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BorgWarner (BWA) investor relations material
BorgWarner Barclays 43rd Annual Industrial Select Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.2025 performance highlights
Achieved record free cash flow of $1.2 billion, with adjusted operating margins up 60 basis points and EPS up 14%.
Secured 30 new business wins across both foundational and eProduct portfolios, including a major turbine generator supply agreement with $300 million initial revenue expected next year.
Returned over 50% of free cash flow to shareholders via dividends and buybacks, and will continue this approach.
Focused on financial discipline, cost structure adjustments, and supply chain productivity to support further margin expansion in 2026.
Exploring inorganic growth opportunities that leverage core competencies and expand earnings.
Strategic and organizational shifts
Shifted from a primary focus on eProducts to unlocking growth across all business segments, encouraging each to pursue top-line growth opportunities.
Adjusted strategy 18 months ago in response to slower-than-expected EV adoption, especially outside China.
Foundational business is benefiting from OEMs extending combustion engine lifecycles and introducing new engines, leading to new and conquest business wins.
Leveraging core strengths in turbochargers and drivetrain solutions to win across both foundational and hybrid markets.
Power generation and turbine generator opportunity
Developed a turbine generator in partnership with Endeavour, targeting data centers and other scalable power needs, with 65% of content developed in-house.
Product offers flexibility (1 MW and up), rapid startup, multi-fuel capability, and can serve as both backup and primary power.
No direct competitor for this solution; offers advantages in scalability, cost, and resilience compared to traditional power gen players.
Initial $300 million revenue expected next year, with global demand prompting consideration of capacity expansion beyond 2 GW.
BorgWarner provides the technology and service, while Endeavour handles customer interface and installation.
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