Zacks Investment Research·17h ago
Here's Why BorgWarner (BWA) is a Strong Value StockThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
BorgWarner Inc.(BWA)Earnings, Financials & Key Ratios
BWA•NYSE
$64.07
50.1× P/E·Price updated Jul 7, 2026
SectorConsumer CyclicalIndustryAuto Parts & EquipmentSub-IndustryElectrified Powertrain and Batteries
AboutBorgWarner 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 turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging. The E-Propulsion & Drivetrain segment provides rotating electrical components, power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. The Fuel Injection segment develops and manufactures gasoline and diesel fuel injection components and systems. The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers. This segment provides a range of solutions, including fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics. The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.Show more
- Revenue$14.32B+1.7%
- EBITDA$2.04B+5.7%
- Net Income$277M-18.0%
- EPS (Diluted)1.28-14.7%
- Gross Margin18.68%+0.7%
- EBITDA Margin14.26%+4.0%
- Operating Margin9.24%+3.4%
- Net Margin1.93%-19.4%
- ROE4.89%-14.8%
BWA Price & Volume
BorgWarner Inc. (BWA) stock price & volume — 10-year historical chart
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Stagnant Revenue Growth Amidst Electrification Transition
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Cyclical OEM demand volatility
Key Thesis Takeaways
- BorgWarner faces a challenging transition as it balances heavy R&D investment, often exceeding $170 million per quarter, against a stagnant top-line that has remained range-bound between $3.4 billion and $3.6 billion.
- While the company maintains a disciplined debt-to-equity ratio of 0.72, investors should monitor the volatility in net income and the potential for margin compression as the product mix shifts toward lower-margin electric components.
- The long-term outlook remains contingent on the company's ability to convert its $2.0 billion in goodwill and ongoing innovation into sustainable free cash flow, which has shown significant instability with margins oscillating between -8.8% and 19.2% over the last ten quarters.
Verdict Logic
while the forward P/E of 13.11 suggests a reasonable valuation, the extreme volatility in OCF/NI ratios, which reached a negative 2.36 in 2025Q4, warrants caution regarding the quality of earnings.
BWA Growth Metrics
BorgWarner Inc. (BWA) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.96%
5 Years7.09%
3 Years4.25%
TTM2.36%
Profit CAGR
10 Years-7.59%
5 Years-11.14%
3 Years-33.55%
TTM25.26%
EPS CAGR
10 Years-6.7%
5 Years-11.37%
3 Years-31.54%
TTM36.29%
Return on Capital
10 Years13.18%
5 Years10.91%
3 Years11.73%
Last Year12.7%
BWA Recent Earnings
BorgWarner Inc. (BWA) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 7/12 qtrs (58%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$1.24+6.0%
$1.17
Rev
$3.5B+1.0%
$3.5B
Q1 2026
Feb 11, 2026Metric
Actual
Est
EPS
$1.35+16.4%
$1.16
Rev
$3.6B+1.2%
$3.5B
Q4 2025
Oct 30, 2025Metric
Actual
Est
EPS
$1.24+6.9%
$1.16
Rev
$3.6B+3.1%
$3.5B
Q3 2025
Jul 31, 2025Metric
Actual
Est
EPS
$1.21+14.2%
$1.06
Rev
$3.6B+3.2%
$3.5B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $1.24vs $1.17+6.0% | $3.5Bvs $3.5B+1.0% |
| Q1 2026 | Feb 11, 2026 | $1.35vs $1.16+16.4% | $3.6Bvs $3.5B+1.2% |
| Q4 2025 | Oct 30, 2025 | $1.24vs $1.16+6.9% | $3.6Bvs $3.5B+3.1% |
| Q3 2025 | Jul 31, 2025 | $1.21vs $1.06+14.2% | $3.6Bvs $3.5B+3.2% |
Based on last 12 quarters of dataView full earnings history →
Latest BWA News
Recent stock market news and headlines for BorgWarner Inc. (BWA)
Zacks Investment Research·Jun 24, 2026
Here's Why BorgWarner (BWA) is a Strong Growth StockWhether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
PRNewsWire·Jun 24, 2026
BorgWarner Awarded on TIME's List of the World's Most Sustainable Companies 2026AUBURN HILLS, Mich., June 24, 2026 /PRNewswire/ -- BorgWarner has been included in the third edition of the World's Most Sustainable Companies 2026.
PRNewsWire·Jun 23, 2026
Webcast Alert: BorgWarner 2026 Second Quarter Results Conference CallAUBURN HILLS, Mich., June 23, 2026 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) announces the following Webcast: What: BorgWarner 2026 Second Quarter Results Conference CallWhen: August 5, 2026 @ 9:30am Eastern TimeWhere: www.borgwarner.com/investors How: Live over the Internet -- Simply log on to the web at the address above.
Zacks Investment Research·Jun 16, 2026
Why BorgWarner (BWA) is a Top Momentum Stock for the Long-TermThe Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Peers Comparison
Key metrics vs top competitors for BorgWarner Inc. (BWA)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $64.07 | $13.2B | 50.05 | 1.65% | 1.93% | 4.89% | 0.86% | |
| $131.35 | $6.65B | 16.12 | -0.19% | 2.25% | 11.08% | — | |
| $158.61 | $195B | 47.49 | 51.71% | 17.28% | 34.57% | — | |
| $25.43 | $3.17B | 39.73 | -27.07% | — | -11.31% | — | |
| $19.20 | $1.51B | -5.66 | -1.04% | 0.4% | 2.78% | — | |
| $64.30 | $17.5B | 21.51 | -0.21% | 1.58% | 5.27% | — |
Compare BWA vs Peers
BorgWarner Inc. (BWA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
BWA SEC Filings & Documents
BorgWarner Inc. (BWA) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 6, 2026·SEC
Material company update
Apr 30, 2026·SEC
Material company update
Feb 11, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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BWA Frequently Asked Questions
BorgWarner Inc. (BWA) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is BorgWarner Inc.'s revenue?
BorgWarner Inc. (BWA) reported $14.33B in revenue for fiscal year 2025. This represents a 831% increase from $1.54B in 1996.
How fast is BorgWarner Inc. growing?
BorgWarner Inc. (BWA) grew revenue by 1.7% over the past year. Growth has been modest.
Is BWA profitable?
Yes, BorgWarner Inc. (BWA) is profitable, generating $362.0M in net income for fiscal year 2025 (1.9% net margin).
Dividend & Returns
Does BWA pay dividends?
Yes, BorgWarner Inc. (BWA) pays a dividend with a yield of 0.86%. This makes it attractive for income-focused investors.
What is BWA's return on equity?
BorgWarner Inc. (BWA) has a return on equity (ROE) of 4.9%. This is below average, suggesting room for improvement.
What is BorgWarner Inc.'s free cash flow?
BorgWarner Inc. (BWA) generated $1.45B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.