BorgWarner's 2024 Results Surpass Expectations Amid Tough Market Conditions

Published 19 hours agoBWA

BorgWarner's 2024 Results Surpass Expectations Amid Tough Market Conditions

BorgWarner Inc. recently announced its financial results for the fourth quarter and full year of 2024, beating analysts' predictions despite challenging market conditions. Key metrics from the quarter include an adjusted operating margin of 10.2% and net cash generated from operations totaling $682 million. A notable setback was a U.S. GAAP operating margin of -9.2%, primarily due to $646 million in impairment charges in their PowerDrive Systems and Battery & Charging Systems divisions. Nasdaq reported these results as the company contended with a 4% market decline in the light and commercial vehicle sectors.

For the entire year, BorgWarner faced a slight 0.2% decline in net sales, bringing in $14.086 billion. Its adjusted operating income stood at $1.417 billion, reflecting a 10.1% operating margin. Earnings per share on an adjusted basis reached $4.32. Despite these figures, BorgWarner remains focused on maintaining robust operations and financial health.

Looking ahead to 2025, BorgWarner projects net sales between $13.4 and $14.0 billion, suggesting a range of -2% to +2% in organic sales growth. The company also forecasts an adjusted operating margin between 10.0% and 10.2%, alongside earnings per share of $4.05 to $4.40. Anticipated free cash flow is estimated to be between $650 million and $750 million. Adding to its promising outlook, BorgWarner has secured several new business contracts, positioning itself strategically for continued growth and market expansion.

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