Q1 Earnings Forecast for BorgWarner Issued By Zacks Research

Key Points

• Zacks Research updated its Q1 2026 earnings estimate for BorgWarner to $1.15 per share, maintaining a "Strong-Buy" rating for the stock with a full-year earnings forecast of $4.28 per share.
• The company's recent quarterly dividend was increased to $0.17 per share, with a resulting annual yield of 1.5%, reflecting confidence in its financial stability.
• BorgWarner announced a $1.00 billion share buyback program to repurchase up to 13.2% of its stock, indicating that the board believes the shares are undervalued.

BorgWarner Inc. (NYSE:BWA - Free Report) - Zacks Research raised their Q1 2026 earnings per share estimates for BorgWarner in a research report issued on Monday, September 15th. Zacks Research analyst Team now forecasts that the auto parts company will post earnings of $1.15 per share for the quarter, up from their previous estimate of $1.14. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for BorgWarner's current full-year earnings is $4.28 per share. Zacks Research also issued estimates for BorgWarner's Q2 2026 earnings at $1.23 EPS, Q3 2026 earnings at $1.24 EPS, Q4 2026 earnings at $1.22 EPS, FY2026 earnings at $4.84 EPS, Q1 2027 earnings at $1.19 EPS, Q2 2027 earnings at $1.30 EPS and FY2027 earnings at $5.11 EPS.

A number of other equities analysts have also weighed in on BWA. Baird R W raised BorgWarner from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Morgan Stanley boosted their target price on BorgWarner from $40.00 to $42.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 12th. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 12th. UBS Group boosted their target price on BorgWarner from $35.00 to $38.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Finally, Barclays reiterated an "overweight" rating and issued a $45.00 target price (up from $42.00) on shares of BorgWarner in a research report on Wednesday, July 16th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $41.21.

BorgWarner Stock Performance

NYSE BWA opened at $43.90 on Tuesday. The firm has a market cap of $9.50 billion, a price-to-earnings ratio of 46.70, a price-to-earnings-growth ratio of 1.44 and a beta of 1.09. The company has a quick ratio of 1.66, a current ratio of 2.02 and a debt-to-equity ratio of 0.64. The business has a 50-day moving average price of $39.55 and a 200-day moving average price of $33.61. BorgWarner has a twelve month low of $24.40 and a twelve month high of $44.45.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The auto parts company reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.15. The firm had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.56 billion. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business's quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.19 earnings per share. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS.

Institutional Trading of BorgWarner

Several hedge funds and other institutional investors have recently bought and sold shares of BWA. Dimensional Fund Advisors LP lifted its holdings in shares of BorgWarner by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company's stock valued at $331,429,000 after purchasing an additional 284,587 shares during the last quarter. State Street Corp raised its stake in BorgWarner by 5.3% in the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company's stock worth $255,578,000 after acquiring an additional 380,942 shares during the last quarter. LSV Asset Management raised its stake in BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company's stock worth $168,722,000 after acquiring an additional 1,580,935 shares during the last quarter. American Century Companies Inc. raised its stake in BorgWarner by 1.6% in the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company's stock worth $126,381,000 after acquiring an additional 58,252 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in BorgWarner by 307.1% in the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company's stock worth $114,153,000 after acquiring an additional 2,582,105 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 15,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total value of $589,650.00. Following the transaction, the vice president owned 234,040 shares of the company's stock, valued at $9,200,112.40. This represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the completion of the transaction, the vice president directly owned 55,945 shares in the company, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 31,272 shares of company stock valued at $1,263,318 over the last quarter. 0.63% of the stock is owned by corporate insiders.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.5%. This is an increase from BorgWarner's previous quarterly dividend of $0.11. The ex-dividend date of this dividend was Tuesday, September 2nd. BorgWarner's payout ratio is currently 72.34%.

BorgWarner declared that its Board of Directors has initiated a share buyback program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to reacquire up to 13.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

About BorgWarner

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.

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