BorgWarner (BWA) Q3 2026 Earnings Report

The call was strongly positive overall. BorgWarner delivered higher margins and EPS, 33% eProduct growth, nine new business awards, strong free cash flow, substantial shareholder returns, and continued progress in data center and industrial initiatives. These positives outweighed lower overall sales, battery-business weakness, declining market production, input-cost inflation, and limited near-term visibility for some industrial programs.

For 2026, BorgWarner expects total sales in the range of $14.0 billion to $14.2 billion, a full-year sales benefit of EUR 250 million from foreign currencies, weighted end markets down 1% to 2%, organic sales change down 4% to down 2.5% year-over-year, and a battery-business decline representing roughly 170 basis point headwind to year-over-year sales growth; adjusted operating margin is expected in the range of 10.7% to 10.9%, including a $10 million to $15 million industrial R&D investment, adjusted EPS is expected in the range of $5.20 to $5.35 per diluted share, and free cash flow is expected in the range of $900 million to $1.1 billion. For Q4, revenue is expected to be closer to $3.43 billion, with a decrement in the mid-teens and $10 million in industrial R&D. For 2027, the company expects modest growth over market in its automotive business, $300 million of turbine generator revenue, and mid-teens conversion of extra growth.