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BorgWarner Inc.
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$13.1B
Market Cap
35.2
P/E
0.89
PEG
11.3%
ROCE
5.9%
ROE
0.72
D/E
9.4%
OPM
-20.2%
% from 52W High
78
α RS
🔍 BWA is showing a sector-leadership setup because Sector RRG has Consumer Discretionary in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, and RS Rating is 78. The main caution: the deleveraging preset's Backtest win rate is only 34.6%. Net: Mixed signal stack, not a recommendation. ? RRG Conviction RS Rating Backtest
Sources
Consumer Discretionary in Leading quadrant · Conviction 2/39 · RS Rating 78 · Backtest win rate 34.6%
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About

BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.

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⭐ Superinvestors Holding BWA
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 9.0K $488K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED BorgWarner Q1 sales $3.5B, adj op margin 10.5%, EPS +12%, 12 new awards
Revenue & Profitability
Q1 2026 sales were just over $3.5 billion, roughly flat year-over-year. Adjusted operating income was $372 million (10.5% margin), up from $352 million (10.0%) a year ago. Adjusted EPS grew 12% year-over-year, aided by share repurchases. Free cash flow was $13 million, an improvement of $48 million over Q1 2025. Full-year 2026 guidance: sales $14.0-$14.3 billion, adjusted op margin 10.7%-10.9%, adjusted EPS $5.00-$5.20, free cash flow $900 million-$1.1 billion.
Outlook
Management expects light vehicle markets to be flat to down 3% in 2026, with battery business declining due to lack of North American incentives and weaker European demand. The overall environment remains challenging and uncertain, but the company is confident in its full-year guidance. Demand for data center power generation, storage, and conversion is very strong, with mid-teens CAGR expected for the next decade.
Growth Drivers
Growth is driven by new business awards (12 announced in Q1, including conquests), expansion in Asia (electric motor awards in Korea and China, dual clutch and cam torque actuated VCT wins), and extension of turbocharger and off-highway programs. The new data center/industrial products (turbine generator, BESS, grid tie inverter) represent a major new growth vector, with turbine generator revenue expected to begin in 2027.
Balance Sheet & CapEx
Not discussed with a specific number. Management noted that the turbine generator program installed 2 GW of capacity in Asheville, with a decision on further expansion expected in the second half of 2026. The battery energy storage and inverter products leverage existing capacity, and capital intensity is expected to be similar to the light vehicle business. The company prioritizes investing in organic growth projects.
Margins
Q1 adjusted operating margin was 10.5%, up 50 basis points year-over-year, driven by cost controls. Full-year 2026 margin guidance is 10.7%-10.9%, implying expansion at the midpoint versus 2025's 10.7%. The company expects decremental conversion in the low double digits despite inflationary pressures. Cost reduction actions are ongoing.
Key Risks
Risks flagged include a challenging and uncertain macroeconomic environment, potential cost inflation (energy prices, raw materials), and the decline in battery sales due to unfavorable incentives and demand. Management also noted the need to manage supply chain constraints for new turbine generator components, though most suppliers are already BorgWarner suppliers.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw $3.5B in sales, a 10.5% adjusted margin, and 12 new business awards. Guidance for 2026 remains unchanged, with sales projected at $14.0–$14.3B and EPS up ~4% year-over-year. Expansion into data center and industrial markets continues, supported by strong cash flow and disciplined capital allocation.
Q4 2025 Q4 2025 2026-02-11
Net sales rose to $14.3B in 2025, with 23% growth in light vehicle e-products and a 60 bps margin expansion. Free cash flow surged 66% to $1.2B, over half returned to shareholders. 2026 guidance anticipates flat sales, margin expansion, and continued investment in new product launches, including a major entry into the data center market.
Q3 2025 Q3 2025 2025-10-30
Q3 saw 2% organic sales growth, strong margin expansion, and robust free cash flow, despite headwinds from tariffs and customer disruptions. Full-year guidance was raised for margin, EPS, and cash flow, with new business wins and disciplined capital allocation supporting long-term growth.
Q2 2025 Q2 2025 2025-07-31
Second quarter 2025 saw flat sales year-over-year, but a 31% surge in light vehicle e-product sales and robust free cash flow. Guidance for sales, margin, EPS, and cash flow was raised, and capital returns to shareholders increased, reflecting strong operational execution.
Q1 2025 Q1 2025 2025-05-07
Organic sales were flat at $3.5B, with 3.7% outgrowth driven by a 47% rise in e-product sales. Portfolio actions included exiting the charging business and consolidating battery capacity, while 2025 guidance was raised for sales and maintained for EPS and cash flow.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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