BorgWarner (NYSE:BWA) Updates FY 2026 Earnings Guidance

BorgWarner (NYSE:BWA) updated its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 5.050-5.300 for the period, compared to the consensus earnings per share 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

BWA has been the subject of a number of research analyst reports. TD Cowen lifted their price target on shares of BorgWarner from $67.00 to $68.00 and gave the stock a “hold” rating in a research note on Thursday. The Goldman Sachs Group reissued a “buy” rating and set a $84.00 price target on shares of BorgWarner in a research report on Thursday, June 11th. Deutsche Bank Aktiengesellschaft set a $80.00 price objective on shares of BorgWarner in a research note on Thursday. Wolfe Research reiterated an “outperform” rating and set a $95.00 price target on shares of BorgWarner in a research report on Wednesday, June 3rd. Finally, JPMorgan Chase & Co. upped their price objective on BorgWarner from $73.00 to $75.00 and gave the stock an “overweight” rating in a research note 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. According to data from MarketBeat.com, BorgWarner presently has a consensus rating of “Moderate Buy” and an average target price of $75.07.

BorgWarner Stock Performance

Shares of BWA traded up $2.92 during trading hours on Friday, reaching $68.72. 887,706 shares of the company’s stock traded hands, compared to its average volume of 2,864,024. The firm has a market capitalization of $14.10 billion, a price-to-earnings ratio of 34.36, a P/E/G ratio of 1.43 and a beta of 1.10. The business’s fifty day simple moving average is $67.63 and its two-hundred day simple moving average is $60.09. BorgWarner has a twelve month low of $38.13 and a twelve month high of $78.82. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.75.

BorgWarner (NYSE:BWA) last posted its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.14. The company had revenue of $3.65 billion for the quarter, compared to the consensus estimate of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The company’s quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS. Analysts predict that BorgWarner will post 5.16 earnings per share for the current year.

BorgWarner Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 1st. BorgWarner’s payout ratio is 34.00%.

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

Insiders Place Their Bets

In related news, VP Stefan Demmerle sold 5,000 shares of BorgWarner stock in a transaction on Monday, May 11th. The stock was sold at an average price of $62.00, for a total transaction of $310,000.00. Following the completion of the sale, the vice president owned 208,746 shares of the company’s stock, valued at approximately $12,942,252. This trade represents a 2.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction dated Wednesday, May 13th. The shares were 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 approximately $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 47,500 shares of company stock worth $3,124,915. 0.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On BorgWarner

Institutional investors have recently bought and sold shares of the stock. Acadian Asset Management LLC raised 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 stake in shares of BorgWarner during the 2nd quarter worth $339,000. EverSource Wealth Advisors LLC raised its holdings in BorgWarner by 400.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock worth $185,000 after acquiring an additional 4,426 shares during the period. Marshall Wace LLP acquired a new position in BorgWarner during the 2nd quarter worth $247,000. Finally, Cerity Partners LLC boosted its holdings in BorgWarner by 30.2% during the second quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock valued at $4,816,000 after acquiring an additional 33,362 shares during the period. 95.67% of the stock is currently owned by institutional investors.

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.