BorgWarner (NYSE:BWA) Announces Quarterly Earnings Results
by Teresa Graham · The Cerbat GemBorgWarner (NYSE:BWA – Get Free Report) announced its quarterly earnings results on Wednesday. The auto parts company reported $1.24 EPS for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08, Zacks reports. The firm had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The business’s revenue for the quarter was up .5% on a year-over-year basis. During the same period last year, the firm posted $1.11 earnings per share. BorgWarner updated its FY 2026 guidance to 5.000-5.200 EPS.
Here are the key takeaways from BorgWarner’s conference call:
- BorgWarner reported Q1 sales of $3.5 billion with a 10.5% adjusted operating margin, adjusted EPS up 12% year-over-year, and reaffirmed full-year guidance of $14.0–$14.3B sales and $5.00–$5.20 adjusted EPS.
- Management highlighted 12 new business awards across electric motors, turbochargers, drivetrains, and controllers, signaling continued program wins and product leadership across combustion, hybrid, and BEV architectures.
- The company is expanding into data center/industrial markets with progress toward a 2027 turbine generator launch (B-samples delivered and UL work underway) and BESS and bidirectional inverter B-samples being shipped for customer validation.
- Battery energy systems sales are declining (driven by weaker European demand and lack of North American incentives), creating an anticipated ~150 basis point headwind to 2026 sales and pressuring organic growth this year.
- BorgWarner remains focused on disciplined capital allocation—returning ~$185 million to shareholders in Q1, repurchasing over $650 million in the last four quarters, while keeping M&A selective and prioritizing organic investment in new industrial opportunities.
BorgWarner Trading Up 5.3%
BWA stock traded up $3.10 during midday trading on Friday, hitting $61.28. The stock had a trading volume of 3,138,343 shares, compared to its average volume of 2,125,824. The firm has a market cap of $12.57 billion, a P/E ratio of 36.26, a price-to-earnings-growth ratio of 1.22 and a beta of 1.00. The company has a current ratio of 2.13, a quick ratio of 1.70 and a debt-to-equity ratio of 0.69. BorgWarner has a 1-year low of $31.35 and a 1-year high of $70.08. The business has a fifty day moving average price of $54.39 and a two-hundred day moving average price of $49.85.
BorgWarner Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Monday, June 1st. BorgWarner’s dividend payout ratio (DPR) is currently 54.40%.
Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on BWA. Bank of America began coverage on shares of BorgWarner in a report on Wednesday, March 4th. They issued a “neutral” rating for the company. Weiss Ratings restated a “hold (c)” rating on shares of BorgWarner in a research report on Monday, April 20th. Barclays raised their price target on shares of BorgWarner from $70.00 to $75.00 and gave the company an “overweight” rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft set a $81.00 price objective on shares of BorgWarner in a research note on Tuesday, April 21st. Finally, Morgan Stanley set a $60.00 price objective on BorgWarner in a report on Thursday, February 12th. Seven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, BorgWarner presently has a consensus rating of “Moderate Buy” and an average price target of $67.50.
Read Our Latest Report on BorgWarner
Insider Activity
In related news, EVP Tonit M. Calaway sold 14,021 shares of the company’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $51.46, for a total transaction of $721,520.66. Following the sale, the executive vice president owned 204,913 shares in the company, valued at $10,544,822.98. This represents a 6.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Stefan Demmerle sold 2,500 shares of the company’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $53.03, for a total value of $132,575.00. Following the sale, the vice president owned 233,746 shares in the company, valued at approximately $12,395,550.38. The trade was a 1.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 78,083 shares of company stock worth $4,638,585. 0.76% of the stock is owned by insiders.
Hedge Funds Weigh In On BorgWarner
Several institutional investors have recently added to or reduced their stakes in the business. Acadian Asset Management LLC increased its stake in shares of BorgWarner by 23.7% in the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock valued at $257,000 after acquiring an additional 1,723 shares in the last quarter. Sivia Capital Partners LLC bought a new position in BorgWarner during the second quarter worth $339,000. EverSource Wealth Advisors LLC grew its holdings in BorgWarner by 400.5% in the second quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock worth $185,000 after purchasing an additional 4,426 shares during the period. Marshall Wace LLP acquired a new stake in BorgWarner in the second quarter worth $247,000. Finally, Cerity Partners LLC increased its stake in BorgWarner by 30.2% in the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock valued at $4,816,000 after purchasing an additional 33,362 shares in the last quarter. 95.67% of the stock is owned by institutional investors and hedge funds.
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.