BorgWarner (BWA, Monetary) has efficiently clinched a major contract with a distinguished world authentic tools producer (OEM) to produce its 400-volt Excessive Voltage Coolant Heater (HVCH) programs. These elements are slated to be used in a spread of the automaker’s plug-in hybrid electrical autos (PHEVs), together with mid-size pickup vehicles, SUVs, and minivans. The manufacturing of those programs is projected to start in 2027. This settlement represents BorgWarner’s largest HVCH PHEV contract throughout the North American market with anticipated volumes.
Wall Avenue Analysts Forecast
Based mostly on the one-year worth targets supplied by 15 analysts, the common goal worth for BorgWarner Inc (BWA, Monetary) is $34.94 with a excessive estimate of $40.00 and a low estimate of $29.00. The typical goal implies an
upside of 18.64%
from the present worth of $29.45. Extra detailed estimate information could be discovered on the BorgWarner Inc (BWA) Forecast web page.
Based mostly on the consensus suggestion from 18 brokerage corporations, BorgWarner Inc’s (BWA, Monetary) common brokerage suggestion is at the moment 2.3, indicating “Outperform” standing. The score scale ranges from 1 to five, the place 1 signifies Robust Purchase, and 5 denotes Promote.
Based mostly on GuruFocus estimates, the estimated GF Worth for BorgWarner Inc (BWA, Monetary) in a single 12 months is $41.16, suggesting a
upside
of 39.76% from the present worth of $29.45. GF Worth is GuruFocus’ estimate of the honest worth that the inventory needs to be traded at. It’s calculated based mostly on the historic multiples the inventory has traded at beforehand, in addition to previous enterprise progress and the longer term estimates of the enterprise’ efficiency. Extra detailed information could be discovered on the BorgWarner Inc (BWA) Abstract web page.
BWA Key Enterprise Developments
Launch Date: February 06, 2025
Income: Roughly $14 billion in gross sales for 2024, comparatively flat versus 2023.Adjusted Working Margin: Above 10%, exceeding the excessive finish of steering.Adjusted Earnings Per Share (EPS): Grew by 15% year-over-year.Free Money Circulate: $729 million, up 29% year-over-year, exceeding full-year steering.Fourth Quarter Gross sales: Simply over $3.4 billion, down roughly 2% versus prior 12 months.Fourth Quarter Adjusted Working Margin: 10.2%.Fourth Quarter Free Money Circulate: $539 million.Goodwill and Mounted Asset Impairment Expenses: $646 million recorded within the fourth quarter.2025 Gross sales Steering: Projected within the vary of $13.4 billion to $14 billion.2025 Adjusted Working Margin Steering: Anticipated to be within the vary of 10.0% to 10.2%.2025 Adjusted EPS Steering: Anticipated within the vary of $4.05 to $4.40 per diluted share.2025 Free Money Circulate Steering: Anticipated within the vary of $650 million to $750 million.
For the whole transcript of the earnings name, please discuss with the total earnings name transcript.
Optimistic Factors BorgWarner Inc (BWA, Monetary) delivered roughly $14 billion in gross sales for 2024, demonstrating resilience in difficult market situations.The corporate achieved a powerful adjusted working margin above 10%, exceeding the excessive finish of their steering.BorgWarner Inc (BWA) secured a number of new product awards for each foundational and eProducts, supporting long-term worthwhile progress.Free money move elevated by 29% year-over-year to $729 million, surpassing full-year steering.The corporate is well-positioned to proceed producing sturdy free money move in 2025 whereas investing in long-term progress. Damaging Factors International trade manufacturing was down roughly 3% for the total 12 months, impacting general gross sales progress.The corporate recorded a $646 million goodwill and glued asset impairment cost on account of delayed BEV adoption in Western markets.Gross sales within the fourth quarter had been down roughly 2% year-over-year, with challenges in China on account of decrease volumes on an current EV program.BorgWarner Inc (BWA) anticipates one other 12 months of declining trade volumes in 2025, with potential headwinds from world tariffs.The corporate expects a gross sales headwind from weaker foreign currency echange amounting to $410 million in 2025.
