BorgWarner (NYSE:BWA) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

BorgWarner (NYSE:BWA) announced its quarterly earnings data on Thursday. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.14, Zacks reports. The firm had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.50 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%. BorgWarner’s revenue for the quarter was down 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.24 earnings per share.

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

• BorgWarner reported a strong third quarter despite lower vehicle production, with adjusted operating margin expanding 20 basis points to 10.9% and adjusted EPS rising 12% year over year. Free cash flow was $195 million.
• Light-vehicle eProduct sales increased 33% to $630 million, primarily driven by Europe, while the company secured nine new awards spanning combustion, hybrid, and battery-electric applications, including aluminum-wire motors and next-generation inverters.
• Management raised full-year adjusted EPS guidance to $5.20–$5.35 from $5.05–$5.30, maintained its 10.7%–10.9% operating-margin outlook, and expects to return more than $700 million to shareholders in 2026 through dividends and buybacks.
• Full-year sales guidance was narrowed to $14.0 billion–$14.2 billion, with organic sales expected to decline 2.5%–4%; the battery business is expected to remain a significant headwind because of weaker European demand and the lack of North American incentives.
• Data-center initiatives continued to advance: turbine-generator production trials are expected by year-end, microgrid inverter samples have shipped to seven customers, and initial quoting has begun. Management expects approximately $300 million of turbine-generator revenue in 2027, although it will provide more detail only in early 2027.

BorgWarner Trading Down 3.2%

BWA stock traded down $1.73 during midday trading on Friday, reaching $51.57. The stock had a trading volume of 901,042 shares, compared to its average volume of 2,744,581. The company has a quick ratio of 1.76, a current ratio of 2.13 and a debt-to-equity ratio of 0.67. BorgWarner has a twelve month low of $40.73 and a twelve month high of $78.82. The firm has a market cap of $10.50 billion, a price-to-earnings ratio of 25.78, a PEG ratio of 0.82 and a beta of 1.16. The business has a fifty day simple moving average of $61.57 and a two-hundred day simple moving average of $60.52.

Insider Buying and Selling

In other BorgWarner news, CAO Amy Kulikowski sold 2,900 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total value of $198,940.00. Following the completion of the sale, the chief accounting officer directly owned 9,725 shares in the company, valued at $667,135. This represents a 22.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rajesh Kalathur purchased 7,407 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was purchased at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the acquisition, the director owned 7,407 shares of the company’s stock, valued at approximately $500,639.13. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.76% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on BWA shares. Deutsche Bank Aktiengesellschaft set a $80.00 price target on shares of BorgWarner in a research note on Thursday, August 6th. UBS Group dropped their price objective on BorgWarner from $95.00 to $91.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Barclays raised their price objective on shares of BorgWarner from $83.00 to $85.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. Weiss Ratings restated a “hold (c+)” rating on shares of BorgWarner in a research note on Friday, September 25th. Finally, Robert W. Baird set a $79.00 price target on BorgWarner in a research report on Thursday, August 6th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $78.20.

BorgWarner announced that its board has authorized a stock repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $1 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. BorgWarner reported third-quarter adjusted earnings of $1.39 per share, ahead of the $1.24–$1.25 consensus and up from $1.24 a year earlier. Cost reductions and share repurchases helped support profitability. BorgWarner Tops Q3 Earnings Estimates
• Positive Sentiment: Electrification-related awards strengthen the growth outlook. The company announced nine awards across its portfolio, including high-voltage inverter supply agreements and multiple eMotor awards in China. It also secured three turbocharger business awards with a global powertrain manufacturer, supporting longer-term revenue opportunities. BorgWarner Third-Quarter Results and Awards
• Positive Sentiment: Management raised 2026 adjusted EPS guidance. The guidance increase indicates that cost controls, portfolio actions and improving profitability are helping offset challenges in the vehicle market. BorgWarner Blows Past Q3 Forecasts
• Neutral Sentiment: The earnings call pointed to a profitable transition. Investors are assessing whether BorgWarner’s shift toward electrification and higher-value products can produce durable growth as traditional powertrain demand changes. BorgWarner Earnings Call Signals Profitable Transition
• Negative Sentiment: Revenue and volumes remain under pressure. Third-quarter revenue was $3.49 billion, slightly below the $3.50 billion estimate and down 2.9% year over year, with lower volumes weighing on sales. Reports also described a reduction to parts of the 2026 outlook, creating uncertainty despite the higher EPS guidance. BorgWarner Q3 Results and Revised Outlook

BorgWarner Company Profile

BorgWarner Inc (NYSE:BWA) is a global automotive technology company that develops and manufactures propulsion and mobility systems for vehicle manufacturers and commercial vehicle customers. The company serves both internal-combustion and electrified vehicle markets, with a portfolio focused on improving vehicle efficiency, performance, emissions, and electrification.

Its products and technologies include turbochargers, emissions and thermal-management systems, transmission components, friction products, battery systems, battery charging equipment, power electronics, electric motors, and other electric-drive components.