BorgWarner beats Q3 adjusted EPS estimates, lifts 2026 outlook
BWA•BorgWarner reported Q3 adjusted EPS of $1.39, above the $1.25 analyst estimate, while revenue fell 2.9% to $3.49 billion and slightly missed expectations. It raised its 2026 adjusted EPS guidance to $5.20-$5.35 and expects net sales of $14.0 billion-$14.2 billion.
1. Quarterly results
BorgWarner's Q3 revenue fell 2.9% to $3.49 billion, slightly below the $3.51 billion analyst estimate. Adjusted EPS rose 12% to $1.39, beating the $1.25 estimate; reported EPS was $1.08.
2. 2026 outlook
The company raised its 2026 adjusted EPS guidance to $5.20-$5.35 from $5.05-$5.30. It expects 2026 net sales of $14.0 billion-$14.2 billion, compared with $14.3 billion in 2025, and an adjusted operating margin of 10.7%-10.9%.
3. Factors affecting results
BorgWarner attributed the revenue decline to lower market production volumes and reduced Battery Energy Systems segment sales. It said tighter cost controls helped lift margins, while a lower effective tax rate and reduced share count from buybacks mainly drove higher adjusted EPS.
