BorgWarner (NYSE:BWA) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

BorgWarner (NYSE:BWA) released its earnings results on Wednesday. The auto parts company reported $1.24 EPS for the quarter, topping the consensus estimate of $1.16 by $0.08, Zacks reports. The business had revenue of $3.53 billion during the quarter, compared to analysts’ expectations of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm’s revenue was up .5% on a year-over-year basis. During the same quarter 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 Stock Up 5.3%

Shares of BWA traded up $3.10 during trading hours on Friday, reaching $61.28. The stock had a trading volume of 3,138,343 shares, compared to its average volume of 2,125,824. BorgWarner has a 12 month low of $31.35 and a 12 month high of $70.08. The firm has a 50-day simple moving average of $54.39 and a 200 day simple moving average of $49.85. The company has a current ratio of 2.13, a quick ratio of 1.70 and a debt-to-equity ratio of 0.69. The company has a market capitalization of $12.57 billion, a price-to-earnings ratio of 36.26, a P/E/G ratio of 1.22 and a beta of 1.00.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Monday, June 1st. BorgWarner’s dividend payout ratio is presently 54.40%.

Analysts Set New Price Targets

BWA has been the subject of several recent analyst reports. Bank of America initiated coverage on shares of BorgWarner in a research report on Wednesday, March 4th. They set a “neutral” rating for the company. UBS Group boosted their target price on shares of BorgWarner from $56.00 to $61.00 and gave the company a “neutral” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft set a $81.00 target price on shares of BorgWarner in a research note on Tuesday, April 21st. Evercore restated an “outperform” rating and issued a $75.00 price target on shares of BorgWarner in a report on Tuesday, February 17th. Finally, TD Cowen lifted their price target on shares of BorgWarner from $66.00 to $67.00 and gave the company a “hold” rating in a research note on Thursday. Seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $67.50.

Insider Buying and Selling at BorgWarner

In other news, EVP Tonit M. Calaway sold 14,021 shares of BorgWarner stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $51.46, for a total transaction of $721,520.66. Following the completion of the transaction, the executive vice president directly owned 204,913 shares in the company, valued at $10,544,822.98. This trade represents a 6.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Isabelle Mckenzie sold 2,458 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $61.54, for a total transaction of $151,265.32. Following the completion of the sale, the vice president owned 66,351 shares in the company, valued at $4,083,240.54. This represents a 3.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 78,083 shares of company stock worth $4,638,585 in the last ninety days. 0.76% of the stock is currently owned by corporate insiders.

Institutional Trading of BorgWarner

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Inspire Investing LLC lifted its holdings in shares of BorgWarner by 2.8% in the fourth quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company’s stock valued at $325,000 after purchasing an additional 195 shares in the last quarter. Lazard Asset Management LLC grew its holdings in BorgWarner by 1.0% during the fourth quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company’s stock worth $979,000 after buying an additional 206 shares in the last quarter. Quadrant Capital Group LLC raised its position in BorgWarner by 0.7% in the 4th quarter. Quadrant Capital Group LLC now owns 34,538 shares of the auto parts company’s stock valued at $1,556,000 after buying an additional 246 shares during the last quarter. Vanguard Personalized Indexing Management LLC raised its position in BorgWarner by 1.0% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 30,341 shares of the auto parts company’s stock valued at $1,367,000 after buying an additional 298 shares during the last quarter. Finally, Advisors Asset Management Inc. lifted its stake in BorgWarner by 1.9% during the 4th quarter. Advisors Asset Management Inc. now owns 19,599 shares of the auto parts company’s stock valued at $883,000 after acquiring an additional 363 shares in the last quarter. 95.67% of the stock is owned by institutional investors.

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.