BWA BORGWARNER INC

BEARISH Impact: 6/10 8-K
Horizon days Filed May 6, 2026 Processed 1mo ago SEC 0000908255-26-000023
8-K Item 2.02: Earnings release
Latest settled — T+20d
BWA ▲ +29.28% at T+20d
SHORT call ✗ call lost -29.28% · α vs SPY -26.50% · entry $59.21 → $76.55
Next anchor: T+60d in 7w
Currently $74.51 · -25.84% from $59.21 entry (call sign-flipped)
Entry anchored
May 6, 2026
via day open
T+1d
-1.81%
call +1.81% · α +1.48%
$58.14
settled 5w ago
T+5d
+7.65%
call -7.65% · α -6.52%
$63.74
settled 4w ago
T+20d
+29.28%
call -29.28% · α -26.50%
$76.55
settled 9d ago
T+60d
call — · α —
in 7w

Price Chart

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Executive Summary

BorgWarner reported Q1 2026 adjusted EPS of $1.24, a 3.8% miss vs. consensus of $1.29, and revenue of $3.533B, below the $3.59B estimate. Organic sales declined 4.2% YoY, driven by a 36% drop in Battery Energy Systems and lower light vehicle production. Full-year 2026 guidance was maintained, but the top-line miss and organic decline signal ongoing headwinds from legacy auto exposure and the BES wind-down.

Key Financial Metrics

Guidance
$14.0B-$14.3B
maintained
Free Cash Flow
$13.0M
Gross Margin
19.2%

Actionable Insight

The EPS miss and organic revenue decline confirm ongoing structural headwinds from legacy auto exposure and the BES wind-down. With guidance maintained but the top-line under pressure, watch for potential downward revisions if the weighted light vehicle market contraction (guided -3% to 0%) deepens. The $150M buyback provides a floor, but the stock may trade down on the miss.

Key Facts

  • Q1 2026 adjusted EPS of $1.24 missed consensus of $1.29 (-3.8%)
  • Q1 2026 revenue of $3.533B missed consensus of $3.59B
  • Organic net sales declined 4.2% YoY; reported sales up ~1% due to FX tailwinds
  • Battery Energy Systems segment sales fell 36% YoY to $102M
  • Full-year 2026 guidance maintained: revenue $14.0B-$14.3B, adj. EPS $5.00-$5.20
  • Returned $185M to shareholders in Q1 ($150M buybacks + $35M dividend)
  • Adjusted operating margin improved 50bps YoY to 10.5%
  • Free cash flow was $13M vs. -$35M in Q1 2025

Financial Impact

Q1 adjusted EPS miss of $0.05 vs consensus; revenue miss of ~$57M

epsrevenueorganic sales growthBES segment sales

Risk Factors

  • Further deterioration in global light vehicle production (guided -3% to 0% for 2026)
  • Battery Energy Systems segment continues to decline faster than expected
  • Tariff and trade policy uncertainty impacting OEM customers
  • Execution risk on turbine generator system launch (2027) and new awards

Market Snapshot

Exchange
NYSE
Sector
Motor Vehicle Parts & Accessories
Analyst Consensus
57% bullish (21 analysts)

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0000908255-26-000023
Document: bwa-20260506.htm0000908255-26-000023
Document: 0000908255-26-000023-index-headers.html0000908255-26-000023
Document: 0000908255-26-000023-index.html0000908255-26-000023
Document: 0000908255-26-000023.txt0000908255-26-000023
8-K Data (Synthetic)0000908255-26-000023
7 reports for BWA
Performance horizon
100% Hit rate 4 of 4 directional calls best @ T+5▲ +2.01%May 11, 2026
Filters
Rows
Reports for BWA — sortable, filterable
Type Now
Jun 12, 2026
1d ago
Institutional Cluster
MIXED ★ 5/10
$74.90 awaiting T+5awaiting T+5$74.51 (−0.52%)
May 15, 2026
28d ago
Insider Cluster
BEARISH ★ 5/10
$62.88 $65.87▼ −4.75%▼ −3.79%$74.51 (−18.49%)
May 11, 2026
4w ago
Insider Cluster
BEARISH ★ 5/10
$63.07 $61.80▲ +2.01%▲ +1.93%$74.51 (−18.13%)
May 11, 2026
4w ago
Insider Cluster
BEARISH ★ 5/10
$63.07 $61.80▲ +2.01%▲ +1.93%$74.51 (−18.13%)
May 6, 2026
5w ago
8-K
BEARISH ★ 6/10
$59.21 $63.74▼ −7.65%▼ −6.52%$74.51 (−25.84%)
Mar 19, 2026
12w ago
DEFA14A
NEUTRAL ★ 3/10
$52.24 $54.61▲ +4.54%▲ +6.75%$74.51 (+42.62%)
Mar 10, 2026
13w ago
Insider Cluster
BEARISH ★ 5/10
$52.56 $52.12▲ +0.84%▼ −0.07%$74.51 (−41.76%)
Showing 7 of 7

US Market Status

Market Closed — Opens Mon (49h 40m)

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