BorgWarner Stock Falls After Q2 Results, Cuts Higher End Of FY21 Operating Margin Outlook


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  • BorgWarner Inc (NYSE:BWAreported second-quarter FY21 net sales growth of 163.5% year-on-year, to $3.76 billion, beating the analyst consensus of $3.52 billion. Organic sales were up 72%.
  • Net sales from the Air Management segment rose 124.4% Y/Y, and the e-Propulsion & Drivetrain Segment gained 120.3%.
  • Gross profit soared 337.9% to $762 million, and gross margin expanded 810 basis points to 20.3%.
  • The operating margin was 8.4%, with an operating income of $317 million.
  • The company held $1.6 billion in cash and equivalents as of June 30, 2021.
  • Net cash provided by operating activities for the quarter amounted to $280 million with a free cash flow of $133 million.
  • Adjusted EPS of $1.08 beat the analyst consensus of $0.81.
  • Outlook: BorgWarner sees FY21 sales of $15.2 billion - $15.6 billion (prior $14.8 billion - $15.4 billion), compared to the consensus of $15.13 billion.
  • The company expects an adjusted EPS of $4.15 - $4.40 (prior $4.00 - $4.35), versus the consensus of $4.19.
  • It sees an Operating margin of 8.7% - 9.3% (previous 8.7% - 9.4%).
  • Price action: BWA shares are trading lower by 4.01% at $47.38 on the last check Wednesday.

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