In February 2025, the Company decided to exit its charging business within the Battery & Charging Systems segment. This action is expected to create a more focused portfolio and eliminate approximately $30 million of annualized adjusted operating losses by 2026.

eProducts revenue was approximately $637 million, or 18% of total revenue, compared to $506 million, or 14% of total revenue, in the prior year. This indicates continued growth and strategic focus on electrified vehicle solutions.

The Company made the decision to consolidate its North American battery systems business, which is expected to align the business' cost structure to current market dynamics. This action is expected to result in annual cost savings of approximately $20 million by 2026.

The Company is implementing restructuring plans to address structural costs and improve operating margin. These initiatives are expected to generate annual cost savings of at least $80 million to $90 million by 2027 from the Foundational products businesses and approximately $100 million by 2026 from the PowerDrive Systems segment.

The Company commenced a lawsuit against PHINIA to recover approximately $120 million of value added tax (VAT) refunds that PHINIA has received or expects to receive. This indicates management's efforts to recover funds owed to the Company.

The Company had liquidity of $3,707 million, comprised of cash and an undrawn multi-currency revolving credit facility. Management believes that it will have sufficient liquidity and will maintain compliance with all covenants through at least the next 12 months.

The Company identifies changes in administrative policy on the part of the U.S. or other countries, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, as a risk factor. These tariffs could increase the cost of raw materials and components and reduce demand for products.

The Company's financial performance depends on conditions in the global automotive industry, which is cyclical and sensitive to economic conditions. Economic declines or impacts of tariffs that result in a material reduction in automotive or truck production would have an adverse effect on sales.

Foreign currency exchange rate risk is the risk that the Company will incur economic losses due to adverse changes in foreign currency exchange rates. The Company's most significant currency exposures relate to the Brazilian Real, British Pound, Chinese Renminbi, Euro, Japanese Yen, Korean Won, Mexican Peso, Swiss Franc and Thai Baht.

The Company's balanced portfolio is particularly critical as the automotive industry continues to see electric vehicle adoption volatility across different regions. This suggests a proactive approach to managing uncertainty in the EV market.

BorgWarner's products help improve vehicle performance, propulsion efficiency, stability and air quality. This focus aligns with increasing global demand for environmentally friendly vehicles.

The Company operates manufacturing facilities serving customers in Europe, the Americas and Asia and is an original equipment supplier to nearly every major automotive OEM in the world. This global presence allows the company to serve a diverse customer base and mitigate regional economic risks.

The Company has announced restructuring plans to address structural costs primarily in its Foundational products businesses and PowerDrive Systems segment. These plans are expected to generate significant annual cost savings.

The Company's gross profit margin increased due to purchasing savings, partially offset by higher sales volume, mix and net new business, decreased cost of sales by approximately $13 million. This indicates effective supply chain management.

The Company made the decision to consolidate its North American battery systems business, which is expected to align the business' cost structure to current market dynamics. This action is expected to result in annual cost savings of approximately $20 million by 2026.

The Company's current strategy is to focus on profitable growth across its technology-focused product portfolio that supports electric, hybrid and combustion vehicles. This indicates a commitment to innovation and technological advancement.

The increase in eProducts revenue signifies the Company's investment in and development of technologies related to electric vehicles. This aligns with the industry trend towards electrification.

Research and Development (R&D) costs decreased by $5 million. R&D costs, net of customer reimbursements, were 5.2% of net sales for the three months ended March 31, 2025. This indicates continued investment in innovation despite cost-saving measures.

In April 2024, the Company's Board of Directors authorized the purchase of up to $767 million of the Company's common stock, which replaced the previous repurchase authorization. As of March 31, 2025, the Company had repurchased $300 million of common stock under this authorization.

On February 6, 2025 and April 30, 2025, the Company's Board of Directors declared quarterly cash dividends of $0.11 per share of common stock, respectively. This demonstrates a commitment to returning value to shareholders.

Net cash used in investing activities was $94 million during the first three months of 2025 compared to $175 million during the first three months of 2024. As a percentage of sales, capital expenditures were 3.4% and 5.3% for the three months ended March 31, 2025 and 2024, respectively.

BorgWarner's products help improve vehicle performance, propulsion efficiency, stability and air quality. This focus aligns with global efforts to reduce emissions and promote sustainable transportation.

The Company has an accrual for environmental liabilities related to Superfund sites and believes that none of these matters will have a material adverse effect. This demonstrates a commitment to addressing environmental concerns.

The filing does not provide specific information about board diversity or new governance initiatives. This makes it difficult to assess progress on social and governance aspects of ESG.

The Company expects global industry production to decrease year-over-year in 2025. This indicates a challenging market environment.

The Company expects greater uncertainty and volatility in commodities and other costs as a result of the imposition of tariffs and retaliatory tariffs by the United States and other countries in 2025. This highlights the impact of trade policies on the company's operations.

The Company's balanced portfolio is particularly critical as the automotive industry continues to see electric vehicle adoption volatility across different regions. This indicates the need for a flexible and adaptable business strategy.