The EPS beat and raised guidance are positive, but the revenue decline and narrowed sales guidance reflect ongoing production headwinds. Watch for further industry production data and the trajectory of the Battery Energy Systems segment, which continues to decline sharply.
Price Chart
Executive Summary
BorgWarner reported Q3 2026 adjusted EPS of $1.39, beating the $1.25 consensus by 11.2%, while revenue of $3.487B slightly missed the $3.49B estimate. The company raised its full-year 2026 adjusted EPS guidance to $5.20-$5.35 (from $5.05-$5.30) due to share repurchases and a lower tax rate, but net sales guidance was narrowed to $14.0B-$14.2B reflecting lower industry production expectations.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS $1.39 vs consensus $1.25 (beat by 11.2%)
- Q3 2026 net sales $3.487B vs consensus $3.49B (slight miss)
- Net sales declined 2.9% YoY to $3.487B; organic net sales down 3.1%
- GAAP EPS $1.08, up 47.9% YoY from $0.73
- Full-year 2026 adjusted EPS guidance raised to $5.20-$5.35 from $5.05-$5.30
- Full-year 2026 net sales guidance narrowed to $14.0B-$14.2B from $14.0B-$14.3B
- Company repurchased ~$175M of shares and paid $35M dividend in Q3
- Reduced gross debt by $864M via tender and make-whole redemption
- Free cash flow of $195M in Q3; full-year FCF guidance unchanged at $900M-$1.1B
- Battery Energy Systems segment sales declined 40.9% YoY to $78M
Financial Impact
Adjusted EPS beat by $0.14 (11.2%); revenue miss of ~$3M (0.1%); full-year adjusted EPS guidance raised by $0.15-$0.05 at midpoint
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Turbos & Thermal Technologies | $1.4B | -4.5% |
| Drivetrain & Morse Systems | $1.3B | -7.3% |
| PowerDrive Systems | $705.0M | +21.1% |
| Battery Energy Systems | $78.0M | -40.9% |
Risk Factors
- Net sales declining YoY with organic sales down 3.1%
- Battery Energy Systems segment revenue down 40.9% YoY
- Full-year net sales guidance implies organic decline of 2.5%-4.0%
- Light vehicle market expected down 1%-2% in 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302922731 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 1d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 29, 2026 1d ago | Press Release | $53.30 | awaiting T+5 | awaiting T+5 | $51.63 (−3.13%) |
Sep 22, 2026 5w ago | Press Release | $60.55 | awaiting T+5 | awaiting T+5 | $51.63 (−14.73%) |
Sep 1, 2026 8w ago | Insider Cluster | $63.54 $65.26 | ▲ +2.71% | ▲ +2.63% | $51.63 (−18.74%) |
Aug 25, 2026 9w ago | Insider Cluster | $65.10 $63.54 | ▼ −2.40% | ▼ −1.86% | $51.63 (−20.69%) |
Aug 20, 2026 10w ago | Insider Cluster | $67.78 $64.09 | ▼ −5.44% | ▼ −5.92% | $51.63 (−23.83%) |
Aug 20, 2026 10w ago | Insider Cluster | $64.80 $64.80 | · 0.00% | ▼ −1.11% | $51.63 (−20.32%) |
Aug 18, 2026 10w ago | Insider Cluster | $67.95 $65.10 | ▼ −4.19% | ▼ −3.99% | $51.63 (−24.02%) |
Aug 10, 2026 11w ago | 8-K | $69.28 $69.90 | ▲ +0.89% | ▲ +0.94% | $51.63 (−25.48%) |
Aug 5, 2026 12w ago | 8-K | $66.34 $68.85 | ▲ +3.78% | ▲ +3.43% | $51.63 (−22.18%) |
US Market Status
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