BorgWarner (NYSE:BWA) Announces Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• BorgWarner beat earnings expectations for the quarter, reporting $1.24 EPS versus the $1.16 consensus and revenue of $3.53 billion, slightly ahead of estimates. Revenue rose 0.5% year over year, and the company raised its FY 2026 guidance to $5.00–$5.20 EPS.
• The company highlighted strong operational execution and business wins, including a 10.5% adjusted operating margin, 12 new business awards, and continued expansion across electric, hybrid, and combustion powertrain products.
• BorgWarner also pointed to growth in new industrial/data center markets, while noting that battery energy systems sales are weakening and could weigh on 2026 sales growth, especially due to softer European demand and limited North American incentives.

BorgWarner (NYSE:BWA - Get Free Report) announced its quarterly earnings data on Wednesday. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.08, Zacks reports. The company had revenue of $3.53 billion for the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business's revenue was up .5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.11 EPS. BorgWarner updated its FY 2026 guidance to 5.000-5.200 EPS.

Here are the key takeaways from BorgWarner's conference call:

• BorgWarner reported Q1 sales of $3.5 billion with a 10.5% adjusted operating margin, adjusted EPS up 12% year-over-year, and reaffirmed full-year guidance of $14.0–$14.3B sales and $5.00–$5.20 adjusted EPS.
• Management highlighted 12 new business awards across electric motors, turbochargers, drivetrains, and controllers, signaling continued program wins and product leadership across combustion, hybrid, and BEV architectures.
• The company is expanding into data center/industrial markets with progress toward a 2027 turbine generator launch (B-samples delivered and UL work underway) and BESS and bidirectional inverter B-samples being shipped for customer validation.
• Battery energy systems sales are declining (driven by weaker European demand and lack of North American incentives), creating an anticipated ~150 basis point headwind to 2026 sales and pressuring organic growth this year.
• BorgWarner remains focused on disciplined capital allocation—returning ~$185 million to shareholders in Q1, repurchasing over $650 million in the last four quarters, while keeping M&A selective and prioritizing organic investment in new industrial opportunities.

BorgWarner Stock Up 5.3%

BorgWarner stock traded up $3.10 during mid-day trading on Friday, hitting $61.28. The company's stock had a trading volume of 3,138,343 shares, compared to its average volume of 2,125,824. The firm's 50 day moving average is $54.39 and its 200 day moving average is $49.85. The company has a market cap of $12.57 billion, a PE ratio of 36.26, a price-to-earnings-growth ratio of 1.22 and a beta of 1.00. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.70. BorgWarner has a 52-week low of $31.35 and a 52-week high of $70.08.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Monday, June 1st. BorgWarner's payout ratio is presently 54.40%.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BWA. Barclays lifted their target price on BorgWarner from $70.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday. The Goldman Sachs Group increased their price target on BorgWarner from $54.00 to $78.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. TD Cowen lifted their price target on BorgWarner from $66.00 to $67.00 and gave the stock a "hold" rating in a research note on Thursday. Robert W. Baird set a $76.00 price objective on BorgWarner in a report on Thursday, February 12th. Finally, Morgan Stanley set a $60.00 target price on shares of BorgWarner in a report on Thursday, February 12th. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $67.50.

Insider Activity at BorgWarner

In other news, EVP Tonit M. Calaway sold 16,000 shares of the company's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $65.08, for a total value of $1,041,280.00. Following the transaction, the executive vice president owned 240,251 shares in the company, valued at $15,635,535.08. This represents a 6.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Stefan Demmerle sold 2,500 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $53.03, for a total transaction of $132,575.00. Following the completion of the sale, the vice president directly owned 233,746 shares of the company's stock, valued at $12,395,550.38. This trade represents a 1.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 78,083 shares of company stock worth $4,638,585. Company insiders own 0.76% of the company's stock.

Institutional Investors Weigh In On BorgWarner

A number of institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC purchased a new stake in shares of BorgWarner during the second quarter worth $339,000. Evergreen Capital Management LLC purchased a new position in BorgWarner in the second quarter valued at about $506,000. Compound Planning Inc. increased its position in BorgWarner by 12.2% in the 4th quarter. Compound Planning Inc. now owns 8,627 shares of the auto parts company's stock worth $389,000 after purchasing an additional 937 shares during the last quarter. Daiwa Securities Group Inc. purchased a new stake in shares of BorgWarner during the 2nd quarter worth about $335,000. Finally, Two Sigma Securities LLC purchased a new stake in shares of BorgWarner during the 2nd quarter worth about $285,000. Institutional investors and hedge funds own 95.67% of the company's stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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