BorgWarner secures new dual inverter contract with Chinese automaker

AUBURN HILLS, Mich. - BorgWarner (NYSE: BWA), a $7.59 billion market cap automotive technology leader with annual revenues of $14 billion, has won a contract to supply dual inverters to a major Chinese automaker for hybrid vehicles, extending a partnership that began in 2021, according to a company press release. According to InvestingPro data, the company maintains strong financial health with a solid liquidity position, reflected in its current ratio of 1.97.

The project is scheduled to start mass production by the end of 2025, strengthening BorgWarner’s position in China’s new energy vehicle (NEV) market. InvestingPro analysis suggests the company is currently undervalued, with 8 analysts recently revising their earnings expectations upward for the upcoming period. For deeper insights into BorgWarner’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The dual inverter technology allows for synchronous control of two motors through a single controller, increasing packaging flexibility and installation convenience. The company’s design reportedly reduces thermal resistance by up to 50% compared to single-sided cooling, enhancing power density.

"We are pleased to once again win dual inverter business from this important customer. This milestone signifies a new phase of collaboration in the new energy vehicle sector," said Dr. Stefan Demmerle, Vice President of BorgWarner Inc. and President and General Manager of PowerDrive Systems.

BorgWarner’s technology continues to evolve, with the third-generation model featuring a high-performance single chip capable of simultaneously handling DC-DC conversion and dual motor control. The fourth-generation model integrates a boost converter and dual inverters with an optional DC-DC module.

The company’s proprietary packaging technology allows power modules to be flexibly configured in a compact package, reducing weight and cost. The design also enables packaging different types of semiconductor dies within modules of the same size, helping meet China’s light-duty vehicle test cycle efficiency standards.

BorgWarner, which has been in operation for more than 130 years, continues to focus on electrification solutions for the automotive industry. With an Altman Z-Score of 3.41 indicating strong financial stability, and analysts setting price targets up to $45 per share, the company appears well-positioned for future growth. InvestingPro subscribers can access additional insights, including 6 more ProTips and detailed financial metrics that provide a comprehensive view of the company’s performance and outlook.

In other recent news, BorgWarner Inc. reported better-than-expected second-quarter results, highlighting strong growth in its electric vehicle components sector. This development comes amid challenging market conditions, yet the company has raised its outlook for 2025. BorgWarner has also secured a new contract to supply its electric cross differential technology to a leading Chinese automaker, enhancing handling and traction capabilities in electric vehicles. Additionally, the company announced a contract to provide wastegate turbocharger technology for a hybrid sports car platform from a major global automaker, with production slated to start in the third quarter of 2028. Furthermore, BorgWarner has secured contracts to supply high-voltage coolant heater technology for plug-in hybrid electric vehicles with two major global automakers. The agreements include the company’s initial eHeater supply for a hybrid program with a legacy automaker, featuring 400V technology, with production expected to begin in 2028. These recent developments reflect BorgWarner’s continued expansion in the electric and hybrid vehicle sectors.

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