BorgWarner Q1 Sales Up 1%, Adjusted Margin 10.5%, $185M Returned
BorgWarner posted first quarter 2026 net sales of $3.533 billion, a 1% increase year-over-year, and achieved a 10.5% adjusted operating margin, up 50 basis points. The company returned $185 million to shareholders via $150 million of share repurchases and a $35 million dividend and secured 12 new business awards.
1. First Quarter Financial Performance
In the first quarter of 2026, BorgWarner reported U.S. GAAP net sales of $3,533 million, a 1% increase compared with Q1 2025, and organic net sales declined 4.2%. U.S. GAAP operating margin was 9.5%, while adjusted operating margin rose 50 basis points to 10.5%.
2. Shareholder Returns
The company returned approximately $185 million to shareholders during the quarter, including $150 million in share repurchases and a $35 million cash dividend. Net cash provided by operations totaled $152 million, and free cash flow reached $13 million.
3. New Business Awards
BorgWarner secured 12 new business awards across its portfolio, including a seven-year contract extension for engine and machine controllers, multiple turbocharger program extensions and conquests with European OEMs, dual clutch and variable cam timing awards with Asian OEMs, and three eMotor awards. The planned 2027 turbine generator system launch remains on track with B-sample deliveries underway.
4. 2026 Guidance Maintenance
The company maintained its full-year 2026 guidance, expecting further adjusted operating margin expansion and adjusted EPS growth at the midpoint despite lower industry production volumes. This outlook reflects continued cost control efforts and portfolio diversification into energy storage and industrial inverters.