The beat and guidance raise are positive, but the lack of organic revenue growth and reliance on buybacks for EPS growth suggest limited operational momentum. Monitor Q3 for organic sales trends and margin sustainability.
Price Chart
Executive Summary
BorgWarner reported Q2 2026 adjusted EPS of $1.42, beating consensus of $1.27 by 11.8%, on revenue of $3.648B (beat $3.58B). The company raised its full-year adjusted EPS guidance to $5.05-$5.30 and increased its share repurchase authorization by $1B. However, organic sales declined 1.2% YoY, and the guidance raise was attributed to share repurchases rather than operational improvement.
Key Financial Metrics
Key Facts
- Adjusted EPS $1.42 vs consensus $1.27 (+11.8%)
- Revenue $3,648M vs consensus $3,580M (+1.9%)
- Full-year adjusted EPS guidance raised to $5.05-$5.30 from $5.00-$5.20
- Share repurchase authorization increased by $1B to ~$1.35B
- Q2 free cash flow $492M; operating cash flow $586M
- Organic net sales declined 1.2% YoY; GAAP net sales up 0.3%
- GAAP operating margin 10.1% (up 220bps YoY); adjusted 11.3% (up 100bps)
Financial Impact
EPS beat of $0.15 (11.8%) vs consensus; revenue beat of $68M (1.9%); adjusted EPS guidance raised by $0.075 at midpoint; $1B buyback increase
Risk Factors
- Declining light vehicle production volumes (weighted markets expected down 3% to flat)
- Battery Energy Systems segment headwind (~$250M expected sales decline in 2026)
- Tariff and geopolitical risks; foreign currency volatility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000908255-26-000049 |
| Document: bwa-20260805.htm | 0000908255-26-000049 |
| Document: 0000908255-26-000049-index-headers.html | 0000908255-26-000049 |
| Document: 0000908255-26-000049-index.html | 0000908255-26-000049 |
| Document: 0000908255-26-000049.txt | 0000908255-26-000049 |
| 8-K Data (Synthetic) | 0000908255-26-000049 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 4w ago | Insider Cluster | $63.54 $60.11 | ▼ −5.40% | ▼ −5.72% | $60.52 (−4.75%) |
Aug 25, 2026 5w ago | Insider Cluster | $65.10 $60.55 | ▼ −6.99% | ▼ −7.96% | $60.52 (−7.04%) |
Aug 20, 2026 6w ago | Insider Cluster | $67.78 $63.32 | ▼ −6.58% | ▼ −6.30% | $60.52 (−10.71%) |
Aug 20, 2026 6w ago | Insider Cluster | $64.80 $63.32 | ▼ −2.28% | ▼ −2.28% | $60.52 (−6.60%) |
Aug 18, 2026 6w ago | Insider Cluster | $67.95 $62.94 | ▼ −7.38% | ▼ −6.39% | $60.52 (−10.93%) |
Aug 10, 2026 7w ago | 8-K | $69.28 $66.80 | ▼ −3.58% | ▼ −2.67% | $60.52 (−12.64%) |
Aug 5, 2026 8w ago | 8-K | $66.34 $65.18 | ▼ −1.75% | ▼ −1.15% | $60.52 (−8.78%) |
Aug 1, 2026 8w ago | Institutional Cluster | $63.31 $64.16 | ▲ +1.34% | ▲ +0.10% | $60.52 (−4.41%) |
Jul 31, 2026 9w ago | 8-K | $63.74 $64.09 | ▲ +0.55% | ▼ −2.44% | $60.52 (−5.05%) |
Jun 12, 2026 16w ago | Institutional Cluster | $74.51 $64.99 | ▼ −12.78% | ▼ −14.56% | $60.52 (−18.78%) |
US Market Status
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