BorgWarner (BWA) Barclays 16th Annual Global Automotive and Mobility Tech Conference summary

Near-term performance and supply chain

• Q3 sales were impacted by a $35M cyberattack at JLR, but the situation has stabilized 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 will be provided as the company looks into 2026.

Growth outlook and business mix

• Outgrowth for 2024–2026 is expected to remain around 1% due to lower-than-expected volumes from previously won e-product programs.

• 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 and hybrid opportunities

• Foundational units aim to outgrow the combustion and hybrid market, with recent turbocharger wins in North America and Europe.

• Combustion and hybrid vehicles are expected to remain growth pockets, especially in China and Southeast Asia.

• Advanced ICE technologies like turbos and dual-clutch transmissions still have penetration opportunities, especially in North America.

• Hybrid vehicles offer 4–5x the content opportunity versus pure combustion, benefiting both foundational and e-product segments.