BorgWarner Q1 sales and adjusted EPS beat estimates

BorgWarner

06/05/2026 11:40

Overview

U.S. auto parts supplier's Q1 sales rose 1%, beating analyst expectations

Adjusted EPS for Q1 beat consensus, up 12% year-over-year

Company returned $185 mln to shareholders via buybacks and dividends

Outlook

BorgWarner maintains 2026 net sales guidance at $14.0 bln to $14.3 bln

Company expects 2026 adjusted EPS of $5.00 to $5.20

BorgWarner sees 2026 adjusted operating margin of 10.7% to 10.9%

Result Drivers

BATTERY ENERGY SYSTEMS WEAKNESS - Decline in Battery Energy Systems segment sales weighed on organic net sales

COST CONTROLS - Improved adjusted operating margin attributed to continued focus on cost controls

SHARE REPURCHASES - Higher adjusted EPS driven by increased operating income and lower share count from repurchases

Company press release: ID:nPn9RG7tKa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$3.53 bln
$3.49 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$1.24
$1.17 (14 Analysts)
Q1 EPS
$1.16
Q1 Gross Margin
19.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Borgwarner Inc is $67.00, about 17% above its May 5 closing price of $57.26

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)