BorgWarner (NYSE:BWA) Posts Earnings Results, Beats Expectations By $0.14 EPS

Posted by Geri Gentry on Oct 29th, 2026

BorgWarner logo BorgWarner (NYSE:BWA – Get Free Report) announced its quarterly earnings results on Thursday. The auto parts company reported $1.39 earnings per share for the quarter, topping analysts’ consensus estimates of $1.25 by $0.14, Zacks reports. The business 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%. The business’s quarterly revenue was down 2.9% on a year-over-year basis. During the same period in the prior year, the firm earned $1.24 EPS.

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 Stock Performance

BorgWarner stock traded down $2.58 during trading hours on Thursday, hitting $53.35. The stock had a trading volume of 5,972,548 shares, compared to its average volume of 2,751,626. The company has a 50-day moving average of $61.83 and a two-hundred day moving average of $60.49. 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 fifty-two week low of $40.73 and a fifty-two week high of $78.82. The company has a market cap of $10.87 billion, a PE ratio of 26.68, a price-to-earnings-growth ratio of 0.81 and a beta of 1.16.

BorgWarner News Roundup

Here are the key news stories impacting BorgWarner this week:

Positive Sentiment: BorgWarner reported third-quarter adjusted EPS of $1.39, above the $1.24-$1.25 analyst consensus and up from $1.24 a year earlier. Cost reductions, share repurchases and improved profitability helped support the earnings beat. BorgWarner Tops Q3 Earnings Estimates
Positive Sentiment: The company increased its 2026 adjusted EPS guidance, indicating confidence in continued cost controls and operational execution. Management also announced nine new awards across its portfolio, including turbo, eMotor and high-voltage inverter programs, supporting its longer-term electrification and powertrain growth strategy. BorgWarner Reports Third-Quarter Results and New Awards
Positive Sentiment: New business wins in China and a high-voltage inverter award strengthen BorgWarner’s position in electric-vehicle components. A silicon-carbide supply arrangement involving Wolfspeed also supports the company’s inverter offerings. BorgWarner Secures High-Voltage Inverter Business
Neutral Sentiment: Bank of America raised its BorgWarner price target to $85 from $78, providing a favorable analyst signal, although the target change may not offset concerns about near-term operating trends. BofA Raises BorgWarner Price Target
Negative Sentiment: Revenue was $3.49 billion, slightly below the $3.50 billion consensus and down 2.9% year over year. The sales decline, attributed to lower volumes, overshadowed the EPS beat and highlighted weaker underlying demand in the auto industry. BorgWarner Q3 Profit Improves but Sales Drop

Insiders Place Their Bets

In related news, Director Michael Hanley sold 5,000 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $65.51, for a total transaction of $327,550.00. Following the completion of the sale, the director owned 34,313 shares in the company, valued at $2,247,844.63. This trade represents a 12.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Rajesh Kalathur purchased 7,407 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average cost of $67.59 per share, with a total value of $500,639.13. Following the completion of the acquisition, the director directly owned 7,407 shares of the company’s stock, valued at $500,639.13. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.76% of the company’s stock.

BorgWarner declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 5th that permits the company to buy back $1 billion in shares. This buyback authorization permits the auto parts company to purchase up to 7.7% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms recently commented on BWA. 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 note on Monday, August 10th. Bank of America raised BorgWarner from a “neutral” rating to a “buy” rating and increased their price target for the company from $78.00 to $85.00 in a research note on Thursday, October 15th. Weiss Ratings reiterated a “hold (c+)” rating on shares of BorgWarner in a research report on Friday, September 25th. Wall Street Zen cut BorgWarner from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price objective on BorgWarner in a report on Thursday, August 6th. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, BorgWarner presently has an average rating of “Moderate Buy” and a consensus target price of $79.00.

View Our Latest Stock Analysis on BWA

About BorgWarner

(Get Free Report)

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.