BorgWarner Inc. (BWA) AI Stock Analysis

BorgWarner Inc. is a global provider of solutions for combustion, hybrid, and electric vehicles across the automotive industry. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal management, battery modules, and cabin heaters. E-Propulsion & Drivetrain delivers rotating electrical components, power electronics, and control modules. The Fuel Injection segment develops components for gasoline and diesel systems, while the Aftermarket segment supplies service customers with maintenance tools, diagnostics, and engine management solutions.

BorgWarner's revenue moved from $14.84B in FY2021 to $12.63B in FY2022, then rose to $14.20B in FY2023, $14.08B in FY2024, and $14.32B in FY2025, yielding a 5-year revenue CAGR of 7.1% from FY2020. Gross margin remained steady at 18.7% in FY2025, compared to 19.3% in FY2021. Operating margin declined from 9.3% in FY2021 to 3.7% in FY2025, while net income finished FY2025 at $277.0M with diluted eps of $4.91. For the trailing twelve months, revenue was $14.34B with an operating margin of 10.6%. In the latest quarter ended June 30, 2026, quarterly revenue growth was 0.3% year-over-year while quarterly earnings grew 30.1%.

As of June 30, 2026, BorgWarner held $2.45B in cash and short-term investments alongside $4.07B in total debt, resulting in net debt of $1.62B. Shareholders' equity was $5.62B against total assets of $13.93B, supporting a current ratio of 2.13 and a debt-to-equity ratio of 0.72. Operating cash flow reached $1.65B in FY2025, funding capital expenditures of $440.0M and generating free cash flow of $1.21B. Capital returns in FY2025 included $508.0M in share buybacks and $119.0M in dividends paid.

At a last close of $58.13 on October 16, 2026, BorgWarner carried a market cap of $11.84B and an enterprise value of $13.95B. The stock trades at a trailing P/E of 29.1x, which is above the 18.0x median of its US-listed Consumer Cyclical peers, but its forward P/E of 11.9x is lower than the peer median of 14.1x. Its EV-to-EBITDA stands at 9.4x compared to the peer median of 11.1x, with a PEG ratio of 0.33. Over the past year, BWA gained 37.4%, outperforming the S&P 500 return of 16.8%.

BorgWarner pays a quarterly dividend with an annualized forward rate of $0.68, representing a dividend yield of 1.17% and a payout ratio of 13.0%. The company has recorded consecutive years paid of 14, though its 5-year annualized dividend growth stands at -1.3%. Its last ex-dividend date was September 1, 2026.

Wall Street coverage consists of 7 Strong Buy, 5 Buy, and 3 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target is $81.33, implying an upside of 39.9% from the last close of $58.13. Consensus estimates project FY2026 revenue of $14.18B and EPS of $5.21. For FY2027, 14 analysts project revenue of $14.82B and EPS of $5.91. BorgWarner has beaten EPS estimates in 4 of its last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of BorgWarner Inc. (BWA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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