Here are 1-3 brief analogies to describe BorgWarner (BWA):

• The Qualcomm of car components
• Intel for car propulsion systems

• eMotors & Power Electronics: Critical components like electric motors, inverters, and on-board chargers for electric and hybrid vehicles.
• Drivetrain & Transmission Solutions: Systems including automatic transmission components and all-wheel drive systems for efficient power delivery.
• Turbochargers: Devices that enhance engine power and fuel efficiency by compressing intake air using exhaust gas energy.
• Thermal Management Products: Components such as electric pumps, fans, and cabin heaters designed to regulate temperatures within vehicle systems.
• Battery Management Systems & Battery Packs: Integrated solutions for monitoring, controlling, and housing batteries in electric vehicles.

BorgWarner (BWA) primarily sells its products to other companies, specifically global automotive Original Equipment Manufacturers (OEMs).

Its major customers include:

• Volkswagen AG (VWAGY): BorgWarner's largest customer, accounting for approximately 18% of its net sales as of its latest annual filing (2023 10-K).
• Other major global automotive OEMs: While BorgWarner's public filings indicate that its top five customers collectively accounted for approximately 43% of net sales (with Volkswagen being the largest), the names of the other individual customers are not disclosed. No other single customer accounted for 10% or more of net sales. These customers typically include other large automakers across Europe, North America, and Asia. Examples of such companies that are generally major customers for automotive suppliers like BorgWarner include:
  • Ford Motor Company (F)
  • General Motors Company (GM)
  • Stellantis N.V. (STLA)
  • Hyundai Motor Company (HYMTF, or 005380.KS on the Korea Exchange)
  • Toyota Motor Corporation (TM)

• ElringKlinger AG (ZIL2.DE)
• Infineon Technologies AG (IFX.DE)
• Continental AG (CON.DE)

Joseph F. Fadool President and Chief Executive Officer

Joseph F. Fadool was appointed President and Chief Executive Officer of BorgWarner Inc. in February 2025. Prior to this role, he served as the Executive Vice President and Chief Operating Officer from July 2024 to February 2025. Mr. Fadool's experience at BorgWarner also includes leadership positions as President and General Manager of Emissions, Thermal and Turbo Systems, Morse Systems, and TorqTransfer Systems. Before joining BorgWarner, he was the Vice President for North American Electronic Operations at Continental.

Craig D. Aaron Executive Vice President and Chief Financial Officer

Craig D. Aaron became BorgWarner's Executive Vice President and Chief Financial Officer in March 2024. He joined BorgWarner in 2007 and has held various financial roles within the company, including Vice President and Controller from 2022 to 2024, Vice President and Treasurer from 2019 to 2022, and Vice President of Finance for BorgWarner Morse Systems from 2016 to 2019. Before his tenure at BorgWarner, Mr. Aaron worked at Federal-Mogul Corporation as a corporate account manager and as an in-charge auditor at Deloitte & Touche LLP.

Tonit M. Calaway Executive Vice President, Chief Administrative Officer, General Counsel and Secretary

Tonit M. Calaway serves as BorgWarner's Executive Vice President, Chief Administrative Officer, General Counsel and Secretary.

Paul Farrell Executive Vice President and Chief Strategy Officer

Paul Farrell holds the position of Executive Vice President and Chief Strategy Officer at BorgWarner.

Tania Wingfield Executive Vice President and Chief Human Resources Officer

Tania Wingfield is the Executive Vice President and Chief Human Resources Officer for BorgWarner.

The key risks to BorgWarner's business include:

1. Dependence on Automotive and Truck Production: BorgWarner's financial performance is heavily reliant on global automotive and truck production volumes, which are highly cyclical and susceptible to significant disruptions. Factors such as economic downturns, supply chain issues, and geopolitical events can directly impact production levels and, consequently, BorgWarner's sales and profitability.
2. Reliance on Major OEM Customers: The company's business is significantly dependent on a relatively small number of major Original Equipment Manufacturer (OEM) customers. Changes in these customer relationships, their production schedules, or their financial health can have a material adverse effect on BorgWarner.
3. Transition to eMobility and Associated Industry Shifts: BorgWarner faces risks related to the automotive industry's accelerating transition towards electric vehicles (eMobility). This includes challenges such as intense competition from existing and new players, rapid technological changes, the difficulty in accurately forecasting demand for electric vehicles, and evolving governmental regulations and tariffs in various countries of operation.

1. The accelerated global adoption of battery electric vehicles (BEVs) leading to a significantly faster decline in demand for internal combustion engine (ICE) components than currently anticipated by BorgWarner. While BorgWarner is actively investing in its ePropulsion segment, an unexpectedly rapid market transition could diminish the value and demand for its legacy ICE-related products and manufacturing assets faster than its new EV-focused businesses can scale to compensate, putting significant pressure on revenue and profitability.

2. Increasing vertical integration by automotive OEMs into electric vehicle (EV) component manufacturing. Major automotive manufacturers are increasingly designing and producing key EV components, such as electric motors, inverters, and battery management systems, in-house or through joint ventures, which could limit the market opportunity and addressable market for traditional Tier 1 suppliers like BorgWarner in the rapidly growing ePropulsion space.

BorgWarner (BWA) is poised for future revenue growth over the next 2-3 years, primarily driven by its accelerated electrification strategy, expansion in hybrid vehicle technologies, strategic portfolio adjustments, and targeted growth in key global markets.

1. Accelerated Electrification Strategy and e-Product Portfolio Expansion: BorgWarner's "Charging Forward" strategy is a significant driver, aiming to rapidly increase its electric vehicle (EV) related revenue. The company expects its EV revenue to reach approximately 25% of total revenue by 2025 and 45% by 2030. This growth is fueled by expanding its portfolio of e-products for both electric light vehicles (eLVs) and electric commercial vehicles (eCVs). Specific product areas include integrated drive modules (iDM), power electronics, eMotors, inverters, DCDC converters, battery packs (such as LFP battery packs), advanced charging solutions (including integrated 60 kW chargers), battery management systems, and thermal management components for EVs. The company anticipates its eProduct sales for 2024 to grow by approximately 25% to 40%, and light vehicle e-product sales surged 31% year-over-year in Q2 2025.

2. Growth in Hybrid Vehicle Technologies: Analysts have identified BorgWarner's "favorable leverage to hybrids" as a significant potential growth catalyst. The company is actively supporting OEMs in their journey to electrification, which includes providing solutions for hybrid vehicles alongside full battery electric vehicles. This focus on hybrid technologies allows BorgWarner to cater to diverse market demands during the ongoing transition in the automotive industry. New business awards for variable cam timing (VCT) systems for next-generation hybrid and gasoline engines with a major East Asian OEM are expected to launch in Q1 2026.

3. Strategic Portfolio Optimization through Acquisitions and Dispositions: BorgWarner has been strategically reshaping its business through targeted acquisitions and the planned disposition of certain combustion-focused assets. Acquisitions, such as Delphi Technologies and AKASOL, have been instrumental in enhancing BorgWarner's scale and technological leadership in electronics, software, and commercial vehicle electrification. While the disposition of combustion portfolio businesses, expected to represent $3 billion to $4 billion in annual revenues, streamlines the company's focus, it also frees up capital for reinvestment in high-growth electrification areas. The acquisition of Eldor, for instance, is anticipated to contribute approximately $40 million to 2024 revenue.

4. Expansion in Key Global Markets: BorgWarner is strategically focusing on specific regional markets, particularly in Asia, to drive revenue growth for its electrification products. China and India are highlighted as critical markets that are leading the charge in electrification. BorgWarner's China R&D team is actively designing products, such as two types of transfer cases for SAIC Maxus export vehicles, with mass production expected to launch in 2026. The company also secured four eMotors awards with three leading Chinese OEMs for plug-in hybrids and range-extended hybrids. This targeted geographic expansion and localized product development are expected to contribute to future revenue growth.

Share Repurchases

• BorgWarner's Board of Directors authorized an increase to its share repurchase program to $1 billion through 2028, with an additional $233 million added to the existing authorization as of July 31, 2025.
• The company repurchased approximately $108 million of its outstanding shares during the second quarter of 2025 and approximately $100 million during the third quarter of 2025.
• BorgWarner has returned more than $3.5 billion of capital to shareholders through share repurchases and dividends since 2020.

Outbound Investments

• The acquisition of Delphi Technologies in 2020 significantly enhanced BorgWarner's capabilities, particularly in power electronics and electric vehicle (EV) components, representing a strategic pivot for the company.
• BorgWarner has acquired several businesses, including Santroll's light vehicle eMotor business, Rhombus Energy Solutions (charging), and Hubei Surpass Sun Electric (charging), to expand its electric vehicle portfolio.
• Since 2020, just over 50% of BorgWarner's capital has been deployed to support technology-focused acquisitions.

Capital Expenditures

• Capital expenditures were reported as $739 million in 2024, $713 million in 2023, and $541 million in 2022.
• The company's full-year 2025 free cash flow guidance, which is influenced by capital expenditures, is expected to be in the range of $850 million to $950 million, reflecting an increase of $150 million from prior guidance.
• Capital expenditures are primarily focused on supporting the company's "Charging Forward" strategy, which includes significant investments in eMobility and securing new business awards in electric vehicle products.