BorgWarner Q2 sales and adjusted EPS beat estimates, raises FY guidance

BorgWarner

05/08/2026 11:45

Overview
U.S. auto supplier's Q2 U.S. GAAP net sales rose 0.3%, beating analyst expectations
Adjusted EPS for Q2 up 17% to $1.42, beating analyst expectations
Company increased share repurchase authorization by $1 bln

Outlook
BorgWarner raises 2026 adjusted EPS guidance to $5.05-$5.30 per diluted share
Company expects 2026 net sales guidance at $14.0 bln-$14.3 bln, down 3.5%-1.5% organically
Company expects 2026 adjusted operating margin of 10.7%-10.9%

Result Drivers
BATTERY SEGMENT DECLINE - Co said a sharp drop in Battery Energy Systems sales weighed on organic net sales
CURRENCY IMPACT - Stronger foreign currencies compared to the U.S. dollar contributed to higher reported sales

Company press release: ID:nPn74ZmKha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$3.65 bln
$3.58 bln (12 Analysts)
Q2 Adjusted EPS
Beat
$1.42
$1.28 (13 Analysts)
Q2 EPS
 
$1.34
 
Q2 Gross Margin
 
19.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "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 $78.00, about 23.7% above its August 4 closing price of $63.04
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 4 - Aptiv cuts 2026 sales forecast on weak China demand, delays at customers 
Aug 5 - Schaeffler expands Germany retirement scheme, Q2 profit meets estimates
Aug 4 - Canada's Martinrea Q2 revenue misses, hurt by lower OEM production volumes

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.)