BorgWarner Revs Up Engine for Growth: Strong First Quarter Results Showcase Product Leadership and Operational Excellence
BorgWarner, a leading global automotive technology company, has reported strong first quarter results, solidifying its position as a leader in the industry. Despite a decline in market production, the company's organic sales were relatively flat at $3.5 billion, with a 3.7% growth rate driven by a 47% increase in light vehicle eProduct sales.
The company's focus on product leadership and operational excellence paid off, with adjusted operating margin performance coming in at 10%. This strong underlying operational performance was driven by eProducts growth and the company's commitment to cost controls across its business. BorgWarner continues to secure multiple new product awards for both foundational and eProducts across its portfolio.
In a strategic move to drive focus and competitiveness of its product portfolio, BorgWarner made two important decisions in the quarter. The company exited its charging business, citing that it did not see this business creating shareholder value within its planning horizon. Additionally, BorgWarner began capacity consolidation actions within its North American battery systems business, adjusting its cost structure to current market dynamics and creating a more competitive business.
BorgWarner's CEO, Joseph Fadool, expressed excitement about the company's future prospects, stating that he believes they have the right product portfolio, leadership, and focus on operational performance to drive profitable growth and significant shareholder value for years to come. The company continues to secure new business awards, with a recent hybrid eMotor award with a major North American OEM being a notable example.
The hybrid eMotor award is expected to launch in 2028 and will be used on a series of hybrid, full-size trucks and SUVs as well as a performance vehicle application. This business is expected to drive growth for the company, further solidifying its position as a leader in the industry.
BorgWarner's first quarter results demonstrate its commitment to product leadership and operational excellence, positioning the company for continued profitable growth and significant shareholder value creation.
