BorgWarner (BWA) shares surged 5.02% in Wednesday's trading session following the auto parts supplier's strong first-quarter results and upbeat full-year outlook. The company reported adjusted earnings of $1.11 per share, surpassing analysts' expectations of $0.98 per share. Sales for the quarter came in at $3.52 billion, also beating the estimated $3.40 billion.

In addition to the earnings beat, BorgWarner raised its 2025 sales forecast to a range of $13.6 billion to $14.2 billion, up from its previous guidance of $13.4 billion to $14.0 billion. The company cited expectations of stronger foreign exchange rates and tariff-driven customer recoveries as reasons for the improved outlook. BorgWarner also announced strategic moves, including the exit of its charging business and the consolidation of its North American battery systems business, which is expected to result in annual cost savings of approximately $20 million by 2026.

Investors were further encouraged by BorgWarner's announcement of new business wins across its portfolio. These include an eMotor for hybrid full-size trucks and SUVs set to launch in 2028, program extensions for exhaust gas recirculation components through 2029, and a new award with a transmission manufacturer expected to start production by the end of 2025. The company's proactive approach to portfolio management and focus on future growth opportunities in the evolving automotive industry appear to be resonating well with the market.