BorgWarner posts $3.57B Q4 revenue, $1.35 EPS, Deutsche Bank sees 24% upside
BorgWarner reported Q4 revenue of $3.57 billion, a 3.9% year-over-year increase, with EPS of $1.35 beating the $1.16 consensus and net margin of 0.94%. Deutsche Bank set a $82 price target for the EV powertrain supplier, implying a 24.05% upside and guiding FY26 EPS at 5.00–5.20.
1. Q4 Financial Results
BorgWarner delivered Q4 revenue of $3.57 billion, up 3.9% from the prior year, driven by increased demand for electric vehicle powertrain components. Adjusted EPS came in at $1.35, surpassing analyst estimates of $1.16, while the company achieved a net margin of 0.94% and a return on equity of 16.72%.
2. Analyst Price Target
Deutsche Bank established a new price target of $82 for BorgWarner shares, reflecting confidence in the firm's expanding role in high-voltage EV systems. The $82 target implies a 24.05% upside from the current trading level, highlighting expected growth in integrated drive module contracts and EV component sales.
3. Fiscal Year 2026 Guidance
Management set FY26 EPS guidance at $5.00–5.20, underscoring confidence in sustained margin expansion and revenue growth. The outlook factors in scaling of 800 V powertrain programs in Europe and North America, along with continued cost controls and operational efficiencies.
4. Stock Reaction and Metrics
Following the results and analyst update, trading volume surged, with shares climbing toward the $66 mark. The stock’s 52-week range stands between $24.40 and $68.82, and market capitalization is approximately $14.3 billion, reflecting renewed investor interest in BorgWarner’s electric mobility strategy.