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BorgWarner Inc. (BWA-2.45%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing net sales of $14,086 million, a slight decrease from $14,198 million in the previous year. The decrease is attributed to fluctuations in foreign currencies and normal contractual customer commodity pass-through arrangements.
Cost of sales for the year was $11,438 million, representing 81.2% of sales, compared to 81.9% in the previous year. The decrease in cost ratio is due to purchasing savings and higher sales volume.
The company reported a gross profit of $2,648 million for the year, compared to $2,568 million in the previous year, with the increase attributed to improved manufacturing efficiencies.
Restructuring expenses totaled $74 million, primarily related to employee termination benefits and professional fees.
Goodwill impairment charges of $577 million were recorded, primarily related to the PowerDrive Systems and Battery & Charging Systems reporting units.
Net earnings from continuing operations were $428 million, down from $702 million in the previous year. The decline is attributed to impairment charges and restructuring expenses.
Cash provided by operating activities was $1,382 million, while cash used in investing and financing activities was $603 million and $167 million, respectively.
BorgWarner's strategy focuses on profitable growth across its technology-focused product portfolio, supporting electric, hybrid, and combustion vehicles.
The company completed the spin-off of its Fuel Systems and Aftermarket segments into PHINIA Inc., which is now an independent public company.
Net sales by reportable segment were $5,887 million for Turbos & Thermal Technologies, $5,577 million for Drivetrain & Morse Systems, $1,937 million for PowerDrive Systems, and $729 million for Battery & Charging Systems.
BorgWarner does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
BorgWarner continues to focus on expanding its electric vehicle product offerings and anticipates further growth in this area.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the BorgWarner Inc. annual 10-K report dated February 6, 2025. To report an error, please email earnings@qz.com.