BorgWarner (NYSE:BWA) Sees Strong Trading Volume on Strong Earnings

Shares of BorgWarner Inc. (NYSE:BWA) saw an uptick in trading volume on Wednesday after the company announced better than expected quarterly earnings. 2,857,317 shares were traded during mid-day trading, an increase of 33% from the previous session’s volume of 2,142,320 shares.The stock last traded at $65.2570 and had previously closed at $53.98.

The auto parts company reported $1.35 EPS for the quarter, topping the consensus estimate of $1.15 by $0.20. The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.49 billion. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The company’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.01 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS.

BorgWarner Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be paid a dividend of $0.17 per share. The ex-dividend date is Monday, March 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner’s dividend payout ratio (DPR) is presently 107.94%.

More BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus — BorgWarner reported $1.35 EPS vs. ~ $1.15 consensus and revenue of $3.57B vs. $3.49B expected, showing year-over-year margin improvement and higher top-line. BorgWarner (BWA) Q4 Earnings and Revenues Top Estimates Press Release
• Positive Sentiment: Multiple OEM program awards boost medium/long-term EV content — BorgWarner won an 800V Integrated Drive Module (iDM) program with a premium European OEM (production 2029), expanded a global BMS program (800V-capable), secured a North American iDM + generator module contract and additional China 48V eXD and VTG turbocharger awards. These wins increase addressable content in EV/HEV platforms. iDM Europe BMS Expansion
• Positive Sentiment: Strategic diversification — BorgWarner signed a master supply agreement to supply modular turbine generator systems to a data-center developer (TurboCell/Endeavour), signaling new non-automotive revenue streams. Data Center Award
• Neutral Sentiment: FY2026 guidance roughly in line to slightly below consensus — management set EPS guidance at $5.00–$5.20 (consensus ~ $5.11) and revenue $14.0B–$14.3B (consensus ~ $14.4B). Guidance doesn’t materially raise the bar, so near-term upside may be limited absent acceleration. 2025 Results & 2026 Guidance
• Negative Sentiment: Valuation and margin context — despite the beat, BorgWarner trades at a high P/E (~101) and reported a low net margin (0.94%), leaving some investors cautious that the stock’s valuation already prices in significant future execution and EV content expansion. Metrics vs. Street

Analyst Ratings Changes

A number of research analysts have recently commented on BWA shares. Piper Sandler restated a “neutral” rating and set a $51.00 price target (down from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Wells Fargo & Company decreased their target price on BorgWarner from $54.00 to $52.00 and set an “overweight” rating for the company in a report on Tuesday, December 9th. UBS Group raised their price objective on shares of BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a report on Wednesday, January 14th. Morgan Stanley reissued an “equal weight” rating and issued a $49.00 target price (up previously from $42.00) on shares of BorgWarner in a research report on Monday, December 8th. Finally, Evercore lifted their price target on BorgWarner from $50.00 to $53.00 and gave the company an “outperform” rating in a research report on Monday, November 24th. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $47.31.

Institutional Trading of BorgWarner

A number of large investors have recently modified their holdings of BWA. Caitong International Asset Management Co. Ltd lifted its holdings in shares of BorgWarner by 1,133.3% in the second quarter. Caitong International Asset Management Co. Ltd now owns 777 shares of the auto parts company’s stock valued at $26,000 after buying an additional 714 shares during the period. Assetmark Inc. grew its stake in shares of 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 purchasing an additional 364 shares during the last quarter. Addison Advisors LLC raised its holdings in shares of BorgWarner by 1,647.8% in the 2nd quarter. Addison Advisors LLC now owns 804 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 758 shares in the last quarter. Root Financial Partners LLC acquired a new stake in BorgWarner during the third quarter valued at approximately $27,000. Finally, Twin Peaks Wealth Advisors LLC bought a new stake in BorgWarner during the second quarter worth approximately $32,000. Institutional investors and hedge funds own 95.67% of the company’s stock.

BorgWarner Stock Performance

The stock has a market cap of $13.57 billion, a price-to-earnings ratio of 101.37, a price-to-earnings-growth ratio of 1.07 and a beta of 1.09. The company’s 50-day simple moving average is $46.80 and its 200-day simple moving average is $44.08. The company has a quick ratio of 1.69, a current ratio of 2.05 and a debt-to-equity ratio of 0.63.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.