Quarterly ResultMay 6, 2026, 08:22 AM
BorgWarner Q1 Adjusted EPS +12% to $1.24; Returns $185M to SH
AI Summary
BorgWarner Inc. reported strong first quarter 2026 results, with U.S. GAAP net sales increasing 1% to $3,533 million and adjusted diluted EPS rising 12% to $1.24. The company returned $185 million to shareholders through repurchases and dividends and secured 12 new business awards to support long-term growth. BorgWarner maintained its full-year 2026 guidance, expecting adjusted operating margin improvement and adjusted EPS growth despite anticipated declines in weighted light vehicle markets and Battery Energy Systems segment sales.
Key Highlights
- BorgWarner's Q1 2026 net sales increased 1% to $3,533 million, while organic net sales decreased 4.2% year-over-year.
- Adjusted operating margin for Q1 2026 rose 50 basis points to 10.5%, and adjusted diluted EPS increased 12% to $1.24.
- The company returned $185 million to shareholders in Q1 2026, including $150 million in share repurchases and $35 million in cash dividends.
- BorgWarner secured 12 new business awards across its portfolio, including engine controllers, turbochargers, DCT, VCT, and eMotors.
- Full-year 2026 net sales guidance was maintained at $14.0 billion to $14.3 billion, implying an organic net sales change of down 3.5% to down 1.5%.
- Full-year 2026 adjusted operating margin is expected to be 10.7% to 10.9%, and adjusted EPS is projected at $5.00 to $5.20.
- Free cash flow for full-year 2026 is expected to be in the range of $900 million to $1,100 million.