BorgWarner (NYSE:BWA) Issues FY 2026 Earnings Guidance

Key Points

• FY2026 guidance: BorgWarner guided to EPS of $5.00–$5.20 and revenue of $14.0–$14.3 billion, roughly in line with consensus estimates (consensus EPS $5.15; revenue $14.2B).
• Quarterly results: The company beat estimates with $1.24 EPS vs. $1.16 expected and $3.53B revenue vs. $3.50B, showing modest year-over-year revenue growth.
• Dividend announced: BorgWarner declared a $0.17 quarterly dividend ($0.68 annual, ~1.2% yield) with an ex-dividend date of June 1 and payment on June 15.

BorgWarner (NYSE:BWA - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.000-5.200 for the period, compared to the consensus earnings per share estimate of 5.150. The company issued revenue guidance of $14.0 billion-$14.3 billion, compared to the consensus revenue estimate of $14.2 billion.

BorgWarner Price Performance

Shares of BWA opened at $57.35 on Wednesday. The business's fifty day moving average is $54.38 and its 200 day moving average is $49.62. BorgWarner has a 12-month low of $28.92 and a 12-month high of $70.08. The company has a quick ratio of 1.70, a current ratio of 2.07 and a debt-to-equity ratio of 0.69. The stock has a market cap of $11.82 billion, a P/E ratio of 45.88, a P/E/G ratio of 1.18 and a beta of 1.00.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.08. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The business had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.50 billion. During the same quarter in the previous year, the business posted $1.11 EPS. BorgWarner's quarterly revenue was up .5% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Sell-side analysts anticipate that BorgWarner will post 5.14 earnings per share for the current fiscal year.

BorgWarner Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, June 1st. BorgWarner's dividend payout ratio is currently 54.40%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on BWA. TD Cowen reiterated a "hold" rating on shares of BorgWarner in a research note on Thursday, February 12th. New Street Research set a $66.00 target price on BorgWarner in a report on Thursday, February 12th. Bank of America assumed coverage on BorgWarner in a research report on Wednesday, March 4th. They set a "neutral" rating on the stock. Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a research report on Tuesday, April 21st. Finally, Morgan Stanley set a $60.00 price objective on shares of BorgWarner in a report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $66.77.

Insider Transactions at BorgWarner

In other news, EVP Tania Wingfield sold 17,867 shares of the company's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $63.43, for a total value of $1,133,303.81. Following the completion of the transaction, the executive vice president directly owned 45,429 shares of the company's stock, valued at $2,881,561.47. This represents a 28.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Paul Arthur Farrell sold 12,012 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $52.31, for a total value of $628,347.72. Following the sale, the executive vice president directly owned 38,238 shares of the company's stock, valued at $2,000,229.78. The trade was a 23.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 78,083 shares of company stock worth $4,638,585. 0.76% of the stock is owned by insiders.

Hedge Funds Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Sivia Capital Partners LLC purchased a new position in BorgWarner in the second quarter valued at about $339,000. EP Wealth Advisors LLC purchased a new stake in shares of BorgWarner during the 4th quarter worth approximately $737,000. Evolve Private Wealth LLC bought a new stake in shares of BorgWarner in the 4th quarter worth approximately $661,000. Virtus Advisers LLC raised its holdings in shares of BorgWarner by 587.4% in the 4th quarter. Virtus Advisers LLC now owns 14,091 shares of the auto parts company's stock worth $635,000 after purchasing an additional 12,041 shares during the period. Finally, Evergreen Capital Management LLC purchased a new position in BorgWarner in the second quarter valued at approximately $506,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner Company Profile

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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