BWA BORGWARNER INC
Price Chart
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
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
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
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000908255-26-000023 |
| Document: bwa-20260506.htm | 0000908255-26-000023 |
| Document: 0000908255-26-000023-index-headers.html | 0000908255-26-000023 |
| Document: 0000908255-26-000023-index.html | 0000908255-26-000023 |
| Document: 0000908255-26-000023.txt | 0000908255-26-000023 |
| 8-K Data (Synthetic) | 0000908255-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 12, 2026
1d ago
|
Institutional Cluster
| $74.90 awaiting T+5 | awaiting T+5 | — | $74.51 (−0.52%) |
|
May 15, 2026
28d ago
|
Insider Cluster
| $62.88 $65.87 | ▼ −4.75% | ▼ −3.79% | $74.51 (−18.49%) |
|
May 11, 2026
4w ago
|
Insider Cluster
| $63.07 $61.80 | ▲ +2.01% | ▲ +1.93% | $74.51 (−18.13%) |
|
May 11, 2026
4w ago
|
Insider Cluster
| $63.07 $61.80 | ▲ +2.01% | ▲ +1.93% | $74.51 (−18.13%) |
|
May 6, 2026
5w ago
|
8-K
| $59.21 $63.74 | ▼ −7.65% | ▼ −6.52% | $74.51 (−25.84%) |
|
Mar 19, 2026
12w ago
|
DEFA14A
| $52.24 $54.61 | ▲ +4.54% | ▲ +6.75% | $74.51 (+42.62%) |
|
Mar 10, 2026
13w ago
|
Insider Cluster
| $52.56 $52.12 | ▲ +0.84% | ▼ −0.07% | $74.51 (−41.76%) |
US Market Status
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