A Business at a Glance
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BORGWARNER INC
BWA
$13.9B
Mkt Cap
$64.39
+0.09%
BORGWARNER INC (BWA) has a current P/E ratio of 50.3, compared to its historical median P/E of 14.3. The stock is currently considered Expensive based on its historical valuation range.
BORGWARNER INC (BWA) has a 5-year average return on invested capital (ROIC) of 7.2%. This is below average and may indicate limited pricing power.
BORGWARNER INC (BWA) has a market capitalization of $13.4B. It is classified as a large-cap stock.
Yes, BORGWARNER INC (BWA) pays a dividend with a trailing twelve-month yield of 0.97%. The company also returns capital through share buybacks, with a buyback yield of 4.91%.
Based on historical P/E analysis, BORGWARNER INC (BWA) appears expensive. The current P/E of 50.3 is 252% above its historical median of 14.3. The estimated fair value CAGR (P/E method) is -6.8%.
BORGWARNER INC (BWA) operates in the Motor Vehicle Parts & Accessories industry, within the Consumer Cyclical sector.
BORGWARNER INC (BWA) reported annual revenue of $14.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
BorgWarner is a global automotive supplier specializing in clean and efficient propulsion technologies for combustion, hybrid, and electric vehicles, serving nearly every major OEM worldwide through manufacturing facilities in Europe, the Americas, and Asia. The company operates through four reportable segments—Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems, and Battery & Charging Systems—with a balanced portfolio where eProducts (electric and hybrid-applicable technologies) represented 18% of 2025 revenue and Foundational products (combustion and hybrid technologies) represented 82%, reflecting the company's strategy to support multiple powertrain architectures as the automotive industry navigates regional EV adoption volatility. BorgWarner's primary customers are light-vehicle OEMs (passenger cars, SUVs, vans, light trucks), though it also supplies commercial-vehicle and off-highway OEMs, with turbochargers alone accounting for approximately 21% of consolidated net sales. The company's business model centers on supplying engineered components and systems that improve fuel economy, reduce emissions, and enhance vehicle performance, with products including turbochargers, eBoosters, eTurbos, emissions systems, thermal management, drivetrain controls, and battery thermal solutions. Growth is pursued through organic investment in technology-focused product development and acquisitions, with the company recently expanding into adjacent markets such as data center power generation through its Turbine Generator System, leveraging its automotive manufacturing scale and supply base to control approximately 65% of content in that emerging application.
【Navigating volume headwinds strategically】 Management expects 2026 to present a challenging demand environment with weighted end markets flat to down 3%, offset by disciplined cost management and continued execution on new product launches. The company anticipates organic sales decline of 3.5% to 1.5% year-over-year, driven primarily by a 150 basis point headwind from battery business contraction due to reduced North American incentives and weaker European demand, though light-vehicle operations are expected to track broadly in line with market performance. Despite lower volumes, management projects adjusted operating margin expansion to 10.7%–10.9% (versus 10.7% in 2025) through cost controls and the 10 basis point benefit from exiting the charging business, with the company targeting mid-teens conversion on incremental e-product growth in PowerDrive Systems. Looking beyond 2026, management is focused on launching the Turbine Generator System for data center and microgrid applications beginning in 2027, with initial-year sales expected to exceed $300 million, representing a transformational diversification opportunity that leverages BorgWarner's automotive manufacturing capabilities and supply chain. The company remains disciplined on capital allocation, expecting free cash flow of $900 million–$1.1 billion in 2026 to support balanced shareholder returns and accretive M&A opportunities that expand long-term earnings power, while maintaining confidence in its ability to deliver sustained profitable growth through its technology-focused portfolio and decentralized operating model.
| Metric | Target | Period |
|---|---|---|
| Total sales | $14.0–$14.3 billion | FY2026 |
| Adjusted operating margin | 10.7%–10.9% | FY2026 |
| Adjusted EPS | $5.00–$5.20 per diluted share | FY2026 |
| Free cash flow | $900 million–$1.1 billion | FY2026 |
| Turbine Generator System sales | more than $300 million | First year of production (2027) |
Total sales (FY2026): “We continue to project total 2026 sales in the range of $14.0 billion-$14.3 billion.”
Adjusted operating margin (FY2026): “We continue to expect our full year adjusted operating margin to be in the range of 10.7% to 10.9% compared to our 2025 adjusted operating margin of 10.7%.”
Adjusted EPS (FY2026): “we're expecting full year adjusted EPS in the range of $5.00-$5.20 per diluted share, which is unchanged compared to our initial guidance.”
Free cash flow (FY2026): “we continue to expect full year free cash flow to be in the range of $900 million-$1.1 billion”
Turbine Generator System sales (First year of production (2027)): “From a financial perspective, we expect production of the Turbine Generator System to begin to ramp up in 2027, with sales expected to be more than $300 million during the first year of production.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.3B | 14.3B | 14.1B | 14.2B | 12.6B | 11.8B |
| Net Income | 362M | 277M | 338M | 625M | 944M | 537M |
| EPS | $1.65 | $1.28 | $1.50 | $2.67 | $3.99 | $2.24 |
| Free Cash Flow | 1.2B | 1.2B | 711M | 565M | 947M | 792M |
| ROIC | 4.4% | 4.7% | 5.5% | 9.0% | 8.1% | 8.8% |
| Gross Margin | 18.9% | 18.7% | 18.8% | 18.1% | 18.7% | 18.4% |
| Debt/Equity | 0.71 | 0.74 | 0.77 | 0.66 | 0.59 | 0.64 |
| Dividends/Share | $0.62 | $0.56 | $0.44 | $0.56 | $0.68 | $0.68 |
| Operating Income | 635M | 536M | 546M | 1.2B | 1.0B | 914M |
| Operating Margin | 4.4% | 3.7% | 3.9% | 8.2% | 8.0% | 7.7% |
| ROE | 6.6% | 5.0% | 6.0% | 9.6% | 13.3% | 8.0% |
| Shares Outstanding | 208M | 216M | 225M | 234M | 237M | 240M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 8.3B | 8.0B | 9.1B | 9.8B | 10.5B | 10.2B | 10.2B | 11.8B | 12.6B | 14.2B | 14.1B | 14.3B | 14.3B |
| Gross Margin | 21.1% | 21.2% | 21.3% | 21.6% | 21.2% | 20.7% | 18.8% | 18.4% | 18.7% | 18.1% | 18.8% | 18.7% | 18.9% |
| R&D | 336M | 307M | 343M | 408M | 440M | 413M | 476M | 586M | 701M | 717M | 736M | 710M | 705M |
| SG&A | 699M | 662M | 818M | 899M | 946M | 873M | 951M | 1.1B | 1.3B | 1.3B | 1.4B | 1.3B | 1.3B |
| EBIT | 964M | 888M | 973M | 1.1B | 1.2B | 1.3B | 618M | 914M | 1.0B | 1.2B | 546M | 536M | 635M |
| Op. Margin | 11.6% | 11.1% | 10.7% | 10.9% | 11.3% | 12.8% | 6.1% | 7.7% | 8.0% | 8.2% | 3.9% | 3.7% | 4.4% |
| Net Income | 656M | 577M | 595M | 440M | 931M | 746M | 500M | 537M | 944M | 625M | 338M | 277M | 362M |
| Net Margin | 7.9% | 7.2% | 6.6% | 4.5% | 8.8% | 7.3% | 4.9% | 4.5% | 7.5% | 4.4% | 2.4% | 1.9% | 2.5% |
| Non-Recurring | 101M | 66M | -88M | -13M | 41M | 65M | 220M | 79M | 91M | 113M | 645M | 522M | 88M |
| Returns on Capital | |||||||||||||
| ROIC | 16.0% | 11.0% | 10.4% | 10.0% | 14.1% | 11.4% | 4.6% | 8.8% | 8.1% | 9.0% | 5.5% | 4.7% | 4.4% |
| ROE | 18.3% | 16.1% | 17.6% | 12.7% | 23.4% | 16.7% | 9.0% | 8.0% | 13.3% | 9.6% | 6.0% | 5.0% | 6.6% |
| ROA | 9.3% | 7.0% | 6.6% | 4.7% | 9.4% | 7.5% | 3.9% | 3.3% | 5.6% | 4.0% | 2.4% | 2.0% | 2.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 802M | 868M | 1.0B | 1.2B | 1.1B | 1.0B | 1.2B | 1.3B | 1.6B | 1.4B | 1.4B | 1.6B | 1.7B |
| Free Cash Flow | 239M | 291M | 535M | 620M | 580M | 527M | 743M | 792M | 947M | 565M | 711M | 1.2B | 1.2B |
| Owner Earnings | 439M | 508M | 601M | 720M | 642M | 527M | 575M | 682M | 953M | 757M | 647M | 863M | 947M |
| CapEx | 563M | 577M | 501M | 560M | 546M | 481M | 441M | 514M | 622M | 832M | 671M | 469M | 493M |
| Maint. CapEx | 330M | 320M | 391M | 408M | 431M | 439M | 568M | 574M | 552M | 582M | 673M | 719M | 709M |
| Growth CapEx | 233M | 257M | 109M | 152M | 115M | 42M | 0 | 0 | 70M | 250M | 0 | 0 | 0 |
| D&A | 330M | 320M | 391M | 408M | 431M | 439M | 568M | 574M | 552M | 582M | 673M | 719M | 709M |
| CapEx/OCF | 70.2% | 66.5% | 48.3% | 47.4% | 48.5% | 47.7% | 37.2% | 51.0% | 52.7% | 59.6% | 48.6% | 28.5% | 28.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 116M | 117M | 113M | 124M | 142M | 140M | 146M | 162M | 161M | 130M | 98M | 119M | 130M |
| Dividend Yield | 1.1% | 1.3% | 2.0% | 1.7% | 1.9% | 2.2% | 2.4% | 1.8% | 2.1% | 1.4% | 1.3% | 1.5% | 1.0% |
| Share Buybacks | 140M | 350M | 288M | 100M | 150M | 100M | 216M | 0 | 240M | 177M | 402M | 508M | 658M |
| Buyback Yield | 1.3% | 4.2% | 3.9% | 1.0% | 2.3% | 1.2% | 2.8% | N/A | 3.1% | 2.2% | 5.6% | 5.2% | 4.9% |
| Stock-Based Comp | 32M | 40M | 44M | 52M | 53M | 42M | 41M | 50M | 64M | 58M | 62M | 66M | 62M |
| Debt Repayment | 432M | 30M | 194M | 20M | 66M | 204M | 331M | 699M | 13M | 451M | 525M | 409M | 409M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.2B | 2.9B | 2.9B | 3.1B | 2.8B | 2.7B | 2.3B | 2.6B | 2.9B | 2.3B | 2.2B | 1.7B | 3.9B |
| Cash & Equiv. | 798M | 578M | 444M | 545M | 739M | 832M | 1.6B | 1.8B | 1.3B | 1.5B | 2.1B | 2.3B | -7.0M |
| Long-Term Debt | 716M | 2.1B | 2.0B | 2.1B | 1.9B | 1.7B | 3.7B | 4.3B | 4.1B | 3.7B | 3.8B | 3.9B | 3.9B |
| Debt/Equity | 0.55 | 0.99 | 1.03 | 0.97 | 0.85 | 0.75 | 0.62 | 0.64 | 0.59 | 0.66 | 0.77 | 0.74 | 0.71 |
| Interest Coverage | 26.5 | 14.7 | 11.5 | 15.1 | 20.2 | 23.7 | 8.5 | 11.1 | 14.2 | 15.9 | 6.5 | 5.4 | 635.0 |
| Equity | 3.6B | 3.6B | 3.2B | 3.7B | 4.2B | 4.7B | 6.4B | 6.9B | 7.2B | 5.8B | 5.5B | 5.4B | 5.5B |
| Total Assets | 7.2B | 9.2B | 8.8B | 9.8B | 10.1B | 9.7B | 16.0B | 16.6B | 17.0B | 14.5B | 14.0B | 13.8B | 13.7B |
| Total Liabilities | 3.5B | 5.6B | 5.5B | 6.0B | 5.8B | 4.9B | 9.3B | 9.3B | 9.5B | 8.4B | 8.3B | 8.2B | 8.0B |
| Intangibles | 151M | 544M | 464M | 493M | 439M | 402M | 1.1B | 1.1B | 619M | 564M | 474M | 394M | 377M |
| Retained Earnings | 3.3B | 3.7B | 4.2B | 4.5B | 5.3B | 5.9B | 6.3B | 6.7B | 7.5B | 6.2B | 6.4B | 6.6B | 6.8B |
| Working Capital | 803M | 778M | 820M | 1.1B | 1.4B | 1.5B | 2.4B | 2.8B | 2.4B | 2.5B | 2.9B | 3.5B | 3.6B |
| Current Assets | 3.0B | 3.1B | 2.9B | 3.5B | 3.8B | 3.8B | 6.2B | 6.6B | 6.6B | 6.2B | 6.5B | 6.8B | 6.7B |
| Current Liabilities | 2.2B | 2.4B | 2.1B | 2.4B | 2.4B | 2.3B | 3.8B | 3.8B | 4.2B | 3.8B | 3.6B | 3.3B | 3.2B |
| Per Share Data | |||||||||||||
| EPS | 2.86 | 2.56 | 2.76 | 2.08 | 4.44 | 3.61 | 2.34 | 2.24 | 3.99 | 2.67 | 1.50 | 1.28 | 1.65 |
| Owner EPS | 1.92 | 2.25 | 2.79 | 3.40 | 3.06 | 2.55 | 2.69 | 2.84 | 4.03 | 3.23 | 2.87 | 3.99 | 4.55 |
| Book Value | 15.77 | 15.76 | 14.93 | 17.57 | 20.15 | 22.77 | 30.08 | 28.98 | 30.53 | 24.90 | 24.55 | 25.15 | 26.30 |
| Cash Flow/Share | 3.50 | 3.85 | 4.80 | 5.58 | 5.37 | 4.88 | 5.54 | 5.45 | 6.63 | 5.97 | 6.13 | 7.62 | 5.14 |
| Dividends/Share | 0.51 | 0.52 | 0.53 | 0.59 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.56 | 0.44 | 0.56 | 0.62 |
| Shares Out. | 229.3M | 225.5M | 215.6M | 211.5M | 209.7M | 206.6M | 213.7M | 239.7M | 236.6M | 234.1M | 225.3M | 216.4M | 208.3M |
| Valuation | |||||||||||||
| P/E Ratio | 16.5 | 13.7 | 12.4 | 22.0 | 6.9 | 11.0 | 15.5 | 18.9 | 8.3 | 13.1 | 21.1 | 35.5 | 39.0 |
| P/FCF | 39.8 | 25.3 | 12.1 | 13.8 | 9.8 | 13.7 | 9.2 | 11.3 | 8.3 | 14.5 | 10.0 | 8.3 | 10.9 |
| EV/EBIT | 12.4 | 10.9 | 9.1 | 10.1 | 6.1 | 6.8 | 13.4 | 11.0 | 10.9 | 9.0 | 17.6 | 21.3 | 27.2 |
| Price/Book | 3.0 | 2.4 | 2.3 | 2.6 | 1.5 | 1.7 | 1.2 | 1.5 | 1.1 | 1.4 | 1.3 | 1.8 | 2.4 |
| Price/Sales | 1.4 | 1.2 | 0.7 | 0.9 | 0.8 | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 | 0.5 | 0.5 | 0.9 |
| FCF Yield | 2.2% | 3.5% | 7.3% | 6.4% | 9.0% | 6.4% | 9.6% | 7.8% | 12.0% | 6.9% | 10.0% | 12.0% | 9.1% |
| Market Cap | 10.8B | 8.4B | 7.4B | 9.7B | 6.5B | 8.2B | 7.8B | 10.1B | 7.9B | 8.2B | 7.1B | 9.8B | 13.4B |
| Avg. Price | 44.17 | 38.97 | 26.24 | 34.85 | 36.19 | 31.21 | 28.41 | 37.94 | 32.42 | 38.60 | 32.79 | 35.80 | 64.39 |
| Year-End Price | 41.48 | 32.65 | 30.07 | 40.35 | 27.13 | 35.03 | 32.02 | 37.20 | 33.26 | 34.89 | 31.62 | 45.44 | 64.39 |
BORGWARNER INC passes 2 of 9 quality checks, indicating weak fundamentals.
BORGWARNER INC trades at 50.3x trailing earnings, compared to its 15-year median P/E of 14.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 11.3x vs a median of 10.6x. The company's 5-year average ROIC is 7.2% with a gross margin of 18.5%. Total shareholder yield (dividends + buybacks) is 5.9%. At current prices, the estimated annualized return to fair value is +7.2%.
BORGWARNER INC (BWA) has a net profit margin of 1.9%. This is a modest margin.
BORGWARNER INC (BWA) generated $1.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
BORGWARNER INC (BWA) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
BORGWARNER INC (BWA) reported earnings per share (EPS) of $1.28 in its most recent fiscal year.
BORGWARNER INC (BWA) has a return on equity (ROE) of 5.0%. This indicates moderate shareholder returns.
BORGWARNER INC (BWA) has a 5-year average gross margin of 18.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for BORGWARNER INC (BWA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
BORGWARNER INC (BWA) has a book value per share of $25.15, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to present a challenging demand environment with weighted end markets flat to down 3%, offset by disciplined cost management and continued execution on new product launches. The company anticipates organic sales decline of 3.5% to 1.5% year-over-year, driven primarily by a 150 basis point headwind from battery business contraction due to reduced North American incentives and weaker European demand, though light-vehicle operations are expected to track broadly in line with market performance. Despite lower volumes, management projects adjusted operating margin expansion to 10.7%–10.9% (versus 10.7% in 2025) through cost controls and the 10 basis point benefit from exiting the charging business, with the company targeting mid-teens conversion on incremental e-product growth in PowerDrive Systems. Looking beyond 2026, management is focused on launching the Turbine Generator System for data center and microgrid applications beginning in 2027, with initial-year sales expected to exceed $300 million, representing a transformational diversification opportunity that leverages BorgWarner's automotive manufacturing capabilities and supply chain. The company remains disciplined on capital allocation, expecting free cash flow of $900 million–$1.1 billion in 2026 to support balanced shareholder returns and accretive M&A opportunities that expand long-term earnings power, while maintaining confidence in its ability to deliver sustained profitable growth through its technology-focused portfolio and decentralized operating model.
Based on recent SEC filings and earnings calls, BORGWARNER INC (BWA) has provided the following forward guidance: Total sales: $14.0–$14.3 billion (FY2026); Adjusted operating margin: 10.7%–10.9% (FY2026); Adjusted EPS: $5.00–$5.20 per diluted share (FY2026); Free cash flow: $900 million–$1.1 billion (FY2026); Turbine Generator System sales: more than $300 million (First year of production (2027)).