BorgWarner (BWA)
NYSE:BWA
Top Page
BorgWarner
(NYSE:BWA)
Select Model
Select Model
Rating:62Neutral
Price Target:
$57.00
▲(1.57% Upside)
Action:ReiteratedDate:02/12/26
The score is driven by strong cash flow and a manageable balance sheet, but held back by significant margin/return compression and an expensive valuation (high P/E). Technically, the uptrend is intact, though overbought signals add near-term risk; earnings guidance supports margin/EPS resilience but also points to organic sales and battery-demand headwinds.
Positive Factors
Free cash flow strength
Sustained improvement in free cash flow strengthens BorgWarner's ability to fund capex, pay dividends, and buy back shares without relying on external financing. Durable cash conversion provides flexibility to invest in EV product ramps and new-market entries while weathering cyclical auto demand swings.
Negative Factors
Margin and ROE compression
Multi-year erosion of margins and returns signals structural pressure on profitability, likely from below-gross-profit costs or mix shifts. Persistently lower margins reduce reinvestment capacity and ROE, making it harder to sustain capital returns and meet investor return expectations over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained improvement in free cash flow strengthens BorgWarner's ability to fund capex, pay dividends, and buy back shares without relying on external financing. Durable cash conversion provides flexibility to invest in EV product ramps and new-market entries while weathering cyclical auto demand swings.
Read all positive factors
BorgWarner (BWA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.62B
Dividend Yield1.24%
Average Volume (3M)3.92M
Price to Earnings (P/E)35.2
Beta (1Y)0.66
Revenue Growth0.08%
EPS Growth-83.69%
CountryUS
Employees38,300
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.35
Shares Outstanding207,048,770
10 Day Avg. Volume2,948,922
30 Day Avg. Volume3,924,953
Financial Highlights & Ratios
PEG Ratio-2.31
Price to Book (P/B)1.79
Price to Sales (P/S)0.68
P/FCF Ratio8.27
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit5.03
Enterprise Value/Ebitda6.83
Forecast
1Y Price Target
$68.00Price Target Upside21.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.21
Revenue Forecast (FY)$14.25B
BorgWarner Business Overview & Revenue Model
Company Description
BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers t...
How the Company Makes Money
BorgWarner makes money primarily by manufacturing and selling propulsion and drivetrain components and systems to automotive original equipment manufacturers (OEMs) and, to a lesser extent, through the aftermarket. Its revenue model is largely vol...
BorgWarner Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyBorgWarner Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated a mix of strong financial execution and strategic progress alongside notable near-term demand headwinds in batteries and modest organic sales contraction in 2026. Positive takeaways include margin expansion (up 60 bps to 10.7%), double-digit EPS growth (14% YoY), robust free cash flow growth (~66% YoY), record new business awards (30 wins) and a meaningful strategic expansion into the data center/microgrid market with a $300M+ first-year turbine generator program that management expects to be EPS accretive and to convert at mid-teens incremental margins. Key challenges are the sharp decline in battery systems revenue (35%–40% YoY), a forecasted organic sales decline (-3.5% to -1.5% in 2026), and a lower FCF midpoint in 2026 due to higher capex. Overall, management presents confidence in margin and EPS resilience despite market softness and is investing to drive future growth.Positive Updates
Solid Full-Year Revenue
Net sales of approximately $14.3 billion in 2025, up roughly $200 million year over year.
Negative Updates
Uncertainty in Battery Market Timing
Management acknowledged unclear timing for battery market recovery, with persistent multi-year weakness outside China that compresses near-term outgrowth vs. market.
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Full-Year Revenue
Net sales of approximately $14.3 billion in 2025, up roughly $200 million year over year.
Read all positive updates
Company Guidance
BorgWarner’s 2026 guidance calls for total sales of $14.0–14.3 billion (vs. $14.3B in 2025) with a ~$200 million FX benefit, weighted end markets flat to down 3%, light vehicles (>80% of sales) broadly in line with market, and organic sales down 3.5% to down 1.5% (including a ~150‑bp headwind from lower battery sales); adjusted operating margin is guided to 10.7%–10.9% (vs. 10.7% in 2025) — including a 10‑bp benefit from exiting the charging business and assumptions ranging from low‑double‑digit decremental conversion to largely offsetting the decline with cost controls — and adjusted EPS of $5.00–$5.20 per diluted share (~+4% at the midpoint). Full‑year free cash flow is expected at $900M–$1.1B (midpoint below 2025’s >$1.2B) with CapEx around 4.5% of sales to support launches; management reiterated expectations for light‑vehicle e‑product low‑double‑digit growth and Power Drive Systems converting in the mid‑teens, and noted the new turbine generator will begin ramping in 2027 with >$300M of first‑year sales, mid‑teens incremental conversion and immediate EPS accretion. Remaining repurchase authorization is ~$600M after $400M repurchased in 2025 (2025 repurchases/dividends returned ~52% of FCF; >31M shares repurchased since 2021, ~$1.3B returned).BorgWarner Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.32B | 14.08B | 14.20B | 12.63B | 14.84B |
| Gross Profit | 2.68B | 2.61B | 2.57B | 2.37B | 2.86B |
| EBITDA | 2.10B | 1.32B | 1.67B | 1.56B | 1.69B |
| Net Income | 277.00M | 338.00M | 625.00M | 944.00M | 537.00M |
Balance Sheet | |||||
| Total Assets | 13.77B | 13.99B | 14.45B | 16.99B | 16.57B |
| Cash, Cash Equivalents and Short-Term Investments | 2.31B | 2.09B | 1.53B | 1.08B | 1.84B |
| Total Debt | 4.18B | 4.34B | 3.93B | 4.31B | 4.52B |
| Total Liabilities | 8.15B | 8.29B | 8.39B | 9.49B | 9.31B |
| Stockholders Equity | 5.44B | 5.53B | 5.83B | 7.22B | 6.95B |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 681.00M | 477.00M | 948.00M | 638.00M |
| Operating Cash Flow | 1.65B | 1.35B | 1.31B | 1.57B | 1.31B |
| Investing Cash Flow | -368.00M | -603.00M | -694.00M | -1.48B | -1.43B |
| Financing Cash Flow | -1.12B | -167.00M | -419.00M | -511.00M | 319.00M |
BorgWarner Technical Analysis
Positive
56.12
Price Trends
53.22
Positive
48.83
Positive
44.04
Positive
Market Momentum
-0.06
Negative
59.13
Neutral
91.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWA, the sentiment is Positive. The current price of 56.12 is above the 20-day moving average (MA) of 53.54, above the 50-day MA of 53.22, and above the 200-day MA of 44.04, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWA.
BorgWarner Risk Analysis
BorgWarner disclosed 37 risk factors in its most recent earnings report. BorgWarner reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BorgWarner Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.85B | 13.20 | 34.97% | 1.07% | -4.21% | -0.45% | |
72 Outperform | $6.20B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
69 Neutral | $7.85B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $11.62B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
62 Neutral | $3.66B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $15.08B | 101.80 | 1.78% | ― | 2.16% | -85.91% |
* Consumer Cyclical Sector Average
BWA
BorgWarner
56.12
27.70
97.45%
ALSN
Allison Transmission Holdings
118.97
21.06
21.51%
ALV
Autoliv
105.11
16.20
18.22%
DAN
Dana Incorporated
33.66
20.19
149.87%
APTV
Aptiv
70.89
8.64
13.88%
LEA
Lear
122.23
35.50
40.93%
BorgWarner Corporate Events
Business Operations and StrategyDividends
BorgWarner Declares Quarterly Dividend, Signals Ongoing Shareholder Returns
Positive
Feb 5, 2026
On February 4, 2026, BorgWarner’s board of directors declared a quarterly cash dividend of $0.17 per share on its common stock, reinforcing its ongoing capital return program to shareholders. The dividend, payable on March 16, 2026 to stockh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.