BorgWarner beats Q3 earnings but misses on revenue

BorgWarner reported strong third-quarter earnings but fell short of revenue expectations, leaving its shares mostly unchanged following the announcement. The automotive supplier's adjusted earnings per share reached $1.39, surpassing analyst consensus by $0.13, while revenue totaled $3.49 billion, 2.9% lower year-over-year. Organic net sales declined 3.1% compared to last year.

BorgWarner raised its full-year adjusted EPS guidance to $5.20 to $5.35, higher than the previous range of $5.05 to $5.30. The company narrowed its full-year revenue guidance to $14.0 billion to $14.2 billion, slightly below the consensus estimate of $14.176 billion. BorgWarner's cost control measures helped maintain a strong performance despite a challenging industry environment, resulting in an adjusted operating margin of 10.9% and free cash flow of $195 million.

The company reduced its gross debt balance by $864 million through a debt tender and redemption. The automotive market is expected to decline slightly for the year while BorgWarner aims to expand its adjusted operating margin.