BorgWarner reported QQ3 2025 revenue of $3.591 billion, up 4.1% year over year, supported by ongoing demand for automotive components and a resilient top line across segments. However, the quarter featured notable margin compression with operating income of $248 million, a 6.9% operating margin, and EBITDA of $248 million—down materially from the prior-year period. Net income declined to $158 million, and EPS was $0.73, down roughly 32% YoY and 30% QoQ, reflecting higher operating costs and a shift in mix toward higher investment activity in EV-related solutions.
Management continued to emphasize BorgWarner’s exposure to EV propulsion and air-management opportunities, alongside aftermarket strengths. While revenue demonstrated momentum, the absence of explicit quarterly guidance in the provided material introduces near-term uncertainty around profitability trajectories. The key questions for investors center on whether the company can normalize margins through cost discipline and favorable mix, and how quickly EV content will translate into durable, higher-margin growth in the core portfolio.
In summary, QQ3 2025 delivers revenue growth and a constructive long-term position in EV-adjacent segments, but near-term profitability hinges on expense control, pricing, and EV content mix normalization. Investors should monitor operating leverage, commodity costs, and the pace of EV take-up across BorgWarner’s customers.