BorgWarner Inc. (BWA) SEC Filings & Earnings Calls

Execution risk on turbine generator production timeline and sales targets; forward-looking statements subject to risks.

“Forward-looking statements caution about risks including supply disruptions, technology changes, and demand uncertainty.”

Battery Energy Systems decline and restructuring

“Battery Energy Systems $ 100 $ 159 $ (59) (37.1 %)”

Charging business exit costs

“During the three and six months ended June 30, 2025, the Company recorded charges of $6 million and $32 million, respectively, related to the exit of its charging business within the Battery Energy Systems reportable segment.” · word for word

Goodwill impairment risk in Battery Energy Systems

“The goodwill impairment charges related to Battery Energy Systems represent the difference between carrying value and fair value, resulting in the carrying value for this reporting unit to approximate its fair value.” · word for word

Lower industry production environment and declining Battery Energy Systems segment sales pose headwinds

“despite a lower industry production environment...decline in Battery Energy Systems segment sales of approximately $60 million”

EV demand volatility

“In June 2024, the Company approved an approximately $75 million restructuring plan to address the cost structure in its PowerDrive Systems reportable segment due to electric vehicle adoption volatility across different regions” · word for word

Charging business exit

“In February 2025, the Company decided to exit its charging business within the Battery Energy Systems reportable segment.” · word for word

Goodwill impairment risk

“The fair value of the goodwill of the Battery Energy Systems reportable segment is sensitive to differences between estimated and actual cash flows... An increase in discount rates, a reduction in projected cash flows or a combination of the two could lead to a reduction in the estimated fair values, which may result in impairment charges” · word for word

Organic sales declined 4.2% due to lower industry production environment.

“organic net sales decreased approximately 4.2%, year-over-year compared with the first quarter of 2025.” · word for word

Battery Energy Systems segment sales declined.

“Excluding the decline in Battery Energy Systems segment sales, this performance was roughly in line with the Company’s weighted light vehicle markets.” · word for word

EV Adoption Slowdown

“As a result of slower than expected EV adoption, we achieved a threshold level payout for eProducts Revenue Mix and we did not achieve the threshold level for eProducts Revenue.” · word for word

Tariff Volatility

“We were able to improve our adjusted operating margin and free cash flow despite a volatile market and unpredictable tariff changes.” · word for word

PowerDrive Systems Losses

“The PDS business unit delivered BU AOI of $(88) million” · word for word

Tariff Exposure

“In 2025, the U.S. announced significant tariffs on imports from a broad range of countries ... These tariffs have increased the cost of raw materials and components we purchase” · word for word

Commodity Cost Inflation

“Increasing commodity costs negatively impact our operating margins and results.” · word for word

Limited Pricing Power

“Our ability to pass through increased raw material or other inflationary costs to our OEM customers is limited, with cost recovery often less than 100% and often on a delayed basis.” · word for word

EV Adoption Volatility

“If the overall adoption of electric vehicles continues to be slower as compared to our expectations, we may not only fail to realize expected rates of return on our existing investments, we may also incur further losses on such investments.” · word for word

Goodwill Impairment Risk

“Asset impairments $624 ... $646”

Goodwill and intangible asset impairment charges of $624M in PowerDrive Systems and Battery & Charging Systems segments; exposure to automotive cyclicality and EV transition.

“$624 million of goodwill, intangible asset and property, plant and equipment impairment charges within our PowerDrive Systems and Battery & Charging Systems segments” · word for word

Tariff headwind of 60bps; European customer cyber shutdown impacted sales.

“60 basis point net headwind from tariffs; downtime at one of the Company’s European customers due to a cyber related shutdown.” · word for word

Lower battery and charging sales noted.

“partially offset by lower battery and charging sales” · word for word

EV demand slowdown and restructuring execution risk

“In June 2024, the Company approved an approximately $75 million restructuring plan to address the cost structure in its PowerDrive Systems segment due to electric vehicle adoption volatility across different regions” · word for word

Charging business exit and impairment risk

“During the nine months ended September 30, 2025, the Company recorded charges of $32 million related to the exit of its charging business within the Battery & Charging Systems reportable segment.” · word for word

Legal settlement risk

“During the three and nine months ended September 30, 2025, the Company recorded a charge of $38 million, related to a legal settlement, inclusive of associated legal fees.” · word for word