Borgwarner Inc (BWA)
NYSE:BWA
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Earnings Data
Report Date
Aug 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.27Last Year’s EPS
1.21Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a broadly positive operational and financial picture: Q1 results showed margin expansion (50 bps), adjusted EPS growth (+12%), continued strong award activity (12 wins) and tangible progress on new industrial initiatives (turbine generator B‑samples, BESS and inverter B‑samples). Management left full‑year guidance unchanged, signaling confidence in execution though noting macro and battery demand headwinds. Key challenges include a decline in the battery segment (noted as a ~150 bps sales headwind), modest Q1 free cash flow in absolute terms, and early‑stage uncertainty around scaling the new data‑center/industrial businesses and potential supply constraints. On balance, the highlights (profitability, EPS growth, awards, clear product commercialization milestones and disciplined capital returns) outweigh the lowlights, but management retains caution given market uncertainty.Company Guidance
Quarterly Sales
Reported Q1 2026 sales of $3.5 billion; reported sales roughly flat year‑over‑year with FX tailwind of +$167 million, a battery segment headwind of -$54 million, and the remaining organic sales decline of $95 million (≈ -2.7%) in line with market production.
Margin Expansion and Operating Income
Adjusted operating income of $372 million and adjusted operating margin of 10.5% in Q1 2026, up 50 basis points from 10.0% a year ago (adjusted operating income was $352 million in prior-year Q1).
Earnings Per Share Improvement
Adjusted EPS increased by $0.13, or +12% versus Q1 2025, driven by higher adjusted operating income and the impact of share repurchases (over $650 million repurchased in the past four quarters).
Free Cash Flow and Capital Returns
Q1 free cash flow generation of $13 million, a $48 million improvement year‑over‑year. Returned approximately $185 million to shareholders in the quarter (share repurchases and dividend); over the past five quarters deployed >$800 million (≈70% of FCF).
Full‑Year Guidance Maintained
2026 guidance unchanged: sales $14.0–$14.3 billion; organic sales expected down ~3.5% to -1.5% (battery decline a ~150 bps headwind); adjusted operating margin 10.7%–10.9% (vs 10.7% in 2025); adjusted EPS $5.00–$5.20; full‑year free cash flow $900M–$1.1B.
Award Momentum and Commercial Wins
12 announced business awards in the quarter across foundational and e‑products: including 3 electric motor awards in Asia; a 7‑year contract extension with a leading off‑highway OEM; multiple turbocharger program extensions and conquests (including Euro VII commercial vehicle win); drivetrain/timing wins (wet dual clutch, VCT) — indicating broad, multi‑regional customer wins.
Turbine Generator Progress (Data Center Power Gen)
Strong progress toward 2027 industrialization: B‑sample turbine generators delivered to customers, supplier nominations complete, UL compliance work underway, customer field testing progressing; initial production expected in 2027 and initial revenue target referenced (~$300M+ in early sales potential).
Expansion into Data Center & Industrial Markets
Portfolio expanded to include battery energy storage systems (BESS) and bi‑directional microgrid/grid‑tie inverters; BESS and inverters expected production‑ready in 2027; first grid‑tie inverter B‑samples shipped to four customers for validation.
Operational Discipline & Cost Controls
Ongoing cost reduction actions drove improved profitability: Q1 outperformance partly attributed to cost controls, exit of charging business contributed ~+$8 million to operating income YoY, and management continues to target mid‑teens decremental conversion assumptions while expanding margins.
BWA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
BWA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $57.26 | $59.41 | +3.75% |
Feb 11, 2026 | $53.82 | $65.90 | +22.45% |
Oct 30, 2025 | $42.53 | $43.84 | +3.06% |
Jul 31, 2025 | $34.16 | $36.40 | +6.58% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Borgwarner Inc (BWA) report earnings?
Borgwarner Inc (BWA) is schdueled to report earning on Aug 05, 2026, Before Open (Confirmed).
What is Borgwarner Inc (BWA) earnings time?
Borgwarner Inc (BWA) earnings time is at Aug 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is BWA EPS forecast?
BWA EPS forecast for the fiscal quarter 2026 (Q2) is 1.27.
