD20212022: 12.6 bn USD2022: EBIT 1.0 bn USD20222023: 14.2 bn USD2023: EBIT 1.2 bn USD20232024: 14.1 bn USD2024: EBIT 0.55 bn USD20242025: 14.3 bn USD2025: EBIT 0.54 bn USD202514.30.54
RevenueOperating profit (EBIT)
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Business

Share of revenue
Turbos & Thermal Technologies34 %

Turbochargers, thermal management and related efficiency products for combustion and hybrid vehicles.

Drivetrain & Morse Systems28 %

Transmission, timing and drivetrain components that support vehicle propulsion and efficiency.

PowerDrive Systems20 %

Electric drive modules, inverters and propulsion systems for electrified vehicles.

Battery & Charging Systems10 %

Battery-related and charging products, including systems tied to electrification programs.

eProducts and Other Electrification Solutions8 %

A mix of electrified vehicle offerings and newer technology products across powertrain platforms.

Products

Reported · share of revenue
82.0%18.0%FY2025100 %
  • Foundational Products82.0 %
  • E Products18.0 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

BorgWarner sells primarily to global OEMs that build light vehicles such as passenger cars, SUVs, vans and light trucks. It also supplies commercial vehicle OEMs and off-highway customers in agriculture, construction and marine applications, which broadens demand beyond passenger autos. The company additionally sells to tier-one vehicle systems suppliers and to the aftermarket, although OEM programs remain the core of the business model. Customer relationships are program-based and often renewed annually within a vehicle lifecycle, so revenue depends on winning design content, maintaining production volumes and staying embedded in customer platforms. Concentration is meaningful: Volkswagen and Ford each represented a large share of 2025 sales, and the top ten customers accounted for most revenue.

Light-vehicle OEMs

Passenger car, SUV, van and light truck manufacturers buy BorgWarner components for vehicle platforms where efficiency, emissions and propulsion performance matter.

Commercial vehicle OEMs

Truck and bus makers buy drivetrain, turbo and thermal products to support durability and operating efficiency in heavier-duty applications.

Off-highway OEMs

Agricultural, construction and marine equipment makers buy specialized propulsion and thermal components for demanding operating environments.

Tier-one suppliers

Vehicle systems suppliers purchase BorgWarner products for integration into broader modules and assemblies.

Aftermarket customers

Replacement-part buyers purchase BorgWarner products for maintenance and repair across light, commercial and off-highway vehicles.

Strategy

BorgWarner’s current strategy is to pursue profitable growth across a technology-focused portfolio that supports combustion, hybrid and electric vehicles. Management is balancing organic investment with technology-focused acquisitions while keeping a broad product mix because EV adoption has been uneven across regions. The company is also pushing new product development and strategic investments to strengthen its position in electrified propulsion and emissions-related technologies. Near term, it is focused on offsetting weaker industry production with net new business and cost recovery actions, while longer term it expects stricter emissions standards and electrification to support demand.

Expand electrification contentMedium term

EV and hybrid programs are a key growth vector and help offset long-term combustion decline.

Maintain a balanced powertrain portfolioShort term

A mix of combustion, hybrid and electric products reduces exposure to volatile EV adoption by region.

Win new OEM program contentShort term

Revenue depends on design wins and vehicle program awards with global OEMs.

Improve cost structure and recover inflation/tariff pressureShort term

OEM pricing pressure, tariffs and supply-chain costs can compress margins unless offset by pricing and productivity actions.

Geography

Q1/2026

BorgWarner operates globally, with manufacturing facilities serving customers in Europe, the Americas and Asia. The company does not provide a country-level revenue split in the supplied excerpts, but its customer base and production footprint show broad exposure to major automotive regions. Europe is strategically important because many of BorgWarner’s largest OEM relationships are based there, while the Americas and Asia support both local production and export programs. Geographic diversification helps the company serve global vehicle platforms, but it also exposes results to regional EV adoption swings, tariffs, foreign exchange and local production cycles.

Europe38 %
Asia31 %
North America29 %
Other countries (US filing)2.1 %

Share of the revenue the company reports by geography.

Risks

BorgWarner’s business is exposed to cyclical vehicle production, customer concentration and rapid technology shifts in powertrain systems. The company explicitly notes volatility in EV adoption across regions, which can make portfolio planning and capacity utilization difficult. It also faces supply-chain and pricing pressure from OEMs, along with tariffs, commodity inflation, transportation costs and foreign exchange movements that can affect margins and delivery performance. Customer program losses, delays in new product launches, supplier distress, and the risk that competitors or OEMs internalize component production are all material because BorgWarner’s revenue is tied to long-cycle vehicle platforms and high-content programs.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Supply-chain disruption and supplier distress1Technology obsolescence and competitive pressure2Customer concentration3EV adoption volatility4Tariffs and trade policy5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Supply-chain disruption and supplier distressImpact: HighLikelihood: High

    BorgWarner relies on critical suppliers and may need to support distressed suppliers or absorb interruptions that affect production.

    Exposure: Global manufacturing and sourcing

  2. Technology obsolescence and competitive pressureImpact: HighLikelihood: High

    Competitors include large global suppliers and EV start-ups, and OEMs may internalize production or switch technologies.

    Exposure: Powertrain and electrification products

  3. Customer concentrationImpact: HighLikelihood: Medium

    Volkswagen and Ford represented a large share of sales, and the top ten customers accounted for most revenue, so a program loss or production slowdown could materially reduce revenue.

    Exposure: Major OEM programs

  4. EV adoption volatilityImpact: HighLikelihood: Medium

    The company’s strategy depends on a balanced portfolio across combustion, hybrid and electric vehicles, but adoption differs by region and can shift quickly.

    Exposure: PowerDrive Systems and Battery & Charging Systems

  5. Tariffs and trade policyImpact: MediumLikelihood: High

    Tariff expense and retaliatory tariffs can increase cost of sales and weaken industry production and demand.

    Exposure: Cross-border automotive supply chain

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Accounting

Judgemental items
Goodwill impairment

The company recorded large goodwill charges in Battery & Charging Systems and prior charges in PowerDrive Systems, indicating that valuation assumptions and future cash flows are highly sensitive to electrification program performance.

Impact: Can materially reduce net income and book equity

Intangible and PP&E impairment

Asset write-downs tied to charging business exits and segment-specific facilities show that underutilized or discontinued programs can create non-cash charges.

Impact: Affects operating profit and asset base

Restructuring costs

The company has executed restructuring to address structural costs, which changes period comparability and signals ongoing portfolio optimization.

Impact: Impacts operating expense and margin trends

Environmental contingencies

BorgWarner is identified as a potentially responsible party at multiple hazardous waste sites, requiring estimates of remediation liabilities.

Impact: Can affect reserves and cash outflows

Revenue timing and customer program accounting

OEM orders are program-based and not guaranteed at minimum volumes, so revenue recognition and quarterly sales depend on production schedules and launch timing.

Impact: Creates volatility in reported revenue and margins

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Last updated: 24/09/2026