Executive Summary
BorgWarner reported QQ3 2025 revenue of $3.591 billion, up 4.1% year over year, supported by ongoing demand for automotive components and a resilient top line across segments. However, the quarter featured notable margin compression with operating income of $248 million, a 6.9% operating margin, and EBITDA of $248 million—down materially from the prior-year period. Net income declined to $158 million, and EPS was $0.73, down roughly 32% YoY and 30% QoQ, reflecting higher operating costs and a shift in mix toward higher investment activity in EV-related solutions.
Management continued to emphasize BorgWarner’s exposure to EV propulsion and air-management opportunities, alongside aftermarket strengths. While revenue demonstrated momentum, the absence of explicit quarterly guidance in the provided material introduces near-term uncertainty around profitability trajectories. The key questions for investors center on whether the company can normalize margins through cost discipline and favorable mix, and how quickly EV content will translate into durable, higher-margin growth in the core portfolio.
In summary, QQ3 2025 delivers revenue growth and a constructive long-term position in EV-adjacent segments, but near-term profitability hinges on expense control, pricing, and EV content mix normalization. Investors should monitor operating leverage, commodity costs, and the pace of EV take-up across BorgWarner’s customers.
Key Performance Indicators
QoQ: -14.19% | YoY:-8.15%
QoQ: -29.46% | YoY:-32.48%
QoQ: -29.81% | YoY:-30.48%
Key Insights
Revenue: $3.591B; YoY +4.12%; QoQ -1.29%
Gross Profit: $664M; Gross Margin 18.49%; YoY +4.40%; QoQ +3.75%
EBITDA: $248M; EBITDA Margin 6.90%; YoY -48.94% (from $485M in Q3 2024)
Operating Income: $248M; Operating Margin 6.90%; YoY -8.15%; QoQ -14.19%
Net Income: $158M; Net Margin 4.40%; YoY -32.48%; QoQ -29.46%
EPS: $0.73; YoY -30.48%; QoQ -29.81%
Weighted Shares: 216.5M (basic and diluted)
Notes: Revenue growth reflects continued demand for auto components; margin compression reflects higher op...
Financial Highlights
Revenue: $3.591B; YoY +4.12%; QoQ -1.29%
Gross Profit: $664M; Gross Margin 18.49%; YoY +4.40%; QoQ +3.75%
EBITDA: $248M; EBITDA Margin 6.90%; YoY -48.94% (from $485M in Q3 2024)
Operating Income: $248M; Operating Margin 6.90%; YoY -8.15%; QoQ -14.19%
Net Income: $158M; Net Margin 4.40%; YoY -32.48%; QoQ -29.46%
EPS: $0.73; YoY -30.48%; QoQ -29.81%
Weighted Shares: 216.5M (basic and diluted)
Notes: Revenue growth reflects continued demand for auto components; margin compression reflects higher operating costs and a shift in product mix toward higher investment activities in EV-related solutions. EBITDA discipline and price realization will be key drivers of near-term profitability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.59B |
4.12% |
-1.29% |
| Gross Profit |
664.00M |
4.40% |
3.75% |
| Operating Income |
248.00M |
-8.15% |
-14.19% |
| Net Income |
158.00M |
-32.48% |
-29.46% |
| EPS |
0.73 |
-30.48% |
-29.81% |
Management Commentary
No earnings call transcript data provided in the prompt. As a result, no management quotes or thematic insights from the QQ3 2025 earnings call can be extracted here. A separate transcript source would be needed to generate topic-based highlights (strategy, operations, market conditions) with context and quotes.
Forward Guidance
No explicit forward guidance was included in the provided materials for QQ3 2025. In a scenario-analysis framework, the near-term outlook hinges on: 1) EV content mix and higher-margin propulsion technology contribution; 2) ongoing cost containment and efficiency initiatives; 3) stabilization of raw material costs and supply chain normalization; 4) aftermarket services growth. Investors should monitor management commentary on cost-reduction programs, capacity utilization, and any updated targets for EBITDA margin restoration or free cash flow generation as the year progresses.