BorgWarner (NYSE:BWA) Issues FY 2026 Earnings Guidance

Key Points

• BorgWarner issued FY 2026 guidance calling for EPS of $5.05–$5.30 and revenue of $14.0–$14.3 billion, broadly in line with analyst expectations of $5.19 EPS and $14.2 billion in revenue.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating from 15 analysts and an average price target of $74.57.
• The company declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annually and a 1.1% yield; the payment is scheduled for September 15 for shareholders of record on September 1.

BorgWarner (NYSE:BWA - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 5.050-5.300 for the period, compared to the consensus EPS estimate of 5.190. The company issued revenue guidance of $14.0 billion-$14.3 billion, compared to the consensus revenue estimate of $14.2 billion.

Wall Street Analyst Weigh In

BWA has been the subject of a number of recent analyst reports. The Goldman Sachs Group reissued a "buy" rating and set a $84.00 price target on shares of BorgWarner in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $81.00 price objective on shares of BorgWarner in a research note on Tuesday, April 21st. Wolfe Research reissued an "outperform" rating and set a $95.00 price objective on shares of BorgWarner in a report on Wednesday, June 3rd. Morgan Stanley boosted their target price on shares of BorgWarner from $60.00 to $67.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 27th. Finally, Wall Street Zen upgraded shares of BorgWarner from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, BorgWarner has a consensus rating of "Moderate Buy" and an average price target of $74.57.

BorgWarner Stock Performance

Shares of BWA opened at $62.80 on Wednesday. The stock has a market capitalization of $12.88 billion, a PE ratio of 37.16, a price-to-earnings-growth ratio of 1.35 and a beta of 1.10. The business's fifty day moving average price is $67.82 and its 200 day moving average price is $59.83. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75. BorgWarner has a 12-month low of $37.59 and a 12-month high of $78.82.

BorgWarner (NYSE:BWA - Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The firm 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 firm earned $1.11 earnings per share. The firm's revenue for the quarter was up .5% compared to the same quarter last year. Equities research analysts forecast that BorgWarner will post 5.16 EPS for the current year.

BorgWarner Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner's dividend payout ratio is currently 40.24%.

Insider Buying and Selling at BorgWarner

In other BorgWarner news, VP Isabelle Mckenzie sold 3,500 shares of BorgWarner stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total value of $221,725.00. Following the completion of the transaction, the vice president directly owned 57,828 shares in the company, valued at $3,663,403.80. The trade was a 5.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Joseph F. Fadool sold 29,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total value of $1,951,990.00. Following the transaction, the chief executive officer directly owned 405,964 shares of the company's stock, valued at $27,325,436.84. This trade represents a 6.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 67,500 shares of company stock worth $4,310,115 in the last ninety days. Insiders own 0.76% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. Prosperity Bancshares Inc acquired a new stake in BorgWarner in the fourth quarter worth $37,000. UMB Bank n.a. boosted its holdings in shares of BorgWarner by 28.1% during the fourth quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company's stock valued at $77,000 after acquiring an additional 375 shares during the period. Advisory Services Network LLC bought a new position in shares of BorgWarner during the third quarter worth about $131,000. CIBC Private Wealth Group LLC grew its position in shares of BorgWarner by 71.2% during the third quarter. CIBC Private Wealth Group LLC now owns 3,811 shares of the auto parts company's stock worth $168,000 after acquiring an additional 1,585 shares during the last quarter. Finally, Mangrove Partners IM LLC acquired a new stake in shares of BorgWarner in the 4th quarter worth about $234,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source