BorgWarner beats Q4 estimates, shares edge up

Investing.com -- BorgWarner Inc. (NYSE: BWA) reported its fourth quarter earnings on Wednesday, exceeding analyst expectations, with adjusted earnings per share of $1.35, beating the consensus estimate of $1.18.

Revenue for the quarter reached $3.57 billion, surpassing the expected $3.51 billion. The automotive supplier's shares edged up 0.4% following the announcement.

The company's fourth quarter sales increased 3.9% compared to the same period in 2024, driven primarily by growth in light vehicle electric products, despite lower industry volume and weaker performance in its Battery & Charging Systems segment. Excluding currency effects, organic sales grew 0.8% YoY. BorgWarner achieved an adjusted operating margin of 12.0% for the quarter.

"Our strong performance in 2025 demonstrates our ability to grow our electric product portfolio while maintaining disciplined cost controls across the business," said BorgWarner's CEO. "We achieved a 23% increase in light vehicle eProducts compared to 2024, positioning us well for future growth."

For fiscal year 2026, BorgWarner provided guidance below analyst expectations, projecting revenue between $14.0 billion and $14.3 billion, compared to the consensus estimate of $14.55 billion. The company expects adjusted earnings per share between $5.00 and $5.20, below the analyst consensus of $5.14. This guidance reflects anticipated headwinds from a 3% to flat decline in weighted light vehicle markets and an expected $210 million sales decline in the Battery & Charging Systems segment.

For full-year 2025, BorgWarner reported adjusted earnings per share of $4.91, up approximately 14% from 2024, while free cash flow increased 66% to $1.21 billion due to strong operating income and effective capital expenditure management.

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