BorgWarner (NYSE:BWA) Updates FY 2026 Earnings Guidance

BorgWarner (NYSE:BWA) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.050-5.300 for the period, compared to the consensus EPS estimate of 5.190. The company issued revenue guidance of $14.0 billion-$14.3 billion, compared to the consensus revenue estimate of $14.2 billion.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Morgan Stanley raised their price objective on BorgWarner from $67.00 to $71.00 and gave the company an “equal weight” rating in a research note on Thursday. Sanford C. Bernstein upgraded shares of BorgWarner to a “buy” rating in a research note on Wednesday, June 10th. Weiss Ratings raised BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Wells Fargo & Company increased their target price on shares of BorgWarner from $68.00 to $83.00 and gave the company an “overweight” rating in a research report on Tuesday, June 2nd. Finally, Wolfe Research reiterated an “outperform” rating and issued a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $75.00.

BorgWarner Stock Performance

Shares of NYSE BWA traded up $0.28 during trading on Thursday, hitting $67.06. The company had a trading volume of 1,154,457 shares, compared to its average volume of 2,864,251. BorgWarner has a 12 month low of $37.84 and a 12 month high of $78.82. The firm has a market capitalization of $13.75 billion, a P/E ratio of 39.65, a price-to-earnings-growth ratio of 1.35 and a beta of 1.10. The stock has a 50 day simple moving average of $67.74 and a 200 day simple moving average of $59.96. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13.

BorgWarner (NYSE:BWA) last posted its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. BorgWarner’s revenue for the quarter was up .3% compared to the same quarter last year. During the same period last year, the firm posted $1.21 earnings per share. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. As a group, analysts anticipate that BorgWarner will post 5.16 earnings per share for the current year.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.17 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio is 40.24%.

BorgWarner declared that its Board of Directors has initiated a share repurchase plan on Wednesday, August 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the auto parts company to buy up to 7.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at BorgWarner

In other news, EVP Tania Wingfield sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the transaction, the executive vice president owned 35,365 shares in the company, valued at $2,236,482.60. This trade represents a 12.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Joseph F. Fadool sold 29,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total value of $1,951,990.00. Following the sale, the chief executive officer owned 405,964 shares of the company’s stock, valued at $27,325,436.84. The trade was a 6.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 67,500 shares of company stock worth $4,310,115 over the last three months. 0.76% of the stock is owned by insiders.

Key Headlines Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q2 results exceeded expectations: Adjusted EPS was $1.42 versus the $1.28 consensus estimate, while revenue reached $3.65 billion compared with expectations of $3.58 billion. EPS also increased from $1.21 a year earlier, despite revenue growing only 0.3%. BorgWarner Q2 earnings article
• Positive Sentiment: Cost controls supported margin gains: Management credited operating improvements and cost discipline for the earnings beat, reinforcing confidence that profitability can improve even with modest sales growth. BorgWarner cost control and buyback article
• Positive Sentiment: Higher earnings outlook and buyback: BorgWarner raised its 2026 adjusted EPS guidance to $5.05-$5.30 and authorized an additional $1 billion share repurchase, representing authorization to buy back up to approximately 7.7% of shares. The buyback could support per-share earnings and signals management’s confidence in the valuation. BorgWarner Q2 results and buyback announcement
• Positive Sentiment: New business awards: The company announced seven awards across its portfolio, including variable cam timing programs in Europe and China, supporting longer-term revenue visibility. It is also accelerating data-center-related investment, with production targeted for 2027. BorgWarner variable cam timing awards
• Negative Sentiment: Growth remains muted and BES is a headwind: Revenue growth was nearly flat year over year, while management commentary highlighted pressure from the BES business. Data-center investments also require spending before the expected 2027 production contribution. BorgWarner earnings call highlights

Institutional Trading of BorgWarner

Several hedge funds have recently made changes to their positions in the business. Prosperity Bancshares Inc acquired a new stake in BorgWarner during the 4th quarter worth $37,000. UMB Bank n.a. lifted its stake in shares of BorgWarner by 28.1% in the fourth quarter. UMB Bank n.a. now owns 1,709 shares of the auto parts company’s stock worth $77,000 after acquiring an additional 375 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of BorgWarner in the 3rd quarter worth about $131,000. CIBC Private Wealth Group LLC lifted its position in BorgWarner by 71.2% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,811 shares of the auto parts company’s stock valued at $168,000 after purchasing an additional 1,585 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in shares of 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 in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

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.