BorgWarner (NYSE:BWA) Sees Large Volume Increase Following Earnings Beat

Shares of BorgWarner Inc. (NYSE:BWA) saw unusually-high trading volume on Wednesday after the company announced better than expected quarterly earnings. Approximately 2,857,317 shares were traded during mid-day trading, an increase of 33% from the previous session’s volume of 2,142,320 shares.The stock last traded at $65.2570 and had previously closed at $53.98.

The auto parts company reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.15 by $0.20. The firm had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.49 billion. BorgWarner had a net margin of 0.94% and a return on equity of 16.72%. The company’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.01 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS.

BorgWarner Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. BorgWarner’s payout ratio is 107.94%.

Trending Headlines about BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus — BorgWarner reported $1.35 EPS vs. ~ $1.15 consensus and revenue of $3.57B vs. $3.49B expected, showing year-over-year margin improvement and higher top-line. BorgWarner (BWA) Q4 Earnings and Revenues Top Estimates Press Release
• Positive Sentiment: Multiple OEM program awards boost medium/long-term EV content — BorgWarner won an 800V Integrated Drive Module (iDM) program with a premium European OEM (production 2029), expanded a global BMS program (800V-capable), secured a North American iDM + generator module contract and additional China 48V eXD and VTG turbocharger awards. These wins increase addressable content in EV/HEV platforms. iDM Europe BMS Expansion
• Positive Sentiment: Strategic diversification — BorgWarner signed a master supply agreement to supply modular turbine generator systems to a data-center developer (TurboCell/Endeavour), signaling new non-automotive revenue streams. Data Center Award
• Neutral Sentiment: FY2026 guidance roughly in line to slightly below consensus — management set EPS guidance at $5.00–$5.20 (consensus ~ $5.11) and revenue $14.0B–$14.3B (consensus ~ $14.4B). Guidance doesn’t materially raise the bar, so near-term upside may be limited absent acceleration. 2025 Results & 2026 Guidance
• Negative Sentiment: Valuation and margin context — despite the beat, BorgWarner trades at a high P/E (~101) and reported a low net margin (0.94%), leaving some investors cautious that the stock’s valuation already prices in significant future execution and EV content expansion. Metrics vs. Street

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of BorgWarner in a report on Wednesday, January 21st. UBS Group raised their price objective on BorgWarner from $46.00 to $49.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Morgan Stanley reiterated an “equal weight” rating and set a $49.00 target price (up from $42.00) on shares of BorgWarner in a research report on Monday, December 8th. Robert W. Baird set a $55.00 price target on BorgWarner in a research report on Wednesday, January 14th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $51.00 price objective (down previously from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $47.31.

Institutional Trading of BorgWarner

A number of institutional investors have recently made changes to their positions in the business. Arjuna Capital increased its position in shares of BorgWarner by 0.6% in the fourth quarter. Arjuna Capital now owns 34,932 shares of the auto parts company’s stock worth $1,574,000 after purchasing an additional 215 shares during the period. Blackston Financial Advisory Group LLC increased its stake in shares of BorgWarner by 3.4% in the second quarter. Blackston Financial Advisory Group LLC now owns 7,970 shares of the auto parts company’s stock valued at $267,000 after buying an additional 265 shares during the period. Fifth Third Wealth Advisors LLC raised its holdings in BorgWarner by 4.1% during the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 6,832 shares of the auto parts company’s stock worth $300,000 after purchasing an additional 272 shares during the last quarter. Seeds Investor LLC boosted its position in BorgWarner by 5.7% during the fourth quarter. Seeds Investor LLC now owns 5,086 shares of the auto parts company’s stock valued at $229,000 after acquiring an additional 274 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its stake in BorgWarner by 0.4% during the fourth quarter. Nisa Investment Advisors LLC now owns 71,885 shares of the auto parts company’s stock worth $3,239,000 after purchasing an additional 281 shares during the period. Institutional investors own 95.67% of the company’s stock.

BorgWarner Stock Up 17.5%

The firm’s 50 day moving average price is $46.80 and its two-hundred day moving average price is $44.08. The company has a market cap of $13.57 billion, a P/E ratio of 101.37, a price-to-earnings-growth ratio of 1.07 and a beta of 1.09. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.69 and a current ratio of 2.05.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.