Mission Statement, Vision, & Core Values of BorgWarner Inc. (BWA)

Mission Statement, Vision, & Core Values of BorgWarner Inc. (BWA)

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BorgWarner Inc.'s strategic compass-its Mission, Vision, and Core Values-is defintely the blueprint for how they navigate the automotive industry's massive shift, a shift that is projecting 2025 net sales between $14.1 billion and $14.3 billion. The company's vision is a simple, powerful call: A clean, energy-efficient world. But how does a commitment to Inclusion, Integrity, and Collaboration translate into an updated 2025 adjusted earnings per share (EPS) guidance of $4.60 to $4.75? Can a mission to deliver innovative and sustainable mobility solutions truly be measured by a projected free cash flow of up to $950 million? If you're an investor or strategist, understanding these foundational principles is the only way to map the true value behind the numbers.

BorgWarner Inc. (BWA) Overview

You're looking for a clear read on BorgWarner Inc. (BWA), and the takeaway is simple: this is a major automotive supplier successfully navigating the industry's massive pivot from combustion to electric vehicles (EVs). They're not just surviving the change; they're driving it, evidenced by their strong 2025 financial guidance and clear focus on e-mobility solutions.

BorgWarner's story begins back in 1928 with the merger of four established auto component manufacturers, including Warner Gear and Borg & Beck. The company has always been a powertrain specialist, initially known for innovations like the 'Ford-O-Matic' automatic transmission in the 1950s. Today, they've evolved into a global supplier of solutions for combustion, hybrid, and electric vehicles, headquartered in Auburn Hills, Michigan, with a presence in 24 countries. They're a long-standing, defintely trend-aware player.

Their product portfolio is split between 'Foundational' components-like turbochargers, all-wheel drive (AWD) systems, and timing chain systems-and 'e-Products,' which include electric motors (eMotors), power electronics, and integrated drive modules (iDM). This balanced approach is key to their strategy, keeping them profitable while they invest heavily in the future of mobility. As of November 2025, the company is guiding for full-year net sales between $14.1 billion and $14.3 billion.

2025 Financial Performance: E-Products Drive Growth

The latest financial reports, particularly the Q3 2025 results announced in October, show BorgWarner's strategy is paying off, even against a challenging market backdrop. The company reported Q3 2025 net sales of $3.59 billion, marking a solid 4.1% increase year-over-year.

Here's the quick math on where the revenue is coming from: their Drivetrain & Morse Systems and Turbos & Thermal Technologies segments remain foundational, contributing $1.45 billion and $1.44 billion, respectively, to Q3 sales. But the real opportunity is in their e-products. Light vehicle eProduct sales, for instance, surged by 31% year-over-year in Q2 2025 and an impressive 47% in Q1 2025.

This strong performance led to an increase in their full-year guidance. They're now projecting full-year 2025 adjusted earnings per diluted share (EPS) in the range of $4.60 to $4.75, plus an increase in their free cash flow guidance to between $850 million and $950 million. That's a serious cash generation machine. What this estimate hides, though, is the ongoing cost discipline and strategic portfolio management-like exiting their Charging business-that is helping them expand their adjusted operating margin to a projected 10.3% to 10.5% for the full year.

A Global Leader in Mobility Innovation

BorgWarner isn't just a parts supplier; they are a global leader in mobility innovation, consistently ranking as one of the 25 largest automotive suppliers in the world. They hold a dominant position in their legacy business, claiming #1 or #2 market share positions in many of their foundational product lines.

Their success lies in their dual focus: maintaining leadership in traditional components while aggressively securing new business for the electric future. They recently secured a foundational award to supply a Variable Turbine Geometry (VTG) turbocharger to Stellantis for the Jeep® Grand Cherokee, and simultaneously won a contract to supply a 7-in-1 integrated drive module (iDM) to a leading Chinese OEM for a hybrid SUV. That's how you manage a transition. If you want to dive into the institutional money moving their stock, you should check out Exploring BorgWarner Inc. (BWA) Investor Profile: Who's Buying and Why? to understand why this company is a long-term play for so many sophisticated investors.

BorgWarner Inc. (BWA) Mission Statement

As an analyst who has watched the automotive supply chain for two decades, I can tell you that BorgWarner Inc.'s mission statement is more than just a plaque on the wall; it's the financial blueprint for their pivot in a volatile industry. The core takeaway is clear: the company is aggressively shifting its business model to capture the immense value in electrification, while still managing the profitable tail of traditional combustion engines. Their mission-We deliver innovative and sustainable mobility solutions-is the guiding principle for their capital allocation and their near-term risk mitigation.

This mission is significant because it directly informs their 2025 financial guidance. For instance, the company is projecting full-year 2025 net sales to be between $13.6 billion and $14.2 billion, a range that hinges entirely on their ability to execute on this 'innovative and sustainable' mandate across their global customer base. It's a simple sentence, but it's driving billions in strategic decisions.

Component 1: Delivering Innovative Solutions

Innovation here isn't a vague buzzword; it means developing advanced propulsion systems that customers will pay a premium for, especially in the eMobility space. This focus is where the company is seeing its most significant growth and is a key driver for its projected earnings per share (EPS) guidance for fiscal year 2025, which is set between $4.00 and $4.45 per diluted share. That's a strong number, and it reflects the success of new product launches.

Here's the quick math: the PowerDrive Systems segment, which includes their eProducts, saw revenue of $561 million in Q1 2025, an increase of approximately 28.7% compared to the same quarter in 2024. Honestly, that kind of growth in a mature industry is a direct result of their commitment to innovation. It shows their investment in research and development is paying off, particularly in light vehicle eProduct sales, which saw a massive 47% year-over-year increase in Q1 2025. You need to watch that eProduct growth rate; it's the future of their top line.

  • Focus on eMotors and power electronics.
  • Develop advanced thermal management systems.
  • Win new business across all propulsion areas.

Component 2: Delivering Sustainable Mobility

The 'sustainable' part of the mission is directly tied to their long-term vision of 'A clean, energy-efficient world.' For a company of this scale, sustainability is not just a marketing effort; it's a commitment to operational efficiency and risk management. They are aiming for carbon neutrality by 2035, and they have already reduced their Scope 1 and 2 greenhouse gas emissions by 32% from a 2021 baseline by 2023.

This commitment translates into tangible financial benefits, too. In 2023, a significant 87% of their revenue came from electric vehicle (EV) and emissions-reducing hybrid and combustion products. This portfolio mix protects them from the regulatory risks facing companies solely focused on traditional combustion engines. Also, their strong environmental, social, and governance (ESG) performance led to their recognition as one of the 100 Best Corporate Citizens of 2025 by 3BL, which matters to institutional investors. That kind of recognition can lower their cost of capital, so it's defintely a financial factor.

Component 3: Delivering Solutions (Quality and Trust)

The final component, 'delivering solutions,' is about execution, quality, and global reach. You can have the best technology, but if you can't deliver it flawlessly at scale to Original Equipment Manufacturers (OEMs) worldwide, you lose the business. This is where their core values like Excellence and Integrity come into play.

Their operational excellence is reflected in their adjusted operating margin guidance for 2025, expected to be between 8.1% and 8.6%. Moreover, the market recognizes their commitment to quality. BorgWarner was named to Newsweek's Most Trustworthy Companies in America 2025 list, placing in the top 10 in the Automotive & Components industry category. They were also named to Fortune's 2025 World's Most Admired Companies List, where 'product quality' was a key factor in the ranking. This reputation is crucial for winning high-volume, long-term contracts with major automakers. If you want to dive deeper into who is betting on this execution, you can check out Exploring BorgWarner Inc. (BWA) Investor Profile: Who's Buying and Why?

BorgWarner Inc. (BWA) Vision Statement

You're looking at BorgWarner, a company that's been in the automotive game for well over a century, but their vision today is all about the next one. The direct takeaway is that their entire corporate strategy, from capital allocation to R&D, is laser-focused on one simple, powerful idea: A clean, energy-efficient world. This isn't just a marketing slogan; it's a hard deadline for a massive business pivot, and the 2025 numbers show they are defintely executing on it.

The vision sets the ultimate destination, which is why they've publicly committed to reaching carbon neutrality by 2035. That's a tight 10-year window to overhaul a global manufacturing footprint. What this estimate hides is the complexity of decarbonizing a supply chain that spans 60 manufacturing locations and 20 technical centers worldwide. Still, the goal provides a clear, long-term filter for every investment decision, from new product development to facility upgrades.

The Mission: Delivering Innovative and Sustainable Mobility Solutions

If the vision is the 'why,' the mission is the 'how.' BorgWarner's mission is to deliver innovative and sustainable mobility solutions. This means they are actively managing the transition from being a traditional powertrain supplier to an e-Mobility leader (electric vehicle components). Here's the quick math on their progress: they are on track to achieve approximately $4 billion of electric vehicle revenue in 2025. This is a massive shift, and it's why their full-year 2025 sales guidance, as of late October, was narrowed to a strong $14.1 billion to $14.3 billion.

For investors, this transition is the core story. The company is successfully leveraging its existing relationships with major global automakers to secure new business in high-growth areas like inverters, eMotors, and thermal systems. We see this focus reflected in their operational performance, with the company aiming for $650-$750 million in free cash flow for 2025. That kind of cash generation is what funds the next phase of innovation. If you want a deeper dive into who is betting on this pivot, you should check out Exploring BorgWarner Inc. (BWA) Investor Profile: Who's Buying and Why?

Core Value in Action: Responsibility and Excellence

The company's five core values-Inclusion, Integrity, Excellence, Responsibility, and Collaboration-guide the day-to-day execution of the mission. For a financial analyst, the most quantifiable are Responsibility (environmental/social) and Excellence (operational performance). The 2025 Sustainability Report, released in September, shows concrete results that back up the rhetoric.

The focus on Responsibility is evident in their environmental progress. They realized a 36% absolute reduction in Scope 1 and 2 greenhouse gas (GHG) emissions from their 2021 baseline. That's a significant operational achievement, not just a paper target. Plus, their portfolio mix is already heavily weighted toward the vision: in 2025, BorgWarner generated 87% of its revenue from electric vehicle and emissions-reducing hybrid and combustion products.

The value of Excellence is reflected directly in their profitability and investor returns. A stronger focus on profitable e-Mobility programs and cost discipline, like consolidating North American Battery Systems operations, is driving the bottom line. This is why the company has set its FY 2025 adjusted earnings per share (EPS) guidance in the range of $4.60 to $4.75. This solid performance, despite global vehicle production headwinds, shows their commitment to superior results.

  • Reduce GHG emissions by 36% from 2021 baseline.
  • Target $4 billion in EV revenue by year-end 2025.
  • Projected FY 2025 EPS up to $4.75.

The next step for you is to monitor the Q4 2025 results. Specifically, look for updates on the new business awards and how the margin profile of the e-Mobility segment is tracking toward their long-term goals.

BorgWarner Inc. (BWA) Core Values

You're looking at BorgWarner Inc. (BWA) not just for its propulsion technology portfolio, but for the underlying values that drive its financial resilience and strategic shift. As a seasoned analyst, I can tell you that in a market transitioning this fast, the core beliefs-the company's operating system-are what will defintely determine whether they hit their $14.0 billion to $14.4 billion net sales guidance for 2025. BorgWarner's Vision is clear: A clean, energy-efficient world. Their Mission is to deliver innovative and sustainable mobility solutions. The company's five core values are what make that mission actionable.

Here's the quick math on why these values matter: a commitment to Excellence is what pushed their adjusted operating margin guidance to between 10.1% and 10.3% for 2025. That's a tangible return on culture.

Responsibility: Caring for the Planet and Community

Responsibility, for BorgWarner, is a direct financial and environmental commitment that goes beyond simple compliance. It means being accountable for their global footprint and the products they put on the road. This is not just a feel-good statement; it's a capital allocation decision.

The company's focus on sustainable mobility is evident in their 2025 results: approximately 87% of their revenue came from electric vehicle (EV) and emissions-reducing hybrid and combustion products. That's a massive portfolio alignment. Also, they realized a 36% absolute reduction in Scope 1 and 2 greenhouse gas (GHG) emissions from their 2021 baseline, a concrete step toward their carbon neutrality goal. To be fair, this commitment is why 3BL named them one of the 100 Best Corporate Citizens of 2025.

  • Generated 87% of revenue from clean mobility products.
  • Cut Scope 1 and 2 GHG emissions by 36% since 2021.
  • Prioritize remanufacturing turbochargers to support a circular economy (a system aimed at eliminating waste and the continual use of resources).

Excellence: Focusing on Superior Results

Excellence translates into measurable performance and continuous improvement across the board. In a competitive automotive supply market, this value is the difference between a high-margin product and a commodity. Their financial performance in 2025 shows this focus is working.

The company's light vehicle eProduct sales, a key growth area, increased by 31% year-over-year in the second quarter of 2025, demonstrating execution on the electrification strategy. On the operational side, the commitment to excellence in safety is non-negotiable, with the company achieving top-quartile safety performance for its Total Recordable Incident Rate. This focus on operational rigor is a strong indicator of future profitability and helps ensure they meet the full-year adjusted EPS guidance of $4.60 to $4.75.

Integrity: Honoring Truth and Accountability

Integrity is about transparency and dependability, which is the bedrock of investor trust. It means doing what you say you will do, even when it's hard. For a global company, this is critical for managing risk and regulatory compliance (adherence to laws and regulations).

A clear example of this is the 100% completion rate BorgWarner achieved on its annual compliance questionnaire in 2025. That level of internal accountability across a large organization is a powerful signal of a strong governance framework. Investors should also note the board's authorization of a $1.0 billion share repurchase program in July 2025, covering up to 13.2% of outstanding shares, and the 55% increase to the quarterly cash dividend, which are concrete actions demonstrating a commitment to shareholder value and financial truth.

Inclusion: Respecting Individuals and Diversity

Inclusion is not just a social goal; it's a talent strategy. In the race for electric vehicle technology, the best ideas come from diverse teams. BorgWarner sees mutual respect and diversity as essential to creating a resilient workforce that can adapt to rapid technological change.

The company's internal development programs reflect this value, as they filled the majority of leadership positions with internal candidates in 2025. This shows a culture of investing in and promoting from within, which boosts employee engagement and reduces the cost of external recruitment. It's a smart way to retain institutional knowledge while evolving skills. You can learn more about how this culture impacts investor sentiment by Exploring BorgWarner Inc. (BWA) Investor Profile: Who's Buying and Why?

Collaboration: Building Trust and Teamwork

Collaboration means working together without boundaries, fostering a 'one BorgWarner' mindset. This is the value that enables complex, multi-continent product launches-like the new eMotor and power electronics systems-to happen on time and on budget. It's the glue for their global operations.

While collaboration is difficult to quantify with a single number, its impact is seen in the successful execution of their growth strategy. CEO Joseph Fadool notes that employees are the 'driving force' behind their progress, innovating and adapting to customer needs. The firm's ability to secure multiple new business awards across its portfolio, including foundational turbocharger awards and high-volume eMotor deals, is a direct result of internal teams collaborating effectively to deliver integrated, complex solutions to major global OEMs (Original Equipment Manufacturers). That kind of seamless execution is the ultimate proof of teamwork.

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