BorgWarner Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net sales increase of 4% to $3.591 billion for the quarter, compared to $3.449 billion in the same period last year. For the nine months ended September 30, 2025, net sales reached $10.744 billion, a slight increase from $10.647 billion in 2024. The company's gross profit for the quarter was $664 million, with a gross margin of 18.5%, up from $636 million and 18.4% in the prior year. However, net earnings attributable to BorgWarner Inc. decreased to $158 million, or $0.73 per diluted share, from $234 million, or $1.04 per diluted share, in the same quarter of 2024.
The company experienced several significant changes compared to the previous fiscal period. Notably, BorgWarner's restructuring expenses rose to $23 million in Q3 2025 from $21 million in Q3 2024, primarily due to employee termination benefits. Additionally, the company recorded a $38 million charge related to a legal settlement during the quarter. The exit from its charging business, which was part of the Battery & Charging Systems segment, contributed to a $32 million charge during the nine months ended September 30, 2025. This decision was made to streamline operations and focus on more profitable segments.
Operationally, BorgWarner's product segments showed varied performance. The Turbos & Thermal Technologies segment reported net sales of $1.437 billion, while the Drivetrain & Morse Systems segment saw sales of $1.452 billion. In contrast, the PowerDrive Systems segment reported a loss of $35 million, and the Battery & Charging Systems segment's sales fell to $132 million, reflecting a 33% decrease year-over-year. The company attributed these changes to fluctuations in foreign currencies, market production dynamics, and the impact of tariffs.
BorgWarner's strategic developments included the completion of its spin-off of the Fuel Systems and Aftermarket segments into a separate entity, PHINIA, in July 2023. The company also engaged in various acquisitions, including the purchase of Hubei Surpass Sun Electric's electric vehicle solutions business, which was expected to enhance its presence in the Chinese market. As of September 30, 2025, BorgWarner had a total of 213,928,111 shares of voting common stock outstanding and maintained a strong liquidity position with $2.172 billion in cash and cash equivalents.
Looking ahead, BorgWarner anticipates that global industry production will remain flat year-over-year in 2025. The company expects to achieve sales growth through new business initiatives, although this may be offset by declining sales in its battery and charging systems segment. The management remains optimistic about long-term growth driven by the increasing adoption of electrified vehicle technologies and stringent emissions regulations.
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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