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

BorgWarner (NYSE:BWA) issued its quarterly earnings data on Wednesday. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.14, FiscalAI reports. The business had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company’s quarterly revenue was up .3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.21 EPS. BorgWarner updated its FY 2026 guidance to 5.050-5.300 EPS.

BorgWarner Trading Up 6.0%

NYSE BWA traded up $3.77 on Wednesday, hitting $66.81. 3,537,749 shares of the stock were exchanged, compared to its average volume of 2,152,699. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The firm has a market capitalization of $13.70 billion, a P/E ratio of 39.53, a P/E/G ratio of 1.35 and a beta of 1.10. BorgWarner has a 52-week low of $37.84 and a 52-week high of $78.82. The stock has a fifty day moving average price of $67.74 and a two-hundred day moving average price of $59.96.

BorgWarner Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. BorgWarner’s dividend payout ratio is presently 40.24%.

Key Stories Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Quarterly results exceeded expectations. BorgWarner reported adjusted EPS of $1.42, up from $1.21 a year ago and ahead of the $1.26-$1.28 analyst consensus. Revenue of $3.65 billion also surpassed the approximately $3.58 billion estimate, while sales increased 0.3% year over year. BorgWarner Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year adjusted EPS guidance was raised. BorgWarner now expects 2026 EPS of $5.05-$5.30, compared with the previous outlook and roughly $5.19 consensus. Revenue guidance of $14.0-$14.3 billion is broadly in line with expectations, indicating the main upgrade is profitability-related. BorgWarner Reports Second Quarter Results
• Positive Sentiment: Capital returns and future business wins support the investment case. The company increased its share-repurchase authorization by $1 billion and announced seven awards across its portfolio. It also secured variable cam timing programs in Europe and China, providing potential longer-term revenue opportunities. BorgWarner Secures Variable Cam Timing Awards
• Negative Sentiment: Investors remain focused on segment headwinds. Management’s earnings-call commentary indicated that weakness or drag from the BES business is offsetting some of the company’s operating strength. This could limit near-term margin expansion despite the improved EPS outlook. BorgWarner Balances Earnings Strength With BES Drag

Insider Transactions at BorgWarner

In other news, VP Isabelle Mckenzie sold 3,500 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total transaction of $221,725.00. Following the transaction, the vice president owned 57,828 shares of the company’s stock, valued at approximately $3,663,403.80. This represents a 5.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Tania Wingfield sold 5,000 shares of the business’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 transaction of $316,200.00. Following the transaction, the executive vice president owned 35,365 shares of the company’s stock, valued at approximately $2,236,482.60. This trade represents a 12.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 67,500 shares of company stock valued at $4,310,115. Company insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BWA. Compound Planning Inc. grew its stake in shares of BorgWarner by 12.2% in the fourth quarter. Compound Planning Inc. now owns 8,627 shares of the auto parts company’s stock worth $389,000 after acquiring an additional 937 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in BorgWarner by 10.7% in the fourth quarter. Corient Private Wealth LLC now owns 22,128 shares of the auto parts company’s stock valued at $997,000 after purchasing an additional 2,143 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in BorgWarner by 0.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 117,587 shares of the auto parts company’s stock valued at $5,298,000 after purchasing an additional 693 shares during the period. Beacon Pointe Advisors LLC grew its stake in BorgWarner by 26.1% during the 4th quarter. Beacon Pointe Advisors LLC now owns 6,444 shares of the auto parts company’s stock worth $290,000 after purchasing an additional 1,333 shares in the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in BorgWarner during the 4th quarter worth about $737,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

BorgWarner announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the auto parts company to purchase up to 7.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Wolfe Research reiterated an “outperform” rating and set a $95.00 target price on shares of BorgWarner in a research note on Wednesday, June 3rd. Wall Street Zen raised shares of BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Morgan Stanley upped their price target on shares of BorgWarner from $60.00 to $67.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 27th. Barclays boosted their price objective on BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Finally, JPMorgan Chase & Co. boosted their price target on BorgWarner from $73.00 to $75.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $74.57.

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.