BorgWarner Inc. BWA reported adjusted earnings of $1.09 per share for third-quarter 2024, up from 98 cents recorded in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 92 cents. The automotive equipment supplier reported net sales of $3.45 billion, which missed the Zacks Consensus Estimate of $3.53 billion. The top line also declined 5% year over year.

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BorgWarner Inc. Price, Consensus and EPS Surprise

BorgWarner Inc. price-consensus-eps-surprise-chart | BorgWarner Inc. Quote

Segmental Performance

Effective July 1, 2024, BorgWarner reorganized its business units and management structure to better support its Charging Forward strategy. It now has four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems (formerly known as ePropulsion), and Battery & Charging Systems.

Turbos & Thermal Technologies: Net sales totaled $1.38 billion in the reported quarter compared with $1.47 billion in the year-ago period. Adjusted operating income of $202 million declined from $214 million recorded in the year-ago quarter.

Drivetrain & Morse Systems: Net sales totaled $1.36 billion in the reported quarter compared with $1.44 billion in the year-ago period. Adjusted operating income of $251 million decreased from $253 million recorded in the year-ago quarter.

PowerDrive Systems: Sales from the segment were $512 million, which declined from $571 million a year ago. The segment incurred an adjusted operating loss of $19 million compared with an operating loss of $20 million in the corresponding period of 2023.

Battery & Charging Systems: Sales from the segment were $197 million, which increased from $146 million a year ago. The segment incurred an adjusted operating loss of $8 million, narrower than an operating loss of $26 million in the corresponding period of 2023.

Financial Position

As of Sept. 30, 2024, BorgWarner had $2 billion in cash/cash equivalents/restricted cash compared with $1.53 billion as of Dec. 31, 2023. As of the end of third-quarter 2024, long-term debt was $4.2 billion, up from $3.7 billion recorded as of Dec. 31, 2023.

Net cash from operating activities from continuing operations was $356 million in the quarter under review. Capital expenditures and free cash flow totaled $155 million and $201 million, respectively.

Revised 2024 Guidance

For full-year 2024, the company now anticipates net sales in the band of $14-$14.2 billion, down from the previous estimate of $14.1-$14.4 billion.