BorgWarner Inc. Announces Strategic Moves and Financial Strength Amidst Market Challenges

AUBURN HILLS, Mich., July 31, 2025 — BorgWarner Inc. (NYSE: BWA), a leading supplier of engineered systems and components for automotive powertrain applications, has made significant strides in securing new business contracts and enhancing shareholder value. Despite facing tariff headwinds, the company has demonstrated resilience by posting a beat-and-raise quarter, as reported by Seeking Alpha.

Financial Highlights and Shareholder Returns

BorgWarner has raised its dividend by an impressive 55% to $0.17, signaling confidence in its financial health and commitment to returning value to shareholders. This move comes alongside an increase in the company’s 2025 guidance, reflecting strong performance and optimistic future prospects. The company has also authorized an increase in its share repurchase program, further underscoring its robust financial position.

Strategic Business Expansions

In a series of strategic moves, BorgWarner has secured multiple contracts that bolster its presence in the global automotive market. The company has been awarded two major turbocharger contracts with a global OEM for next-generation vehicles in Europe and North America. These contracts involve supplying wastegate gasoline turbochargers for 1.0L and 3.0L engines, enhancing BorgWarner’s market share in these regions through cost-effective and durable solutions.

Additionally, BorgWarner is set to supply wastegate turbos for a major OEM’s hybrid sports car platform, with the system slated for release in Q3 2028. This technology is expected to deliver excellent response times and power density, significantly enhancing engine performance.

Advancements in Electric and Hybrid Vehicle Technologies

BorgWarner continues to expand its footprint in the electric vehicle (EV) sector. The company has secured a new electric cross differential project for electric vehicles in China, which will enhance vehicle handling and traction capabilities. Furthermore, BorgWarner has won a dual inverter project with a major Chinese OEM, advancing its Dual Inverter technology with a highly integrated structural design.

In the hybrid vehicle space, BorgWarner has secured eHeater contracts for hybrid applications with two major global OEMs. The high-voltage coolant heater (HVCH) technology will be integrated across hybrid platforms, enhancing the overall driving experience and system performance through vehicle cabin and battery heating.

Expansion in China

BorgWarner’s expansion in China continues with the acquisition of a new electric motor business with a major Chinese OEM. The platform-based design is compatible with all types of new energy vehicles (NEVs), and the ultra-short welding process enhances space efficiency. The company’s new Wuhu plant is nearing operation, expanding motor capacity in China.

Conclusion

BorgWarner’s strategic initiatives and financial strength position it well for continued growth in the evolving automotive landscape. With a focus on innovation and expansion, particularly in the electric and hybrid vehicle sectors, BorgWarner is poised to maintain its leadership in the automobile components industry. As the company navigates market challenges, its commitment to shareholder value and strategic partnerships underscores its resilience and forward-looking approach.