Revenue has plateaued near $3.5B to $3.6B with year-over-year growth between -2.9% and 4.1%, while operating margin held within an 8.7% to 11.1% band, suggesting limited operating leverage.
BorgWarner Inc. (BWA) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 14.24B | 14.32B | 14.08B | 14.2B | 12.63B | 14.84B | 10.16B | 10.17B | 10.53B | 9.8B | 9.07B | 8.02B | 8.3B | 7.43B | 7.18B | 7.12B | 5.65B | 3.98B | 5.26B | 5.33B | 4.59B | 4.29B | 3.53B | 3.07B | 2.73B | 2.35B | 2.65B | 2.46B | 1.84B | 1.77B | 1.54B |
| Revenue Growth % | 0.42% | 1.65% | -0.81% | 12.37% | -14.84% | 45.96% | -0.08% | -3.41% | 7.51% | 7.99% | 13.04% | -3.36% | 11.69% | 3.58% | 0.87% | 25.88% | 42.17% | -24.46% | -1.21% | 16.21% | 6.79% | 21.8% | 14.86% | 12.38% | 16.14% | -11.12% | 7.62% | 33.85% | 3.95% | 14.73% | 15.88% |
| Cost of Goods Sold | 11.45B | 11.64B | 11.47B | 11.63B | 10.27B | 11.98B | 8.26B | 8.07B | 8.3B | 7.68B | 7.14B | 6.33B | 6.55B | 5.87B | 5.72B | 5.7B | 4.57B | 3.4B | 4.43B | 4.38B | 3.74B | 3.44B | 2.87B | 2.48B | 2.18B | 1.8B | 2B | 1.89B | 1.45B | 1.38B | 1.21B |
| COGS % of Revenue | - | 81.32% | 81.45% | 81.91% | 81.25% | 80.74% | 81.22% | 79.31% | 78.8% | 78.44% | 78.69% | 78.85% | 78.85% | 78.89% | 79.69% | 80.15% | 80.78% | 85.49% | 84.07% | 82.17% | 81.47% | 80.12% | 81.53% | 80.88% | 79.69% | 76.63% | 75.71% | 76.81% | 78.98% | 77.84% | 78.27% |
| Gross Profit | 2.79B | 2.67B | 2.61B | 2.57B | 2.37B | 2.86B | 1.91B | 2.1B | 2.23B | 2.11B | 1.93B | 1.7B | 1.76B | 1.57B | 1.46B | 1.41B | 1.09B | 576.9M | 838.5M | 949.9M | 849.9M | 853.8M | 651.1M | 586.7M | 554.6M | 549.6M | 642.8M | 570.1M | 386.1M | 391.6M | 334.6M |
| Gross Margin % | 19.6% | 18.68% | 18.55% | 18.09% | 18.75% | 19.26% | 18.78% | 20.69% | 21.2% | 21.56% | 21.31% | 21.15% | 21.15% | 21.11% | 20.31% | 19.85% | 19.22% | 14.51% | 15.93% | 17.83% | 18.53% | 19.88% | 18.47% | 19.12% | 20.31% | 23.37% | 24.29% | 23.19% | 21.02% | 22.16% | 21.73% |
| Gross Profit Growth % | - | 2.37% | 1.71% | 8.4% | -17.11% | 49.71% | -9.31% | -5.73% | 5.74% | 9.22% | 13.91% | -3.35% | 11.88% | 7.65% | 3.24% | 29.97% | 88.37% | -31.2% | -11.73% | 11.77% | -0.46% | 31.13% | 10.98% | 5.79% | 0.91% | -14.5% | 12.75% | 47.66% | -1.4% | 17.04% | 17.73% |
| Operating Expenses | 2.01B | 2.14B | 1.35B | 1.33B | 1.31B | 1.47B | 952M | 873M | 945.4M | 899.1M | 817.8M | 661.7M | 698.3M | 643.9M | 646.6M | 621.5M | 566.9M | 478.7M | 535.6M | 531.9M | 498.1M | 495.9M | 339.2M | 316.8M | 302.6M | 380.5M | 389.6M | 326.7M | 226.7M | 219.1M | 207.5M |
| OpEx % of Revenue | - | 14.93% | 9.61% | 9.4% | 10.39% | 9.92% | 9.37% | 8.58% | 8.98% | 9.18% | 9.02% | 8.25% | 8.41% | 8.66% | 9.01% | 8.73% | 10.03% | 12.04% | 10.17% | 9.98% | 10.86% | 11.55% | 9.62% | 10.32% | 11.08% | 16.18% | 14.72% | 13.29% | 12.34% | 12.4% | 13.47% |
| Selling, General & Admin | 590M | 594M | 617M | 618M | 612M | 765M | 476M | 460M | 505.3M | 491.6M | 474.6M | 354.3M | 362.1M | 340.7M | 380.7M | 377.8M | 381.9M | 323.5M | 329.9M | 321.1M | 310.4M | 334.9M | 215.9M | 316.9M | 303.5M | 234.3M | 244.1M | 203.3M | 135.1M | 132M | 122.7M |
| SG&A % of Revenue | - | 4.15% | 4.38% | 4.35% | 4.84% | 5.16% | 4.68% | 4.52% | 4.8% | 5.02% | 5.23% | 4.42% | 4.36% | 4.58% | 5.3% | 5.31% | 6.76% | 8.14% | 6.27% | 6.03% | 6.77% | 7.8% | 6.12% | 10.33% | 11.11% | 9.96% | 9.23% | 8.27% | 7.36% | 7.47% | 7.97% |
| Research & Development | 887M | 710M | 736M | 717M | 701M | 707M | 476M | 413M | 440.1M | 407.5M | 343.2M | 307.4M | 336.2M | 303.2M | 265.9M | 243.7M | 185M | 155.2M | 205.7M | 210.8M | 187.7M | 161M | 123.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 4.96% | 5.23% | 5.05% | 5.55% | 4.77% | 4.68% | 4.06% | 4.18% | 4.16% | 3.78% | 3.83% | 4.05% | 4.08% | 3.7% | 3.42% | 3.27% | 3.9% | 3.91% | 3.96% | 4.09% | 3.75% | 3.49% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 834M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K | -100K | -900K | 146.2M | 145.5M | 123.4M | 91.6M | 87.1M | 84.8M |
| Operating Income | 783M | 536M | 1.26B | 1.23B | 1.06B | 1.39B | 957M | 1.23B | 1.29B | 1.21B | 1.12B | 1.04B | 1.06B | 925.8M | 811.5M | 790.9M | 519.8M | 98.2M | 302.9M | 418M | 351.8M | 357.9M | 311.9M | 269.9M | 252M | 140.7M | 253.2M | 243.4M | 159.4M | 172.5M | 127.1M |
| Operating Margin % | 5.5% | 3.74% | 8.94% | 8.68% | 8.36% | 9.34% | 9.41% | 12.11% | 12.23% | 12.38% | 12.3% | 12.91% | 12.74% | 12.45% | 11.31% | 11.11% | 9.2% | 2.47% | 5.75% | 7.84% | 7.67% | 8.34% | 8.85% | 8.79% | 9.23% | 5.98% | 9.57% | 9.9% | 8.68% | 9.76% | 8.25% |
| Operating Income Growth % | - | -57.43% | 2.11% | 16.76% | -23.81% | 44.83% | -22.32% | -4.32% | 6.18% | 8.69% | 7.72% | -2.1% | 14.27% | 14.09% | 2.6% | 52.15% | 429.33% | -67.58% | -27.54% | 18.82% | -1.7% | 14.75% | 15.56% | 7.1% | 79.1% | -44.43% | 4.03% | 52.7% | -7.59% | 35.72% | 16.82% |
| EBITDA | 1.39B | 1.25B | 1.93B | 1.81B | 1.61B | 1.96B | 1.49B | 1.67B | 1.72B | 1.62B | 1.51B | 1.36B | 1.39B | 1.23B | 1.1B | 1.07B | 772.7M | 359.1M | 589.7M | 682.6M | 608.4M | 613.4M | 488.9M | 431.2M | 389.4M | 244.9M | 398.7M | 366.8M | 251M | 259.6M | 211.9M |
| EBITDA Margin % | 9.78% | 8.77% | 13.72% | 12.78% | 12.73% | 13.21% | 14.63% | 16.43% | 16.32% | 16.54% | 16.61% | 16.9% | 16.72% | 16.48% | 15.33% | 15.09% | 13.67% | 9.03% | 11.2% | 12.81% | 13.27% | 14.29% | 13.87% | 14.05% | 14.26% | 10.41% | 15.07% | 14.92% | 13.67% | 14.69% | 13.76% |
| EBITDA Growth % | -24.22% | -35.04% | 6.45% | 12.87% | -17.96% | 31.81% | -11.01% | -2.77% | 6.04% | 7.54% | 11.15% | -2.33% | 13.31% | 11.37% | 2.44% | 38.98% | 115.18% | -39.1% | -13.61% | 12.2% | -0.82% | 25.47% | 13.38% | 10.73% | 59% | -38.58% | 8.7% | 46.14% | -3.31% | 22.51% | 13.68% |
| D&A (Non-Cash Add-back) | 609M | 719M | 673M | 582M | 552M | 574M | 530M | 439M | 431M | 408M | 391.4M | 320.2M | 330.4M | 299.4M | 288.6M | 283M | 252.9M | 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 |
| EBIT | 759M | 563M | 646M | 1.09B | 1.01B | 916M | 1.05B | 1.33B | 1.26B | 1.14B | 275.1M | 987.6M | 1.02B | 904.8M | 802.7M | 841M | 544.2M | 76.2M | 52.8M | 465.1M | 310.5M | 351.3M | 338.3M | 269.9M | 252M | 169.1M | 254M | 243.4M | 159.4M | 172.5M | 127.1M |
| Net Interest Income | -19M | -39M | -30M | -38M | -51M | -71M | -61M | -43M | -53M | -65M | -78.3M | -52.9M | -30.9M | -29.4M | -34.7M | -69.8M | -66M | -54.7M | -31.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 42M | 60M | 54M | 35M | 20M | 11M | 12M | 12M | 6M | 5.8M | 6.3M | 7.5M | 5.5M | 4.8M | 4.7M | 4.8M | 2.8M | 2.5M | 7.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 61M | 99M | 84M | 73M | 71M | 82M | 73M | 55M | 59M | 70.5M | 84.6M | 60.4M | 36.4M | 34.2M | 39.4M | 74.6M | 68.8M | 57.2M | 38.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -25M | -12M | -720M | -242M | -143M | -597M | 7M | 33M | -91.7M | -149.1M | -925.2M | -108.9M | -77.8M | -56.5M | -50.5M | -25M | -41.9M | -80.3M | -288.9M | 12.4M | -81.5M | -43.7M | -3.3M | -13.2M | -18.2M | -34.6M | -105.2M | -36.4M | -18.7M | -14.6M | -72.4M |
| Pretax Income | 758M | 524M | 539M | 991M | 913M | 789M | 964M | 1.26B | 1.2B | 1.06B | 190.5M | 926.8M | 980.1M | 869.3M | 761M | 765.9M | 477.9M | 17.9M | 14M | 430.4M | 270.3M | 314.2M | 308.6M | 256.7M | 233.8M | 106.1M | 148.8M | 207M | 140.7M | 157.9M | 54.7M |
| Pretax Margin % | 5.32% | 3.66% | 3.83% | 6.98% | 7.23% | 5.32% | 9.48% | 12.43% | 11.36% | 10.86% | 2.1% | 11.55% | 11.8% | 11.69% | 10.6% | 10.76% | 8.45% | 0.45% | 0.27% | 8.08% | 5.89% | 7.32% | 8.75% | 8.36% | 8.56% | 4.51% | 5.62% | 8.42% | 7.66% | 8.94% | 3.55% |
| Income Tax | 220M | 189M | 111M | 289M | 195M | 150M | 397M | 468M | 211.3M | 580.3M | 30.3M | 280.4M | 292.6M | 218.3M | 238.6M | 195.3M | 81.7M | -18.5M | 33.3M | 113.9M | 32.4M | 55.1M | 81.2M | 73.2M | 77.2M | 39.7M | 54.8M | 74.7M | 46M | 54.7M | 12.9M |
| Effective Tax Rate % | 29.02% | 36.07% | 20.59% | 29.16% | 21.36% | 19.01% | 41.18% | 37% | 17.67% | 54.56% | 15.91% | 30.25% | 29.85% | 25.11% | 31.35% | 25.5% | 17.1% | -103.35% | 237.86% | 26.46% | 11.99% | 17.54% | 26.31% | 28.52% | 33.02% | 37.42% | 36.83% | 36.09% | 32.69% | 34.64% | 23.58% |
| Net Income | 478M | 277M | 338M | 625M | 944M | 537M | 500M | 746M | 930.7M | 439.9M | 118.5M | 609.7M | 655.8M | 624.3M | 500.9M | 550.1M | 377.4M | 27M | -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 |
| Net Margin % | 3.36% | 1.93% | 2.4% | 4.4% | 7.47% | 3.62% | 4.92% | 7.33% | 8.84% | 4.49% | 1.31% | 7.6% | 7.9% | 8.4% | 6.98% | 7.73% | 6.68% | 0.68% | -0.68% | 5.41% | 4.61% | 5.58% | 6.19% | 5.7% | -4.36% | 2.82% | 3.55% | 5.38% | 5.16% | 5.84% | 2.71% |
| Net Income Growth % | 256.72% | -18.05% | -45.92% | -33.79% | 75.79% | 7.4% | -32.98% | -19.85% | 111.57% | 271.22% | -80.56% | -7.03% | 5.05% | 24.64% | -8.94% | 45.76% | 1297.78% | 175.84% | -112.34% | 36.34% | -11.69% | 9.76% | 24.81% | 246.85% | -279.37% | -29.36% | -28.95% | 39.7% | -8.24% | 146.89% | -43.67% |
| Net Income (Continuing) | 538M | 335M | 428M | 702M | 718M | 639M | 567M | 797M | 984.6M | 483.3M | 160.2M | 646.4M | 687.5M | 651M | 522.4M | 570.6M | 396.2M | 36.4M | -19.3M | 316.5M | 237.9M | 259.1M | 227.4M | 174.9M | 149.9M | 66.4M | 94M | 132.3M | 94.7M | 103.2M | 41.8M |
| Discontinued Operations | 0 | 0 | -29M | -7M | 308M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 195M | 172M | 174M | 238M | 284M | 314M | 296M | 138M | 119.3M | 109.1M | 83.6M | 77.8M | 74.7M | 71.8M | 63.5M | 65.1M | 51.2M | 37.4M | 31.5M | 117.9M | 162.1M | 136.1M | 22.2M | 17.2M | 14.5M | 11.4M | 10.3M | 8.8M | 8.5M | 20.7M | 7M |
| EPS (Diluted) | 2.34 | 1.28 | 1.50 | 2.67 | 3.99 | 2.24 | 2.34 | 3.61 | 4.44 | 2.08 | 2.76 | 2.56 | 2.86 | 2.70 | 2.09 | 2.22 | 1.54 | 0.12 | -0.15 | 1.23 | 0.92 | 1.04 | 0.97 | 0.80 | -0.55 | 0.31 | 0.44 | 0.63 | 0.50 | 0.54 | 0.22 |
| EPS Growth % | 277.78% | -14.67% | -43.82% | -33.08% | 78.13% | -4.27% | -35.18% | -18.69% | 113.46% | -24.64% | 7.81% | -10.49% | 5.93% | 29.19% | -5.86% | 44.16% | 1183.33% | 180% | -112.2% | 33.7% | -11.54% | 7.22% | 21.25% | 245.45% | -277.42% | -29.55% | -30.16% | 26% | -7.41% | 145.45% | -43.59% |
| EPS (Basic) | - | 1.29 | 1.51 | 2.72 | 4.01 | 2.26 | 2.35 | 3.63 | 4.47 | 2.09 | 2.78 | 2.57 | 2.89 | 2.73 | 2.22 | 2.52 | 1.66 | 0.12 | -0.15 | 1.25 | 0.92 | 1.06 | 0.98 | 0.81 | -0.56 | 0.32 | 0.45 | 0.64 | 0.50 | 0.54 | 0.22 |
| Diluted Shares Outstanding | 204.6M | 216.4M | 224.8M | 234.4M | 236.8M | 239.5M | 214M | 206.8M | 209.5M | 211.5M | 215.33M | 225.65M | 228.92M | 231.34M | 242.75M | 256.94M | 259.15M | 233.88M | 232.01M | 235.68M | 231.88M | 229.59M | 226.15M | 218.42M | 214.83M | 211.7M | 211.9M | 208.62M | 189.41M | 191.47M | 191.09M |
| Basic Shares Outstanding | 201.4M | 214.2M | 223.5M | 229.78M | 235.5M | 238.1M | 213M | 205.7M | 208.2M | 210.4M | 214.37M | 224.41M | 227.15M | 228.6M | 225.3M | 218.46M | 228.31M | 233.04M | 232.01M | 232M | 229.61M | 226.83M | 223.49M | 216.46M | 213M | 210.52M | 211.13M | 207.58M | 187.83M | 189.46M | 188.93M |
| Dividend Payout Ratio | - | 42.96% | 28.99% | 20.8% | 17.06% | 30.17% | 29.2% | 18.77% | 15.26% | 28.21% | 95.7% | 19.14% | 17.7% | 9.1% | - | 2.53% | - | 51.11% | - | 13.66% | 24.48% | 16.69% | 12.78% | 11.09% | - | 23.8% | 16.91% | 11.72% | 14.89% | 13.86% | 33.73% |
Quick answers to the most common questions about buying BWA stock.
For fiscal year 2025, BorgWarner Inc. (BWA) reported total revenue of $14.32B. This represents a 829.6% increase compared to $1.54B in 1996.
BorgWarner Inc. (BWA) is profitable, generating $277.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.9%.
BorgWarner Inc. (BWA) reported an operating income of $536.0M, resulting in an operating profit margin of 3.7%. This margin reflects the operational efficiency of the business before interest and taxes.
BorgWarner Inc. (BWA) generated $2.67B in gross profit for the year, representing a gross profit margin of 18.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Electrification execution and EV demand volatility
Metrics are mathematically derived from official filings.
Revenue Plateau Masks Mixed Quarterly Momentum
As reported in the quarterly income statement data, BWA's revenue has held roughly flat near $3.5B to $3.6B across the ten quarters shown, with year-over-year growth hovering between -2.9% and 4.1%, indicating limited top-line expansion.
The stable revenue base suggests BorgWarner's legacy combustion-linked volumes are offsetting growth in electrification content, leaving no clear acceleration in the reported figures. The most recent quarter showed a -2.9% year-over-year decline, which may indicate softening OEM production schedules or the early effect of ICE volume attrition. Investors should monitor whether the E-Propulsion segment can generate sufficient incremental revenue to lift the consolidated growth rate above low single digits.
Gross Margin Compressed in a Tier-1 Squeeze
Based on BWA's reported figures, gross margin has ranged from 17.6% to 20.4% over the period, with the most recent quarter at 19.0%, suggesting pricing pressure from large OEM customers persists despite fluctuations.
The gross margin band appears narrow and mid-range, consistent with a Tier-1 supplier balancing high R&D intensity against concentrated OEM bargaining power. Quarterly variation of roughly 2.8 percentage points may reflect commodity pass-through lags and product mix shifts rather than a structural trend. Sustained expansion would likely require scale benefits in E-Propulsion to outweigh diminishing legacy combustion volumes.
Net Income Volatility Obscures Core Earnings Power
As reported in the income statement, BWA's net income swung from a $262M loss in 2025Q4 to a $277M profit in 2026Q2, with net margin oscillating between -11.8% and 8.4%, which may indicate non-recurring charges distorting reported earnings.
Operating margins of roughly 8.7% to 11.1% remain considerably more stable than net margins, suggesting the gap is driven by below-the-line items such as restructuring, impairments, or equity affiliate fluctuations. The large Q4 losses in both 2024 and 2025 appear to be recurring year-end events, which warrants investigation into whether they reflect genuine operating costs or accounting adjustments. Analysts should adjust for these items before relying on reported EPS as a measure of sustainable profitability.
Operating Income Tracks Revenue Without Scaling
According to the reported quarterly figures, BWA's operating margin has remained within a 8.7% to 11.1% band while SG&A held near $150M to $330M per quarter, suggesting limited operating leverage in recent periods.
Because operating income and revenue have moved in close proportion, the reported figures do not clearly show the company capturing incremental margin from growth. SG&A spending appears to fluctuate in step with reporting cadence rather than scaling downward with revenue. Investors may wish to watch whether overhead efficiency improves as the electrification platform matures.
Thin Net Margins Challenge the Bridge Narrative
Based on the reported data, BWA's average net margin across the period is well below its operating margin, a gap that bearish analysts may argue signals persistent non-operating drag that the bridge-company thesis does not adequately explain.
A short-seller perspective would focus on the consistent divergence between operating and net margins as evidence that headline operating performance overstates economic returns. Repeated Q4 losses and the 2026Q3 EPS decline of 47.9% year over year could be framed as early signs of margin erosion. The thesis that legacy hybrid content sustains earnings depends on volumes that the reported revenue trend does not yet confirm.