Revenue remains range-bound between $3.4 billion and $3.6 billion, while gross margins struggle to exceed the 18-19% threshold due to persistent R&D costs.
| 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 | 14.33B | 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 % | 2.36% | 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 | 11.62B | 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 | 2.71B | 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 % | 18.91% | 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 | 1.32B | 1.35B | 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 | - | 9.44% | 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 | 980M | 1.31B | 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 | - | 9.19% | 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 | 523M | 0 | 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 | - | - | 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 | 36M | 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 | 1.39B | 1.32B | 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 % | 9.68% | 9.24% | 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 % | - | 5.08% | 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 | 2.1B | 2.04B | 1.93B | 1.81B | 1.61B | 2.16B | 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 % | 14.63% | 14.26% | 13.72% | 12.78% | 12.73% | 14.54% | 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 % | 6.45% | 5.69% | 6.45% | 12.87% | -25.49% | 45.12% | -11.01% | -2.79% | 6.07% | 7.52% | 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) | 709M | 719M | 673M | 582M | 552M | 772M | 530M | 439M | 431.3M | 407.8M | 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 | 1.33B | 623M | 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 | -36M | -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 | 58M | 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 | 94M | 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 | -768M | -799M | -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 | 620M | 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 % | 4.33% | 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 | 201M | 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 % | 32.42% | 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 | 362M | 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 % | 2.53% | 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 % | 25.26% | -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) | 419M | 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 | 163M | 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) | 1.74 | 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 % | 36.29% | -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) | - | 1.28 | 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 | 208.3M | 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 | 205.3M | 216.4M | 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% |
Cyclical OEM demand volatility
According to the provided quarterly income statements, BorgWarner's top-line growth remains largely range-bound, with revenue fluctuating between $3.4 billion and $3.6 billion over the last ten quarters, reflecting a lack of meaningful organic expansion as the company navigates the complex shift toward electrified powertrain components.
The marginal revenue growth suggests that gains in e-propulsion content are being largely offset by the secular decline of legacy combustion-related programs. Investors should monitor whether the company can achieve a sustained breakout in revenue as new EV platforms reach higher production volumes, or if the current stagnation persists due to broader automotive production headwinds.
As reported in financial statements, BorgWarner maintains a gross margin profile hovering near 18-19%, a figure that appears to reflect the inherent difficulty of passing through rising input costs to powerful global OEMs while simultaneously absorbing the heavy R&D burden required for next-generation powertrain technology development.
The inability to consistently expand gross margins beyond the 20% threshold suggests that the company remains caught in a Tier-1 supplier squeeze. This structural limitation warrants further investigation into whether future scale in e-propulsion can eventually provide the operating leverage necessary to improve profitability beyond current levels.
Based on the reported figures, net income exhibits significant volatility, including substantial quarterly losses in late 2024 and 2025, which appear to be driven by non-operating items and restructuring charges rather than core operational failure, complicating the assessment of the company's true underlying earnings power.
The wide swings in net income, contrasted with more stable operating income, suggest that investors should focus on adjusted metrics to gauge performance. The periodic appearance of large negative net income figures may indicate ongoing costs associated with the strategic pivot away from legacy fuel injection systems.
Analysis of the income statement reveals that R&D spending remains a significant and recurring expense, often exceeding $170 million per quarter, which serves as a primary drag on operating margins and highlights the company's commitment to maintaining its competitive edge in complex thermal and electronic systems.
The high level of R&D investment is a double-edged sword, as it is essential for long-term relevance but suppresses current profitability. Analysts should monitor whether these expenditures are yielding proprietary software and hardware modules that provide a defensible moat against lower-cost competitors in the evolving EV supply chain.
Data suggests that BorgWarner's reliance on long-term OEM contracts may leave it vulnerable to margin compression if the transition to electric vehicles forces a permanent reduction in the content-per-vehicle value compared to the highly profitable turbocharger systems that have historically anchored the company's financial performance.
Short-sellers may focus on the potential for the 'hybrid bridge' to be shorter than anticipated, leading to a faster-than-expected decline in high-margin legacy revenue. If the company fails to achieve sufficient scale in its newer segments, the current profitability levels may prove unsustainable in a more competitive, software-defined automotive market.
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 $1.32B, resulting in an operating profit margin of 9.2%. 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.