| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 33.0x | 17.8x | Top tier | |
Growth | 55 | 2.2% | 7.1% | Around median | |
Quality | 54 | 4.9% | 4.5% | Around median | |
Safety | 71 | 1.2x | 2.6x | Top tier | |
Capital Return | 43 | 1.02% | 2.12% | Around median | |
Momentum | 78 | 51.7% | 2.9% | Top tier | |
Sentiment | 78 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
BorgWarner develops powertrain and energy management technologies for automotive customers, and its portfolio includes solutions for internal combustion engines, hybrids, and fully electric vehicles. Light-vehicle operations represent more than 80% of sales, with revenue coming from foundational products such as all-wheel-drive systems, variable valve timing, and turbocharging technologies, as well as electric products such as integrated drive modules and high-voltage inverters. The company is also building industrial revenue streams for data centers, including turbine generators, battery energy storage systems, and microgrid inverters, although most of these products remain in the development or production qualification stage.
In fiscal 2026 Q2, revenue was $3.6 billion and gross profit was $721 million, equivalent to a gross margin of approximately 20.0%, while net income was $277 million and earnings per share according to EDGAR were approximately $1.34. On an adjusted basis, the company recorded operating income of $413 million and an operating margin of 11.3%, compared with $373 million and a margin of 10.3% in fiscal 2025 Q2, while adjusted earnings per share increased 17%. Reported sales were nearly flat year over year; currency added $54 million, the battery business reduced sales by $62 million, and the remaining organic growth was $18 million, or 0.5%, supported by transfer-case volumes in North America.
During the twelve months ended in fiscal 2026, BorgWarner recorded revenue of $14.3 billion, gross profit of $2.7 billion, and net income of $362 million. The fiscal 2026 Q2 mix shows that profitability improved through cost reductions despite stagnant revenue: the foundational TTT and DMS businesses contributed approximately 60 basis points of margin improvement, the BES business, restructuring, and the exit from the charging business added 20 basis points, and another 20 basis points came from cost discipline and lower corporate costs.
The average analyst price target is $84, with a consensus rating of “Buy” and a wide target range of $71 to $95; the average is approximately 6.6% above the 52-week range high of $78.82, while the highest target exceeds that high by approximately 20.5%. In contrast, the lowest target of $71 falls within the 52-week range of $40.50–$78.82, reflecting meaningful disagreement about the value that data center opportunities could add relative to declining organic sales and the battery business.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
BorgWarner's revenue was approximately $3.6 billion, and according to EDGAR it recorded gross profit of $721 million, net income of $277 million, and earnings per share of $1.34. On an adjusted basis, operating margin increased to 11.3% from 10.3% in fiscal 2025 Q2, and adjusted earnings per share increased 17%. The improvement came primarily from cost reductions, BES restructuring, and the exit from the charging business, with margin expansion across all business units.
The company expects sales between $14.0 billion and $14.3 billion and an organic change ranging from a decline of 3.5% to a decline of 1.5%. It maintained its adjusted operating margin range at 10.7%–10.9% and free cash flow at $900 million–$1.1 billion. It raised its adjusted earnings per share range to $5.05–$5.30, with the increase driven primarily by share repurchases in the first half of fiscal 2026.
BorgWarner is targeting the launch of its turbine generator in 2027 with announced revenue of $300 million and production capacity of 2 gigawatts. The product achieved CARB emissions levels, while the remaining steps included UL certification, qualification and reliability testing, and production ramp-up. In parallel, the company is developing battery storage systems targeted for production readiness in 2027 and microgrid inverters ranging from 400 to 1,500 volts.
Automated analysis for informational purposes only — not investment advice.
The contracts spanned foundational and electric products, including eTurbo, VCT valve timing, transfer cases, integrated drive modules, and high-voltage inverters. Production of the transfer case for a Chinese SUV begins in fiscal 2026 Q4, while production of the 3-in-1 integrated drive module begins in 2027. The 2029 programs include an eTurbo system for a European hybrid vehicle and extensions for inverters designed for plug-in hybrid applications and 800-volt electric vehicles.
Light vehicles represent more than 80% of BorgWarner's sales, so results are affected by automotive production, which the company expects to be flat or down as much as 3% in fiscal 2026. The company expects organic sales to decline by 1.5%–3.5%, along with pressure of approximately 170 basis points from the battery business due to weak European demand and the absence of incentives in North America. The data center plan also requires completing certifications and testing and ramping up production before the turbine generator revenue target of $300 million can be achieved in 2027.
The company generated free cash flow of $492 million in fiscal 2026 Q2. During the first half of fiscal 2026, it repurchased $250 million of shares and paid $70 million in cash dividends, while the total amount returned to shareholders in the quarter alone was approximately $134 million. The board increased the repurchase authorization by $1 billion, bringing total available capacity to $1.35 billion through 2029.
