BorgWarner Inc. reported a net sales increase of 2% for the fiscal year ending December 31, 2025, totaling $14.316 billion, compared to $14.086 billion in 2024. The company's gross profit for the year was $2.674 billion, with a gross margin of 18.7%, slightly down from 18.8% in the previous year. Net earnings attributable to BorgWarner Inc. were $277 million, or $1.28 per diluted share, a decrease from $338 million, or $1.63 per diluted share, in 2024. The decline in profitability was attributed to increased costs related to tariffs, foreign currency fluctuations, and a significant impairment charge of $624 million, primarily related to the Battery & Charging Systems segment.
In terms of operational changes, BorgWarner made strategic decisions to exit its charging business, which was part of the Battery & Charging Systems segment. This decision, made in February 2025, was aimed at streamlining operations and is expected to eliminate approximately $30 million in annualized adjusted operating losses by 2026. The company also recorded a $40 million charge related to a legal settlement with PHINIA, a company formed from the spin-off of BorgWarner's Fuel Systems and Aftermarket segments. The settlement resolved disputes over value-added tax refunds and other matters.
BorgWarner's revenue from eProducts, which includes products for electric and hybrid vehicles, reached approximately $2.6 billion, accounting for 18% of total revenue, up from 17% in 2024. The company continues to focus on expanding its product portfolio in response to the automotive industry's shift towards electrification. The company operates globally, with 84% of its net sales generated outside the United States, and it serves a diverse customer base, including major OEMs like Volkswagen and Ford, which together accounted for 25% of total sales.
The company’s workforce as of December 31, 2025, totaled approximately 37,500 employees, with a voluntary turnover rate of 10.2%. BorgWarner's management remains optimistic about long-term growth, despite a challenging market environment characterized by inflationary pressures and fluctuating demand for electric vehicles. The company anticipates a modest decline in total sales for 2026, primarily due to the exit from the charging business and expected reductions in the Battery & Charging Systems segment. However, it remains committed to investing in new product development and strategic acquisitions to enhance its market position.
About BORGWARNER INC
BorgWarner Inc. is a global leader in clean and efficient propulsion technologies for combustion, hybrid, and electric vehicles. It designs, manufactures, and supplies advanced components—including turbochargers, drivetrain systems, power electronics, and battery solutions—to major automotive OEMs worldwide. Serving light, commercial, and off-highway vehicles, BorgWarner leverages innovation, extensive R&D, and a diversified product portfolio to enhance vehicle performance, efficiency, and emissions compliance.
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