Slide 1: Q1 2025 Earnings Call Presentation
Q1 2025 Earnings Call Presentation May 7, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “cou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains information about BorgWarner’s financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures in the Appendix. The provision of these comparable
Slide 4: Agenda
Agenda ► Joe Fadool Chief Executive Officer ► Craig Aaron Chief Financial Officer ► Q&A 4
Slide 5: Strong First Quarter Execution, Remain Focused on Long-term Value Creation
Strong First Quarter Execution, Remain Focused on Long-term Value Creation $ in millions, except EPS ▪ LV eProduct sales up ~47% with Net Sales Adj. EPS* Free Cash Flow* strong outgrowth across all regions Organic Sales* Adj. EPS* FCF* Increase of ~0.1% Increase of ~8% Improvement of ~89% ▪ Continue
Slide 6: Awards Across Technology-Focused Portfolio
Awards Across Technology-Focused Portfolio eProduct Awards for Electrified Vehicles Foundational Awards Continue High-voltage eMotors High-voltage Coolant Heater Exhaust Gas Recirculation Dual-clutch Transmissions (HVCH) (EGR) Components (DCT) ▪ Award with a major North American OEM for hybrid full-
Slide 7: Exit Charging Business
Exit Charging Business Current Market Assessment Exit Actions ▪ Business unlikely to create shareholder ▪ Plan to cease global operations value in near/ mid-term as automotive ▪ Shut down or sell 5 locations in 3 regions scale is delayed ▪ Operations to end during Q2 2025 ▪ Market is not growing as
Slide 8: North American Battery Systems Consolidation
North American Battery Systems Consolidation Estimated Consolidation ▪ North American consolidation began in Q1 2025 Cost Savings ▪ Consolidated North American footprint into one location in Seneca, South Carolina ~$20M ▪ Closure of Hazel Park and Warren, Michigan ~$15M locations includes headcount
Slide 9: Q1 2025 Net Sales Walk
Q1 2025 Net Sales Walk $ in millions ▪ Organic sales* up ~0.1% driven by strong eProduct sales across all regions despite Q1 2024 net sales $3,595 ~3.6% decline in industry production ▪ Europe – Outgrowth in inverters, other eProducts and EGR modules FX $(85) ▪ North America – Outgrowth supported by
Slide 10: Q1 2025 Financial Results & Adj. Operating Income
Q1 2025 Financial Results & Adj. Operating Income $ in millions ($ in millions, except per share Three months Q1 2024 adj. operating $339 amounts) income* ended Non-GAAP Financial Information (Continuing March 31, Operations) 2025 2024 FX $(10) Net sales $3,515 $3,595 Adj. operating income* $352 $33
Slide 11: 2025 Outlook and Other Items
2025 Outlook and Other Items $ in millions, except EPS Full-year Net Sales Outlook ($M) Market & Earnings Outlook Prior Guidance 2025 Outlook 10.1% Organic growth* (2%) to 2% (2%) to 2% 2024 net sales Adj. Operating Margin* $14,086 LV/CV Weighted Market (3%) to (1%) (4%) to (2%) FX $(160) Adj. opera
Slide 12: Thank You
May 7, 2025 Q1 2025 Earnings Call Presentation THANK YOU
Slide 13: Appendix
APPENDIX BORGWUARNER
Slide 14: 2025 Planning Assumptions
2025 Planning Assumptions ▪ CapEx $625 to $675 million ▪ Adjusted tax rate for ongoing operations 23% 14
Slide 15: 2025 Light Vehicle Market Expectations
2025 Light Vehicle Market Expectations LV Units in millions BorgWarner Global Market North America Europe China FY’24 FY’25 Actual Est. 89.5 86.8 to 88.5 YOY (3%) to (1%) Electric Electric FY’24 FY’25 FY’24 FY’25 FY’24 FY’25 ~13% ~17% Actual Est. Actual Est. Actual Est. Hybrid ~24% Hybrid 30.0 to 30
Slide 16: BorgWarner Global Production Outlook
BorgWarner Global Production Outlook (2025 vs. 2024) Actual & Estimated Production Totals (in Millions of Units) North America Europe China Total 2024 2025 2024 2025 2024 2025 2024 2025 Light Vehicle 15.5 13.6 to 14.4 17.2 16.3 to 16.6 29.8 30.0 to 30.2 89.5 86.8 to 88.5 Commercial Vehicle 0.6 ~0.6
Slide 17: First Quarter Reconciliation: Adjusted Operating Income and Margin
First Quarter Reconciliation to US GAAP Adjusted Operating Income and Operating Margin The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other
Slide 18: First Quarter Reconciliation: Adjusted EPS
First Quarter Reconciliation to US GAAP Adjusted Earnings Per Diluted Share The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued o
Slide 19: First Quarter Organic Net Sales Change
First Quarter Organic Net Sales Change Organic Net Sales Change The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange (FX) and net mergers, acquisitions and divestitures. 19
Slide 20: Full Year 2025 Guidance Reconciliation
Full Year 2025 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation to US GAAP Adjusted Operating Income and Operating Margin The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestit
Slide 21: Full Year 2025 EPS Guidance Reconciliation
Full Year 2025 Adj. Earnings per Diluted Share Guidance Reconciliation to US GAAP Adjusted Earnings Per Diluted Share The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture e
Slide 22: Organic Net Sales Change Guidance
Full Year 2025 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation Organic Net Sales Change The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange (FX) and net mergers, acquisitions and divestitures. 22
Slide 23: Free Cash Flow Reconciliations
Q1 2025, Q1 2024 & Full Year 2025 Free Cash Flow Reconciliations to US GAAP The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both manage
Slide 24: Key Definitions
Key Definitions The terms below are commonly used by management and investors in assessing ongoing financial performance: Organic Net Sales Change. The Company defines organic net sales changes as net sales change year over year excluding the estimated impact of foreign exchange (FX) and net mergers