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AUBURN HILLS, Mich. - BorgWarner (BWA), a prominent provider of sustainable mobility solutions with annual revenue of $14.09 billion, has announced the extension of four exhaust gas recirculation (EGR) system volume contracts with a major North American original equipment manufacturer (OEM). The company will supply EGR components, including valves, coolers, and modules, for various passenger and light commercial vehicle platforms, accommodating both combustion and hybrid powertrains. These systems play a crucial role in reducing nitrogen oxide (NOx) emissions and enhancing fuel efficiency, contributing to environmental compliance efforts. According to InvestingPro data, the company maintains strong financial health with sufficient cash flows to cover interest payments.
The production of these EGR systems is slated to continue through the end of 2029, reflecting BorgWarner’s ongoing relationship with the OEM and its commitment to environmental standards. The EGR systems are designed to withstand thermal fatigue and are optimized for performance, offering precise control of gas flow and improved sealing capabilities. BorgWarner’s innovative solutions, such as hybrid tube and corrugated tube technologies, ensure optimal thermal efficiency and minimal pressure drop under demanding conditions. The company’s strong operational execution is reflected in its consistent dividend payments, maintained for 13 consecutive years, and a healthy current ratio of 1.79, indicating robust liquidity management.
Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager of Turbos and Thermal Technologies, emphasized the company’s dedication to delivering high-quality and reliable EGR systems. He also highlighted BorgWarner’s global manufacturing experience and strong customer relationships as key factors in their ability to meet emissions regulations.
BorgWarner has a history spanning over 130 years, during which it has established itself as a transformative leader in the automotive industry. The company emphasizes sustainability as a core component of its mission to foster a cleaner and safer future. InvestingPro analysis suggests the stock is currently undervalued, with net income expected to grow this year. For detailed insights and access to the comprehensive Pro Research Report covering BorgWarner and 1,400+ other US stocks, visit InvestingPro.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. BorgWarner cautions against placing undue reliance on these statements, which are subject to changes in market conditions and other factors that could impact performance. The company’s future results may differ from current projections, and it does not undertake any obligation to update or revise these forward-looking statements.
In other recent news, BorgWarner reported fourth-quarter earnings that exceeded analyst expectations, with an adjusted earnings per share of $1.01, surpassing the consensus estimate of $0.96. Revenue for the quarter was $3.44 billion, slightly missing the consensus by $30 million, yet marking a 2% year-over-year decline. For 2025, BorgWarner projects earnings per share between $4.05 and $4.40, below the analyst consensus of $4.23, and expects revenue to be between $13.4 billion and $14 billion. Goldman Sachs upgraded BorgWarner’s stock rating from Neutral to Buy, raising the price target to $34, citing the company’s market position and significant sales exposure to the Chinese market. Conversely, CFRA lowered its price target to $32 while maintaining a Hold rating, attributing the change to concerns over electric vehicle demand growth and potential economic pressures. BorgWarner also announced a substantial contract to supply its high-voltage coolant heater technology to a major global automaker for plug-in hybrid vehicles, with production beginning in 2027. Additionally, the company expanded its dual-clutch technology presence in China through a new contract with a Chinese transmission manufacturer and an extended partnership with a German OEM. These developments highlight BorgWarner’s ongoing efforts to innovate and grow its market presence across various regions.
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