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BorgWarner (BWA) investor relations material
BorgWarner Barclays 16th Annual Global Automotive and Mobility Tech Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Near-term supply chain and operational impacts
Q3 sales were impacted by a $35M hit from a JLR cyberattack, with stabilization seen in Q4.
Ford aluminum supplier issues are expected to impact Q4 sales by $50M-$100M.
Semiconductor supply challenges have improved but remain a watch area.
Further guidance on these disruptions will be provided as 2026 approaches.
Growth strategy and business mix evolution
Outgrowth in 2024-2026 is expected to remain around 1% due to lower-than-expected volumes from earlier e-product program wins.
Seventeen new programs were announced in the last six months, signaling increased activity.
Leadership is encouraging all business units, including foundational, to pursue growth, not just e-products.
Foundational business aims to outgrow the combustion and hybrid market, with recent turbocharger wins in North America and Europe.
Combustion and hybrid vehicles are expected to provide ongoing growth opportunities.
Hybrid and e-product opportunities
Advanced hybrid vehicles offer 4-5x the content opportunity versus pure combustion engines.
Growth in e-products, especially PowerDrive, is driven by new launches in China and Europe.
PowerDrive's growth is expected to continue, with a focus on converting growth into mid-teens margins.
Battery business faces short-term challenges but remains EBITDA and free cash flow positive, with long-term growth expected.
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