BorgWarner Inc. Earnings Recaps
Q2 2026
Aug 9, 2026
Shares rose 4.4% following BorgWarner’s better-than-expected margin expansion and earnings per share growth, driven by solid cost controls and ongoing strong award activity despite flat sales and a decline in the Battery Energy Systems segment.
Key takeaways
- Sales totaled over $3.6 billion, with organic net sales up modestly excluding softness in Battery Energy Systems.
- Adjusted operating margin rose by 100 basis points, contributing to 17% growth in adjusted EPS despite flat sales year-over-year.
- Performance benefited from strong North American transfer case volumes and continued cost discipline.
- Secured seven new product awards spanning foundational and eProducts portfolios, including advanced eTurbo, integrated drive modules, and inverter programs with global OEMs.
- Returned approximately $134 million to shareholders and increased share repurchase authorization by $1 billion, signaling confidence in the company’s cash flow generation.
Q1 2026
May 7, 2026
BorgWarner’s shares ticked up modestly by 1.6% following the Q1 report, reflecting a quarter largely in line with expectations without a clear catalyst to drive a stronger move.
Key takeaways
- Reported sales of $3.5 billion with organic net sales down approximately 3% year-over-year, in line with declining market production.
- Adjusted operating margin came in at 10.5%, supported by ongoing cost controls despite headwinds from the Battery Energy Systems segment.
- Continued momentum in new business awards, including 12 wins across electric motors, turbochargers, and drivetrain technologies, indicating sustained customer trust.
- Progress on the turbine generator product for a 2027 launch remains on track, with customer samples delivered and production readiness advancing.
- Returned $185 million to shareholders via buybacks and dividends, reflecting disciplined capital deployment amidst a challenging sales environment.
Q3 2025
Oct 31, 2025
BorgWarner delivered solid third-quarter results with 2% organic sales growth and an improved adjusted operating margin of 10.7%, demonstrating resilience amid market challenges.
Key takeaways
- Organic sales growth of 2% year-over-year, with a notable 4% increase excluding the CV battery and Charging Systems segment.
- Adjusted operating margin improved by 60 basis points, driven by cost control and strong sales.
- Secured 8 new business awards across foundational and electrified products, reinforcing the company's market position.
- Returned over 50% of third-quarter free cash flow, approximately $136 million, to shareholders via buybacks and dividends.
- Increased full-year guidance for adjusted margin, adjusted EPS, and free cash flow based on strong year-to-date performance.