Slide 1: Q4 & FY 2024 Earnings Call Presentation
Q4 & FY 2024 Earnings Call Presentation February 6, 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 ► Fred Lissalde Chief Executive Officer ► Joe Fadool Chief Operating Officer ► Craig Aaron Chief Financial Officer ► Q&A 4
Slide 5: Delivered Solid Outgrowth and Expanded Margins and Free Cash Flow in 2024
Delivered Solid Outgrowth and Expanded Margins and Free Cash Flow in 2024 $ in millions, except EPS ▪ Sales outgrowth of 2.8% driven by Net Sales Adj. EPS* Free Cash Flow* demand for the Company’s efficient Organic Sales* Adj. EPS* FCF* Decrease of ~0.2% Increase of ~15% Increase of ~29% propulsion
Slide 6: BorgWarner's Strong Value Proposition
BorgWarner’s Strong Value Proposition ▪ Strong and resilient product portfolio ▪ #1 or #2 market share in Foundational products, with growing share in several eProducts ▪ Financial strength and discipline ▪ Significant relationships across LV & CV customers ▪ Decentralized operating model creates sp
Slide 7: Focus for 2025 and Beyond
Focus for 2025 and Beyond ► Outgrow our end markets by leveraging our core competencies ► Build on our existing product portfolio through continued organic and inorganic investments ► Drive enhanced financial performance through margin expansion and cash generation 7
Slide 8: Awards Across Technology-Focused Portfolio
Awards Across Technology-Focused Portfolio Variable Cam Timing Turbocharger Extension Transfer Cases eMotors Turbocharger Extension (VCT) ▪ Award for four ▪ Award to supply two ▪ Four eMotor awards for ▪ Award for four ▪ Award with a major East turbocharger platforms types of transfer cases three ma
Slide 9: Q4 2024 Net Sales Walk
Q4 2024 Net Sales Walk $ in millions ▪ Organic sales* down ~2% driven by a ~4% decline in industry production: Q4 2023 net sales $3,522 ▪ Europe – Outgrowth in eProducts and EGR modules FX $(32) ▪ North America – Outgrowth in battery systems and transfer cases Organic net sales change* $(57) ▪ Rest
Slide 10: Q4 2024 Financial Results & Adj. Operating Income
Q4 2024 Financial Results & Adj. Operating Income $ in millions ($ in millions, except per Q4 2023 adj. operating share amounts) Three months ended $332 income* Non-GAAP Financial December 31, Information (Continuing 2024 2023 Operations) FX $(5) Net sales $3,439 $3,522 Organic change, productivity,
Slide 11: 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. 89.4 87.3 to 88.2 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 ~27% 29.9 29.5 to 29.9 Comb
Slide 12: 2025 Outlook and Other Items
2025 Outlook and Other Items $ in millions, except EPS Full-year Net Sales Outlook ($M) Market & Earnings Outlook 2024 Actual 2025 Outlook 10.1% 2024 net sales Adj. Operating Margin* $14,086 Organic growth* (0.2%) (2%) to 2% LV/CV Weighted Market (3.0%) (3%) to (1%) FX $(410) Adj. operating margin*
Slide 13: Thank You
February 6, 2025 Q4 & FY 2024 Earnings Call Presentation THANK YOU
Slide 14: Appendix
APPENDIX BORGWUARNER
Slide 15: 2025 Planning Assumptions
2025 Planning Assumptions ▪ CapEx $625 to $675 million ▪ Adjusted tax rate for ongoing operations 23% to 24% 15
Slide 16: BorgWarner Global Production Outlook (2025 vs. 2024)
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 14.8 to 15.0 17.1 16.1 to 16.5 29.9 29.5 to 29.9 89.4 87.3 to 88.2 Commercial Vehicle 0.6 ~0.7
Slide 17: Fourth Quarter & Full Year Reconciliation: Adjusted Operating Income
Fourth Quarter & Full Year 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 ex
Slide 18: Fourth Quarter & Full Year Reconciliation: Adjusted EPS
Fourth Quarter & Full Year 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, d
Slide 19: Fourth Quarter & Full Year Organic Net Sales Change
Fourth Quarter & Full Year 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 the acquisitions of the smart grid and smart energy businesses of Hubei Surpass Su
Slide 20: Full Year 2025 Adj. Operating Income and Margin Guidance Reconciliation
Full Year 2025 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation to US GAAP 20
Slide 21: Full Year 2025 Adj. EPS Guidance Reconciliation
Full Year 2025 Adj. Earnings per Diluted Share Guidance Reconciliation to US GAAP 21
Slide 22: Full Year 2025 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation
Full Year 2025 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation Organic Net Sales Change BorgWarner net sales change year over year excluding the estimated impact of foreign exchange (FX) and the acquisitions of the electric vehicle solution, smart grid and smart energy busin
Slide 23: Free Cash Flow Reconciliations
Q4 & FY 2024, Q4 & FY 2023 & 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 b
Slide 24: Additional adj. for est. 2025 FX rates
Additional adj. for est. 2025 FX rates Year Ended December 31, 2024 Adj. EPS Walk Including Add'l Add'l Adj. for Est. Adj. for Est. 2025 $ in millions except adj. EPS Adj. EPS Walk 2025 FX Rates FX Rates Net sales $ 14,086 $ (410) $ 13,676 Adjusted operating income $ 1,417 $ (45) $ 1,372 Intangible
Slide 25: 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 MD&A. M