Zacks Research Estimates BorgWarner’s Q1 Earnings (NYSE:BWA)

BorgWarner Inc. (NYSE:BWA) – Zacks Research upped their Q1 2026 earnings per share (EPS) estimates for shares of BorgWarner in a research note issued on Monday, September 15th. Zacks Research analyst Team now expects that the auto parts company will post earnings per share of $1.15 for the quarter, up from their previous forecast of $1.14. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for BorgWarner’s current full-year earnings is $4.28 per share. Zacks Research also issued estimates for BorgWarner’s Q2 2026 earnings at $1.23 EPS, Q3 2026 earnings at $1.24 EPS, Q4 2026 earnings at $1.22 EPS, FY2026 earnings at $4.84 EPS, Q1 2027 earnings at $1.19 EPS, Q2 2027 earnings at $1.30 EPS and FY2027 earnings at $5.11 EPS.

BorgWarner (NYSE:BWA) last posted its quarterly earnings results on Thursday, July 31st. The auto parts company reported $1.21 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.15. BorgWarner had a return on equity of 16.17% and a net margin of 1.50%.The business had revenue of $3.64 billion during the quarter, compared to analysts’ expectations of $3.56 billion. During the same quarter last year, the company posted $1.19 earnings per share. BorgWarner’s quarterly revenue was up 1.0% on a year-over-year basis. BorgWarner has set its FY 2025 guidance at 4.450-4.65 EPS.

A number of other research firms have also recently commented on BWA. Robert W. Baird upgraded BorgWarner from a “neutral” rating to an “outperform” rating and lifted their price target for the stock from $41.00 to $52.00 in a report on Wednesday, September 3rd. Barclays reiterated an “overweight” rating and set a $45.00 price target (up previously from $42.00) on shares of BorgWarner in a report on Wednesday, July 16th. Bank of America cut BorgWarner from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $41.00 to $46.00 in a report on Wednesday, September 10th. Evercore ISI boosted their price objective on BorgWarner from $38.00 to $42.00 and gave the stock an “outperform” rating in a report on Monday, August 4th. Finally, Wells Fargo & Company boosted their price objective on BorgWarner from $46.00 to $50.00 and gave the stock an “overweight” rating in a report on Tuesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $41.21.

BorgWarner Trading Down 0.7%

BorgWarner stock opened at $43.58 on Tuesday. BorgWarner has a 52 week low of $24.40 and a 52 week high of $44.45. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.66 and a current ratio of 2.02. The stock has a market capitalization of $9.43 billion, a P/E ratio of 46.36, a PEG ratio of 1.45 and a beta of 1.09. The stock has a 50-day simple moving average of $39.71 and a 200 day simple moving average of $33.68.

BorgWarner announced that its Board of Directors has initiated a share buyback program on Thursday, July 31st that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 13.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.

BorgWarner Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This is an increase from BorgWarner’s previous quarterly dividend of $0.11. This represents a $0.68 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Tuesday, September 2nd. BorgWarner’s dividend payout ratio (DPR) is currently 72.34%.

Insider Activity

In other news, VP Isabelle Mckenzie sold 2,500 shares of the company’s stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $40.01, for a total transaction of $100,025.00. Following the transaction, the vice president owned 55,945 shares in the company, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Stefan Demmerle sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $39.31, for a total transaction of $589,650.00. Following the completion of the sale, the vice president owned 234,040 shares in the company, valued at $9,200,112.40. This represents a 6.02% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 31,272 shares of company stock worth $1,263,318. Company insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On BorgWarner

Institutional investors and hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its position in BorgWarner by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,568,627 shares of the auto parts company’s stock worth $331,429,000 after purchasing an additional 284,587 shares in the last quarter. State Street Corp grew its position in BorgWarner by 5.3% in the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after purchasing an additional 380,942 shares in the last quarter. LSV Asset Management grew its position in BorgWarner by 36.7% in the 1st quarter. LSV Asset Management now owns 5,889,080 shares of the auto parts company’s stock worth $168,722,000 after purchasing an additional 1,580,935 shares in the last quarter. American Century Companies Inc. grew its position in BorgWarner by 1.6% in the 2nd quarter. American Century Companies Inc. now owns 3,774,828 shares of the auto parts company’s stock worth $126,381,000 after purchasing an additional 58,252 shares in the last quarter. Finally, AQR Capital Management LLC grew its position in BorgWarner by 307.1% in the 2nd quarter. AQR Capital Management LLC now owns 3,422,874 shares of the auto parts company’s stock worth $114,153,000 after purchasing an additional 2,582,105 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Company Profile

BorgWarner Inc, together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging.