BWA - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone. My name is Bo and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 Second Quarter Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. your begin may you conference. Nolan,

Patrick Nolan

our Good Thank our for this Investor and on on you Relations homepage. everyone, us you, morning. home today. and posted earlier Bob. joining release We thank earnings both morning, issued page borgwarner.com, website, It's our our

Before we detailed as you in XX-K. to need that we call, uncertainties this begin, risks forward-looking make and I may statements, inform during which involve our

may differ significantly from discussed matters results the today. actual Our

order with we'll that to how impact and us FX When presentation, net During When M&A items. of organic, basis, highlight When comparable you other hear the picture us performed measures in you that you M&A. means a net FX, of a certain of provide today's the excluding and non-GAAP clearer say impact means excluding the for prior say noncomparable hear business items. excluding adjusted, that core on and means comparison say purposes noncomparable hear us periods.

also We refer margin performance. will our incremental to

margin incremental operating organic change change organic the as is our the adjusted sales. by divided in income in our defined Our

other all-in items. includes incremental investment and planned R&D impact Our from items inflationary our any net in margin cost

compared to us will refer our change our exposure. market. commercial for geographic to We market, vehicle When you and also hear that light our growth say in the means production weighted

encourage follow posted turn Fred. call to With to of presentation We to I'm discussion. we've website. the during happy over earnings the that today's page note to with you that, these our Please our call along slides IR

Frederic Lissalde

modest of update, approximately sales in on billion production. results share I'm everyone. an Slide X. a flat overall Thank QX decline for company good very starting you, day, provide and the our relatively outperforming quarter second and to year-over-year, our XXXX were $X.X At pleased Pat,

scenario. is, basis I across our electric about the again, market which of to outgrow the product resiliency efficiency-focused points. believe, shows for any the of we type secured half XXX combustion, the outgrew and passenger outgrowth commercial For by propulsion multiple portfolio, market first and both in We sales cars new mix Once hybrid year, our positioned the of vehicles. awards

our to quarter. the line Turning for bottom

which points year. a EPS which XX very was strong versus $X.XX up increase year. was prior per basis of We XX.X% We margin, $X.XX delivered versus prior delivered share,

adjust us to Our XXXX our our full allowed actions, first on guidance, current EPS margin structure carried Craig restructuring to focusing our has year dynamics. We and to cost half performance market detail will now and our margin as later. earnings on segment ePropulsion increase

result impacts. $XXX We these rate expect will with that actions cost savings in immediate XXXX, by positive about annual run million of

introduced We designed global to go-to-market shareholders. new and a also clarity and simplicity unit to our cost our further synergies, bring strategies structure, maximize business enhance

intention of deployment repurchase of of efficient on focused $XXX announce and remain we second our half stock BorgWarner million Lastly, to XXXX. capital our in the

report. company where Slide clean, X, I vision highlight to And lead take our energy-efficient sustainability a on BorgWarner's which world. I'm moment a Next, report, published is month. to was XXXX earlier this a would proud means like to few a to go sustainability points our value for to business sustainability would in all goals the our At highlight of hand-in-hand tomorrow. BorgWarner, and described with progress goals. just today stakeholders like I delivering

reduce XXXX. on XX% goal and the to from it First, by by XX% our BorgWarner greenhouse emissions validated X baseline, has reduced SBTI Scope gas progress XXXX X making

to by our XXXX company's to X compared engaged and supply company a emissions, XX% of the engineering goal the Second, baseline. XXXX reducing management Scope teams chain advance

goals, team our survey. I in for thank for innovating would and we excellence belonging achieving products other leaps our cleaner And our all and company's above third, on dedication and making to mobility, sustainability employee entire people. towards benchmarks the their on in sense performed investing of inclusion like climate engagement and

Now let's new look on some awards product X. Slide at

OEMs. to will XXXX First, exD of contracts secured Cross supply into electrified production Differential major expected X Start to has or XXXX. wheel and of is multiple powertrain incorporate Electric companies application. and both BorgWarner in drives rear The its front BorgWarner exD technology

part Torque torque, range offers increase Our and of improve Management superior traction exD our during and provide launch stability is which intelligently that Electric controls, products System, performance of wheel acceleration. a to dynamic

America. largest high-voltage including secured capacity America eFan to for components, This of a system business OEM a of fan deliver to win global reach is eFan of in expected for in major high-voltage in comprised with and XXXX. vehicles inverter marks of meters commercial awards us complete of systems power series BorgWarner electrical to eMotor integrated XX-newton on the XX use Next, torque. up North eFan North and production and X an BorgWarner QX, the with start kilowatts

across cooler vehicle Lastly, commercial Start expected XXXX implementation American-based BorgWarner X has with customer. secured various to trucks. commercial EGR QX, medium-duty production prominent North with awards a in be of is

robustness offers EGR and cool and increased Our engine throughout emissions high thermal solution against reducing distribution fatigue for the optimizes performance.

supports increased We portfolio and highly our economy EGR the fuel continue which interest across efficient needs for stringent requirements and emission combustion for see the to engine need world hybrids. product across strong combustion that meets

to new Now structure. discuss turn to X, I let's business Slide our where like would unit

our this now and scale it synergies, to our is our strategy. higher for believe enhance will the continued of all cost market, clarity and the stakeholders. focus leadership execute structure time unit have and to right We we our on robustness to the product business align ability As drive further portfolio, to leveraged outgrow

led and business unit and X Turbos Technology As Volker associated the our business in unit Thermal Weng. This such, financial by is unchanged. segments beginning reporting will its Dr. is third unit BorgWarner quarter, reorganize follows; as business

unit is Dr. Our our System, also reported which to continue unchanged. led be externally today Power is ePropulsion Stefan segment business Drive will Demmerle. This by

are Our Drivetrain into by now businesses unit business is led and Isabelle one combined and Morse Systems McKenzie.

quarter by were Hank which strong. To [indiscernible]. the this, today led our Battery takeaways one is BorgWarner's We've Commercial business Vehicle combined Charging from into businesses and summarize, results second unit, are

once performance industry. outperformed again sales the Our

was intended the awards our this of in powertrain position further the share operating cash adjusted on strong multiple Our half we secured finance the combustion in of BorgWarner the Hybrids margin spin-off, leadership fuel efficiency since million very business is architectures. includes or efficiency, and our demonstrate our is electron year. new $XXX repurchase product was whether and focused highest the generation all in We believe support for BEVs. which quarter it powertrain and second efficiency,

support any architecture. I believe can BorgWarner powertrain

mobility world portfolio we We in to come. are leader positioned production years is for uniquely a that with industry believe to outgrow product efficient

the well as to in dynamics to increased as additional This a industry mix quarter, clarity steps cost meaningful we to line took structure transparency product provide from manage and organization. our response global

production will production, higher mix and BorgWarner volumes for into the appropriately sales profitable As we our At preserve to the allow same cost to as time, world to secure to outlook we convert continue mobility continue value long-term and change thanks earnings growth create growth deliver to edge. to continuing This structure our that opportunities performance transitions global to forward, leadership will look as shareholders. continue more growth and product technological we market position above our long-term growth in manage and efficient organic expect while industry combustion, through BEVs. to hybrids our

me to let call the that, turn over Craig. With

Craig Aaron

Thank you, morning, and good Fred, everyone.

at year-over-year start sales our walk for Let's on QX. a with look Slide X

were under sales just from billion. $X.X continuing QX operations year's Last

U.S. decrease decrease points a dollar sales You or can the modest was production. see can drove that see million. year-over-year basis $XX of sales market organic X% Then above strengthening which in you almost a in XXX

sales of $X year-over-year. added Finally, sales just the QX. in was this all million billion of of Eldor $X.X acquisition sum of The over

Turning to Slide XX.

see the and can quarter. earnings our flow performance cash You for

impact Our continuing including compares ability operations a of a production adjusted a second the and performance and a lower items, strong our XX.X% [ despite M&A, declining our of $XX result to adjusted operating partially of income from deliver record favorable year related restructuring, of benefits a million initial stock foreign ]. supplier and income $XX comparable is excluding helped exchange from cost basis, profitability to retirement This executive income operating by senior equating environment. quarter This million, timing was On ePropulsion $XXX was million million forfeiture adjusted margin. operating increased margin a XX.X% That a on to ago. a to $XX $XXX million or from sales. reflects great the of

$X was The drag operating year-over-year. a of million Eldor impact on net income

and repurchases. free cash up ago strong And working the year during was and second adjusted capital million was a quarter, a $XXX performance. the million continuing from as of a recent Our operating rate operations as of impact up our year from EPS continuing $X.XX to ago our adjusted compared share result capital from tax was flow decline effective in which expenditure higher a a result $XXX income, operations of finally,

at let's on full Now year outlook look XX. take our a Slide

in reduction sales our this reduction, billion the XXXX the is to demonstrates which kind eProducts positioned of resiliency at expect to outgrow market propulsion production once to a coming $XX.X end prior $XX.X foreign of $XX.X from total production our billion in currencies, weaker projecting due guidance range a billion, reduction billion. $XX.X This market to lower outlook are and which We is technology-focused points, XXX any we to of believe of our again basis revenue environment. of prior guidance mix is that to range. company outgrow the production market Despite XXX the portfolio, we during by low

currencies. foreign with Starting

our $XXX to largest X% down million full year weaker in prior RMB Chinese and to Within down compared Korean from sales previously. with this XXXX. also X.X% guidance, flat This sales been Euro, end now the year X% of guidance Won has being a of change Our guidance, expected assumption our market the to to reduced million an drivers versus of currencies headwind the outlook. full headwind foreign assumes versus our $XX is

X.X% SSE expected and year-over-year organic million guidance X%. and growth sales. headwinds, on prior XXXX Eldor market of to eProduct X% to add the X.X% to of Finally, are to end approximately approximately our to Based we compared acquisitions $XX expect

at However, XXX market growth above overall our to production strong basis remains points. XXX expected

Now margin. to let's switch

X.X% our actions, of moments. prior benefit X.X% of to our which to This end We our very We expected year believe few profitability from I'll a guidance discuss in year-to-date and markets. on performance against are increase is ability to ePropulsion to X.X%. margin the margin reflects increasing our drive volatile outlook guidance restructuring our full X.X% this based

in the conversion outlook low XXXX, digits. year high We of EPS $X.XX outlook, during X.X% performance and to the decline view adjusted this to we're as and production market in sales the year. given per the strong anticipated our Based $X.XX second of second low the of a share. range restructuring, full margin this Excluding decremental end of the diluted mid-teens, guidance the on end the in underlying our half the impact X.X% expecting double and of incremental an provides half conversion benefit in contemplates the business while Eldor our e-Propulsion in delivering of the losses related

the flow to we million share This increase to expect cash outlook guidance deliver margin our and million value strong free is and its free our repurchases example of expected year. higher share being In by to cash XXXX is all expect company prior an shareholders. execute to that cash before another the to compared end in our shareholders of allocate driven simply $XXX the utilizing to through in million this of impact flow, we summary, the repurchases of With dividends. $XXX to $XXX flow

our Slide segment. e-Propulsion Let's restructuring planned our discuss and within turn to XX, actions

the earlier, million. our second actions these As of by $X quarter mentioned results helped initial benefits

market platform sales shortfalls in due to individual various see dynamics. continue short-term We regional this challenges and other business to

These it with this expected restructuring XXXX. critical will restructuring $XX to We cost of of structure restructuring $XX million also was XXXX actions in this that cost $XX extend rightsize margins able future it the Therefore, to generate positions deliver business $XXX ePropulsion million current June. by to of we of to growth. business actions million improve in earnings to to sales near-term of estimate cash started on incremental that be is costs The approximately the XXXX. level million their mid-teens intention savings to are through cumulative but approximately and the

this in second strong And strong financial XX.X% the better me was declining production. quarter. a higher Overall, a flow in XXXX. was very XX did summarize margin, we free generated than my let performance million We And higher than we which delivered XXXX. production market cash than we with $XXX sales which So basis quarter points million despite $XXX remarks. delivered market

as give beyond. like environment. relates market you I it my production to these the resiliency portfolio is type deliver outlook. Last believe strong cash for our X flow . market outgrow financial positioned technology-focused of for would demonstrates of in this view to again quarter, any of I goals goals end and free BorgWarner XXXX to XXXX to shared and I once that and our profitability

the of of XXX our environment, the XXX by to year. anticipated points we very we First, points market environment. full we outgrow despite year. positioned first during believe volatile outperformed expect production XXX production And to second basis for mix reflection the leading-edge approximately the by powertrain market a that This technology to half basis is a weaker half is outperform

Second, our free half of strong a means to challenging full intention outlook the second our through And free first cash allowed production of the basis This and the planned repurchase million by focus quarter, restructuring dividend including liquidity, we our returned our we When margin profile expect half us cash XXXX flow on extremely additional to environment. strong profitable share with remained actions, XXX the of flow be generated during of of combined through our supports points shareholders growth, and the year. during lastly, a to margin XX year combination increase second year. tenant that strong will quarterly despite continued ePropulsion all consistent the our we shares repurchases. have which this

post continuing XXXX combination And while repurchases our to spin-off. focus expect our of The also more this in shares represents X% do on our ] to invest than share growth. and XXXX profitable [ our business intended we support finance long-term to outstanding of the

see like over how our very first and the back I we the the year. back I'd As that, to equally the turn the With call proud of Pat. in I'm back excited to at of year, look results performed, have half with half I'm to

Patrick Nolan

to Craig. it Bo, you, Thank we're open ready for up questions.

Operator

morning John this Bank [Operator Instructions] of first America. with go to Murphy We'll

John Murphy

is just main expecting? is why question Why loss-making does appears, savings -- for been is does a business quick the -- Europe? come Just to not even materializing restructuring. the it program you're just America the response North that the programs these around And way very just of why have only and some meaning not pushouts, given here or And in you, through. it this include include that they if eProduct may it One, China? cancellations

of confirm kind just maybe So that.

cancellations So Europe? program and were and why not Is with color programs any And pushouts? maybe this? it start to just other loss-making the around

Frederic Lissalde

when we've PDS on because restructuring is the we're America and But most on engineering [indiscernible] We restructuring. parts this That's on John, restructuring footprint we Europe. that's unit leadership converting where major happen, we programs many North product efficiencies. how products China. have weight. globally, sized launching tilted up, so on the the way touches focused we've sized this sized. product and that focusing carries mid-teens long-term launching the so and also for that OEMs Yes, to where perspective, from -- an booked, very products for of enhanced and defined is business We're essentially The and some the is where the will it also of

John Murphy

of that through a year revenue program? 'XX we of might in higher incrementals, that ICE the Are that potentially then follow-up hybrid on to And benefits any gaining come the maybe it's maybe of you seeing maybe where it come on side go or the 'XX just you're the side. this that on little and this through at a and bit [indiscernible] course is the Okay. business might

Frederic Lissalde

Yes.

that is new the from. So are And focusing and guide. sure the and translates on the updated is and additional our propulsion volatile in were booked, the we converting business comes at mix revenue revenue what this on We're making doing unpredictable. numbers Borg we're is launching wherever the what that

John Murphy

it's on of that head Is just count most one And this, statement? just it fair R&D. a sounds like Okay. Bob,

Frederic Lissalde

head It But other overall. SC&O count types than more other spend. of is any it's and things,

Operator

at We go next Langan now Wells Fargo. to Colin

Colin Langan

half. that driving Kind of half, is the it lower look of think And conversion over half about actually What there's does at the the something seasonality? mentioned decremental, lower a program I sales. should thinking half midpoint first a those I Is If the top it, of I of we second that? first of second the little How half sales. into savings second go on on be if guidance, at year restructuring full end you normal like just on imply from higher XX% to bit decremental?

Craig Aaron

Yes.

I first mid-teens. second year, the actually, half when second the So look in we're half, X.X% at incrementing we the about half, the think the at think our you about And when guide, way to in when look to better you is X.X% margin year-over-year. end of think high of it our

restructuring. excluding end, low That's the the digits. in low the of benefits we're double On decrementing

in So holding the we're of the incrementing high Colin, bottom you when on guide, guide, on end the and include range our of we're XX% restructuring, the end flat.

I performance. us, For underlying good that's think really

so year-over-year. how it at And looking we're that's

Colin Langan

that growth it Got than mix all that little if domestic? the some reported? seems site issue XXX a Is mean, customer is you over other the in that it. pretty an Or what I driving And basis market, And not there think pretty issues. EV look for given with considering is I at your came have delays? they're down any change? strong I points. small is of bit China position suppliers as It less

Frederic Lissalde

end essentially really XXX performing North quarter-over-quarter eProduct in good proxy. BEV smooth I not in for QX look guide. the points. North outgrowth a of at really also revenue is as a essentially our this is basis that's program And growth -- the well. the impacted Colin, Yes. And America America by program low would not at out

the for is want points where to where year, full the we'll of basis kind and to be, we points want basis half around we is XXX think also XXX be. first I be for which

Colin Langan

was to slightly implied. growth referring all that of year of it's a EV-related? Is that lower. seems kind like full It the was also market guide, I

Frederic Lissalde

It is.

Operator

now at Chris next go Evercore. We to McNally

Chris McNally

I is organic Maybe think given on step reduction probably if bit it XX XX the basically, normal back have a way impressive I the or little points essentially for less of revenue $XXX you raise guide I lost million, would mean, basis than bps. about XX the of incremental.

us if you double margin, sort ePropulsion in all think you walk So XX.X% a margin a the operational Anything out why out look 'XX? know I for obviously, two, Can plus what trend. if a off? work there's at of is we're quarter lower of sort make doesn't you of we those XX add better-than-expected I XX% to bps what the XX of you've and have a 'XX, rolls still to through and Where lot some can't propel that performance, you of it's contents where digits. trying just discussed a sort moving QX while and about parts losses of X qualitative? just

But that if figure what to strength business. we're bit why trying better is you can't ICE Because we is curious trains all than this minus margins. down? obviously, in negative the a for It's see foundational but out question, longer, long that of a sort will get more ePropulsion the here little double-digit

Craig Aaron

look I'd in There it benefit QX Yes, when is at $XX say the at my way as with about Chris, mentioned I quarter to XX.X%. you some in script, items. the we're look -- million was at

that, remove it's XX% So for when you about QX.

at the million eProduct the the operating side of foreign $XXX $XX the into on market, And unchanged. midpoint of second million coming move purely balances half is exchange about you and income year, our ultimately, as mentioned, portfolio. revenue the we is down As

that? so we think And doing question is, how I your are

the And decline. is half sales performance our from strong I and restructuring think benefits offsetting it's first our coming

I as that. simple think as it's really

Chris McNally

we're that's end decrementals? of down. margin ex that see down, actually come idea isolate to lot the of is able coming of meaning see you if the so sort life that R&D also often of a these Because volumes right, assume of ex-EV years. were be to going ICE, programs, we they'll over plug-in, And ex-hybrid business also see Should at next we couple then to this obviously, decline pure of

Will down things of of one ICE over specifically out. that trying margin the years? were isolate we're So foundational we couple decline figure programs. the as they go to see next units If to that's

obviously, about see And may not to down? be will then programs if how think or sort like-for-like we come of these question ICE But volumes basis just on margins we it, some of should were but coming on may down a the you report extended pure less.

Frederic Lissalde

Yes.

go would products lot So the A combustion hybrids of key are lean of say, and I element making combustion hybrid efficient. and our of a first, side into

I So same a try on also don't very hybrid combustion I think BEV. Those our versatile should our EV products. and product and on split go think when you goes hybrid, item think and combustion, the combustion product Because BorgWarner, you and hybrid. are about

on It the And portfolio you all the segments, play outgrowth. segment. to this. as simple if so in and X And that have as we is outgrow call segment convert

Chris McNally

these see that's you a No, X the new think actually the I And easier sort do Fred a I as isolate. of Hybrid. get to and progression, segments margin ICE, that's EV little know be for kind the of I may we think interplay -- one tough investment segmented that as the in of of also where in helpful. see we some to community segments, trend

Operator

Joe now go We to at UBS. Spak next

Joseph Spak

to plus before million Just be year. eR&D were for $XX for -- the I looking think $XX you to million

it and is some restructuring, million year-over-year mostly sort it's restructuring? that sound there savings Is like people. again, pace? of $XX this with like other Now from the does a Or now

Craig Aaron

the Thanks, Joe, question. for

year. Yes, million right. to we said You're $XX starting million the $XX

happening to XX% be still Now the our $XX restructuring, that's million It's and focused be that $X.X million $XX launches billion. year-over-year. engineering, are really still $XX it eProduct up going on it's going growing million a look represents in to is future. million. going application to really what be about to down to year-over-year, after $XX I supporting million to that this $XX how is and And lot $XX of at that is to It's million portfolio

Joseph Spak

e-products R&D market sort how investment on is view on of and here? going this like there your follow should we and more guess given to So think of to about evolve I importantly, new just capital how

Craig Aaron

to we're capital as return continue XX% support we're that On programs. focused, going to new on those programs with R&D, all still always, on growth, and on invested

Joseph Spak

then maybe ramp And apologies still this, I end track? one think looking -- if you're Okay. the to is of Maybe like sort on that -- more here. is $XXX on one for eProduct that quick $XXX I here battery to million. missed just lower -- the be million but

the So is some products? those Or reduction well? battery of there to in a really the as other side revision was

Frederic Lissalde

Yes. just additional a Back your mid-teens, including On it's job, want I now year-over-year question, to prior doing in to battery, and add that the track. eR&D production. we're is million great on spend. Seneca incrementing $XX food they're

contributing are Europe. And on business the battery are positively guiding an for we for to is, important course, of and delivering half part the up our full year. incremental margins also for performance that first We also the the of track

Operator

go We next at Barclays. now Levy to Dan

Dan Levy

another Battery I which quarter. segment, question is wanted really with and to on strong the start drivetrain the Systems first

it help on you that's strength. core the Where us piece and margin of second -- just battery versus So was side? ago, to can talked foundational much maybe the ramping. this but disaggregate obviously a How you the

Craig Aaron

restructuring, Yes. And we're of it's quarter from coming savings, sales answer, the benefits But our both like The time, of strong you short and really, really on so P&L. quick coming the seeing through coming same at Foundational the think in business. I the the that is both saw. Battery extra business. supplier growth It's really converting really the we're also those -- sides portfolio business on answer all the the that are actions productivity from come cost, you're both on focused sides taking from

Dan Levy

trying particular within getting trending there how product or particular one get drivetrain side sustainable them? segments the how that's -- sense these foundational of a results margin recognize I'm but the to sustainable when just is drivetrain, reshuffled, are? foundation I the one And region to -- are

Craig Aaron

drivetrain, seeing of the the we're good Asia. foundational Yes, side, out strength

Dan Levy

revisions. maybe Maybe help We've follow-up, as a the obviously But number mix of terms the talk markets. on just standpoint, assumptions we've the end seen maybe and what it. of might understand on your to cuts, you're you outlook, end seeing mix negative the a on forward the conservatism be views schedules, Got much customer us can because how including on a conservatism production you seen about market customer please? reductions in

Frederic Lissalde

we guide market see followed the In bit Ben, year-over-year, the biggest of a production In there with and consumer what Europe. bit address demand our some North weaker X%, that their reflects a China, working to China, And in in in America and the rates. a we're But be in impacting of America, we by and is the backlog. reduction expect market, demand down customers depletion bottom see X% weaker we being guide, line on North of and seeing all line. also to inventory a is top Europe, level. embedded our both now

Operator

We'll Delaney go next now to Mark at Goldman Sachs.

Mark Delaney

sales was that's than within company some a design better up Chinese And and eProduct OEMs. has wins about spoken eProduct market have held Wondering, I the other of domestic within EV where good understand regions. hoping to better the China, the was with some

extent, that Chinese on more And U.S. in if imports around you based the at the are the could of maybe an effect for what on bit So speak incremental your tariffs Europe the some a what to China OEMs? eProduct? domestic market with eProduct all, you're little having and Chinese business seeing

Frederic Lissalde

Mark.

hybrid are hybrids both We're BEVs of and go encompasses and BEV. both China. launching lot in and China, into The eProduct remember, new growth a fastest So NEVs in hybrids -- is of products also a Chinese made for carmakers. potential about eProduct are used and lot of our in are A exports China with potential in products XX% localization. our China, also big

of So the tariff. we're The China. very with in happy business impact our

that's are of the to world. But go world where the we anticipate. BEV early the little is a of those certainly part it's with China think and Hybrids eProducts parts we of helpful side other I very scale, east when in supporting a gaining and

Mark Delaney

that understand question as and other $XXX for understand be And was share prioritized the Is the you forward? about balance better of My the think allocation. how you're spoke million think year something to beyond bolster we've you the company be years this shareholder allocating the use going plan help you seen thinking calculus recent M&A in I to for the that of you capital us part helpful. of returns, That's capital repurchases, capabilities? for XXXX, on can tuck-in is capital about allocation may

returns think uses out more Or you're of would of the as for preference XXXX? into shareholder buybacks the looking be and will capital you

Frederic Lissalde

allowed past. that acquisition, term. even growing remain us organically. together with long has we're important and portfolio I more our being part unique you But approach the strategy classify as would that very Acquisition that organic over an I I don't see create Yes, of in to product stringent the tell development tell prudent X may can to XXX% announced next million thus of generation. M&A $XXX cash highly back That's be you than now. over would or our quarters, much likely I shareholders intention to what giving our the of pretty X, stock of couple the to And repurchase

Operator

go Jonas now next to We of Stanley. Adam Morgan

Adam Jonas

just I of a questions. got couple

around firms one given, maybe industry, cheapest supplier, which out the S&P opinion, too is PE auto-related It in in in the of S&P ranks XXX, supplier, the by the BorgWarner XXX far is of yours my XXX really So think the most in is Freddie, the accomplished multiple. engineering this in companies astonishing world. in XXX auto and I

you pressures have it's that about is -- opinion, team's custom -- your stuff. and what telling capital -- market used. just in very your what are the and your Why strategy? alloys the the products tolerances opinion, You allocation your high-tech It's very,

that? the don't pulling example, getting today's know a don't you is share or back I from -- And you're it rewarding then [ what tune return. hypothesis? Or message market and clues reaction, do you that a with I E other penalizing have versus price rewarding I in ] then if you're in follow-up. agree different for or investments with capital And seems like know have

Frederic Lissalde

think about cash need I that increment, is we the mix Outgrow what a Adam, create and we to scenario. different on generating cash versatile can And control. we focus smart can production the great product what across market, control utilization. is be

unique before, us prior question, product with and helped was create As I development in mentioned Mark's that together very essential to portfolio. M&A organic

focusing we're outgrowing, going organically. generic basics to and in have we think And it on portfolio, I converting back growing Now, the of a BorgWarner cash. great

Adam Jonas

making I My Why buy a to It's explain in do a the simple follow-up stock make -- just don't tell Why like great. it's want like fantastic. like fortune. advertise a you advertising a me, And your understand you guess. hostage That's that love house" owner, then to logic. I in the is your the way own going you the being "Hey, What Can house this that? you someone you might and buybacks? for bid own logic case, to is the I share a to Okay. question, later. and your why target,

Craig Aaron

earlier to given about Fred's we for and blacked I think wanted free we quarter, wanted our When it's flow about the of for was us, out we at M&A. to second the the to shareholders. our quarter, all you community cash right shareholders. second comments were provide that to of the clarity to look time transparency majority the allocate It investment

transparency. So we and clarity wanted provide to

Adam Jonas

amount. in feedback time only I to taking do always just business. and forward the have don't you the the that's appreciate the that feedback you you time time questions. to But have answer My you horizon and with guys the is run can real

Operator

have for James of question, do will final BNP We Paribas. that come time from and Picarello one

James Picariello

the about now Just billion year. as trending we $X.X think for sales, eProduct towards

on that BEV getting finished market -- filing. exposure, the sense And That first Systems So Ford, an XX-Q decent if year million compete how your you and confirm but supplier substantial Battery doesn't the trended? BorgWarner at by we're against second for vehicle AKASOL, a implied $XXX second its all for sales few you another in think from a at half? supplier expectation cut seeing gain specifically, quarter commercial what's directly commercially questions, this another Can the a pretty for I The other your at end perspective, something business? clip. just this in this is morning is that quarter

Craig Aaron

were confirm million. sales I'll QX And Okay. $XXX

and I'll to turn today, You'll on over your see it XX-Q Fred question. other that our later in

Frederic Lissalde

Yes.

our from the in would our about is billion, on linked of you which about about a XX% bit growth now light e-products point $X to growing that step in time. what in impact $X.X commercial at you we're you prior think this little back, quarter. vehicle billion if take powertrain The just eProduct is in I I adjusted remind have electrification. year-over-year numbers versus in see a essentially vehicle been to

James Picariello

last, then restructuring or And Eldor? million future slated on also include And now losses it, are call your this just for Eldor at will Understood. actions how so. the year? reproposing efforts I can provide prior color you to trend believe the $XX guidance,

Craig Aaron

is now, in business by should how XXXX. savings unchanged, Right that's about $XXX the we're on it. focused total targeting and and cost you Obviously, think Eldor million

Patrick Nolan

the that, thank you questions If can all you any to and today. or your to today's ahead my go With team. reach me Bo, follow-ups, conclude call. out like I'd for

Operator

and Nolan, Mr. Goodbye. call. that conclude you, thanks earnings much ladies for and everyone. today's second all quarter again, great We BorgWarner wish so you day. gentlemen, will a us, joining Thank Again,

BorgWarner (BWA) 31 Jul 242024 Q2 Earnings call transcript