BorgWarner Inc (0HOU.L) Q3 2024 Earnings Report

BorgWarner reported Q3 2024 revenue of $3.449 billion, down 4.8% year over year and 4.3% quarter over quarter, alongside a solid gross margin of 18.44% and an operating margin of 7.83%. Net income reached $234 million, translating to $1.05 per basic share and $1.04 per diluted share, marking a pronounced YoY uplift of ~368% in net income and ~400% in EPS driven by a favorable mix and cost discipline against a backdrop of a softer revenue environment. Free cash flow was robust at $201 million for the quarter, with operating cash flow of $356 million and capex of $155 million, yielding meaningful FCF conversion. BorgWarner finished the quarter with $2.0 billion in cash and equivalents and a net debt position of approximately $2.74 billion, highlighting a strong liquidity runway even as debt remains elevated. Capital allocation included a substantial share repurchase of $301 million and $24 million in dividends, underscoring a disciplined return of capital to shareholders amidst ongoing EV propulsion investments. Looking ahead, the company did not issue explicit quarterly guidance for QQ4 2024 in the release, but reaffirmed its strategic focus on electrified propulsion and energy‑efficient air management solutions, with ongoing investments in EPropulsion and other advanced technologies. Key near‑term considerations include OEM production volumes, supply chain dynamics, raw material costs, and the evolution of EV/hybrid mix across its four segments. The combination of resilient profitability, strong cash generation, and capital returns suggests BorgWarner remains positioned to navigate cyclicality while extending its platform in EV propulsion and related aftermarkets over the longer term.