BORGWARNER Business Summary

BorgWarner Inc. (BWA) is a global Tier-1 automotive supplier that generates revenue through the design and manufacture of high-performance propulsion systems for combustion, hybrid, and electric vehicles. The company operates through four primary business segments: Air Management (turbochargers and thermal systems), Drivetrain & Battery Systems, ePropulsion (eMotors and power electronics), and a newly established industrial division focused on AI data center power management following a 2026 master supply agreement with TurboCell. BorgWarner’s competitive strategy centers on maximizing "Content-per-Vehicle" (CPV) as global OEMs pivot toward the "Hybrid Renaissance," leveraging its dominance in turbocharging and integrated drive modules. It competes directly with Robert Bosch GmbH, ZF Friedrichshafen, Magna International, and Aptiv, positioning itself as a more agile, high-margin specialist in power management and electrification compared to its broader-scale peers. Originally founded in 1928 through the merger of four automotive pioneers, the company is currently led by President and CEO Joseph F. Fadool, who succeeded Frédéric Lissalde in February 2025. Fadool, previously the company’s COO, is the primary architect of the "Operational Excellence" mandate, focusing on capital allocation and high-return eProduct growth. The executive team includes EVP and CFO Craig Aaron and EVP and Chief Strategy Officer Paul Farrell, both of whom have been instrumental in the company's 2023 spin-off of its legacy fuel systems business, PHINIA. The board is chaired by Alexis P. Michas and features notable industry veterans such as Hau N. Thai-Tang, formerly of Ford Motor Company. BorgWarner maintains a high institutional ownership profile, with major backing from investment heavyweights including The Vanguard Group, BlackRock, and State Street Corporation.