BorgWarner reported a solid Q2 2025 with revenue of $3.638 billion, up 0.97% year over year and 3.5% quarter over quarter, underscoring modest demand resilience in a volatile auto components environment. The company delivered EBITDA of $487 million and operating income of $289 million, translating to EBITDA margin of ~13.4% and operating margin of ~7.94%. Net income was $224 million, or $1.04 per basic share and $1.03 per diluted share, marking a year-over-year decline of 26% in net income while delivering a notable 42.7% QoQ rebound in profitability after a softer prior year period. Free cash flow reached $698 million and cash provided by operating activities was $579 million, supporting a strong cash balance of approximately $2.04 billion and a current ratio of about 2.02x. The balance sheet remains solid, with total assets around $14.4 billion and total liabilities of $8.33 billion, yielding equity of $5.92 billion and a net debt position of roughly $2.04 billion.
From a segment perspective, BorgWarner continues to monetize its diversified portfolio (Air Management, EPropulsion, Drivetrain, Fuel Injection, and aftermarket offerings), with the EPropulsion/Drivetrain area positioned to benefit from the ongoing electrification trend. Management commentary in the period emphasized execution priorities and near‑term liquidity management, while there is no formal quarterly guidance published for 2025 in the provided data. The company faces the typical cyclicality of the auto supply chain and exposure to input costs, but it also benefits from a resilient aftermarket business and improving free cash flow conversion. Investors should monitor EV adoption momentum, commodity and freight costs, and the trajectory of R&D and SG&A investments as BorgWarner scales its electric propulsion initiatives.