BorgWarner (BWA) AI Stock Analysis

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BorgWarner

(BMV:BWA)

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Positive Factors

Strong cash generationBorgWarner’s substantial operating and free cash flow provides internal funding for product development, debt management, and shareholder returns. Strong cash generation also improves resilience through automotive-cycle volatility and supports the company’s ability to invest in electrification and industrial growth opportunities.

Negative Factors

Top-line contractionExpected organic sales contraction indicates that weaker industry production and business mix are currently offsetting growth initiatives. Sustained revenue pressure can reduce operating leverage, limit investment flexibility, and make it harder for new electrification and industrial programs to scale quickly.

BorgWarner (BWA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 10.29B
Dividend Yield: 1.12%
Average Volume (3M): 697
Price to Earnings (P/E): 21.4
Beta (1Y): -0.09
Revenue Growth: -9.92%
EPS Growth: 248.86%
Country: Mexico
Employees: 37,500
Sector: General
Sector Strength: 55
Industry: Auto - Parts

BorgWarner Business Overview & Revenue Model

Company Description

BorgWarner Inc. (BWA) is a prominent global supplier of advanced propulsion technologies, catering to a wide spectrum of vehicles including those powered by internal combustion engines, hybrids, and fully electric drivetrains. The company's operation...

BorgWarner Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 11, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Strong Third-Quarter Profitability Despite Lower Production

Third-quarter sales were just under $3.5 billion. Adjusted operating margin expanded 20 basis points to 10.9% from 10.7% a year ago, while adjusted EPS increased 12%, or $0.15, despite a declining production environment. Management attributed the result to ongoing cost-reduction actions.

Negative Updates

Overall Organic Sales Decline

The remaining organic sales decrease was $58 million, or 1.6% year over year, roughly in line with the decline in light vehicle market production. Excluding foreign-exchange effects, adjusted operating income decreased $6 million on $112 million of lower sales.

Company Guidance

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.

BorgWarner Risk Analysis

BorgWarner disclosed 37 risk factors in its most recent earnings report. BorgWarner reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

BorgWarner Peers Comparison

Overall Rating

Financial Indicators

MX:BWA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

MX:BWA and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	MX:BWA	Borgwarner Inc	1069.00	245.23	29.77%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

BorgWarner AI Stock Analysis