BorgWarner Q4 EPS Surges to $1.35, Sales Climb 3.9% to $3.57B
BorgWarner reported Q4 adjusted EPS of $1.35, topping the $1.16 estimate, while net sales rose 3.9% to $3.57B, exceeding the $3.51B consensus. Drivetrain & Morse Systems operating income jumped to $271M from $240M last year, and the company forecast 2026 net sales of $14.1-14.3B with EPS of $5.00-5.20.
1. Q4 Financial Results
BorgWarner delivered adjusted earnings of $1.35 per share for Q4, well above the $1.16 estimate and up from $1.01 a year earlier. Net sales reached $3.57 billion, a 3.9% year-over-year increase that outpaced the $3.51 billion consensus.
2. Segment Performance
Turbos & Thermal Technologies generated $1.40 billion in sales and $198 million in adjusted operating income. Drivetrain & Morse Systems posted $1.41 billion in sales with operating income of $271 million. PowerDrive Systems sales rose to $623 million with $28 million in operating income, and Battery & Charging Systems delivered $149 million in sales and $2 million in income.
3. Balance Sheet and Cash Flow
Cash and equivalents totaled $2.31 billion at year-end, up from $2.09 billion, while long-term debt increased to $3.89 billion. Operating cash flow was $619 million, capital expenditures were $162 million, and free cash flow reached $470 million.
4. 2026 Guidance
For full-year 2026, the company anticipates net sales of $14.1–14.3 billion, adjusted operating margin of 10.7–10.9%, and EPS of $5.00–5.20. It projects operating cash flow of $1.6–1.7 billion and free cash flow between $900 million and $1.1 billion.