Q3 Earnings Forecast for BorgWarner Issued By Zacks Research

Key Points

• Zacks Research has lowered its Q3 2026 earnings per share estimate for BorgWarner to $1.15, down from the previous estimate of $1.24, while maintaining a "Hold" rating on the stock.
• BorgWarner's board has approved a $1 billion share repurchase program, which allows the company to buy back up to 13.2% of its shares, indicating a belief that the shares are undervalued.
• The company recently increased its quarterly dividend to $0.17 per share from $0.11, resulting in an annualized dividend yield of 1.6%.

BorgWarner Inc. (NYSE:BWA - Free Report) - Zacks Research lowered their Q3 2026 EPS estimates for BorgWarner in a research note issued on Tuesday, October 14th. Zacks Research analyst Team now forecasts that the auto parts company will post earnings per share of $1.15 for the quarter, down from their previous estimate of $1.24. Zacks Research currently has a "Hold" 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 Q4 2026 earnings at $1.12 EPS, FY2026 earnings at $4.64 EPS, Q1 2027 earnings at $1.18 EPS, Q2 2027 earnings at $1.28 EPS, Q3 2027 earnings at $1.25 EPS and FY2027 earnings at $4.97 EPS.

BWA has been the topic of several other reports. Wall Street Zen upgraded BorgWarner from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 12th. Wells Fargo & Company upped their price objective on BorgWarner from $50.00 to $54.00 and gave the company an "overweight" rating in a research note on Thursday, September 25th. UBS Group upped their price objective on BorgWarner from $43.00 to $46.00 and gave the company a "neutral" rating in a research note on Monday, October 6th. JPMorgan Chase & Co. upped their price objective on BorgWarner from $43.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, August 4th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of BorgWarner in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $44.64.

BorgWarner Stock Up 1.2%

NYSE BWA opened at $42.27 on Thursday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The firm has a 50-day simple moving average of $42.79 and a 200 day simple moving average of $35.72. BorgWarner has a twelve month low of $24.40 and a twelve month high of $44.97. The stock has a market cap of $9.15 billion, a PE ratio of 44.97, a PEG ratio of 1.54 and a beta of 1.09.

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

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. CWM LLC raised its position in BorgWarner by 218.3% in the 3rd quarter. CWM LLC now owns 235,861 shares of the auto parts company's stock worth $10,368,000 after purchasing an additional 161,755 shares during the last quarter. Optas LLC bought a new position in BorgWarner in the 3rd quarter worth approximately $211,000. Parcion Private Wealth LLC bought a new position in BorgWarner in the 3rd quarter worth approximately $294,000. Brighton Jones LLC raised its position in BorgWarner by 141.1% in the 3rd quarter. Brighton Jones LLC now owns 37,325 shares of the auto parts company's stock worth $1,641,000 after purchasing an additional 21,843 shares during the last quarter. Finally, CHICAGO TRUST Co NA raised its position in BorgWarner by 3.1% in the 3rd quarter. CHICAGO TRUST Co NA now owns 56,320 shares of the auto parts company's stock worth $2,476,000 after purchasing an additional 1,694 shares during the last quarter. Institutional investors own 95.67% of the company's stock.

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the completion of the sale, the vice president owned 55,945 shares of the company's stock, valued at approximately $2,238,359.45. This trade represents a 4.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Stefan Demmerle sold 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the sale, the vice president directly owned 229,040 shares of the company's stock, valued at approximately $9,276,120. The trade was a 2.14% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 31,272 shares of company stock valued at $1,263,318. Corporate insiders own 0.45% of the company's stock.

BorgWarner announced that its board has approved a share repurchase program on Thursday, July 31st that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the auto parts company to reacquire up to 13.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

BorgWarner Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from BorgWarner's previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. BorgWarner's dividend payout ratio (DPR) is 72.34%.

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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