olivLaw · US equity research
BorgWarner Inc. BWA
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
BorgWarner is a global supplier of technology for combustion, hybrid and electric vehicles, selling mainly to light-vehicle automakers. In 2026 it trimmed its battery segment and is investing in products for data centers and industry, while its auto market outlook is flat to lower.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, BorgWarner Inc. (BWA) stock was 50.40 USD (−2.53% on the day), with market capitalisation 10.1 bn USD, P/E 21.5 on diluted EPS of 2.35 USD over the last 12 months, dividend yield 1.35%, beta 1.03, 52-week range 40.96–77.03 USD. Latest reported quarter (Q3 2026): revenue of 3.5 bn USD (−2.9% YoY), net income of 221.0 m USD (+39.9% YoY), diluted EPS 1.08 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 22.5
- oversold (≤ 30)
- Bollinger (20, 2)
- 49.80 – 63.12
- in the lower half of the band · %B 0.05 · band width 23.6%
- SMA 50 / 200
- 60.45 / 60.67
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -2.67 / -2.17
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −16.4% | −1.1% | −15.3 pp | — |
| 3 months | −24.5% | −0.5% | −24.1 pp | — |
| 6 months | −15.2% | +4.4% | −19.6 pp | — |
| Year to date | +11.9% | +12.3% | −0.5 pp | — |
| 1 year | +14.3% | +13.5% | +0.7 pp | −12.2% |
| 3 years | +51.1% | +76.4% | −25.3 pp | −3.9% |
| 5 years | +22.1% | +63.7% | −41.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.4 bn | 3.5 bn | 3.6 bn | 3.6 bn | 3.6 bn | 3.5 bn | 3.6 bn | 3.5 bn |
| Cost of revenue | 2.8 bn | 2.9 bn | 3.0 bn | 2.9 bn | 2.8 bn | 2.9 bn | 2.9 bn | 2.8 bn |
| Gross profit | 683.0 m | 639.0 m | 640.0 m | 664.0 m | 731.0 m | 677.0 m | 721.0 m | 662.0 m |
| Research & development | 170.0 m | 182.0 m | 182.0 m | 189.0 m | 157.0 m | 177.0 m | 176.0 m | 172.0 m |
| SG&A | 340.0 m | 315.0 m | 317.0 m | 341.0 m | 331.0 m | 328.0 m | 331.0 m | 310.0 m |
| Operating income | -316.0 m | 237.0 m | 289.0 m | 248.0 m | -238.0 m | 336.0 m | 370.0 m | 302.0 m |
| Depreciation & amortisation | 178.0 m | 155.0 m | 179.0 m | 219.0 m | 166.0 m | 145.0 m | 149.0 m | 153.0 m |
| Interest expense | 28.0 m | 28.0 m | 24.0 m | 25.0 m | 22.0 m | 25.0 m | 25.0 m | 17.0 m |
| Pre-tax income | 29.0 m | 232.0 m | 284.0 m | 248.0 m | -240.0 m | 328.0 m | 372.0 m | 298.0 m |
| Income tax | 67.0 m | 61.0 m | 52.0 m | 75.0 m | 1.0 m | 73.0 m | 81.0 m | 65.0 m |
| Net income | -405.0 m | 157.0 m | 224.0 m | 158.0 m | -262.0 m | 242.0 m | 277.0 m | 221.0 m |
| Diluted EPS | -1.85 ≈ | 0.72 | 1.03 | 0.73 | -1.23 ≈ | 1.16 | 1.34 | 1.08 |
| Operating cash flow | — | 82.0 m | 579.0 m ≈ | 368.0 m ≈ | — | 152.0 m | 586.0 m ≈ | 320.0 m ≈ |
| Capex | 161.0 m | 119.0 m | 77.0 m | 111.0 m | 162.0 m | 143.0 m | 96.0 m ≈ | 125.0 m ≈ |
| Dividends paid | 24.0 m | 24.0 m | 24.0 m ≈ | 36.0 m ≈ | 35.0 m | 35.0 m | 34.0 m ≈ | 35.0 m ≈ |
| Share repurchases | 1.0 m | 0 | 108.0 m ≈ | 102.0 m ≈ | 298.0 m | 150.0 m | 100.0 m ≈ | 175.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 75 percentile of its own 40-quarter history (min 6.2, median 12.9, max 69.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.5 bn | 10.2 bn | 10.2 bn | 11.8 bn | 12.6 bn | 14.2 bn | 14.1 bn | 14.3 bn |
| Revenue YoY | +7.5% | −3.4% | −0.0% | +16.1% | +7.0% | +12.4% | −0.8% | +1.6% |
| Net income | 931.0 m | 746.0 m | 500.0 m | 537.0 m | 944.0 m | 625.0 m | 338.0 m | 277.0 m |
| Net income YoY | +111.6% | −19.9% | −33.0% | +7.4% | +75.8% | −33.8% | −45.9% | −18.0% |
| Diluted EPS | 4.44 | 3.61 | 2.34 | 2.24 | 3.99 | 2.67 | 1.50 | 1.28 |
| Diluted EPS YoY | +113.5% | −18.7% | −35.2% | −4.3% | +78.1% | −33.1% | −43.8% | −14.7% |
| net % | 8.8% | 7.3% | 4.9% | 4.5% | 7.5% | 4.4% | 2.4% | 1.9% |
| Free cash flow | 580.0 m | 527.0 m | 743.0 m | 792.0 m | 947.0 m | unavailable | unavailable | unavailable |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.3 bn USD
- Financial debt
- 3.9 bn USD
- Net debt
- 1.6 bn USD
- Equity
- 5.6 bn USD
- Total assets
- 13.8 bn USD
- Debt / equity
- 0.69x
- Current ratio
- 2.07x
- ROE
- 4.9%
- ROA
- 2.0%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 10.2 bn | 11.8 bn | 12.6 bn | 14.2 bn | 14.1 bn | 14.3 bn | SEC (XBRL)· 11 Feb 2026verified |
| Cost of revenue | 8.3 bn | 9.6 bn | 10.3 bn | 11.6 bn | 11.4 bn | 11.6 bn | SEC (XBRL)· 11 Feb 2026verified |
| Gross profit | 1.9 bn | 2.2 bn | 2.4 bn | 2.6 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 11 Feb 2026verified |
| Research & development | 476.0 m | 586.0 m | 701.0 m | 717.0 m | 736.0 m | 710.0 m | SEC (XBRL)· 11 Feb 2026verified |
| SG&A | 951.0 m | 1.1 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.3 bn | SEC (XBRL)· 11 Feb 2026verified |
| Operating income | 618.0 m | 914.0 m | 1.0 bn | 1.2 bn | 546.0 m | 536.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Depreciation & amortisation | 568.0 m | 574.0 m | 552.0 m | 582.0 m | 673.0 m | 719.0 m | SEC (XBRL)· 11 Feb 2026verified |
| EBITDA | 1.2 bn ≈ | 1.5 bn ≈ | 1.6 bn ≈ | 1.7 bn ≈ | 1.2 bn ≈ | 1.3 bn ≈ | SEC (XBRL)· 11 Feb 2026derived |
| Interest expense | 61.0 m | 82.0 m | 71.0 m | 73.0 m | 84.0 m | 99.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Pre-tax income | 964.0 m | 510.0 m | 913.0 m | 991.0 m | 539.0 m | 524.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Income tax | 397.0 m | 65.0 m | 195.0 m | 289.0 m | 111.0 m | 189.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Net income | 500.0 m | 537.0 m | 944.0 m | 625.0 m | 338.0 m | 277.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Diluted EPS | 2.34 | 2.24 | 3.99 | 2.67 | 1.50 | 1.28 | SEC (XBRL)· 11 Feb 2026verified |
| Weighted average diluted shares | 214.0 m | 239.5 m | 236.8 m | 234.4 m | 224.8 m | 216.4 m | SEC (XBRL)· 11 Feb 2026verified |
| Dividend per share | 0.68 | 0.68 | 0.68 | 0.56 | 0.44 | 0.56 | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.7 bn | 1.8 bn | 1.3 bn | 1.5 bn | 2.1 bn | 2.3 bn | SEC (XBRL)· 11 Feb 2026verified |
| Inventories | 1.3 bn | 1.5 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 11 Feb 2026verified |
| Current assets | 6.2 bn | 6.6 bn | 6.6 bn | 6.2 bn | 6.5 bn | 6.8 bn | SEC (XBRL)· 11 Feb 2026verified |
| Goodwill | 2.6 bn | 2.9 bn | 3.0 bn | 3.0 bn | 2.4 bn | 2.1 bn | SEC (XBRL)· 11 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.1 bn | 1.1 bn | 619.0 m | 564.0 m | 474.0 m | 394.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Total assets | 16.0 bn | 16.6 bn | 17.0 bn | 14.5 bn | 14.0 bn | 13.8 bn | SEC (XBRL)· 11 Feb 2026verified |
| Accounts payable | — | 2.3 bn | 2.7 bn | — | — | — | SEC (XBRL)· 09 Feb 2023verified |
| Short-term debt | 4.0 m | 4.0 m | 2.0 m | 3.0 m | 337.0 m | 2.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Long-term debt | 3.7 bn | 4.3 bn | 4.1 bn | 3.7 bn | 3.8 bn | 3.9 bn | SEC (XBRL)· 11 Feb 2026verified |
| Current liabilities | 3.8 bn | 3.8 bn | 4.2 bn | 3.8 bn | 3.6 bn | 3.3 bn | SEC (XBRL)· 11 Feb 2026verified |
| Total liabilities | 9.3 bn | 9.3 bn | 9.5 bn | 8.4 bn | 8.3 bn | 8.2 bn | SEC (XBRL)· 11 Feb 2026verified |
| Equity | 6.7 bn | 7.3 bn | 7.5 bn | 6.1 bn | 5.7 bn | 5.6 bn | SEC (XBRL)· 11 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.2 bn | 1.3 bn | 1.6 bn | — | — | — | SEC (XBRL)· 09 Feb 2023verified |
| Capex | 441.0 m | 514.0 m | 622.0 m | 832.0 m | 671.0 m | 469.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Free cash flow | 743.0 m ≈ | 792.0 m ≈ | 947.0 m ≈ | — | — | — | SEC (XBRL)· 09 Feb 2023derived |
| Investing cash flow | -866.0 m | -1.4 bn | -1.4 bn | — | — | — | SEC (XBRL)· 09 Feb 2023verified |
| Financing cash flow | 437.0 m | 286.0 m | -567.0 m | — | — | — | SEC (XBRL)· 09 Feb 2023verified |
| Dividends paid | 146.0 m | 162.0 m | 161.0 m | 130.0 m | 98.0 m | 119.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Share repurchases | 216.0 m | 0 | 240.0 m | 177.0 m | 402.0 m | 508.0 m | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 45 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 10.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet67
- Valuation29
- Quality45
- Growth18
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.36 – 64.47 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDA34.47 – 64.47 (Mid 44.45)15 companies used · median multiple 7.5x · quartiles 6.0x – 10.4xALV, APTV, ATMU, CAAS, CPS, DCH, DORM, GNTX, LCII, LEA, MOD, PATK, PHIN, SMP, THRM
- Peers: P/E26.35 – 42.35 (Mid 34.68)18 companies used · median multiple 14.8x · quartiles 11.2x – 18.0xADNT, ALSN, ALV, APTV, ATMU, CAAS, DAN, DORM, GNTX, GTX, LCII, LEA, MGA, PATK, PHIN, SMP, STRT, VC
- Dividend discount (DDM)7.36 – 9.90 (Mid 8.44)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 45/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.5% | 38 (vs peers) | 13% |
| Net margin · Quality | 3.4% | 56 (vs peers) | 8% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 4.3% | 35 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | -31.5% | 0 (on a fixed band) | 10% |
| Net debt / EBITDA · Balance sheet | 1.0x | 53 (vs peers) | 13% |
| Interest coverage · Balance sheet | 8.7x | 100 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 1.4x | 51 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 21.5x | 24 (vs peers) | 13% |
| EV/EBITDA · Valuation | 8.3x | 33 (vs peers) | 13% |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 8.5% | 100 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet67/100 · 3/3 factors with a value
- Growth18/100 · 2/2 factors with a value
- Quality45/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation29/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BORGWARNER INC. (BWA). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 14.3 bn USD in 2025; YoY growth 1.6%; net margin 3.4%; ROE 8.2%; net debt/EBITDA 1.0x.
The estimated value range is 26.35–42.35 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 34.68 USD, the price of 50.40 USD leaves a potential of -31.2% (value / price − 1) and a margin of safety of -45.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 45/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Interest coverage: 8.7x
- Shareholder yield (distributions): 8.5%
What contradicts it
- EPS CAGR 3Y: -31.5%
- P/E (TTM): 21.5x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF conversion, FCF yield, Payout ratio (FCF).
Versus the vertical median
Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +14% / +51% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +20% / +167% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −22% / +55% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −13% / −32% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 3.8% | +22.4% | +22% / +28% |
| AEVAAeva Technologies, Inc. | 661.5 m | — | — | -150.1% | +99.4% | −15% / +240% |
| CPSCooper-Standard Holdings Inc. | 391.6 m | — | — | -2.0% | +0.4% | −29% / +24% |
| HLLYHolley Inc. | 351.6 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 2.9% | +2.5% | −14% / +201% |
1- and 3-year price returns: for BWA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 30.11 Total return -39% · Per year -39% | 53.24 Total return 7% · Per year 7% | 80.21 Total return 61% · Per year 61% |
| 3 years | 29.08 Total return -39% · Per year -15% | 57.87 Total return 19% · Per year 6% | 95.73 Total return 96% · Per year 25% |
| 5 years | 28.08 Total return -39% · Per year -9% | 62.89 Total return 33% · Per year 6% | 114.27 Total return 137% · Per year 19% |
- Exit P/E± 14.47
- Net margin± 10.13
- Annual revenue growth± 8.33
- Annual dilution± 0.85
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
BorgWarner is a global supplier of technology for combustion, hybrid and electric vehicles, selling mainly to light-vehicle automakers. In 2026 it trimmed its battery segment and is investing in products for data centers and industry, while its auto market outlook is flat to lower.
SWOT
Strengths
- Broad portfolio spanning combustion, hybrid and electric products, with long relationships with major automakers.
- Adjusted operating margin improved in the second quarter of 2026, supported by cost controls.
- Ability to return capital to shareholders through buybacks and dividends.
Weaknesses
- Heavy reliance on a few OEM customers, two of which account for a sizeable share of sales.
- The battery segment lost sales and was restructured after exiting the charging business.
- Large goodwill and intangible balances could lead to impairments if performance weakens.
Opportunities
- New hybrid and electric contracts could support growth in the electrification segment.
- Products for data center and industrial markets could open new customer pools.
- Recovery of paid tariffs could add cash if the process ends favorably.
Threats
- Lower global auto production could reduce volumes and increase price pressure.
- Competition from Asian suppliers and automakers making their own components.
- Shifting trade policy and tariffs could affect costs and supply chains.
Risks
- Slow EV adoptionhigh
If EV adoption stays below expectations, returns on eProduct investments could fall short of plans 1.
- Asset impairmentmedium
Goodwill and intangible assets form a significant part of total assets, and impairment could affect results 1.
- Price pressure from OEMsmedium
Automakers seek lower prices, which could reduce margins if costs do not fall 1.
- Tariff policymedium
Tariffs and uncertainty over refunds could change the company's costs and cash inflows 12.
- Emissions investigationslow
Possible violations of emissions standards could lead to investigations, recalls and fines 1.
Investment thesis
What would need to be true (bull case)
- If adjusted margins keep rising and new electrification contracts ramp up, the company could beat its current profit guidance.
- Expansion into data center and industrial products could reduce reliance on the auto market.
- Large share buybacks could support earnings per share even if sales stagnate.
What would break the thesis
- If auto production falls more than expected, sales could decline further than guidance suggests.
- If electrification slows, heavy investment in eProducts could earn weak returns.
- Tariff refunds remain uncertain and may not deliver the amounts hoped for.
What to watch
- Sales and adjusted profit guidanceQ3 2026
- Progress on tariff refund claims with CBP2026
- Performance of the Battery Energy Systems segment2026
- Start of production on new electrification contracts2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
BorgWarner Inc. is a Delaware corporation incorporated in 1987 that makes products improving performance, efficiency and emissions of combustion, hybrid and electric vehicles 1. Sales go almost entirely to original equipment manufacturers, and the company supplies nearly every major automaker in the world 1. Operations run globally, with plants in Europe, the Americas and Asia 1.
Segments
Turbos & Thermal Technologies
The largest segment, covering turbochargers, emissions systems and thermal management; in fiscal 2025 it produced about 40.3% of net sales 1.
Drivetrain & Morse Systems
Segment making clutches, hydraulic controls, transfer cases and chain systems, with about 39.5% of fiscal 2025 net sales 1.
PowerDrive Systems
The electrification segment, making inverters, eMotors and integrated drive modules; it grew in 2025 and was about 16.4% of sales 1.
Market context
Trends
- Electrified vehicle adoptionmixed
Volatile EV adoption across regions makes the balance between electrified and combustion products critical for the company 1.
- Tariffs and refund recoverymixed
Tariffs raised costs in 2025, but after the Supreme Court invalidated them the company is pursuing refunds whose amount and timing remain uncertain 12.
- OEM price pressureheadwind
Automakers push for lower prices, which could squeeze margins if costs do not fall in parallel 1.
- Data center and industrial marketstailwind
The company is developing products for data center and industrial markets, which could open new growth if contracts materialize 3.
Competitive position
Competition is global, with larger rivals holding greater resources; the main competitive factors are technology, quality, price and delivery 1. Suppliers in lower-cost regions and automakers that make their own components add pressure 1.
- Robert Bosch GmbH
Major auto components rival, listed in Germany rather than the US.
- Denso Corporation
Japanese auto components supplier, listed in Japan.
- Garrett MotionGTX
Direct turbocharger competitor with a US listing.
- Valeo
French propulsion and electrification supplier, listed in France.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Should You Buy BorgWarner Stock Because Its Share Count Keeps Shrinking?Yahoo Finance — News · 08 Sept 2026 · EN
- BorgWarner Vice President Isabelle McKenzie Sells 4,500 SharesYahoo Finance — News · 02 Sept 2026 · EN
- BorgWarner Director Shaun McAlmont Sells 7,000 Shares for $485,520Yahoo Finance — News · 31 Aug 2026 · EN
The latest news item in our archive is from 08 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report04 Sept 2026Regulation FD disclosure
- Current report10 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report31 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report28 May 2026Departure or appointment of officers
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / BorgWarner Inc. · 11 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / BorgWarner Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / BorgWarner Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.