BorgWarner Inc. (BWA) Earnings
BorgWarner Inc. is expected to report next earnings on July 30, 2026 (in NaN days), with a consensus EPS estimate of $1.26. BWA has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +11.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $1.16 | $1.24 | +6.9% | $3.5B | +1.0% |
| Feb 11, 2026 | $1.16 | $1.35 | +16.4% | $3.6B | +0.5% |
| Oct 30, 2025 | $1.16 | $1.24 | +6.9% | $3.6B | +3.1% |
| Jul 31, 2025 | $1.06 | $1.21 | +14.2% | $3.6B | +3.2% |
| May 7, 2025 | $0.98 | $1.11 | +13.3% | $3.5B | +0.2% |
| Feb 6, 2025 | $0.93 | $1.01 | +8.6% | $3.4B | -0.8% |
| Oct 31, 2024 | $0.92 | $1.09 | +18.5% | $3.4B | -0.8% |
| Jul 31, 2024 | $1.01 | $1.19 | +17.8% | $3.6B | -2.8% |
| May 2, 2024 | $0.87 | $1.03 | +18.4% | $3.6B | +2.4% |
| Feb 8, 2024 | $0.93 | $0.90 | -3.2% | $3.5B | -3.5% |
| Nov 2, 2023 | $0.91 | $0.98 | +7.7% | $3.6B | -1.1% |
| Aug 2, 2023 | $1.14 | $1.35 | +18.4% | $4.5B | +11.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Thanked employees, customers, and suppliers. - Achieved 12 new business awards across foundational products and e-products portfolios. - Adjusted operating margin was strong at 10.5% due to cost controls. - Progressed turbine generator launch with customer visits, B sample delivery, testing, and supplier nominations for production. - Expanded portfolio to serve data center and other industrial markets with battery energy storage systems and bi-directional microgrid inverters. - Highlighted product awards in various regions and for different powertrain technologies.
Guidance
- Total 2026 sales projected in the range of $14.0 to $14.3 billion, unchanged from initial guidance. - Expected organic sales change to be down 3.5% to down 1.5% year-over-year, roughly in line with the market excluding battery sales decline. - Full-year adjusted operating margin expected in the range of 10.7 to 10.9%, with exit of charging business driving a 10 basis point improvement. - Full-year adjusted EPS expected in the range of $5 to $5.20 per diluted share, unchanged from initial guidance. - Full-year free cash flow expected in the range of $900 million to $1.1 billion.
Segment performance
In the first quarter, BorgWarner achieved sales of $3.5 billion. Excluding the decline in the battery energy system segment, organic net sales were down approximately 3% year over year, in line with the decline in the market production. Adjusted operating margin was 10.5%. Sales for the quarter were impacted by a $54 million year-over-year decline in the battery business, a $95 million organic sales decline (2.7%) in line with light vehicle market production reduction, driven by transfer case outgrowth in North America, foundational product headwinds in Europe, and timing-related e-product sales decline in China. First quarter adjusted operating income was $372 million, adjusted EPS was up 13 cents or 12%, and free cash flow was $13 million.
Analyst Q&A
Q: How translatable is the company's competency regarding commercial truck battery packs to a proper energy storage system and about quoting pipeline and turbine generator capacity expansion.
A: Battery energy storage business is portable, leveraging existing capacity, actively quoting, and decision on turbine generator capacity expansion to be made closer to second half. -
Q: On PowerGen value proposition, unit economics, and capital allocation.
A: Solves power issue, time to market is a factor, emission profile is clean, ROI and capital intensity similar to light vehicle business, capital allocation priority on organic growth, disciplined M&A process. -
Q: On battery energy storage synergy with turbine generator, turbine generator capacity, and capital allocation for industrial solution.
A: Synergy exists, decision on turbine generator capacity in second half, capital allocation priority on organic growth, disciplined M&A. -
Q: On overall guidance, puts and takes, and margin profile.
A: Can manage inflationary impact, sales and margin guide unchanged, Q1 was good start. -
Q: On PowerGen opportunity, capacity ramp, and supply chain.
A: Demand for PowerGen is high, capacity installed is two gigawatts, initial launch revenue in 2027, supply chain managed globally. -
Q: On capital allocation for data center and industrial story in inorganic sense.
A: Looking at acquisition funnel, disciplined with three criteria. -
Q: On why not raise guidance, margin, and investment in incremental products.
A: Good Q1, uncertainty in environment, margin profile managed, investment in incremental products part of strategy. -
Q: On PowerGen exclusivity, battery storage content, and service investment.
A: Endeavor can sell TurboCell product outside, battery storage content similar to CV side, investment in service side for uptime. -
Q: On PowerGen capacity shipping full two gigawatts in 2028 and China market.
A: Details on PowerGen capacity to be provided later, optimistic about China market with export sales and OEM growth.