BORGWARNER INC Q3 FY26 Results

Summary

BorgWarner reported third quarter 2026 results with U.S. GAAP net sales of $3,487 million, a 2.9% decrease year-over-year, attributed to lower industry production volumes and segment sales. Despite the sales decline, U.S. GAAP net earnings per diluted share rose significantly by 47.9% to $1.08, and adjusted net earnings per diluted share increased by 12.1% to $1.39. The company also announced an increase in its full-year 2026 adjusted EPS guidance, citing expected benefits from share repurchases and a lower tax rate, while also highlighting nine new business awards that are anticipated to drive future profitable growth.

Key Highlights

1. 1

   BorgWarner reported a U.S. GAAP operating margin of 8.7% for the third quarter of 2026, an increase of 180 basis points compared to the third quarter of 2025.

2. 2

   The company achieved an adjusted operating margin of 10.9% in Q3 2026, a 20 basis point increase year-over-year, driven by cost controls.

3. 3

   U.S. GAAP net sales for the third quarter of 2026 were $3,487 million, a decrease of approximately 2.9% compared to the third quarter of 2025.

4. 4

   U.S. GAAP net earnings per diluted share for Q3 2026 were $1.08, an increase of 47.9% compared to $0.73 in the prior year's third quarter.

5. 5

   Adjusted net earnings per diluted share for the third quarter of 2026 were $1.39, an increase of 12.1% compared to $1.24 in the third quarter of 2025.

6. 6

   The company increased its full year 2026 adjusted earnings per share guidance due to expected impacts from share repurchases and a lower effective tax rate.

7. 7

   BorgWarner secured nine new business awards across its portfolio, including eProduct awards for eMotor and high-voltage inverter programs, expected to support long-term profitable growth.