BorgWarner Q4 revenue and adjusted EPS beat estimates

BorgWarner

11/02/2026 11:38

Overview

Auto parts supplier's Q4 revenue rose, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company enters data center market with turbine generator system award

Outlook

BorgWarner expects 2026 net sales between $14.0 bln and $14.3 bln

Company projects 2026 adjusted EPS between $5.00 and $5.20

BorgWarner anticipates 2026 free cash flow between $900 mln and $1,100 mln

Result Drivers

EPRODUCTS GROWTH - Light vehicle eProducts sales grew approximately 23% in 2025, driven by demand for hybrid and electric technologies in Europe and Asia

COST CONTROLS - Adjusted operating margin improved to 10.7% due to strong eProducts growth and cost controls across the business

DATA CENTER ENTRY - Secured a supply agreement for a turbine generator system for AI-driven data centers, marking entry into a new market

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$3.57 bln
$3.53 bln (12 Analysts)
Q4 Adjusted EPS
Beat
$1.35
$1.19 (13 Analysts)
Q4 EPS
-$1.23
Q4 Gross Margin
20.50%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "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 $51.00, about 5.5% below its February 10 closing price of $53.98

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn2hl0gxa

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(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.)