Q4 2024 Borgwarner Inc Earnings Call Transcript
Key Points
- BorgWarner Inc (BWA) delivered approximately $14 billion in sales for 2024, demonstrating resilience in challenging market conditions.
- The company achieved a strong adjusted operating margin above 10%, exceeding the high end of their guidance.
- BorgWarner Inc (BWA) secured multiple new product awards for both foundational and eProducts, supporting long-term profitable growth.
- Free cash flow increased by 29% year-over-year to $729 million, surpassing full-year guidance.
- The company is well-positioned to continue generating strong free cash flow in 2025 while investing in long-term growth.
- Global industry production was down approximately 3% for the full year, impacting overall sales growth.
- The company recorded a $646 million goodwill and fixed asset impairment charge due to delayed BEV adoption in Western markets.
- Sales in the fourth quarter were down approximately 2% year-over-year, with challenges in China due to lower volumes on an existing EV program.
- BorgWarner Inc (BWA) anticipates another year of declining industry volumes in 2025, with potential headwinds from global tariffs.
- The company expects a sales headwind from weaker foreign currencies amounting to $410 million in 2025.
Good morning. My name is Nick, and I will be your conference specialist. At this time, I would like to welcome everyone to the BorgWarner 2024 fourth quarter and full year results conference call. (Operator Instructions).
I would now like to turn the conference over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.
Thank you, Nick, and good morning, everyone. Thank you all for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on the homepage and on our Investor Relations home page. With regards to our Investor Relations calendar, we will be attending more conferences between now and our next earnings release. Please see the Events section of our IR page for a full list.
Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may
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