Q3 Earnings Estimate for BorgWarner Issued By Zacks Research

BorgWarner Inc. (NYSE:BWA) – Equities research analysts at Zacks Research lowered their Q3 2026 EPS estimates for BorgWarner in a report released on Tuesday, October 14th. Zacks Research analyst Team now anticipates that the auto parts company will earn $1.15 per share for the quarter, down from their previous forecast of $1.24. Zacks Research has a “Hold” 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 Q4 2026 earnings at $1.12 EPS, FY2026 earnings at $4.64 EPS, Q1 2027 earnings at $1.18 EPS, Q2 2027 earnings at $1.28 EPS, Q3 2027 earnings at $1.25 EPS and FY2027 earnings at $4.97 EPS.

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

A number of other equities analysts have also issued reports on BWA. Weiss Ratings restated a “hold (c)” rating on shares of BorgWarner in a research report on Wednesday, October 8th. Barclays raised their target price on shares of BorgWarner from $45.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday, October 10th. The Goldman Sachs Group raised their target price on shares of BorgWarner from $45.00 to $52.00 and gave the stock a “buy” rating in a research report on Monday, September 29th. Wells Fargo & Company raised their target price on shares of BorgWarner from $50.00 to $54.00 and gave the stock an “overweight” rating in a research report on Thursday, September 25th. Finally, Baird R W upgraded shares of BorgWarner from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $44.64.

BorgWarner Stock Performance

Shares of BWA opened at $42.83 on Thursday. The company has a current ratio of 2.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.64. The firm has a market cap of $9.27 billion, a PE ratio of 45.56, a price-to-earnings-growth ratio of 1.56 and a beta of 1.09. The company’s 50 day simple moving average is $42.88 and its 200-day simple moving average is $35.82. BorgWarner has a 12-month low of $24.40 and a 12-month high of $44.97.

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

BorgWarner Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a dividend of $0.17 per share. This is a boost 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 of this dividend was Tuesday, September 2nd. BorgWarner’s dividend payout ratio is 72.34%.

Insider Buying and Selling

In related news, VP Stefan Demmerle sold 5,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $40.50, for a total transaction of $202,500.00. Following the completion of the sale, the vice president directly owned 229,040 shares of the company’s stock, valued at $9,276,120. This trade represents a 2.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Isabelle Mckenzie sold 2,500 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $40.01, for a total value of $100,025.00. Following the sale, the vice president directly owned 55,945 shares of the company’s stock, valued at approximately $2,238,359.45. This represents a 4.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,272 shares of company stock valued at $1,263,318 over the last three months. 0.45% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On BorgWarner

A number of hedge funds and other institutional investors have recently bought and sold shares of BWA. Blackston Financial Advisory Group LLC lifted its stake in BorgWarner by 3.4% in the 2nd quarter. Blackston Financial Advisory Group LLC now owns 7,970 shares of the auto parts company’s stock worth $267,000 after acquiring an additional 265 shares in the last quarter. Trajan Wealth LLC lifted its stake in BorgWarner by 4.6% in the 1st quarter. Trajan Wealth LLC now owns 7,978 shares of the auto parts company’s stock worth $229,000 after acquiring an additional 353 shares in the last quarter. Assetmark Inc. lifted its stake in BorgWarner by 81.8% in the 2nd quarter. Assetmark Inc. now owns 809 shares of the auto parts company’s stock worth $27,000 after acquiring an additional 364 shares in the last quarter. Tectonic Advisors LLC increased its position in BorgWarner by 2.3% in the 2nd quarter. Tectonic Advisors LLC now owns 17,002 shares of the auto parts company’s stock worth $569,000 after purchasing an additional 388 shares during the last quarter. Finally, Farther Finance Advisors LLC increased its position in BorgWarner by 26.1% in the 1st quarter. Farther Finance Advisors LLC now owns 1,965 shares of the auto parts company’s stock worth $56,000 after purchasing an additional 407 shares during the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

About BorgWarner

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.