BorgWarner Inc. (NYSE:BWA) reported stronger-than-anticipated second-quarter earnings on Thursday, buoyed by robust growth in electric vehicle (EV) component sales, even as broader market conditions remained mixed.
Shares of the automotive parts supplier rose 2.37% in pre-market trading after the release.
The company posted adjusted earnings of $1.21 per share, well above analyst estimates of $1.08. Revenue for the quarter edged up 1% year-over-year to $3.64 billion, slightly ahead of the consensus forecast of $3.6 billion.
A standout area was BorgWarner’s light vehicle electric products segment, which saw sales surge 31% compared to the same period last year. This strength helped balance softness in other parts of the business. Overall organic sales remained flat year-over-year, which the company said aligned with its mix of light and commercial vehicle markets.
On the back of the solid performance, BorgWarner raised its full-year 2025 outlook. The company now expects revenue between $14 billion and $14.4 billion, up from the prior forecast of $13.6 billion to $14.2 billion. Adjusted earnings per share are now projected in the range of $4.45 to $4.65, exceeding the analyst consensus of $4.35.
In addition to the improved forecast, BorgWarner announced a 55% increase in its quarterly cash dividend and expanded its stock repurchase authorization to $1 billion through 2028. During the second quarter, the company repurchased approximately $108 million worth of shares.
Free cash flow came in at $507 million, a notable jump from $297 million in the second quarter of 2024. BorgWarner also secured a number of new business wins across its product portfolio, including fresh contracts for turbochargers and EV components with leading global automakers.
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