BorgWarner Q4 Earnings Surpass Expectations, Increase Y/Y

BorgWarner BWA reported adjusted earnings of $1.01 per share for the fourth quarter of 2024, which surpassed the Zacks Consensus Estimate of 92 cents and increased from 90 cents recorded in the prior-year quarter. Better-than-expected bottom line from all segments apart from Drivetrain & Morse systems unit drove the outperformance.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The automotive equipment supplier reported net sales of $3.44 billion, which missed the Zacks Consensus Estimate of $3.49 billion. The top line also declined 2.36% year over year.BorgWarner Inc. Price, Consensus and EPS Surprise BorgWarner Inc. price-consensus-eps-surprise-chart | BorgWarner Inc. QuoteSegmental PerformanceEffective July 1, 2024, BorgWarner reorganized its business units and management structure to better support its Changing Forward strategy. It now has four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems (formerly known as ePropulsion), and Battery and Charging Systems.Turbos & Thermal Technologies: Net sales totaled $1.41 billion in the reported quarter compared with $1.44 billion in the year-ago period. The figure beat the Zacks Consensus Estimate by 2.32%. Adjusted operating income of $223 million increased from $214 million recorded in the year-ago quarter and beat the consensus mark by 12.98%.Drivetrain & Morse Systems: Net sales totaled $1.35 billion in the reported quarter compared with $1.40 billion in the year-ago period. The figure missed the Zacks Consensus Estimate by 1.09%. Adjusted operating income of $240 million decreased from $258 million recorded in the year-ago period and missed the consensus mark by 3.58%.PowerDrive Systems: Sales from the segment were $525 million, which declined from $542 million a year ago. The figure beat the Zacks Consensus Estimate by 0.39%. The segment incurred an adjusted operating loss of $14 million, narrower than an operating loss of $16 million in the corresponding period of 2023 and the consensus mark of $25.8 million.Battery & Charging Systems: Sales from the segment were $162 million, which increased from $151 million a year ago. The figure missed the Zacks Consensus Estimate by 31.11%. The segment incurred an adjusted operating loss of $14 million, narrower than an operating loss of $40 million in the corresponding period of 2023 as well as the consensus mark of $16 million.Financial PositionAs of Dec. 31, 2024, BorgWarner had $2.09 billion in cash/cash equivalents/restricted cash compared with $1.53 billion as of Dec. 31, 2023. As of the end of fourth-quarter 2024, long-term debt was $3.76 billion, up from $3.71 billion recorded as of Dec. 31, 2023.Net cash from operating activities from continuing operations was $682 million in the quarter under review. Capital expenditures and free cash flow totaled $161 million and $539 million, respectively.BWA’s 2025 GuidanceFor full-year 2025, the company now anticipates net sales in the band of $13.4-$14 billion compared with $14.1 billion in 2024.Adjusted operating margin is expected in the band of 9.1-9.2%. Adjusted earnings are estimated in the range of $4.05-$4.40 per share. The operating cash flow is forecasted in the range of $1.33-$1.38 billion. Free cash flow is projected in the band of $650-$750 million.BWA’s Zacks Rank & Key PicksBorgWarner currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the auto space are General Motors GM, Garrett Motion GTX and Yamaha Motor Co. YMHAY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has moved north by 5.58% and 7.91%, respectively, over the past 30 days.The Zacks Consensus Estimate for GTX’s 2025 EPS has moved up by a cent over the past 30 days.The Zacks Consensus Estimate for YMHAY’s 2025 EPS has moved up by a cent over the past 60 days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 General Motors Company (GM): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis Report Yamaha Motor Co., Ltd. (YMHAY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks