Free cash flow remains highly erratic, evidenced by a swing from a $318 million outflow in 2024Q1 to a $698 million inflow in 2025Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.72B | 1.65B | 1.35B | 1.31B | 1.57B | 1.31B | 1.22B | 1.01B | 1.13B | 1.18B | 1.04B | 867.9M | 801.8M | 718.8M | 878.7M | 708.2M | 538.9M | 351M | 400.8M | 603.5M | 442.1M | 396.5M | 426.6M | 306.9M | 261.4M | 195.8M | 302.3M | 344.5M | 132.6M | 167.4M | 177.9M |
| Operating CF Margin % | - | 11.51% | 9.6% | 9.22% | 12.43% | 8.8% | 12.04% | 9.91% | 10.7% | 12.05% | 11.42% | 10.82% | 9.66% | 9.67% | 12.24% | 9.95% | 9.53% | 8.83% | 7.61% | 11.33% | 9.64% | 9.23% | 12.1% | 10% | 9.57% | 8.33% | 11.43% | 14.01% | 7.22% | 9.47% | 11.55% |
| Operating CF Growth % | 110.11% | 21.89% | 3.28% | -16.62% | 20.21% | 6.7% | 21.43% | -10.52% | -4.56% | 13.96% | 19.33% | 8.24% | 11.55% | -18.2% | 24.08% | 31.42% | 53.53% | -12.43% | -33.59% | 36.51% | 11.5% | -7.06% | 39% | 17.41% | 33.5% | -35.23% | -12.25% | 159.8% | -20.79% | -5.9% | 58.56% |
| Net Income | 362M | 277M | 367M | 632M | 636M | 537M | 567M | 797M | 984.6M | 483.3M | 160.2M | 646.4M | 687.5M | 651M | 522.4M | 592.1M | 396.2M | 36.4M | -35.6M | 288.5M | 211.6M | 239.6M | 218.3M | 174.9M | -119.1M | 66.4M | 94M | 132.3M | 94.7M | 103.2M | 41.8M |
| Depreciation & Amortization | 375M | 719M | 673M | 582M | 552M | 772M | 568M | 439M | 431.3M | 407.8M | 391.4M | 320.2M | 330.4M | 299.4M | 288.6M | 283M | 271.2M | 260.9M | 286.8M | 264.6M | 256.6M | 255.5M | 177M | 161.3M | 137.4M | 104.2M | 145.5M | 123.4M | 91.6M | 87.1M | 84.8M |
| Stock-Based Compensation | 1M | 0 | 0 | 0 | 0 | 0 | 41M | 42M | 52.9M | 52.7M | 43.6M | 40.2M | 32.1M | 36.6M | 56.7M | 21.8M | 22.8M | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -83M | -133M | -156M | -44M | -76M | -180M | 123M | 202M | -69.8M | 315.3M | -268.9M | 13.3M | 42.3M | -22.9M | -10.7M | -1.1M | -52.2M | -57.7M | -78.3M | -29.9M | -46.4M | -32.4M | 13.8M | 40M | 30.4M | 3.1M | -8.5M | -4M | 16.7M | 24.1M | 0 |
| Other Non-Cash Items | 1.39B | 843M | 721M | 251M | 631M | 676M | -394M | -323M | 47M | 66M | 825.7M | 29.3M | 43.7M | 27.2M | 47.3M | 12.5M | 7.7M | 72.4M | 293.9M | 16.3M | 92.1M | 1.3M | 31.6M | 9.2M | 285.7M | 4.2M | 26M | 7.8M | 6.3M | -31.4M | 53.2M |
| Working Capital Changes | 36M | -58M | -253M | -112M | -173M | -499M | 319M | -149M | -319.5M | -144.8M | -116.3M | -181.5M | -334.2M | -272.5M | -25.6M | -200.1M | -106.8M | 17M | -94.3M | 48M | -107M | -67.5M | -14.1M | -78.5M | -73M | 17.9M | 45.3M | 99.1M | -65.3M | -3.8M | -1.9M |
| Change in Receivables | 111M | 2M | 143M | -482M | -409M | -59M | 27M | 19M | -146.3M | -167.9M | -137.5M | -81.8M | -248.7M | -91.7M | 43.8M | -150.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 39M | 105M | 31M | -72M | -158M | -268M | -28M | -36M | -53.3M | -84.5M | -36.5M | -52.9M | -39.7M | -14.8M | -5.3M | -38.6M | -79M | 143M | -26.3M | -34.7M | -32.7M | -30.1M | -12.7M | -9.1M | -29.3M | 10.1M | -14.7M | -19M | -9.1M | -8.9M | -8.7M |
| Change in Payables | 73M | -207M | -292M | 375M | 433M | -134M | 186M | 0 | -76.1M | 232.8M | 134.9M | 23.1M | 129.1M | 33.1M | -27.1M | 53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -404M | -368M | -603M | -694M | -1.48B | -1.43B | -906M | -489M | -514.5M | -752.3M | -404.2M | -1.76B | -665.1M | -384.8M | -345.2M | -564.5M | -429.5M | -154.8M | -485.1M | -368M | -341.1M | -700.1M | -257.2M | -228.2M | -130M | -123.3M | -62M | -810.7M | -127.6M | -169.1M | -351.8M |
| Capital Expenditures | -268M | -469M | -671M | -832M | -622M | -668M | -501M | -481M | -546.6M | -560M | -500.6M | -577.3M | -563M | -417.8M | -407.4M | -393.7M | -276.6M | -172M | -369.7M | -293.9M | -268.3M | -246.7M | -204.9M | -172M | -166.1M | -140.9M | -167.1M | -998.9M | -187.6M | -177.5M | -91.9M |
| CapEx % of Revenue | 1.87% | 3.28% | 4.76% | 5.86% | 4.92% | 4.5% | 4.93% | 4.73% | 5.19% | 5.72% | 5.52% | 7.19% | 6.78% | 5.62% | 5.68% | 5.53% | 4.89% | 4.33% | 7.02% | 5.52% | 5.85% | 5.75% | 5.81% | 5.6% | 6.08% | 5.99% | 6.32% | 40.63% | 10.21% | 10.05% | 5.97% |
| Acquisitions | 0 | 54M | 12M | -85M | -321M | -756M | -449M | 14M | 36M | -181.2M | 96.4M | -1.19B | -110.5M | 9.1M | 56.8M | -178.7M | -159.7M | -5.9M | -135.7M | -138.8M | -63.7M | -477.2M | 0 | -12.8M | 0 | -3.3M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -151M | 29M | 18M | -61M | -59M | 16M | 36M | 9M | 2.1M | 8.5M | 96.4M | -577.3M | 8.4M | 23.9M | 5.4M | 7.9M | -276.6M | 23.1M | 5.7M | 17.3M | 3.6M | 17.9M | -52.3M | -43.4M | 36.1M | 20.9M | 105.1M | 182.7M | 65.7M | 8.5M | -259.9M |
| Cash from Financing | -937M | -1.12B | -167M | -419M | -511M | 319M | 437M | -420M | -383M | -362.5M | -733.8M | 736.6M | -201.7M | -135.4M | -188.6M | -219.7M | -13.2M | 44.8M | 5.1M | -159.3M | -59.9M | 122.3M | -69.4M | -3.9M | -130.1M | -60.5M | -216.8M | 446.7M | 23.2M | 4.5M | 173.5M |
| Debt Issued (Net) | -65M | -414M | 474M | -433M | -8M | 568M | 855M | -141M | -41M | -105M | -318.1M | 1.22B | 82.1M | 168.1M | 110.3M | 123.1M | 256.3M | 102.4M | 107.5M | -101.7M | -35.2M | 144.7M | -55.9M | -21.3M | -105.8M | -47M | -180M | 461.5M | 49.6M | 26.9M | 185M |
| Equity Issued (Net) | -658M | -508M | -402M | -177M | -240M | 0 | -216M | -100M | -150M | -100M | -288M | -349.8M | -139.9M | -225.5M | -243.9M | -357.6M | -258.6M | 0 | -38.8M | -700K | 27.1M | 17.6M | 14.4M | 36.8M | -8.3M | 2M | -21M | 700K | -12.3M | -8.1M | 2.6M |
| Dividends Paid | -130M | -119M | -98M | -130M | -161M | -162M | -146M | -140M | -142M | -124.1M | -113.4M | -116.7M | -116.1M | -56.8M | -21.9M | -13.9M | -10.9M | -22.6M | -51.1M | -39.4M | -51.8M | -40M | -27.9M | -19.4M | -16M | -15.8M | -15.9M | -15.5M | -14.1M | -14.3M | -14.1M |
| Share Repurchases | -658M | -508M | -402M | -177M | -240M | 0 | -216M | -100M | -150M | -100M | -288M | -349.8M | -139.9M | -225.5M | -295.9M | -357.6M | -325.7M | 0 | -55.9M | -47M | 0 | 0 | 0 | -2.5M | -18.1M | -1M | -22.1M | 0 | -13M | -10.2M | 0 |
| Other Financing | -84M | -75M | -141M | 321M | -102M | -87M | -56M | -39M | -50M | -33.4M | -14.3M | -19.6M | -27.8M | -21.2M | -55M | 28.7M | -10.9M | 4.7M | -12.5M | -17.5M | 0 | 0 | 0 | 0 | 0 | -200K | -100K | 0 | 0 | 0 | 0 |
| Net Change in Cash | 403M | 219M | 560M | 451M | -761M | 194M | 818M | 93M | 194.1M | 101.6M | -134M | -220.1M | -141.7M | 223.8M | 356.1M | -90.3M | 92.5M | 254M | -85.1M | 65.2M | 33.6M | -140M | 116.6M | 76.5M | 3.7M | 11.5M | -300K | -22.3M | 30.6M | 1.9M | -600K |
| Free Cash Flow | 1.45B | 1.18B | 681M | 477M | 948M | 638M | 723M | 527M | 579.9M | 620.3M | 535.1M | 290.6M | 238.8M | 301M | 471.3M | 314.5M | 262.3M | 179M | 31.1M | 309.6M | 173.8M | 149.8M | 221.7M | 134.9M | 95.3M | 54.9M | 135.2M | -654.4M | -55M | -10.1M | 86M |
| FCF Margin % | 10.12% | 8.24% | 4.84% | 3.36% | 7.5% | 4.3% | 7.11% | 5.18% | 5.51% | 6.33% | 5.9% | 3.62% | 2.88% | 4.05% | 6.57% | 4.42% | 4.64% | 4.5% | 0.59% | 5.81% | 3.79% | 3.49% | 6.29% | 4.4% | 3.49% | 2.33% | 5.11% | -26.62% | -2.99% | -0.57% | 5.58% |
| FCF Growth % | 50.73% | 73.13% | 42.77% | -49.68% | 48.59% | -11.76% | 37.19% | -9.12% | -6.51% | 15.92% | 84.14% | 21.69% | -20.66% | -36.13% | 49.86% | 19.9% | 46.54% | 475.56% | -89.95% | 78.14% | 16.02% | -32.43% | 64.34% | 41.55% | 73.59% | -59.39% | 120.66% | -1089.82% | -444.55% | -111.74% | 336.55% |
| FCF per Share | 6.96 | 5.45 | 3.03 | 2.03 | 4.00 | 2.66 | 3.38 | 2.55 | 2.77 | 2.93 | 2.49 | 1.29 | 1.04 | 1.30 | 1.94 | 1.22 | 1.01 | 0.77 | 0.13 | 1.31 | 0.75 | 0.65 | 0.98 | 0.62 | 0.44 | 0.26 | 0.64 | -3.14 | -0.29 | -0.05 | 0.45 |
| FCF Conversion (FCF/Net Income) | 4.01x | 5.95x | 4.00x | 2.09x | 1.66x | 2.43x | 2.45x | 1.35x | 1.21x | 2.68x | 8.74x | 1.42x | 1.22x | 1.15x | 1.75x | 1.29x | 1.43x | 13.00x | -11.26x | 2.09x | 2.09x | 1.65x | 1.95x | 1.75x | -2.19x | 2.95x | 3.22x | 2.60x | 1.40x | 1.62x | 4.26x |
| Interest Paid | 84M | 133M | 121M | 126M | 131M | 127M | 97M | 72M | 84M | 92M | 100.3M | 70.2M | 49.5M | 50.4M | 57M | 68.5M | 53.4M | 68.8M | 44.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 289M | 372M | 406M | 362M | 268M | 290M | 205M | 243M | 316M | 280M | 300.5M | 183.8M | 229.7M | 252.9M | 158.9M | 175.5M | 83.1M | 60.3M | 122M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical OEM demand volatility
As reported in financial statements, BorgWarner's operating cash flow frequently decouples from net income, with the OCF/NI ratio swinging from a high of 5.19 in 2023Q4 to a negative 2.36 in 2025Q4, suggesting that accounting accruals and non-cash charges significantly distort the company's underlying cash-generating capability.
The wide variance between net income and operating cash flow indicates that reported earnings are heavily influenced by non-cash items and restructuring-related accounting adjustments. Investors should monitor whether this divergence reflects genuine operational friction or merely the timing of non-recurring charges associated with the ongoing portfolio transition.
Based on quarterly data, BorgWarner's free cash flow trajectory remains highly erratic, with margins oscillating between a negative 8.8% in 2024Q1 and a peak of 19.2% in 2025Q2, highlighting the company's sensitivity to cyclical production volumes and the lumpy nature of its capital expenditure requirements.
The lack of a consistent free cash flow trend suggests that the business remains vulnerable to the timing of OEM production cycles and the associated working capital swings. This volatility complicates the assessment of the company's ability to self-fund its electrification strategy without relying on external financing or balance sheet liquidity.
According to recent SEC filings, BorgWarner's working capital management is characterized by extreme quarterly fluctuations, including a $501 million outflow in 2024Q1 followed by a $470 million inflow in 2023Q4, which suggests that inventory and receivables are highly sensitive to the production schedules of major automotive customers.
These sharp reversals in working capital suggest that the company acts as a shock absorber for its OEM partners, bearing the brunt of production volatility. Such dynamics make it difficult to forecast cash availability and may necessitate higher cash buffers to manage through periods of sudden demand contraction.
As evidenced by the provided data, BorgWarner continues to prioritize share repurchases, such as the $301 million buyback in 2024Q3, even during periods of inconsistent free cash flow, which warrants further investigation into whether this capital allocation strategy is sustainable given the company's ongoing R&D-heavy electrification transition.
The commitment to returning capital to shareholders while simultaneously funding a massive technological pivot appears aggressive. Investors should monitor whether these buybacks are funded through operational cash generation or if they are increasingly reliant on the company's existing balance sheet capacity, potentially limiting future strategic flexibility.
Quick answers to the most common questions about buying BWA stock.
BorgWarner Inc. (BWA) generated $1.65B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
BorgWarner Inc. (BWA) generated $1.18B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
BorgWarner Inc. (BWA) spent $469.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, BorgWarner Inc. (BWA) returned $119.0M to shareholders via cash dividends and spent $508.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.