Process Engineer IT/OT Automation & AI

BorgWarner Q3 earnings call highlights. Posted by Jeff Wilder on Nov 1st, 2026 BorgWarner (NYSE:BWA) reported third-quarter sales of just under $3.5 billion, with adjusted operating margin expanding 20 basis points year over year to 10.9% and adjusted earnings per share rising 12%. The automotive supplier said its performance reflected cost-control efforts amid declining vehicle production and a sales headwind from its Battery Energy Systems business. Light-vehicle eProduct sales increased 33% from a year earlier to $630 million, driven primarily by European demand. President and CEO Joe Fadool said the growth demonstrated that previously awarded electrification business was beginning to contribute to results, particularly as hybrid and electric-vehicle penetration rises in Europe. "Our adjusted operating margin and adjusted earnings per share performance was strong in the quarter," Fadool said, citing margin expansion and earnings growth despite a declining production environment. Third-Quarter results and capital returns. Chief Financial Officer Craig Aaron said foreign exchange provided an $8 million year-over-year sales benefit in the quarter, while the battery business reduced sales by $54 million. The remaining organic sales decline was $58 million, or 1.6%, roughly in line with the decline in BorgWarner's weighted light-vehicle production market. Adjusted operating income was $381 million, compared with $385 million a year earlier. On an organic basis, adjusted operating income declined $6 million on $112 million of lower sales, with cost reductions helping offset volume pressure, Aaron said. Free cash flow totaled $195 million in the quarter. BorgWarner used $175 million for share repurchases and paid $35 million in dividends, returning about $210 million to shareholders. The company said it expects to return more than $700 million to shareholders during 2026, including planned fourth-quarter buybacks. * Third-quarter adjusted operating margin: 10.9%, versus 10.7% a year earlier. * Third-quarter adjusted EPS: Up $0.15, or 12%, year over year. * Third-quarter light-vehicle eProduct sales: $630 million, up 33%. * Third-quarter free cash flow: $195 million. Updated 2026 outlook. BorgWarner narrowed the high end of its full-year revenue outlook, citing a refined view of industry production, while maintaining its adjusted operating-margin forecast and increasing adjusted EPS guidance. The company now expects 2026 sales of $14.0 billion to $14.2 billion, compared with prior guidance of $14.0 billion to $14.3 billion. It expects weighted end markets to decline 1% to 2% for the year, compared with its prior expectation of flat to down 3%. The company maintained its full-year adjusted operating margin outlook of 10.7% to 10.9%. Its organic sales outlook calls for a decline of 4% to 2.5%, including an estimated 170-basis-point headwind from lower battery-business sales related to the lack of North American incentives and weaker European demand. Adjusted EPS guidance was raised to $5.20 to $5.35 per diluted share from $5.05 to $5.30. Aaron said the increase reflected third-quarter and planned fourth-quarter share repurchases, along with a lower expected full-year effective tax rate. The company maintained projected free cash flow of $900 million to $1.1 billion. For the fourth quarter, Aaron said revenue is expected to be about $3.43 billion, down roughly $123 million from the average quarterly sales level in the first nine months, primarily reflecting production conditions. BorgWarner also expects about $10 million of industrial research and development spending in the quarter. Automotive awards and 2027 expectations. BorgWarner announced nine business awards during the quarter across its foundational and eProduct portfolios. The awards included engine control modules for a new internal-combustion pickup-truck platform, turbocharger contracts for gasoline vehicles in South America and Europe, aluminum-wire e-motor technology for a Chinese OEM's hybrid applications, three additional e-motor awards in China, and a next-generation high-voltage inverter award for battery-electric vehicles. Fadool said the aluminum-wire e-motor technology reduces wire weight by more than 60% and wire cost by more than 80% compared with a conventional copper-wire motor while maintaining peak torque and power. Looking toward 2027, Aaron said BorgWarner expects modest growth above the automotive market as recent business awards begin contributing to revenue. The company also expects $300 million of turbine-generator revenue next year. The company expects its PowerDrive Systems business to grow about 20% in 2026 after approximately 30% growth in 2025. Aaron said the company's objective for the business unit remains mid-teens year-over-year conversion on sales growth. Data Center and industrial expansion. BorgWarner highlighted progress in products designed for data center and industrial applications, including turbine generators, battery energy storage systems and microgrid inverters. The company said its partner plans to expand external turbine-generator demonstrations during the fourth quarter because of customer interest. Subsystem UL compliance is largely complete, and system certification is underway. BorgWarner has completed construction of its final assembly plant in North Carolina and expects manufacturing-floor and capital installation in December, followed by production trials by year-end. Fadool said customer discussions with hyperscalers have centered on meeting specifications, manufacturing tolerances, quality, reliability, efficiency and emissions. He said speed to market is important and that BorgWarner's automotive manufacturing experience could enable it to bring products to market in 18 to 24 months, roughly half the time of some industrial competitors. For microgrid inverters, BorgWarner has shipped samples to seven customers and has begun initial quoting with its first major customer. The company expects UL certification in early 2027. It also developed an 800-volt power supply unit for data centers and displayed it at the Data Center World Power Industry event in Dallas. BorgWarner expects to be production-ready for its battery energy-storage offerings in 2027. Fadool said customer validation and UL processes are advancing, with engagement across both NMC and LFP cell applications. While the company said current political conditions may slow the completion of some data-center program agreements in the near term, Fadool said quoting activity remains high and that BorgWarner sees no long-term change in demand for its products. About BorgWarner (NYSE:BWA). 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.

BorgWarner (NYSE:BWA) raised to "Buy" at Wall Street Zen. November 1, 2026 Key points. * Wall Street Zen upgraded BorgWarner to "Buy" from "Hold." The broader analyst consensus is "Moderate Buy," with 11 Buy ratings, three Holds, and an average price target of $79.33 versus the reported share price of $51.70. * BorgWarner reported quarterly adjusted EPS of $1.39, beating the $1.25 consensus estimate, while revenue of $3.49 billion fell 2.9% year over year and slightly missed expectations. * The company authorized a $1 billion stock-repurchase program, allowing it to buy back up to 7.7% of outstanding shares, as it continues expanding its electrification business through new awards. * Five stocks we like better than BorgWarner. BorgWarner (NYSE:BWA - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Sunday, Wall Street Zen reports. A number of other analysts have also recently weighed in on the company. JPMorgan Chase & Co. raised their price target on BorgWarner from $75.00 to $85.00 and gave the company an "overweight" rating in a research note on Monday, August 10th. Barclays upped their price objective on BorgWarner from $83.00 to $85.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. TD Cowen dropped their price objective on BorgWarner from $68.00 to $67.00 and set a "hold" rating on the stock in a report on Friday. Morgan Stanley cut their target price on BorgWarner from $95.00 to $89.00 and set an "overweight" rating on the stock in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 target price on BorgWarner in a research note on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $79.33. BorgWarner stock down 3.0%. Shares of NYSE:BWA opened at $51.70 on Friday. BorgWarner has a fifty-two week low of $40.73 and a fifty-two week high of $78.82. The firm's 50 day moving average price is $61.31 and its 200 day moving average price is $60.54. The company has a quick ratio of 1.76, a current ratio of 1.41 and a debt-to-equity ratio of 0.32. The stock has a market cap of $10.53 billion, a price-to-earnings ratio of 22.00, a price-to-earnings-growth ratio of 0.76 and a beta of 1.16. BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The auto parts company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.14. The business had revenue of $3.49 billion during the quarter, compared to analysts' expectations of $3.50 billion. BorgWarner had a net margin of 3.36% and a return on equity of 19.61%. The company's revenue for the quarter was down 2.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.24 EPS. As a group, equities research analysts predict that BorgWarner will post 5.27 earnings per share for the current fiscal year. BorgWarner announced that its board has authorized a stock buyback plan on Wednesday, August 5th that permits the company to repurchase $1 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 7.7% of its stock through open market purchases. Share repurchase plans are generally a sign that the company's board believes its stock is undervalued. Insider activity at BorgWarner. In other BorgWarner news, Director Michael S. Hanley sold 5,000 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $65.51, for a total value of $327,550.00. Following the completion of the sale, the director owned 34,313 shares in the company, valued at approximately $2,247,844.63. The trade was a 12.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Rajesh Kalathur acquired 7,407 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was purchased 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 approximately $500,639.13. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.76% of the company's stock. Institutional trading of BorgWarner. Hedge funds have recently made changes to their positions in the company. Chicago Partners Investment Group LLC grew its position in BorgWarner by 53.9% during the third quarter. Chicago Partners Investment Group LLC now owns 19,740 shares of the auto parts company's stock worth $1,085,000 after buying an additional 6,914 shares in the last quarter. Richardson Financial Services Inc. lifted its holdings in shares of BorgWarner by 39.6% in the third quarter. Richardson Financial Services Inc. now owns 1,737 shares of the auto parts company's stock worth $104,000 after acquiring an additional 493 shares during the last quarter. Bank Julius Baer & Co. Ltd Zurich grew its holdings in shares of BorgWarner by 0.4% during the 3rd quarter. Bank Julius Baer & Co. Ltd Zurich now owns 137,002 shares of the auto parts company's stock valued at $8,235,000 after purchasing an additional 538 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in BorgWarner by 16.0% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 33,878 shares of the auto parts company's stock worth $2,036,000 after purchasing an additional 4,672 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in BorgWarner in the 3rd quarter valued at approximately $105,000. Institutional investors and hedge funds own 95.67% of the company's stock. Here are the key news stories impacting BorgWarner this week: * BorgWarner reported third-quarter adjusted EPS of $1.39, above the $1.24-$1.26 analyst consensus and up from $1.24 a year earlier. The company also increased its 2026 adjusted EPS guidance, highlighting the impact of cost controls and operational improvements. * The company announced nine business awards, including high-voltage inverter and eMotor programs, supporting its strategy to expand in electrification and build longer-term profitable growth. * Despite target reductions, Morgan Stanley maintained an overweight rating with an $89 target, while RBC retained an outperform rating with a $75 target - both implying substantial potential upside from the reported share price. * TD Cowen lowered its target to $67 and kept a hold rating, indicating analysts see valuation upside but remain cautious about the near-term outlook. * Third-quarter revenue was $3.49 billion, slightly below expectations and down 2.9% year over year, reflecting lower customer volumes. BorgWarner also reduced elements of its 2026 outlook, raising concerns about demand and the pace of recovery. * Morgan Stanley, RBC, and TD Cowen all reduced their price targets, signaling increased caution even though each firm's revised target remains above the current trading level. About BorgWarner. 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. 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