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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.
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Barclays 43rd Annual Industrial Select Conference summary19 Feb, 2026

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.

What drives Foundational business growth?
Turbine generator: Demand beyond 2GW capacity?
What sustains margin expansion beyond 2026?
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Q1 20266 May, 2026
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Frequently asked questions

BorgWarner Inc. develops, manufactures, and markets products for powertrain applications worldwide. It offers components and systems for gasoline and diesel engines; transmissions and gearboxes for gasoline and diesel engines through its BorgWarner Transmission Solutions Group segment; snowmobiles; recreational boats; and electric motors for propulsion, hybrid motor applications, nacelle generator sets and electric drive bus systems through its Automotive Products Group segment; and components.

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