BorgWarner (NYSE:BWA) Releases Earnings Results, Beats Expectations By $0.19 EPS

BorgWarner (NYSE:BWA) announced its quarterly earnings data on Wednesday. The auto parts company reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.19, FiscalAI reports. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.49 billion. During the same period in the prior year, the business posted $1.01 earnings per share. BorgWarner’s revenue was up 3.9% compared to the same quarter last year. BorgWarner updated its FY 2026 guidance to 5.000-5.200 EPS.

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

• BorgWarner reported strong 2025 results with $14.3 billion in net sales, a 10.7% adjusted operating margin (up 60 bps), 14% EPS growth, and generated free cash flow >$1.2 billion, which management called an “outstanding” year.
• 2026 guidance calls for $14.0–$14.3 billion in sales (organic -3.5% to -1.5%), adjusted operating margin of 10.7%–10.9% and EPS of $5.00–$5.20, with free cash flow forecast at $900M–$1.1B as CapEx rises to support new launches.
• The company signed a master supply agreement for a new Turbine Generator System with TurboCell (Endeavour), expects production ramp in 2027 and forecasts > $300 million of revenue in the first year with mid?teens incremental margin and immediate EPS accretion.
• Management flagged significant weakness in its battery business (citing ~35%–40% revenue decline year?over?year) that will be a ~150 basis point drag on 2026 sales; near?term demand remains uncertain despite cost reduction actions.
• Continued shareholder returns—repurchased $400M in H2 2025, returned ~52% of 2025 FCF, repurchased ~31M shares since 2021 (13% fewer outstanding) and has ~$600M remaining on its buyback authorization.

BorgWarner Stock Performance

Shares of BWA stock opened at $66.68 on Thursday. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.69 and a current ratio of 2.05. BorgWarner has a 52 week low of $24.40 and a 52 week high of $68.82. The company’s 50 day moving average price is $47.27 and its two-hundred day moving average price is $44.23. The company has a market capitalization of $14.26 billion, a P/E ratio of 105.84, a price-to-earnings-growth ratio of 1.09 and a beta of 1.09.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.0%. The ex-dividend date is Monday, March 2nd. BorgWarner’s dividend payout ratio (DPR) is 107.94%.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q4 results beat expectations — GAAP EPS $1.35 vs. consensus $1.16 and revenue $3.57B vs. $3.49B, driven by strength in drivetrain and Morse systems. BorgWarner (BWA) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Company secured a record number of program awards (800V integrated drive modules, expanded BMS, 48V eXD, turbocharger programs and major NA OEM contracts) that strengthen its EV/hybrid backlog and long?term revenue pipeline. BorgWarner Reports 2025 Results and Provides 2026 Guidance; Returned Approximately $630 Million to Shareholders in 2025; Strategically Enters Data Center Market with Turbine Generator System Award
• Positive Sentiment: Profitability improved as powertrain demand and cost?savings lifted quarterly profit, supporting confidence in margin gains despite EV transition headwinds. BorgWarner quarterly profit rises on powertrain demand, cost-saving measures
• Positive Sentiment: Returned approximately $630M to shareholders in 2025 (buybacks/dividends), reinforcing capital-return policy and supporting per?share metrics. BorgWarner Reports 2025 Results and Provides 2026 Guidance; Returned Approximately $630 Million to Shareholders in 2025; Strategically Enters Data Center Market with Turbine Generator System Award
• Neutral Sentiment: FY2026 guidance: EPS $5.00–$5.20 (around street consensus) but revenue guidance of $14.0B–$14.3B is slightly below consensus ~$14.4B — EPS outlook supports valuation while revenue guide tempers near?term top?line visibility. BorgWarner Q4 2025 Press Release / Slide Deck
• Neutral Sentiment: Management highlighted EV headwinds but pointed to margin gains and product mix improvements on the earnings call — helpful context for reconciling strong near?term results with transition risks. BorgWarner Inc. Balances EV Headwinds With Margin Gains
• Negative Sentiment: Some analysts and commentary labeled the FY26 outlook “soft” on revenue growth, which could limit upside if orders or supply?chain constraints slow execution. BorgWarner secures record number of awards, beats Q4 expectations, sets soft FY26 guidance

Analysts Set New Price Targets

A number of research firms have recently weighed in on BWA. Robert W. Baird set a $55.00 price target on BorgWarner in a research note on Wednesday, January 14th. Morgan Stanley reiterated an “equal weight” rating and issued a $49.00 price objective (up previously from $42.00) on shares of BorgWarner in a report on Monday, December 8th. Evercore raised their target price on BorgWarner from $50.00 to $53.00 and gave the stock an “outperform” rating in a report on Monday, November 24th. JPMorgan Chase & Co. boosted their target price on BorgWarner from $45.00 to $53.00 and gave the stock an “overweight” rating in a research report on Monday, October 20th. Finally, Piper Sandler reiterated a “neutral” rating and issued a $51.00 price target (down from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $47.31.

Institutional Investors Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. boosted its stake in BorgWarner by 284.5% in the 4th quarter. Meeder Asset Management Inc. now owns 25,387 shares of the auto parts company’s stock worth $1,144,000 after purchasing an additional 18,784 shares during the period. Empowered Funds LLC raised its stake in shares of BorgWarner by 60.1% in the 4th quarter. Empowered Funds LLC now owns 170,387 shares of the auto parts company’s stock valued at $7,678,000 after purchasing an additional 63,985 shares during the period. Deutsche Bank AG lifted its holdings in shares of BorgWarner by 12.8% in the fourth quarter. Deutsche Bank AG now owns 63,421 shares of the auto parts company’s stock valued at $2,858,000 after purchasing an additional 7,183 shares in the last quarter. Cerity Partners LLC boosted its position in shares of BorgWarner by 12.1% during the fourth quarter. Cerity Partners LLC now owns 292,713 shares of the auto parts company’s stock worth $13,190,000 after buying an additional 31,710 shares during the period. Finally, Lido Advisors LLC boosted its position in shares of BorgWarner by 3.8% during the fourth quarter. Lido Advisors LLC now owns 13,870 shares of the auto parts company’s stock worth $612,000 after buying an additional 508 shares during the period. 95.67% of the stock is currently owned by institutional investors and hedge funds.

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.