BorgWarner raises EPS guidance, adds $1B to share buyback program

BorgWarner Inc. (NYSE: BWA) reported second-quarter 2026 net sales of $3,648 million, a 0.3% increase from the same period in 2025, according to a company press release. Organic net sales declined 1.2% year-over-year, though excluding a roughly $60 million drop in Battery Energy Systems segment sales, organic net sales were up modestly.

Net earnings attributable to BorgWarner reached $277 million, or $1.34 per diluted share, up from $224 million, or $1.03 per diluted share, in the second quarter of 2025. Adjusted earnings per diluted share were $1.42, a 17.4% increase from $1.21 in the prior-year period. Adjusted operating income was $413 million, representing an adjusted operating margin of 11.3%, up 100 basis points year-over-year. Free cash flow for the quarter was $492 million.

The company's board authorized a $1 billion increase to its share repurchase program, bringing the total authorization to approximately $1.35 billion, intended for use through 2029. During the quarter, BorgWarner repurchased approximately $100 million of its shares and paid a $34 million cash dividend.

For full-year 2026, BorgWarner raised its adjusted earnings per diluted share guidance to a range of $5.05 to $5.30, up from a prior range of $5.00 to $5.20. The increase was attributed to the impact of share repurchases in the first half of 2026. Net sales guidance remains $14.0 billion to $14.3 billion, with adjusted operating margin expected between 10.7% and 10.9%. Full-year free cash flow is projected at $900 million to $1.1 billion.

BorgWarner also announced seven new business awards, including an eTurbo contract with a major European OEM for a hybrid vehicle application with production expected in 2029, two inverter extension awards with a European OEM for plug-in hybrid and 800V battery-electric vehicles also starting in 2029, and an Integrated Drive Module award with a global OEM set for 2027 production.

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