The EPS miss and organic revenue decline confirm ongoing structural headwinds from legacy auto exposure and the BES wind-down. With guidance maintained but the top-line under pressure, watch for potential downward revisions if the weighted light vehicle market contraction (guided -3% to 0%) deepens. The $150M buyback provides a floor, but the stock may trade down on the miss.
Price Chart
Executive Summary
BorgWarner reported Q1 2026 adjusted EPS of $1.24, a 3.8% miss vs. consensus of $1.29, and revenue of $3.533B, below the $3.59B estimate. Organic sales declined 4.2% YoY, driven by a 36% drop in Battery Energy Systems and lower light vehicle production. Full-year 2026 guidance was maintained, but the top-line miss and organic decline signal ongoing headwinds from legacy auto exposure and the BES wind-down.
Key Financial Metrics
Key Facts
- Q1 2026 adjusted EPS of $1.24 missed consensus of $1.29 (-3.8%)
- Q1 2026 revenue of $3.533B missed consensus of $3.59B
- Organic net sales declined 4.2% YoY; reported sales up ~1% due to FX tailwinds
- Battery Energy Systems segment sales fell 36% YoY to $102M
- Full-year 2026 guidance maintained: revenue $14.0B-$14.3B, adj. EPS $5.00-$5.20
- Returned $185M to shareholders in Q1 ($150M buybacks + $35M dividend)
- Adjusted operating margin improved 50bps YoY to 10.5%
- Free cash flow was $13M vs. -$35M in Q1 2025
Financial Impact
Q1 adjusted EPS miss of $0.05 vs consensus; revenue miss of ~$57M
Risk Factors
- Further deterioration in global light vehicle production (guided -3% to 0% for 2026)
- Battery Energy Systems segment continues to decline faster than expected
- Tariff and trade policy uncertainty impacting OEM customers
- Execution risk on turbine generator system launch (2027) and new awards
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000908255-26-000023 |
| Document: bwa-20260506.htm | 0000908255-26-000023 |
| Document: 0000908255-26-000023-index-headers.html | 0000908255-26-000023 |
| Document: 0000908255-26-000023-index.html | 0000908255-26-000023 |
| Document: 0000908255-26-000023.txt | 0000908255-26-000023 |
| 8-K Data (Synthetic) | 0000908255-26-000023 |
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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