Edwyn
Over the five-year period, BorgWarner’s revenue grew significantly from 2020 to 2022, rising from $10,165 million to $15,801 million. The most striking jump occurred between 2020 and 2021, when revenue increased by roughly 46%, and gross profit followed a similar upward trend, moving from $1,910 million to $2,855 million. Operating income nearly doubled from $618 million to $1,151 million, indicating a rapid expansion in core profitability. In 2022, revenue continued to grow at a slower pace (approximately 6% increase), while operating income improved further to $1,374 million, and net income saw an impressive leap from $537 million in 2021 to $944 million, suggesting enhanced operational efficiency and potentially favorable market conditions within the automotive components industry. However, the performance trend reversed from 2022 onward. In 2023, revenue declined by about 10% to $14,198 million, with a more marked decrease in gross profit (down to $2,568 million) and operating income (dropping nearly 15.6% to $1,160 million). The most significant downturn occurred in 2024, where operating income plunged by over 50% to $546 million and net income fell by roughly 46% to $338 million, despite revenue remaining relatively stable at $14,086 million. These substantial year-over-year declines in operating and net income (exceeding the 20% threshold) may point to rising operational costs, margin compression, or strategic shifts amid an industry increasingly focused on electrification and evolving regulatory environments. Overall, while BorgWarner demonstrated robust growth in the early part of the period, the recent deterioration in profitability metrics raises concerns regarding its operational sustainability and efficiency in a competitive, dynamic market.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.