EarningsQ2 2026 Earnings Report
MX:BWA Q2 2026 EPS Results
Actual EPS$26.15
Consensus EPS$23.59
Beat/MissBeat by +$2.56
One Year Ago EPS$22.28
MX:BWA Q2 2026 Revenue Results
Actual Revenue$67.16B
Expected Revenue$65.97B
Beat/MissBeat by +$1.19B
YoY Revenue Growth+0.25%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:BWA Upcoming Earnings
BorgWarner's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:BWA Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong operational execution: flat reported sales with modest organic growth excluding BES, 100 basis points of adjusted margin expansion, 17% adjusted EPS growth, robust free cash flow and an enlarged share buyback authorization. Management reinforced progress on strategic industrial initiatives (turbine generator, BESS, inverters) with several product milestones and seven new awards, and raised R&D to accelerate these opportunities. Offsetting this optimism are near-term headwinds from the Battery Energy Systems segment, an expected organic sales decline for the year (-3.5% to -1.5%), decremental conversion risk on lower volumes, and timing/scale risks for industrial market ramps. Overall, the positive financial execution, cash return actions and tangible industrial progress materially outweigh the headwinds.Company Guidance
Solid top-line and organic performance
Q2 sales of over $3.6 billion; organic net sales excluding the Battery Energy Systems (BES) decline were up modestly year-over-year (organic increase of $18 million, ~0.5%), modestly outperforming the decline in light-vehicle market production.
Strong margin and operating income expansion
Adjusted operating income increased to $413 million (11.3% adjusted operating margin) from $373 million (10.3% last year), delivering a 100 basis point expansion in adjusted operating margin and approximately a $40 million (≈10.7%) rise in adjusted operating income year-over-year.
Meaningful EPS growth and guidance raise
Adjusted EPS grew 17% year-over-year in Q2. Company increased full-year adjusted EPS guidance to $5.05–$5.30 (up from $5.00–$5.20), with the midpoint representing ~5% growth versus 2025 adjusted EPS.
Very strong free cash flow and shareholder returns
Generated $492 million of free cash flow in Q2. Returned approximately $134 million to shareholders in the quarter (share repurchases and dividend). Repurchased ~$650 million over the past four quarters (~5% of market cap), and Board expanded buyback authorization to $1.35 billion (≈10% of market cap).
All business units expanded margins and cost control tailwinds
Every business unit expanded operating margins in the quarter; cost reduction actions and lower corporate costs provided additional margin tailwinds. Exit of the charging business contributed ~$7 million to operating income year-over-year.
Multiple product awards reinforcing technology leadership
Announced 7 new business awards across foundational and eProducts: eTurbo award (European OEM, production 2029), torque-on-demand case (Chinese OEM, SOP Q4 2026), VCT wins (Europe & China), integrated drive module (iDM, production 2027) and high-voltage inverter extensions (production 2029).
Progress and early traction in data center / industrial markets
Turbine generator (TG) testing confirmed CARB-level emissions; UL component certification process advancing (component certification start expected in September); final assembly plant footprint largely complete and capex installation to begin in Q3. Announced ~2 GW capacity and initial TG revenue target of ~$300M in 2027. Battery Energy Storage Systems and microgrid inverters advancing toward production readiness (BESS production ready expected 2027; 4 customers received inverter samples; developing Gen2 designs and expanding voltage range 400–1,500V).
Maintained / improved full-year financial outlook
Maintained full-year sales ($14.0B–$14.3B), adjusted operating margin (10.7%–10.9%), and free cash flow guidance ($900M–$1.1B), while raising full-year adjusted EPS guidance to $5.05–$5.30 driven by share repurchases and operational performance. FX expected to provide a ~$175M sales benefit versus 2025.
MX:BWA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed