BorgWarner Inc. BWA

Consumer DiscretionaryAutomobiles & Auto PartsUnited States of America

Last close 51.71 USD on Nov 3, 2026, +15.7% year to date

Quant rating

Quant rating B Rank 134 of 344 in Consumer Discretionary

Growth D 247 of 344
Valuation B 52 of 344
Quality B 99 of 344
Revisions C 163 of 344
Momentum C 229 of 344

Wall Street consensus Buy (1.94)Average target 74.68 USD +44.4%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 10.4B
Enterprise value: 12.0B
52-week range: 40.75 – 78.75
3-year range: 24.84 – 78.75
Dividend yield: 1.31%
Beta (5 years): 1.20
Shares outstanding: 201M
Next earnings: Feb 9, 2027

About the company

BorgWarner Inc. is engaged in clean technology solutions for combustion, hybrid and electric vehicles. The Company operates in four segments. The Turbos & Thermal Technologies’ technologies include turbochargers, e-boosters, e-turbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, among others. The Drivetrain & Morse Systems segment’s products include control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems. The PowerDrive Systems segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, and others. The Battery & Charging Systems segment’s products include lithium-ion battery systems for electrified bus, truck and off-highway applications and DC fast chargers suitable for all types of electric vehicles.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	14,316	14,086	14,198	12,635	11,803	–
Revenue growth	1.6%	−0.8%	12.4%	7.0%	16.1%	7.1%
EPS (basic, normalized)	4.91	4.32	3.75	4.60	4.15	–
EPS growth	13.7%	15.2%	−18.5%	10.8%	–	–
Gross margin	19.3%	18.8%	18.1%	18.7%	18.4%	18.7%
Net margin	1.9%	2.6%	4.5%	5.0%	2.9%	3.4%
ROE	5.0%	6.5%	9.7%	9.0%	5.1%	7.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	1,583
Current ratio	1.41x
Long-term debt (mil)	1,901
Net debt (mil)	1,619
Total equity (mil)	5,671
Net debt / equity	0.29x
Net debt / EBITDA	0.72x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	14,316	+1.6%	0.8x	2,256	+13.4%	5.3x	4.91	+13.7%	10.5x
2026	14,129	−1.3%	0.8x	2,141	−5.1%	5.6x	5.27	+7.4%	9.8x
2027	14,709	+4.1%	0.8x	2,270	+6.0%	5.3x	5.93	+12.5%	8.7x
2028	15,672	+6.5%	0.8x	2,422	+6.7%	5.0x	6.85	+15.5%	7.5x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	14,129	−0.5%	−0.4%	−0.6%	5.27	+1.1%	+1.5%	+1.6%
2027	14,709	−1.0%	−0.9%	−1.2%	5.93	−0.4%	+1.4%	+1.4%
2028	15,672	−1.4%	−1.6%	+0.7%	6.85	−0.9%	+0.2%	+5.1%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	3,595	3,603	3,449	3,439	3,515	3,638	3,591	3,572	3,533	3,648
Sales mean (mil)	3,509	3,706	3,508	3,449	3,402	3,610	3,589	3,526	3,494	3,578
Surprise	+2.4%	−2.8%	−1.7%	−0.3%	+3.3%	+0.8%	+0.1%	+1.3%	+1.1%	+2.0%
EPS reported	1.03	1.19	1.09	1.01	1.11	1.21	1.24	1.35	1.24	1.42
EPS mean	0.87	1.01	0.92	0.96	0.98	1.08	1.16	1.19	1.17	1.28
Surprise	+18.3%	+17.7%	+17.9%	+5.7%	+13.7%	+11.7%	+6.9%	+13.9%	+5.9%	+11.2%

Peer comparison Automobiles & Auto Parts

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
BWA BorgWarner Inc.	10.4B	0.72x	1.9%	1.83x	9.8x	8.7x	5.6x	5.3x
6902 DENSO CORPORATION	34.3B	0.13x	5.9%	0.91x	12.0x	10.3x	6.1x	5.6x
TSLA Tesla Inc	1.58T	−2.42x	4.0%	17.64x	237.4x	188.9x	108.5x	88.5x
CMI Cummins Inc	68.9B	0.83x	8.4%	5.36x	16.9x	14.5x	10.8x	9.5x
GM General Motors Co	74.5B	4.15x	1.7%	1.19x	6.6x	6.0x	7.8x	7.2x
F Ford Motor Co	49.2B	8.83x	−4.4%	1.41x	6.5x	6.6x	11.5x	11.6x
Mean		2.04x	2.9%	4.72x	48.2x	39.2x	25.0x	21.3x
Median		0.77x	3.0%	1.62x	10.9x	9.5x	9.3x	8.3x

Technical analysis

1M−14.6%
3M−18.1%
1Y+19.4%
3Y+61.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, BorgWarner Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	14,316	14,086	14,198	12,635	11,803	10,165
Cost of revenue	11,555	11,438	11,630	10,266	9,630	8,255
Gross profit	2,761	2,648	2,568	2,369	2,173	1,910
Selling, general & administrative expenses	594	614	599	589	499	475
Research & development	710	736	717	701	586	476
Depreciation/amortization	–	–	–	–	–	38.0
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	925	747	75.0	74.0	205	307
Other operating expenses	−4.0	−5.0	−11.0	−4.0	−11.0	−4.0
Operating income	536	556	1,188	1,009	894	618
Net interest income (expense)	−1.0	−4.0	−182	−96.0	−391	339
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−11.0	−13.0	−15.0	0	7.0	7.0
Net income before taxes	524	539	991	913	510	964
Provision for taxes	189	111	289	195	65.0	397
Minority interest	−58.0	−61.0	−70.0	−82.0	−102	−67.0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	277	367	632	636	343	500
Extraordinary items	0	−29.0	−7.0	308	194	–
Net income	277	338	625	944	537	500
EBIT, normalized	1,470	1,303	1,263	1,083	1,099	925
EBITDA, normalized	2,189	1,976	1,845	1,635	1,673	1,493
Basic EPS, normalized	4.91	4.32	3.75	4.60	4.15	–

Balance sheet in millions of USD, fiscal years

Balance sheet, BorgWarner Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	2,313	2,094	1,534	1,078	1,841	1,650
Receivables	2,977	2,880	3,127	2,485	2,915	2,935
Total inventory	1,207	1,251	1,313	1,217	1,534	1,286
Prepaid expenses	225	205	137	120	172	240
Other current assets	73.0	91.0	106	1,717	135	56.0
Total current assets	6,795	6,521	6,217	6,617	6,597	6,167
Property, plant & equipment	3,481	3,752	3,926	3,532	4,580	4,802
Goodwill	2,055	2,357	3,013	2,978	3,279	2,627
Intangibles	394	474	564	619	1,091	1,096
Long-term investments	310	315	308	763	428	769
Note receivable	69.0	64.0	56.0	56.0	102	51.0
Other long-term assets	665	510	369	2,429	498	517
Total assets	13,769	13,993	14,453	16,994	16,575	16,029
Liabilities
Accounts payable	1,996	2,032	2,546	2,146	2,276	2,352
Payable/accrued	–	–	–	–	–	–
Accrued expenses	863	741	705	638	891	886
Short-term debt	3.0	61.0	70.0	58.0	60.0	43.0
Current portion of long-term debt	2.0	337	3.0	2.0	6.0	6.0
Other current liabilities	418	475	443	1,392	565	523
Total current liabilities	3,282	3,646	3,767	4,236	3,798	3,810
Long-term debt	3,894	3,763	3,707	4,140	4,261	3,738
Minority interest	172	174	238	284	314	296
Other liabilities	979	878	913	1,110	1,254	1,757
Total liabilities	8,327	8,461	8,625	9,770	9,627	9,601
Shareholders' equity
Preferred stock	0	0	–	–	0	0
Common stock	3.0	3.0	3.0	3.0	3.0	3.0
Additional paid-in capital	2,676	2,674	2,689	2,675	2,637	2,614
Retained earnings (accumulated deficit)	6,570	6,412	6,152	7,454	6,671	6,296
Treasury stock	−3,008	−2,537	−2,188	−2,032	−1,812	−1,834
Other equity	−799	−1,020	−828	−876	−551	−651
Total equity	5,442	5,532	5,828	7,224	6,948	6,428
Total liabilities & shareholders' equity	13,769	13,993	14,453	16,994	16,575	16,029

Cash flow statement in millions of USD, fiscal years

Cash flow statement, BorgWarner Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	335	399	695	1,026	639	567
Depreciation, depletion & amortization	719	673	582	552	574	568
Deferred taxes	−133	−156	−44.0	−76.0	−96.0	123
Non-cash items	761	644	172	220	374	−393
Changes in working capital	−34.0	−208	−93.0	−152	−184	319
Cash from operations	1,648	1,352	1,312	1,570	1,307	1,184
Investing activities
Capital expenditures	−469	−671	−832	−622	−516	−461
Other investing cash flows	101	68.0	153	−797	−880	−405
Cash from investing	−368	−603	−679	−1,419	−1,396	−866
Financing activities
Financing cash flow items	−75.0	−150	303	−158	−139	−56.0
Cash dividends paid	−119	−98.0	−130	−161	−162	−146
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−922	81.0	−610	−248	587	639
Cash from financing	−1,116	−167	−437	−567	286	437
Foreign exchange effects	55.0	−22.0	0	−90.0	−3.0	63.0
Net change in cash	219	560	196	−506	194	818
Free cash flow	1,179	681	480	948	791	723

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 3, 2026 after market close.