博格華納 (BWA) 2025 Q2 法說會逐字稿

Good morning. My name is Rocco, and I will be your conference specialist. At this time, I would like to welcome everyone to the BorgWarner 2025 second quarter results conference call (Operator Instructions)

早安.我叫 Rocco，我將擔任您的會議專家。現在，我歡迎大家參加博格華納2025年第二季業績電話會議（操作員指示）

As a reminder, today's conference is being recorded. I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

提醒一下，今天的會議正在錄製中。現在我想將電話轉給投資者關係副總裁 Patrick Nolan。諾蘭先生，您可以開始您的會議了。

Thank you, Rocco. Good morning, everyone, and thank you for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on our home page and our Investor Relations home page. With regard to our Investor Relations calendar, we will be attending investor conferences between now and our next earnings release. Please see the Events section of our Investor Relations homepage for a full list.

謝謝你，羅科。大家早安，感謝大家今天加入我們。我們今天早上發布了收益報告。它發佈在我們的網站 borgwarner.com 上，包括我們的主頁和投資者關係主頁。關於我們的投資者關係日程，我們將從現在到下次發布收益期間參加投資者會議。請參閱我們的投資者關係主頁的活動部分以獲取完整清單。

Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. During today's presentation, we will highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performed and for comparison purposes with prior periods.

在我們開始之前，我需要通知您，在本次電話會議中，我們可能會做出前瞻性陳述，其中涉及我們的 10-K 中詳述的風險和不確定性。我們的實際結果可能與今天討論的問題有很大不同。在今天的演示中，我們將重點介紹某些非公認會計準則指標，以便更清楚地了解核心業務的表現並與前期進行比較。

When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A and other noncomparable items. When you hear us say adjusted, that means excluding noncomparable items. When you hear us say organic, that means excluding the impact of FX and net M&A. We will also refer to our incremental margin performance.

當我們說以可比較基礎時，這意味著排除外匯、淨併購和其他不可比較項目的影響。當您聽到我們說調整時，這意味著排除不可比的項目。當您聽到我們說有機時，這意味著排除外匯和淨併購的影響。我們也將參考我們的增量利潤表現。

Our incremental margin is defined as the change in our adjusted operating income divided by the change in organic sales. We will also refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure.

我們的增量利潤率定義為調整後的營業收入變化除以有機銷售額變化。我們也將參考我們相對於市場的成長情況。當您聽到我們說市場時，這意味著輕型汽車和商用汽車產量的變化會根據我們的地理分佈而變化。

Finally, please note that we have posted today's earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion today.

最後，請注意，我們已將今天的收益電話會議報告發佈到我們網站的 IR 頁面上。我們鼓勵您在今天的討論中關注這些幻燈片。

With that, I'm excited to turn the call over to Joe.

說完這些，我很高興將電話轉給喬。

Thank you, Pat, and good morning, everyone. I'm very pleased to share our results for the second quarter of 2025 and provide an overall company update, starting on Slide 5. I wish to begin by thanking our employees, our customers and suppliers for all of their trust, efforts during this quarter and for their continued support.

謝謝你，帕特，大家早安。我很高興分享我們 2025 年第二季的業績，並從第 5 張投影片開始提供公司的整體更新。首先，我要感謝我們的員工、客戶和供應商在本季給予我們的信任、努力和持續的支持。

Our sales performance was supported by a 31% increase in light vehicle eProduct sales. This growth was well ahead of the high teens increase in global hybrid and BEV production in the quarter. Our organic sales were relatively flat year-over-year, which was in line with our market.

輕型汽車電子產品銷售成長 31% 支撐了我們的銷售業績。這一增長遠高於本季全球混合動力汽車和純電動車產量的高成長。我們的有機銷售額比去年同期基本持平，與我們的市場情況一致。

However, excluding the decline in our CV battery and charging systems segment, our organic sales were up modestly year-over-year. I'm excited to report that the strong award activity we saw in the first quarter continued into the second quarter.

然而，除去商用車電池和充電系統部門的下滑，我們的有機銷售額較去年同期略有成長。我很高興地報告，我們在第一季看到的強勁頒獎活動延續到了第二季。

Today, I will share nine new business awards across both foundational and eProducts, which are a sampling of the awards that we secured during the quarter. We believe these awards will illustrate the strength of our portfolio and the demand for efficient powertrain technology around the globe.

今天，我將分享基礎產品和電子產品領域獲得的九個新業務獎項，這些只是我們在本季獲得的獎項的一部分。我們相信這些獎項將證明我們產品組合的實力以及全球對高效動力總成技術的需求。

Our adjusted operating margin performance was strong in the second quarter, coming in at 10.3%, which includes a 40 basis point tariff headwind. This strong underlying operational performance was once again driven by our focus on cost controls across our business and turning those earnings into free cash flow.

我們調整後的營業利潤率在第二季度表現強勁，達到 10.3%，其中包括 40 個基點的關稅逆風。這項強勁的基礎營運業績再次得益於我們注重整個業務的成本控制以及將這些收益轉化為自由現金流。

Lastly, we remain focused on the efficient deployment of our capital to drive shareholder value. In the quarter, we returned over $130 million to shareholders through share repurchases and payment of our cash dividend. Additionally, our Board of Directors approved

最後，我們仍然專注於有效配置資本以推動股東價值。本季度，我們透過股票回購和支付現金股利向股東返還了超過 1.3 億美元。此外，我們的董事會批准

Both a 55% increase in our quarterly cash dividend per share and an increase in our current share repurchase authorization to $1 billion.

我們的每股季度現金股利增加 55%，目前股票回購授權增加至 10 億美元。

These actions demonstrate our confidence in the long-term cash-generating ability of our business and our focus on driving shareholder value through a balanced capital allocation approach. As I look back on the first half of 2025, I'm very proud of our team and our results. As Craig will detail, our first half financial performance was strong and enabled us to increase our sales, margin, EPS and free cash flow guidance for the year.

這些措施顯示了我們對業務長期現金創造能力的信心，以及我們致力於透過平衡的資本配置方式來推動股東價值。回顧 2025 年上半年，我為我們的團隊和我們的成果感到非常自豪。正如克雷格所詳述的，我們上半年的財務業績表現強勁，這使我們能夠提高全年的銷售額、利潤率、每股收益和自由現金流預期。

I'm equally pleased with the strong award activity we secured in the first half of 2025, which we believe supports our focus on long- term profitable growth.

我對我們在 2025 年上半年獲得的強勁獎項活動同樣感到高興，我們相信這支持了我們對長期獲利成長的關注。

Now let's look at some of the new foundational product awards on Slide 6. First, BorgWarner has secured two significant turbocharger conquest business wins for a major global OEM's next-generation vehicles in Europe and North America. The company will supply its proven wastegate gasoline turbocharger for use in next-generation compact and light commercial vehicles in Europe.

現在讓我們來看看投影片 6 上的一些新的基礎產品獎項。首先，博格華納已獲得兩項重要的渦輪增壓器業務，分別面向歐洲和北美的一家全球主要汽車製造商的下一代汽車。該公司將為歐洲下一代緊湊型和輕型商用車提供其成熟的廢氣門汽油渦輪增壓器。

Production is scheduled to begin in August 2027. In addition, BorgWarner has also been awarded a high-performance turbocharger program for a North American engine platform with production planned to start in September of 2028. These awards underscore our ability to win in highly contested markets by offering reliable, cost-effective solutions and long-term supply commitments.

預計於 2027 年 8 月開始生產。此外，博格華納還獲得了北美引擎平台的高性能渦輪增壓器項目，計劃於2028年9月開始生產。這些獎項凸顯了我們透過提供可靠、經濟高效的解決方案和長期供應承諾在競爭激烈的市場中獲勝的能力。

Second, BorgWarner has secured a business win with a major East Asian OEM to supply turbochargers for their 1.6-liter engine, supporting primarily hybrid electric vehicle SUV applications. This win builds on BorgWarner's strong 18-year partnership supplying turbochargers to this customer and underscores our commitment to delivering high-performance, efficient turbocharging solutions that support the customers' HEV growth strategy. Production is scheduled to begin in 2027.

其次，博格華納已與東亞一家大型 OEM 廠商達成業務合作，為其 1.6 升引擎供應渦輪增壓器，主要用於支援混合動力電動車 SUV 應用。此次勝利建立在博格華納與該客戶長達 18 年的渦輪增壓器供應合作關係之上，並凸顯了我們致力於提供高性能、高效的渦輪增壓解決方案以支持客戶 HEV 增長戰略的承諾。預計生產將於 2027 年開始。

And third, BorgWarner has secured a turbocharger award with a major global OEM for use in a hybrid option for a sports car platform. Production is expected to begin in 2028. I'm excited to see demand for our foundational products, particularly turbochargers, remaining strong around the globe.

第三，博格華納已獲得一家全球主要汽車製造商的渦輪增壓器合同，用於跑車平台的混合動力選項。預計 2028 年開始生產。我很高興看到我們的基礎產品，特別是渦輪增壓器的需求在全球範圍內保持強勁。

These awards reflect our strategic focus on supporting global OEMs with combustion engine technologies while others exit the space. I also believe the conquest and hybrid awards speak to our technology leadership in turbochargers.

這些獎項體現了我們的策略重點：在其他廠商退出該領域時，我們致力於為全球原始設備製造商提供內燃機技術方面的支援。我還相信征服獎和混合動力獎證明了我們在渦輪增壓器領域的技術領先地位。

Now let's look at some of the new eProduct awards on Slide 7. First, BorgWarner has secured an award to supply its dual inverter with a major Chinese OEM to support its hybrid vehicle lineup. The project is scheduled to begin mass production by the end of this year.

現在讓我們來看看幻燈片 7 上的一些新的 eProduct 獎項。首先，博格華納已獲得一項合同，為中國一家大型汽車製造商供應雙逆變器，以支持其混合動力汽車系列。該項目計劃於今年底實現量產。

In China's rapidly evolving NEV market, BorgWarner remains committed to supporting our customers with innovative and high- quality electrification solutions. This award is a great example.

在中國快速發展的新能源汽車市場，博格華納始終致力於為客戶提供創新、優質的電氣化解決方案。這個獎項就是一個很好的例子。

Second, BorgWarner has secured an electric motor business with a major Chinese OEM. The award features a platform-based design, enabling compatibility across a full range of NEV applications, including battery electric and hybrid models with a production expected to begin in 2026. We are pleased to see continued progress in our electric motor business in China.

其次，博格華納已與中國一家大型汽車製造商達成電動馬達業務合作。該獎項採用基於平台的設計，可相容於各種 NEV 應用，包括電池電動和混合動力車型，預計將於 2026 年開始生產。我們很高興看到我們在中國的電動機業務不斷取得進展。

Next, BorgWarner has secured contracts with two major global OEMs to supply high-voltage coolant heater technology for plug-in hybrid electric vehicle platforms. The first win expands our technology into several of our customers' light vehicle PHEV platforms, including a pickup truck.

接下來，博格華納已與全球兩大主機廠簽訂合同，為插電式混合動力汽車平台提供高壓冷卻液加熱器技術。首次勝利將我們的技術擴展到幾位客戶的輕型車 PHEV 平台，包括一輛皮卡車。

The second win is with an existing heat heater customer, which will now be expanded into several PHEV platforms. Both programs are expected to begin production in 2028. Securing these contracts further validates our technology leadership and expertise in battery and cabin heating.

第二個勝利來自現有的加熱器客戶，現在將擴展到多個 PHEV 平台。這兩個項目預計都將於 2028 年開始生產。獲得這些合約進一步證明了我們在電池和座艙加熱方面的技術領先地位和專業知識。

Lastly, BorgWarner has secured a new program for our electric cross differential technology for a leading Chinese OEMs electric vehicles in China. By dynamically controlling power distribution between the wheels, eXD technology improves handling and traction capabilities.

最後，博格華納已為中國一家領先的電動車原始設備製造商獲得了一項新的電動交叉差速器技術專案。透過動態控制車輪之間的動力分配，eXD 技術提高了操控性和牽引能力。

Now, let's turn to Slide 8 and touch on our balanced capital allocation approach. Over the last two quarters, I've been asked about our capital allocation discipline. My view is we need to follow a capital allocation strategy that is focused on delivering sustained shareholder value.

現在，讓我們翻到第 8 張投影片，談談我們平衡的資本配置方法。在過去兩個季度中，有人問我有關我們的資本配置紀律的問題。我的觀點是，我們需要遵循專注於實現持續股東價值的資本配置策略。

As we look back over the last five years, we have followed a balanced approach with just under 50% of our capital being deployed to shareholders through share repurchases and dividends and just over 50% supporting technology-focused acquisitions.

回顧過去五年，我們採取了平衡的做法，將近 50% 的資本透過股票回購和股息部署給股東，而將超過 50% 的資本用於支持以技術為重點的收購。

As I think about the next several years, I expect to see our balanced approach continue. We plan to focus on accretive inorganic investments and a consistent return of cash to shareholders. Since 2020, we have returned more than $3.5 billion of capital to our shareholders. I believe that today's announcements to increase our quarterly dividend and buyback authorization show our commitment to returning cash to shareholders in a disciplined and consistent manner.

展望未來幾年，我期望看到我們繼續採取平衡的做法。我們計劃專注於增值無機投資和持續向股東提供現金回報。自2020年以來，我們已向股東返還了超過35億美元的資本。我相信，今天宣布增加季度股息和回購授權表明了我們致力於以規範和一致的方式向股東返還現金的承諾。

As we move forward, we expect to continue to invest organically and inorganically to support our growth. So you should expect us to continue to be active as it relates to accretive M&A while still returning capital to our shareholders.

隨著我們不斷前進，我們期望繼續進行有機和無機投資以支持我們的成長。因此，您應該期望我們繼續積極參與增值型併購，同時仍向股東返還資本。

Next, let's turn to Slide 9 and discuss how we plan to continue to assess our M&A opportunities. When we think about M&A, there are three criteria we're using to evaluate inorganic opportunities. First, an inorganic investment must have strong industrial logic. It must link to the many core competencies BorgWarner has developed throughout decades of innovation and product leadership.

接下來，讓我們翻到第 9 張投影片，討論一下我們計劃如何繼續評估我們的併購機會。當我們考慮併購時，我們使用三個標準來評估無機機會。首先，無機投資必須具備強大的產業邏輯。它必須與博格華納在數十年的創新和產品領導過程中開發的許多核心競爭力相聯繫。

The second criteria is that we want to see near-term earnings accretion. We believe our product portfolio is strong and well positioned for outgrowth. And as a result, potential M&A should not be driven purely by strategic rationale. Rather, we expect our future M&A to increase BorgWarner's long-term earnings power.

第二個標準是我們希望看到近期獲利成長。我們相信，我們的產品組合非常強大，並且具有良好的成長潛力。因此，潛在的併購不應純粹由戰略原因驅動。相反，我們預計未來的併購將提高博格華納的長期獲利能力。

Finally, we need to ensure we pay a fair price for the asset. It's critical that we run multiple DCF scenarios given the complex regional markets and customers we serve. Over the past few quarters, Craig and I have assessed a number of opportunities and have frankly passed because they didn't meet the hurdles I just spoke about. I'm really pleased with the discipline we followed to date, and I'm confident in our screening process going forward.

最後，我們需要確保為資產支付公平的價格。考慮到我們所服務的區域市場和客戶複雜程度，運行多個 DCF 場景至關重要。在過去的幾個季度裡，克雷格和我評估了許多機會，但坦白說，我們放棄了它們，因為它們沒有遇到我剛才提到的障礙。我對我們迄今為止遵循的紀律感到非常滿意，並且我對我們未來的篩選流程充滿信心。

To summarize, the takeaways from today are the following: First, BorgWarner's second quarter results were strong. We saw a 31% increase in our light vehicle eProducts business and delivered strong margin, free cash flow and EPS performance. This was despite net tariff cost headwinds, reflecting our continued focus on cost controls.

總而言之，今天的要點如下：首先，博格華納第二季業績強勁。我們的輕型車輛電子產品業務成長了 31%，並實現了強勁的利潤率、自由現金流和每股盈餘表現。儘管面臨淨關稅成本阻力，但仍取得了這項成績，反映出我們持續注重成本控制。

Second, we secured multiple new business awards in the quarter across our entire portfolio, which we believe demonstrates the continued need for efficient powertrain technology across combustion, hybrid and electric architectures.

其次，我們在本季在整個產品組合中獲得了多個新的業務獎項，我們相信這表明對內燃機、混合動力和電動架構中高效動力總成技術的需求持續存在。

And finally, we took meaningful steps to return capital to shareholders during the quarter with over $130 million returned through our cash dividend and share repurchases. Additionally, increases to our cash dividend rate and share repurchase authorization demonstrate our commitment to following a disciplined approach of consistently returning cash to shareholders.

最後，我們在本季採取了有意義的措施向股東返還資本，透過現金股利和股票回購返還了超過 1.3 億美元。此外，我們現金股利率和股票回購授權的提高表明了我們致力於遵循規範的方式持續向股東返還現金。

Overall, I believe our year-to-date results illustrate the strength of our team, our product portfolio and the long-term earnings power of our business. I'm excited to continue our positive momentum into the second half of 2025.

總體而言，我相信我們今年迄今的業績反映了我們團隊的實力、我們的產品組合以及我們業務的長期獲利能力。我很高興我們的積極動能延續到 2025 年下半年。

With that, I'll turn the call over to Craig.

說完這些，我會把電話轉給克雷格。

Thank you, Joe, and good morning, everyone. Before I dive into the financials, I'd like to provide a quick overview of our second quarter results. First, we reported just over $3.6 billion in sales, which was relatively flat year-over-year, excluding foreign exchange. This performance was in line with our market production in the quarter. Importantly, our light vehicle eProduct sales increased 31% year-over-year, driven by strong growth in Europe and in Asia.

謝謝你，喬，大家早安。在深入研究財務狀況之前，我想先簡單概述一下我們第二季的業績。首先，我們報告的銷售額略高於 36 億美元，不包括外匯影響，與去年同期相比基本持平。這一業績與我們本季的市場產量一致。重要的是，受歐洲和亞洲強勁成長的推動，我們的輕型車輛電動車銷量較去年同期成長 31%。

Second, we had strong adjusted operating margin performance in the quarter at 10.3%. This performance was achieved despite $15 million or a 40 basis point net tariff headwind in the quarter, which we expect to recover from our customers during the second half of the year. This also represents the fifth quarter in a row with a margin at or above 10%, which demonstrates the consistency of our operating performance. Third, we had strong free cash flow in the quarter of $507 million, which was a 71% increase from a year ago.

其次，本季我們的調整後營業利益率表現強勁，達到 10.3%。儘管本季遭遇了 1500 萬美元或 40 個基點的淨關稅逆風，我們仍然取得了這樣的業績，我們預計下半年將從客戶那裡收回這筆開支。這也是我們連續第五個季度的利潤率達到或超過10%，證明了我們經營業績的一致性。第三，本季我們的自由現金流強勁，達到 5.07 億美元，比去年同期成長了 71%。

Now let's turn to Slide 10 for a look at our year-over-year sales walk for the second quarter. Last year's Q2 sales were just over $3.6 billion. You can see that the weakening US dollar drove a year-over-year increase in sales of $66 million. Then you can see a slight decrease in organic sales, which was primarily impacted by a decline in foundational industry production and lower battery and charging sales. This was partially offset by a 31% increase in our light vehicle eProduct sales. The sum of all this was just over $3.6 billion of sales in Q2.

現在讓我們翻到第 10 張投影片來看看我們第二季的年比銷售情況。去年第二季的銷售額略高於 36 億美元。您可以看到，美元疲軟推動銷售額年增 6,600 萬美元。然後你會看到有機銷售額略有下降，這主要是受到基礎產業生產下降以及電池和充電銷售額下降的影響。但我們的輕型車輛電子產品銷售成長 31% 部分抵消了這一成長。所有這些加起來，第二季的銷售額剛剛超過 36 億美元。

Turning to Slide 11. You can see our earnings and cash flow performance for the quarter. Our second quarter adjusted operating income was $373 million, equating to a strong 10.3% adjusted operating margin. This performance includes a 40 basis point headwind from tariff costs. That compares to adjusted operating income from continuing operations of $376 million or a 10.4% adjusted operating margin from a year ago.

翻到幻燈片 11。您可以看到我們本季的收益和現金流表現。我們第二季的調整後營業收入為 3.73 億美元，相當於 10.3% 的調整後營業利潤率。這一表現包括關稅成本帶來的 40 個基點的阻力。相較之下，去年同期持續經營業務的調整後營業收入為 3.76 億美元，調整後營業利益率為 10.4%。

On a comparable basis, adjusted operating income decreased $8 million on $31 million of lower sales. We believe this is great performance when considering our results include $15 million of net tariff costs in the quarter, which we expect to recover from our customers in the second half of the year. Our adjusted EPS from continuing operations was up $0.02 compared to a year ago as a result of the impact of our share repurchases during 2024 and the second quarter of 2025.

在可比較基礎上，調整後的營業收入減少了 800 萬美元，銷售額下降了 3,100 萬美元。我們認為，考慮到我們的業績包括本季 1500 萬美元的淨關稅成本，這是非常出色的表現，我們預計這筆成本將在下半年從客戶那裡收回。由於 2024 年和 2025 年第二季股票回購的影響，我們的調整後持續經營每股盈餘較去年同期成長 0.02 美元。

And finally, free cash flow from continuing operations was a generation of $507 million, which was up $210 million from a year ago as a result of strong working capital and capital expenditure performance.

最後，由於營運資本和資本支出表現強勁，持續經營產生的自由現金流為 5.07 億美元，比去年同期增加了 2.1 億美元。

Now let's take a look at our full year outlook on Slide 12. We are now projecting total 2025 sales in the range of $14.0 billion to $14.4 billion, which is an increase from our prior guidance of $13.6 billion to $14.2 billion. This increase is due to stronger foreign currencies and a higher market production outlook, partially offset by expected lower tariff cost recoveries as gross tariff costs are tracking below our prior estimate.

現在讓我們來看看第 12 張投影片上的全年展望。我們現在預測 2025 年的總銷售額將在 140 億美元至 144 億美元之間，高於我們先前預測的 136 億美元至 142 億美元。這一增長是由於外幣走強和市場生產前景向好，但由於總關稅成本低於我們先前的估計，預計關稅成本回收率將下降，從而部分抵消了這一增長。

Now let's review our year-over-year sales walk. Starting with foreign currencies, our guidance now assumes an expected full year sales benefit of $140 million compared to 2024. However, this is a sales tailwind of $300 million versus our prior guidance, primarily due to the strengthening of the euro and Korean won versus the US dollar. Within our 2025 guidance, our full year end market assumption has been increased to down 0.5% to 2.5% versus down 2% to 4% previously.

現在讓我們回顧一下我們去年同期的銷售情況。從外幣開始，我們的指導現在假設預計全年銷售額將比 2024 年增加 1.4 億美元。然而，與我們先前的預期相比，這一銷售額增長了 3 億美元，這主要是由於歐元和韓元兌美元走強。在我們的 2025 年指引中，我們對全年市場預期已上調至下降 0.5% 至 2.5%，而先前的預期為下降 2% 至 4%。

This improvement is driven by stronger industry production that we saw during the second quarter and a modestly improved production outlook in the second half of 2025 compared to our prior outlook. Within this guidance, we expect a tailwind from tariff- related recoveries of up to 1% of sales as this is a pass-through recovery of our costs from our customers.

這一改善是由於我們在第二季度看到行業產量增加，以及與我們先前的預測相比，2025 年下半年產量前景略有改善。在這一指導範圍內，我們預計與關稅相關的回收將帶來高達 1% 的銷售額成長，因為這是我們從客戶那裡收回成本的轉嫁方式。

This is a decrease from our prior estimate of recoveries of up to 1.6% of sales as our gross tariff costs are tracking below our prior estimate. Additionally, we expect the company's full year sales outgrowth to be approximately 100 to 150 basis points. Based on these assumptions, we expect our 2025 organic sales change to be down 1.5% to up 1% year-over-year.

由於我們的總關稅成本低於我們先前的估計，這比我們先前估計的高達 1.6% 的銷售額回收率有所下降。此外，我們預計該公司全年銷售額成長率約為 100 至 150 個基點。基於這些假設，我們預期 2025 年有機銷售變動將年減 1.5% 至上升 1%。

Now let's switch to margin. We are increasing our full year adjusted operating margin to be in the range of 10.1% to 10.3% compared to our previous guidance range of 9.6% to 10.2%. This revised guidance now assumes 10 basis points of dilution from tariffs. We view this as strong underlying performance, supported by our solid first half operational execution, which we fully expect to continue for the remainder of 2025.

現在讓我們切換到保證金。我們將全年調整後營業利潤率提高至 10.1% 至 10.3% 之間，而先前預期的範圍為 9.6% 至 10.2%。修訂後的指南現在假設關稅稀釋 10 個基點。我們認為這是強勁的基礎表現，由我們上半年穩健的營運執行所支撐，我們完全預計這種表現將在 2025 年剩餘時間內持續下去。

Based on this sales and margin outlook, we're expecting full year adjusted EPS in the range of $4.45 to $4.65 per diluted share, which is an 8% increase versus our prior guidance. And we're increasing our full year free cash flow guidance to a range of $700 million to $800 million, which is a $50 million increase from our prior guidance. With that, that's our 2025 outlook.

根據這一銷售和利潤前景，我們預計全年調整後每股收益將在 4.45 美元至 4.65 美元之間，比我們之前的預期增長 8%。我們將全年自由現金流預期上調至 7 億至 8 億美元，比先前的預期增加 5,000 萬美元。這就是我們對 2025 年的展望。

Now, let's turn to Slide 13 and discuss our recently increased dividend and share repurchase authorization. Starting with our dividend. Our Board of Directors has declared a 55% increase in BorgWarner's quarterly cash dividend per share. Based on the company's current share count, this quarterly dividend represents an annualized distribution to BorgWarner stockholders of approximately $145 million.

現在，讓我們翻到第 13 張投影片，討論一下我們最近增加的股利和股票回購授權。從我們的股息開始。我們的董事會宣布博格華納每股季度​​現金股息增加 55%。根據該公司目前的股票數量，該季度股息相當於向博格華納股東分配約 1.45 億美元的年度股息。

Turning to our share repurchases. As Joe highlighted in his opening remarks, we repurchased approximately $108 million in BorgWarner stock during the second quarter, which brings our share repurchases since 2020 to more than $1.1 billion. Our Board of Directors approved an increase in our share repurchase authorization of up to $641 million over the next three years.

談到我們的股票回購。正如喬在開場白中所強調的那樣，我們在第二季度回購了約 1.08 億美元的博格華納股票，這使得我們自 2020 年以來的股票回購額超過 11 億美元。我們的董事會批准在未來三年內將股票回購授權增加至 6.41 億美元。

When combined with the $359 million remaining under our prior authorization, management has the ability to repurchase up to $1 billion of the company's outstanding shares or a 30% increase from our prior authorization. I believe both of these actions demonstrates the confidence we have in the long-term strength of our business and our focus on driving shareholder value through a balanced capital allocation approach.

加上我們先前授權的剩餘 3.59 億美元，管理層有能力回購高達 10 億美元的公司流通股，或比我們先前授權的金額增加 30%。我相信這兩項舉措都顯示了我們對業務長期實力的信心，以及我們致力於透過平衡的資本配置方式來推動股東價值。

So let me summarize my financial remarks. Overall, we were very pleased with our second quarter results. Our margin and free cash flow performance were solid despite the net headwinds from tariff costs in the quarter. Our strong second quarter performance, lower projected tariff headwinds and improving second half outlook allowed us to increase our sales, our margin, EPS and free cash flow guidance. And we returned over $130 million of cash to shareholders in the quarter through our share repurchases and dividends.

因此，讓我總結一下我的財務評論。整體而言，我們對第二季的業績非常滿意。儘管本季關稅成本帶來淨阻力，但我們的利潤率和自由現金流表現依然穩健。我們第二季的強勁表現、預期的關稅阻力降低以及下半年前景改善使我們能夠提高銷售額、利潤率、每股盈餘和自由現金流預期。本季度，我們透過股票回購和股利向股東返還了超過 1.3 億美元的現金。

On top of that, our Board of Directors increased our quarterly cash dividend by 55% and increased our share repurchase authorization to $1 billion, which we believe demonstrates our confidence in the long-term cash-generating ability of our business.

除此之外，我們的董事會將季度現金股利提高了 55%，並將股票回購授權增加到 10 億美元，我們相信這顯示了我們對業務長期現金創造能力的信心。

As I look to the balance of the year, we're focused on: first, continuing to outperform market production by 100 to 150 basis points. Second, we now expect margins to be flat to up 20 basis points year-over-year despite tariff headwinds and an expected decline in market production volumes. And finally, we expect to have another year of strong free cash flow of $750 million at the midpoint of our guidance.

展望今年的平衡，我們的重點是：首先，繼續超越市場產量 100 至 150 個基點。其次，儘管面臨關稅阻力且市場產量預期下降，但我們現在預期利潤率將與去年同期持平或上漲 20 個基點。最後，我們預計今年的自由現金流將再創佳績，達到指導值的中位數 7.5 億美元。

Our team's strong execution and effective management of tariff headwinds has allowed the company to continue focusing on improving our long-term positioning and creating value for our shareholders. We continue to embrace the importance of a balanced capital allocation approach. The increase in our share repurchase authorization and cash dividend are simply additional examples of our commitment to that approach.

我們團隊的強大執行力和對關稅逆風的有效管理使公司能夠繼續專注於改善我們的長期定位並為股東創造價值。我們持續重視平衡的資本配置方法。增加股票回購授權和現金股利只是我們致力於此方法的更多例子。

By continuing to focus on near-term execution, growing the long-term earnings power of the company through organic and inorganic investments and following a balanced deployment of our capital, we believe BorgWarner will create significant shareholder value for years to come.

透過繼續專注於短期執行，透過有機和無機投資提高公司的長期獲利能力，並平衡配置我們的資本，我們相信博格華納將在未來幾年創造巨大的股東價值。

With that, I'd like to turn the call back over to Pat.

說完這些，我想把電話轉回帕特。

Thank you, Greg. Rocco, we're ready to open it up for questions.

謝謝你，格雷格。羅科，我們準備好開始回答問題了。

(Operator Instructions)

（操作員指示）

Joseph Sack from UBS.

瑞銀的約瑟夫·薩克。

Morning, everyone. I just wanted to start, I guess, on organic growth. Craig, as you mentioned, sort of it was basically kept the same. The tariff impact was lowered and the production was raised. So the outgrowth, if we back out the tariff is like a little bit better than flat versus maybe a little bit better than 1% prior. So I just wanted to understand what you're seeing on that front.

大家早安。我想我只是想開始有機成長。克雷格，正如你所提到的，它基本上保持不變。關稅影響降低，產量提高。因此，如果我們取消關稅，結果會比持平好一點，而之前的 1% 可能要好一點。所以我只是想了解你在這方面看到了什麼。

Yeah, Joe, first, it's important to note that our quarterly outgrowth can be a bit volatile. So we think it's more useful to look at outgrowth on an annual basis. But with that being said, we did see a headwind from our lower battery sales, and that was mostly in North America, but to a lesser degree in Europe.

是的，喬，首先，需要注意的是，我們的季度業績可能會有點不穩定。因此我們認為以年度為基礎來觀察成長情況更為有用。但話雖如此，我們確實看到了電池銷售下降的阻力，這種阻力主要集中在北美，但在歐洲的程度較小。

That was driven by customer demand. If we exclude the BCS segment, our organic sales increased modestly, implying an outgrowth of 100 basis points. The main driver of that was a 31% increase in our light vehicle eProduct sales, which is a continuation of what we saw in the first quarter.

這是由客戶需求所驅動的。如果我們排除 BCS 部門，我們的有機銷售額將小幅成長，這意味著成長 100 個基點。主要驅動力是我們的輕型汽車電子產品銷量成長了 31%，這延續了第一季的良好勢頭。

Okay. Yes, I was talking about in the guidance. So is that battery also the headwind for the full year?

好的。是的，我在指導中談到了這一點。那麼，電池也是全年的阻力嗎？

Yeah, it continues to be that's correct. It continues to be a headwind for us. So on a full year basis, we expect that declining revenue in the BCS segment to be approximately 100 basis points to the full year outgrowth. And then there's another 60 basis points associated with tariff costs and associated recoveries. The rest of the outgrowth changes are relatively minor.

是的，它仍然是正確的。這對我們來說仍然是一個阻力。因此，從全年來看，我們預計 BCS 部門的營收下降幅度將比全年成長低約 100 個基點。另外還有 60 個基點與關稅成本和相關回收有關。其餘的生長變化相對較小。

Yeah, okay. That makes sense. And then just on the capital allocation, I'm just sort of wondering, I guess, how you're thinking about comfortable cash levels because you last year, you bought back $425 million, $325 million in the back half. But cash is like meaningfully higher now than what it was at that time when you bought back that amount. So I just want to understand how I'm not asking you to sort of be unprudent with it, but like how should we think about how you're going to deploy or return that cash or deploy it inorganically from a timing perspective?

嗯，好的。這很有道理。然後，就資本配置而言，我只是有點好奇，你是如何看待舒適的現金水平的，因為去年你回購了 4.25 億美元，下半年回購了 3.25 億美元。但現在的現金價值比你當時買回該金額時高很多。所以我只是想明白，我並不是要求你對此不謹慎，而是我們應該如何考慮如何部署或返還這筆現金，或者從時間角度無機地部署它？

Yeah, first, I'd say we're really happy with our results in the quarter. Really strong free cash flow generation, $0.5 billion in the quarter. Teams around the globe are doing a fantastic job. As Joe and I mentioned in our scripts, we're focused on a disciplined and consistent return of cash to investors. I think that's exactly what you saw in the second quarter. We returned $130 million to our shareholders between our cash dividend and our share repurchases.

是的，首先，我想說我們對本季的業績非常滿意。自由現金流產生非常強勁，本季達到 5 億美元。全球各地的團隊都表現出色。正如喬和我在我們的腳本中提到的那樣，我們專注於向投資者提供有紀律且持續的現金回報。我認為這正是你在第二季度看到的情況。我們在現金股利和股票回購之間向股東返還了 1.3 億美元。

As we look at the back half of the year, we're focused on that discipline and consistency. So when you think about Q3 and Q4, obviously, we're going to increase our dividend, which is what we shared with you, that 55% increase.

展望下半年，我們將重點放在紀律和一致性。因此，當您考慮第三季和第四季時，顯然，我們將增加股息，這就是我們與您分享的 55% 的成長。

We also increased our authorization to $1 billion. That gives Joe and I a lot of flexibility. As you think about Q3 and Q4, we're going to pay that dividend at 55% increase. And we're also going to repurchase shares. You should think about it as a similar level in Q3 and Q4 as you saw in Q2.

我們還將授權金額增加至 10 億美元。這給了喬和我很大的靈活性。當您考慮第三季和第四季時，我們將以 55% 的增幅支付股息。我們還將回購股票。您應該將其視為 Q3 和 Q4 中的類似水平，就像您在 Q2 中看到的一樣。

Okay. And is there a minimum cash level you're targeting now?

好的。您現在的目標現金水準有最低嗎？

We've always communicated our liquidity target is 20% of sales. We're a bit higher than that currently, and that's why you saw us return some cash to shareholders in the second quarter.

我們一直表示，我們的流動性目標是銷售額的 20%。我們目前的水平略高一些，這就是為什麼你看到我們在第二季度向股東返還一些現金。

Thank you.

謝謝。

Colin Langan with Wells Fargo.

富國銀行的科林‧蘭根 (Colin Langan)。

Congrats on a good quarter. When I look at guidance, it's quite an impressive conversion implied prior to current guidance. I think sales at the midpoint is up $200 million and the EBIT is up 54%. It's a high 20% conversion. And then on top of that, a lot of the improvement in the sales guide is actually FX, which you would think would convert at a lower margin. So what is driving this really high conversion within your guidance?

恭喜本季取得良好業績。當我查看指導時，這是當前指導之前隱含的相當令人印象深刻的轉換。我認為中期銷售額成長了 2 億美元，息稅前利潤成長了 54%。轉換率高達 20%。除此之外，銷售指南中的許多改進實際上都是外匯，你會認為這會以較低的利潤率轉換。那麼，在您的指導下，是什麼推動瞭如此高的轉換率？

Yeah, maybe, Colin, why don't I walk you through our sales guidance, and I'll walk you through our income guidance. So when you walk our sales guidance, our prior guidance, our April guidance, we are at $13.9 billion at the midpoint. Our current guidance is $14.2 billion. When you look at the drivers of that increase, industry production increase is 1.5%. That's about a $250 million benefit. FX impact, $300 million, which is what I mentioned in my script. Then we have tariff recoveries coming down 1.6% in our prior guide to 1%. That's an $80 million headwind.

是的，也許吧，科林，我為什麼不向您介紹我們的銷售指導，以及我們的收入指導呢？因此，當您查看我們的銷售指導、我們先前的指導、我們 4 月的指導時，我們的中間值是 139 億美元。我們目前的指導金額是 142 億美元。當你查看這一成長的驅動因素時，工業產量增加了 1.5%。這相當於 2.5 億美元的收益。FX 影響，3 億美元，這就是我在劇本中提到的。然後，我們將關稅回收率從先前的指導值中下降了 1.6% 至 1%。這是一個 8000 萬美元的逆風。

And then our battery outgrowth coming down. That's about $100 million, as Joe indicated. That's what gets us to $14.2 billion. When you think about the margin profile going from 9.9% at the midpoint to 10.2%, a couple of items there.

然後我們的電池產量就下降了。正如喬所說，這大約是 1 億美元。這就是我們的收入達到 142 億美元的原因。當您考慮利潤率從中間點的 9.9% 上升到 10.2% 時，您會發現有幾項變化。

We're converting at the mid- teens, which is what you would expect on higher revenue. FX is converting about $0.10 on the dollar, which is typical for us. Then what's coming through is our Q2 outperformance. Great job by the teams, and that's coming through our guide. Basically, everything else is rounding. That's what gets us that 30 basis points improvement guide to guide.

我們的轉換率在十幾歲左右，這正是人們對更高收入的預期。外匯兌換率約為 0.10 美元，這對我們來說很正常。接下來就是我們第二季的優異表現。團隊表現出色，我們的指南將對此進行介紹。基本上，其他一切都是四捨五入的。這就是我們獲得 30 個基點改進指南的原因。

Got it. That's very helpful. And you highlighted the eProducts up 31%. It was up 47% in Q1. I mean, how should we think about the pace through the rest of the year? I thought your original comments were that might moderate after Q1. It looks like it's still remaining very strong. Do the comps get a lot tougher? Or should we continue to expect really high double-digit growth?

知道了。這非常有幫助。您強調了電子產品上漲了 31%。第一季上漲了 47%。我的意思是，我們該如何考慮今年剩餘時間的節奏？我認為您最初的評論是在第一季之後可能會有所緩和。看起來它仍然非常強大。比賽會變得更加艱難嗎？或者我們應該繼續期待真正高的兩位數成長？

Yeah, Our goal, Colin, is to outgrow the market, right? So leveraging our portfolio, continue to win business, be number 1 or number 2 in nearly every product. So the goal hasn't unchanged. If you look at the first half of the year, the growth in that eProduct side for light vehicle was in that 39% range versus a market that grew 21%. So we're really happy with that outgrowth. We think the teams are doing a really great job, and we've reflected all we know in our updated guide.

是的，柯林，我們的目標是超越市場，對嗎？因此，利用我們的產品組合，繼續贏得業務，在幾乎所有產品中都名列第一或第二。所以目標並沒有改變。如果你看今年上半年，輕型車電子產品方面的成長率在 39% 左右，而整個市場的成長率為 21%。因此，我們對這一結果感到非常高興。我們認為這些團隊做得非常出色，並且我們在更新的指南中反映了我們所知道的一切。

Dan Levy with Barclays.

巴克萊銀行的丹‧利維 (Dan Levy)。

Hi, thank you for taking the questions maybe just wanted to double-click on one of Colin's questions. And just specifically in the quarter, if you could talk about the performance because you had a $7 million year-over-year EBIT benefit on a $31 million sales decline. And I think that was actually off of a tough comp on margins. So maybe you could just talk about some of the strength that you saw in the second quarter on the performance side and maybe what can be extrapolated from there?

你好，謝謝你回答這些問題，也許我只是想雙擊一下 Colin 的一個問題。具體來說，就本季而言，如果您能談談業績，因為在銷售額下降 3,100 萬美元的情況下，您的息稅前利潤卻比去年同期增加了 700 萬美元。我認為這實際上是由於利潤率的大幅下降。那麼，也許您可以談談您在第二季度看到的業績方面的一些優勢，以及從中可以推斷出什麼？

Sure. Yeah, so when we think about the second quarter, we really capitalize on that extra growth, that higher revenue value in the quarter coming in at over 3.6 billion. You saw that on the PDS front. They did an incredible job of converting that growth into income, and then it's a continuation of what you've seen in the last several quarters, really focused on cost controls across the business.

當然。是的，所以當我們考慮第二季時，我們確實利用了額外的成長，本季更高的營收價值超過 36 億美元。您在 PDS 前端看到了這一點。他們出色地將成長轉化為收入，並延續了過去幾季的做法，真正注重整個業務的成本控制。

Think about productivity, restructuring, supply chain, savings, all going through our P&L. On top of that, we've had a 20% reduction of cost of poor quality, things like warranty, expedited freight, scrap, all coming down, and all of that led to that great performance in the second quarter.

想想生產力、重組、供應鏈、儲蓄，所有這些都會反映在我們的損益表中。除此之外，我們還將品質問題成本降低了 20%，保固、加急運費、廢品等成本都下降了，所有這些都促成了第二季的出色業績。

Okay. And then maybe as a second question, if we could double-click on the two foundational segments. We've now had I recognize that on a growth over market basis, the numbers may actually be okay. But we've now had a number of quarters where the organic growth is tracking negatively.

好的。然後也許作為第二個問題，我們是否可以雙擊兩個基礎部分。我現在已經認識到，從市場成長的角度來看，這些數字實際上可能還不錯。但目前我們已經經歷了多個季度的有機成長出現負成長。

And I guess the question is, what is the path here? I know you're winning business, but what is the path here for the organic growth to get to a point where it's positive again? Is there opportunity, especially in North America with some of the easing regulations that we could see a pickup in penetration rates of some of the technologies. But what's the path to getting these two segments back to some sort of positive growth?

我想問題是，這裡的路徑是什麼？我知道你們正在贏得業務，但是如何才能使有機成長再次達到正值呢？是否存在機會，特別是在北美，隨著一些法規的放寬，我們可以看到某些技術的滲透率上升。但是，如何才能讓這兩個部分恢復某種正成長呢？

Yeah, maybe first, I'll just ground us with on the combustion market, that's down 4% in the quarter. So that's a little bit our starting point. Now irrespective of the business unit, we want to outgrow across all the businesses. So TTT, DMS, which is our primary combustion businesses, their goal is to outperform the market of C and H. That's the way we view it.

是的，也許首先，我會先介紹燃燒市場，本季下降了 4%。這就是我們的起點。現在，無論哪個業務部門，我們都希望超越所有業務。因此，TTT、DMS（我們的主要燃燒業務）的目標是超越 C 和 H 市場。這就是我們的看法。

So when I step back a minute and I look at the number of hybrid RFQs, I look at the number of extensions on combustion businesses and I look at the eProduct growth across Europe and Asia, we're really confident with the portfolio we have and the competitiveness of our products. So I'm optimistic that we'll continue to see outgrowth over the next years.

因此，當我回顧一下混合 RFQ 的數量、燃燒業務的擴展數量以及歐洲和亞洲的電子產品成長時，我們對我們擁有的產品組合和產品的競爭力非常有信心。因此，我樂觀地認為，未來幾年我們將繼續看到成長。

And could this be at a point where you'll actually see even with sort of the weak starting point, it will get you to positive organic growth?

您是否真的會看到，即使起點比較弱，它也能為您帶來正面的有機成長？

Can you clarify the question?

你能澄清一下這個問題嗎？

You're starting I recognize the starting point is weaker, but is there enough outgrowth that it actually could get you to a positive organic growth opportunity with some of these award wins?

我承認你的起點比較弱，但是是否有足夠的發展空間，是否真的可以透過獲得這些獎項為你帶來正面的有機成長機會？

Okay. Got it. So we can't really predict the underlying market. The demand has been flat over the last few years, as you know. But that would be an additional pickup. If those end markets pick up, then that outgrowth will be even more meaningful and our incrementals, I think, will flow through to the bottom line even stronger.

好的。知道了。所以我們無法真正預測潛在的市場。如您所知，過去幾年的需求一直持平。但那將是一個額外的收穫。如果這些終端市場復甦，那麼這種成長將更加有意義，而且我認為我們的增量將更強勁地流向底線。

So what we're focused on is really outgrowing our end markets. And for the combustion businesses, that means the C and H segments. And for the eProducts, it's the hybrid and BEV. What we're really excited about is the potential for these advanced hybrids. And we're starting to see a lot more RFQ flow. And as we announced in the second quarter, we're winning quite a bit of new programs in the hybrid space. So that's good for BorgWarner.

因此，我們真正關注的是超越終端市場。對於燃燒業務來說，這意味著 C 和 H 部分。對於電子產品來說，它是混合動力汽車和純電動車。我們真正興奮的是這些先進混合動力汽車的潛力。我們開始看到更多的 RFQ 流。正如我們在第二季宣布的那樣，我們在混合領域贏得了不少新項目。這對博格華納來說是件好事。

Chris McNally at Evercore.

Evercore 的 Chris McNally。

Thanks so much team. Great results. I'm curious about if I look at the year-over-year walk, it seems like there's a $15 million tariff timing. And I don't really care about the timing. I think you guys have been clear. A lot of these negotiations, you get paid a month or something later.

非常感謝團隊。效果非常好。我很好奇，如果我看一下同比增幅，似乎有一個 1500 萬美元的關稅時間。我其實不太在意時間。我想大家已經清楚了。在許多這樣的談判中，你會在一個月或更晚的時候得到報酬。

But I'm curious where the $15 million drag occurred because when we look at your margins, we're seeing really strong ICE margins on the 2 divisions. The EV losses are coming down. So if I look at TTT, it's 15.7% first half, Drivetrain, 18%.

但我很好奇這 1500 萬美元的拖累發生在哪裡，因為當我們查看您的利潤率時，我們發現這兩個部門的 ICE 利潤率都非常高。電動車的損失正在下降。因此，如果我看 TTT，上半年是 15.7%，傳動系統是 18%。

So I'm just curious if the $15 million is in any of the ICE businesses, we may be mismodeling some of your margins going forward on core ICE going as I think on a multiyear basis. So just curious if you could give a little bit of detail where that $15 million lag was because it helps us with the underlying margins.

所以我只是好奇，如果這 1500 萬美元投入了任何 ICE 業務，我們可能會錯誤地預測未來核心 ICE 的一些利潤率，因為我認為這是多年期的。所以我很好奇，您是否可以提供一些細節，說明這 1500 萬美元的滯後是什麼原因，因為它可以幫助我們獲得潛在的利潤。

Yeah, Thanks, Chris. The majority of those costs, those tariff costs are in the combustion business units, so DMS and TTT. And it's really just great cost controls from those businesses. So again, we focused on productivity, restructuring, supply chain savings, cost support quality.

是的，謝謝，克里斯。這些成本中的大部分，這些關稅成本都在燃燒業務部門，也就是 DMS 和 TTT。這確實顯示這些企業的成本控制非常出色。因此，我們再次關註生產力、重組、供應鏈節約、成本支援品質。

Those businesses were able to effectively offset a lot of that tariff headwind in the quarter. Great job by those teams. But that's where you see the impact of tariffs primarily is in the combustion businesses.

這些企業在本季能夠有效抵銷大部分關稅不利因素。這些團隊做得很好。但你會看到關稅的影響主要體現在燃燒業務上。

Look, that's I mean, that's why I was curious that kind of that was my suspicion. Because just remind us, is this a fair assumption? You talked about the mid-teens incremental and decremental, right, which we think about incrementals for EV as it comes from losses to positive and decrementals we used to think about for ICE.

看，這就是我的意思，這就是為什麼我很好奇，那就是我的懷疑。因為只是提醒我們，這是一個公平的假設嗎？您談到了十幾歲的增量和減量，對的，我們認為 EV 的增量來自於損失，而 EV 的減量則來自於我們過去對 ICE 的考慮。

But if we get to a point where the ICE business is only declined on a production basis, 3%, 4%, 5% and you're trying to outgrow that, as you discussed, by low single-digits, is it fair to say that we may just have a flattish foundational business and so that you're going to try to hold margins essentially flattish there as well? I mean, obviously, you can't predict those. But in those assumptions, there is a scenario where you keep ICE foundational revenue flat, right?

但是，如果我們發現 ICE 業務僅按生產基礎下降 3%、4%、5%，而您正試圖以低個位數的速度超越這一水平，正如您所討論的那樣，是否可以說我們的基礎業務可能只是持平，因此您也會嘗試將利潤率保持基本持平？我的意思是，顯然你無法預測這些。但在這些假設中，有一種情況是 ICE 基礎收入保持不變，對嗎？

Yes. Chris, maybe I'll just back us up to 2 points. One, as we've stated, we want to leverage growth across the portfolio. So for the combustion businesses, where we're number 1 or number 2, that means looking at how do we grow market share, how do we continue to bring new features into those products like turbochargers, capitalizing on the increasing penetration, which we anticipate for variable cam timing and turbos.

是的。克里斯，也許我只會支持我們 2 分。首先，正如我們所說，我們希望實現整個投資組合的成長。因此，對於我們位居第一或第二的內燃機業務而言，這意味著我們要考慮如何擴大市場份額，如何繼續為渦輪增壓器等產品帶來新功能，利用日益增長的滲透率，我們預計可變凸輪正時和渦輪增壓器將會出現這種滲透率。

So it all starts with really leveraging the entire portfolio. And then for Craig and I, what's really important is that we drive financial performance. And that means not only growing the top line, but expanding margins across the company.

因此，一切都始於真正利用整個投資組合。對克雷格和我來說，真正重要的是推動財務表現。這不僅意味著增加營業收入，也意味著擴大整個公司的利潤率。

And I appreciate all the detail on the turbo winds. Thanks so much, T.

我很欣賞渦輪風的所有細節。非常感謝，T。

Emmanuel Rosner with Wolfe Research.

沃爾夫研究公司的 Emmanuel Rosner。

Thank you so much first question is coming back to the growth of the market. So I realize in looking at it on a full year basis, 100 to 250 basis points, but you got some tariff recoveries, you got some headwinds from the batteries. Can you just remind us what your longer-term framework is or target is for growth of the market? And essentially, where are we in some of these battery headwinds process, but also what will be the drivers of acceleration?

非常感謝您，第一個問題是關於市場的成長。因此，我意識到從全年來看，會有 100 到 250 個基點，但會有一些關稅回收，也會遇到來自電池的一些阻力。您能否提醒我們一下您對市場成長的長期框架或目標是什麼？本質上，我們在這些電池逆風過程中處於什麼位置，加速的驅動因素又是什麼？

Yeah, so first, I just want to acknowledge the headwind that our battery business is creating. Again, that's about 100 basis point headwind. Then we had another 60 basis points on tariffs and tariff recovery. Overall, we expect to outperform and outgrow the markets across the portfolio.

是的，首先，我只想承認我們的電池業務正在面臨的阻力。再次，這是大約 100 個基點的逆風。然後，我們對關稅和關稅恢復又增加了 60 個基點。整體而言，我們預期整個投資組合的表現和成長都將超越市場。

So recently, we've been in that low single-digit last few years, and we've got goals that are higher than that. So for us, it's just important that we identify and win those businesses across the entire portfolio. And we're starting to do that.

最近幾年，我們的成長率一直處於個位數的低位，但我們的目標要高於這個數字。因此，對我們來說，重要的是在整個投資組合中識別並贏得這些業務。我們正在開始這麼做。

I think if I just point to the Q2 announcements, we shared just nine of the wins that we've had. Our teams have done a great job to really identify and win those businesses that mean a lot to the top line. So I'm really pleased with that.

我想，如果我只指出第二季的公告，我們只分享了我們所取得的九項勝利。我們的團隊做了出色的工作，真正識別並贏得了那些對營收意義重大的業務。所以我對此感到非常高興。

I guess that's my question. The how would you sort of see these temporary headwinds play out, I guess, for in future periods? And then to what extent does the booked business that you already have support some sort of growth of market acceleration as we look beyond sort of like this year's guidance?

我想這就是我的問題。我想，您認為這些暫時的不利因素在未來會如何發揮作用？那麼，當我們展望今年的指導時，您已經擁有的預訂業務在多大程度上支持了市場加速成長？

Yeah, we're not going to provide, let's say, a long-term target. But again, just back to the battery side, those headwinds, which if you look at the full year forecast, it's about $100 million versus our last guide. And we continue to see some volatility in the short term. I would say longer term, I'm very bullish on our battery business. We believe that energy storage and more efficient energy conversion is really a great trend in the market. And so longer term, we can expect that battery business to bring quite a bit of value to the company.

是的，我們不會提供長期目標。但是，再次回到電池方面，這些不利因素，如果你看一下全年預測，與我們上次的指南相比，大約是 1 億美元。短期內我們仍會看到一些波動。我想說，從長遠來看，我對我們的電池業務非常看好。我們相信，能源儲存和更有效率的能源轉換確實是市場的一個大趨勢。因此從長遠來看，我們可以預期電池業務將為公司帶來相當大的價值。

Okay. And then I guess focusing on those wins that you highlighted for the quarter, it was very noticeable that almost every single one of them is actually some variation of hybrid powertrain. And maybe that's just the ones that you're showcasing here not of many more. But is this sort of like a function of the direction the market is going? Or is it a function of what where you have the highest win rates? Or is this just sort of like a small sample? All these wins seem to be somehow in the hybrid powertrain.

好的。然後我想，專注於您在本季度強調的那些勝利，很明顯，幾乎每一個勝利實際上都是混合動力系統的某種變體。也許這只是您在這裡展示的內容，而不是其他內容。但這是否有點像是市場走向的功能呢？或者它是您獲得最高勝率的函數？或者這只是一個小樣本？所有這些勝利似乎都歸功於混合動力系統。

Yeah, I think if you look at the first half activity of this year compared to a year ago, the amount of RFQ and RFI activity is significantly higher. So that's the good news. I think the OEMs have really begun to get some clarity on their cycle plans and how they want to react to some of the market dynamics and potential regulation changes.

是的，我認為，如果將今年上半年的活動與去年同期進行比較，你會發現 RFQ 和 RFI 活動的數量明顯更高。這是個好消息。我認為 OEM 已經開始真正明確他們的周期計劃以及他們希望如何應對一些市場動態和潛在的監管變化。

And as you could see in the quarter, we're winning across all the segments and across all of our product lines. So what we're really pleased about is it's not contained within just one segment. You referenced hybrid, which we're really happy about because if we think about the content of a hybrid vehicle and advanced plug-in, let's say, we can serve it with both the combustion side of the portfolio and the eProduct side. So we're actually pleased to see more advanced hybrids in the RFQ flow.

正如您在本季所看到的，我們在所有細分市場和所有產品線上都取得了成功。因此，我們真正高興的是它不只包含在一個片段中。您提到了混合動力，我們對此感到非常高興，因為如果我們考慮混合動力汽車和先進插電式混合動力汽車的內容，那麼我們可以同時透過產品組合的燃燒方面和電子產品方面為其提供服務。因此，我們很高興看到 RFQ 流程中出現了更多先進的混合體。

Luke Junk with Baird.

盧克瓊克 (Luke Junk) 與貝爾德 (Baird) 在一起。

Ahead. Good morning. Thanks for taking questions. Joe, maybe on capital allocation with the M&A side of the house. Just be curious to double-click on your comments that potential acquisitions wouldn't be driven. I think you used the word purely by strategic rationale. It sounds like you're widening out the aperture for deals a little bit. Just hoping to better understand that to start.

前方。早安.感謝您的提問。喬，也許是關於公司併購的資本配置。只是好奇地雙擊您的評論，認為潛在的收購不會被推動。我認為您使用這個詞純粹是出於戰略原因。聽起來你正在稍微擴大交易的範圍。只是希望能夠更好地理解這一點。

Yeah, no, thanks for the question. I mean we still remain active in this space. And I just want to reiterate, first, inorganic investments, they need to be leveraging our core competence. So we have a lot of core competence we've built over decades. And so we're looking for strong industrial logic to start with.

是的，不，謝謝你的提問。我的意思是我們仍然活躍在這個領域。我只想重申，首先，無機投資需要利用我們的核心競爭力。因此，我們擁有數十年來建立的眾多核心競爭力。因此，我們首先尋求的是強大的工業邏輯。

Of course, we talk about near-term earnings accretion. That's important and not overpaying for the asset. I wouldn't read in too much to the comment around strategic. We've done a lot of work over the last five or six years, making some acquisitions to pivot our portfolio.

當然，我們談論的是近期獲利的成長。這很重要，不要為資產支付過高的價格。我不會過度解讀有關戰略的評論。過去五、六年我們做了很多工作，進行了一些收購來調整我們的投資組合。

And some of those were money-losing acquisitions. But if I look today, Craig and I are really pleased with our portfolio. So we're in a different place, a better place. And for us, tightening up the criteria around future acquisitions is really important. At the end of the day, we want to drive expanded shareholder value and more earnings. So for us, that's the priority.

其中一些是虧損的收購。但如果我今天來看，克雷格和我對我們的投資組合感到非常滿意。所以我們現在處在一個不同的地方，一個更好的地方。對我們來說，嚴格未來收購的標準確實很重要。最終，我們希望提高股東價值並增加收益。所以對我們來說，這是首要任務。

Got it. And then for my follow-up, Joe, or Craig, maybe this be for both of you. Just curious to get your thoughts on the Power Drive margins from here. And I guess I'm thinking specifically around China impacts, clearly, a very important eProduct market in terms of power drive.

知道了。然後對於我的後續問題，喬，或者克雷格，也許這對你們倆都適用。我只是好奇想知道您對 Power Drive 利潤的看法。我想我特別考慮的是中國的影響，顯然，就動力驅動而言，中國是一個非常重要的電子產品市場。

And we know cycle times are getting faster and faster there. You showed us the inverter award this quarter that's actually going to launch before year-end. And I'm just trying to understand how that cycle time and the engineering side of the house in terms of maybe more off-the-shelf, less customization, how that impacts the margins in that business, engineering intensity and driving towards a mid- teens type incremental?

我們知道那裡的周期時間越來越快。您向我們展示了本季的逆變器獎，該獎項實際上將在年底前推出。我只是想要了解週期時間和工程方面（可能更多地採用現成產品、減少定制）如何影響該業務的利潤率、工程強度以及如何推動實現十五六級增量？

Yeah, so I'll cover the margin side of it. So when you think about what's our goal in all of our businesses, but including PDS, convert in the mid-teens convert to the mid-teens, that's exactly what we're focused on. And when you look at our performance in PDS in Q1 and Q2, that's exactly what you saw.

是的，所以我將涵蓋其邊緣部分。因此，當您思考我們所有業務（包括 PDS）的目標是什麼時，將十幾歲的青少年轉化為十幾歲的青少年，這正是我們所關注的。當您查看我們在第一季和第二季的 PDS 表現時，您會發現事實確實如此。

We converted to the mid-teens on that extra growth Joe mentioned it, 38% year-over-year light vehicle eProducts growth and what do we do. We convert in the mid-teens. It gives Joe and I a lot of confidence that we have that capital, that cost structure right, and we're seeing that through our P&L. So great work by the PDS team.

我們將 Joe 提到的額外成長轉化為十幾歲的中段成長，輕型車輛電子產品年增 38%，我們做了什麼。我們在十幾歲的時候就皈依了基督教。這讓我和喬非常有信心，我們擁有足夠的資本，擁有正確的成本結構，而且我們透過損益表看到了這一點。PDS 團隊做得非常出色。

I would just add that in China specifically, we enjoy lower overhead costs. Actually, the speed to market that the OEMs demand results in lower R&D costs. These aren't three and four year development programs. They're much shorter, sometimes even less than 12 months, like some of the wins we announced.

我想補充一點，特別是在中國，我們的管理成本較低。實際上，OEM 所要求的上市速度會降低研發成本。這些不是三年或四年的發展計劃。它們要短得多，有時甚至少於 12 個月，就像我們宣布的一些勝利一樣。

So that results in lower overhead. And one of the reasons we can go quick to market, some of the OEMs are more open to take things off the shelf with just minor tweaks we're also able to reuse capital. Our eProduct business is pretty significant in China, and we're building scale there quite rapidly. So for us, we want to continue to win there, and it's a really important market.

這樣就降低開銷了。我們能夠快速進入市場的原因之一是，一些原始設備製造商更願意對現有產品進行微小的調整，這樣我們也能重複利用資本。我們的電子產品業務在中國非常重要，我們正在那裡迅速擴大規模。因此對我們來說，我們希望繼續在那裡取得成功，這是一個非常重要的市場。

James Picariello with BNP Paribas.

法國巴黎銀行的 James Picariello。

Hey, good morning, everybody just with respect to your latest restructuring actions, what's the progress report on the battery consolidation savings, getting $15 million this year, another $5 million next year. And as we think about that segment, and I know we kind of touched on this, but if the battery business doesn't show stabilization from here, and of course, we'd be interested in your assessment on that. But are there other actions you could take for that business to go beyond the 15% decremental, the mid-teens decremental if battery revenue were to continue to slide in out years?

嘿，大家早上好，就您最近的重組行動而言，電池整合節省的進展報告是什麼，今年獲得 1500 萬美元，明年再獲得 500 萬美元。當我們考慮這個部分時，我知道我們已經談到了這一點，但如果電池業務從現在開始沒有表現出穩定，當然，我們會對您的評估感興趣。但是，如果電池收入在未來幾年繼續下滑，您是否可以採取其他措施來使該業務超越 15% 的遞減率或十五六%的遞減率？

Yeah, maybe I'll start with a little bit the broader view. So as we referenced, the headwinds we're seeing about $100 million this year compared to our prior guide. We're just going to have to continue to look at the market. It's volatile right now, and we'll manage accordingly.

是的，也許我會從更廣闊的視角開始。正如我們所提到的，與我們先前的預測相比，今年我們面臨的阻力約為 1 億美元。我們只需要繼續關注市場。目前形勢不穩定，我們會採取相應措施。

I'm really happy with the actions our teams have taken. We did not sit and wait. They move quickly. And if I just reference Q2 sales for a minute, the business is slightly EBITDA positive and cash flow breakeven. Therefore, we think we have it well positioned to profitably grow as the demand picks up, and we believe in the long-term outlook for this business.

我對我們的團隊採取的行動感到非常高興。我們沒有坐著等待。他們行動迅速。如果我只參考第二季的銷售額，那麼業務的 EBITDA 略為正值，現金流則維持收支平衡。因此，我們認為，隨著需求回升，我們已準備好實現獲利成長，並且我們相信該業務的長期前景。

Okay. And then focusing on the Power Drive segment as my follow-up, we're seeing really nice first half inflection, core sales up 25% to 30%. Just how should we be thinking about the second half relative to the strength we're seeing?

好的。然後，我將重點放在動力驅動部門，我們看到上半年出現了非常好的轉折，核心銷售額成長了 25% 至 30%。相對於我們所看到的實力，我們該如何看待下半年？

I mean, I know you don't provide segment level guidance, but curious if you could share any thoughts on whether the second half revenue should sustain similar momentum or if there's any timing of program roll-off or roll on to consider?

我的意思是，我知道您不提供細分級別的指導，但我很好奇您是否可以分享一下關於下半年收入是否應該保持類似的勢頭，或者是否有任何計劃推出或延續的時間需要考慮的想法？

Yeah, it's obviously dependent on production levels in the second half of the year. Our focus as a team is outgrow industry production. Again, for that side of the business, it's hybrid plus electric production and convert that growth into income in the mid-teens. So that's how you should think about it and you can make your assumptions on industry production in the second half of the year.

是的，這顯然取決於下半年的生產水準。作為一個團隊，我們的重點是超越產業生產。同樣，對於該業務而言，它是混合動力加電力生產，並將這種成長轉化為十幾歲的收入。所以你應該這樣考慮，然後對下半年的產業生產做出假設。

And just on the hybrid, are you starting to see more quoting on more RFQ activity on the hybrid side for new programs?

就混合型而言，您是否開始看到針對新專案的混合型 RFQ 活動出現更多報價？

Definitely. When we talk about advanced hybrids, so plug-ins, range extended hybrids, we definitely see much higher RFQ flow than we did a year ago.

確實。當我們談論先進的混合動力車、插電式混合動力車、增程式混合動力車時，我們肯定會看到比一年前高得多的 RFQ 流量。

With that, I'd like to thank you all for your questions today. If you have any follow-ups, feel free to reach out to me or my team. Rocco, you can go ahead and conclude today's call.

最後，我要感謝大家今天的提問。如果您有任何後續問題，請隨時與我或我的團隊聯繫。羅科，你可以繼續並結束今天的通話了。

Thank you. This concludes the BorgWarner 2025 second quarter results conference call. You may now disconnect your lines.

謝謝。博格華納 2025 年第二季業績電話會議到此結束。現在您可以斷開線路了。