BorgWarner
BorgWarner supplies electric torque vectoring and disconnect systems for Polestar BEV SUVs and collaborates with XPeng on high-voltage eMotors. The company reported first quarter 2024 net sales of $3,595 million and expects full-year 2024 net sales to be between $14.4 billion and $14.9 billion.
Electric Torque Vectoring and Disconnect Systems for Polestar BEV SUVs
BorgWarner supplies Polestar BEV SUVs with advanced electric torque vectoring and disconnect systems. These systems are designed to enhance vehicle safety by improving control regardless of road and weather conditions. The eTVD system, currently in production on the Polestar 3 SUV, features both torque vectoring and an on-demand disconnect function. This technology contributes to a lighter vehicle feel while increasing overall safety.
eMotor Business Partnership with XPeng
BorgWarner's partnership with XPeng focuses on their eMotor business, which includes the supply of 800V oil-cooled high-voltage hairpin eMotors for two upcoming XPeng SUV models. The HVH220 eMotor stands out with its high power and torque density, improved efficiency, and enhanced durability. This collaboration aims to support the performance and reliability of XPeng's future SUV offerings.
Financial Performance in 2024
BorgWarner reported net sales of $3,595 million for the first quarter of 2024, marking a 6% increase compared to the same period in 2023. Adjusted net earnings per diluted share for the first quarter were $1.03. For the full year 2024, BorgWarner expects net sales to range from $14.4 billion to $14.9 billion, with eProduct sales projected between $2.5 billion and $2.8 billion. The company's operating margin for the year is anticipated to be in the range of 8.2% to 8.5%, while the adjusted operating margin is expected to be between 9.2% and 9.6%.
Share Repurchase Programs
In the first quarter of 2024, BorgWarner repurchased approximately $100 million of its outstanding shares. Additionally, the company's Board of Directors has authorized a new share repurchase program, allowing for up to $500 million in additional share buybacks. These initiatives reflect BorgWarner's ongoing commitment to returning value to shareholders.
Cash Flow Projections for 2024
For the full year 2024, BorgWarner expects its operating cash flow to be in the range of $1,325 million to $1,375 million. The company's free cash flow for the same period is projected to be between $475 million and $575 million. These projections underscore BorgWarner's anticipation of robust cash generation and financial stability in the upcoming year.