BorgWarner Reports Strong 2025 Results and 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2025
0mins
Should l Buy BWA?
BorgWarner's stock rose 4.15% and reached a 52-week high amid a challenging market, with the Nasdaq-100 down 1.10% and the S&P 500 down 0.54%.
The company reported net sales of $3.572 billion for Q4 2025, a 3.9% increase from Q4 2024, driven by growth in light vehicle eProduct sales. Adjusted EPS for Q4 2025 was $1.35, up 34% from the previous year, reflecting improved operating income and share repurchases. For 2026, BorgWarner expects net sales between $14.0 billion and $14.3 billion, despite a projected 3% decline in the light vehicle market, showcasing the company's confidence in future growth.
This strong performance indicates BorgWarner's resilience in the electric vehicle market and its ability to adapt to changing market conditions, positioning the company for continued success in the coming years.
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Analyst Views on BWA
Wall Street analysts forecast BWA stock price to fall
9 Analyst Rating
5 Buy
4 Hold
0 Sell
Moderate Buy
Current: 61.720
Low
49.00
Averages
52.00
High
55.00
Current: 61.720
Low
49.00
Averages
52.00
High
55.00
About BWA
BorgWarner Inc. is engaged in clean technology solutions for combustion, hybrid and electric vehicles. The Company operates in four segments. The Turbos & Thermal Technologies’ technologies include turbochargers, e-boosters, e-turbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, among others. The Drivetrain & Morse Systems segment’s products include control modules, friction and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems. The PowerDrive Systems segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, and others. The Battery & Charging Systems segment’s products include lithium-ion battery systems for electrified bus, truck and off-highway applications and DC fast chargers suitable for all types of electric vehicles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Award Ceremony: BorgWarner presented the Championship Driver's Trophy, known as the Baby Borg, to 2025 Indy 500 winner Alex Palou at a ceremony in Phoenix, Arizona, symbolizing his remarkable achievement and solidifying his legacy in motorsport history.
- Team Achievement: Team owner Chip Ganassi received his seventh Championship Team Owner's Trophy, making him the second-winningest team owner in IndyCar history, highlighting his ongoing influence and success in the racing domain.
- Tradition Continuation: The award ceremony not only celebrated Palou's victory but also continued BorgWarner's tradition since 1988, emphasizing the passion, skill, and innovation in motorsports, thereby enhancing the brand's image.
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- Award Ceremony: BorgWarner presented the Championship Driver's Trophy, known as the Baby Borg, to 2025 Indy 500 winner Alex Palou at a ceremony in Phoenix, Arizona, symbolizing his remarkable achievement and solidifying his legacy in motorsport history.
- Team Achievement: Team owner Chip Ganassi received his seventh Championship Team Owner's Trophy, making him the second-winningest team owner in IndyCar history, highlighting his ongoing influence and success in the racing domain.
- Tradition Continuation: The award ceremony not only celebrated Palou's victory but also continued BorgWarner's tradition since 1988, emphasizing the passion, skill, and innovation in motorsports, thereby enhancing the brand's image.
- Future Outlook: Palou aims to continue his winning streak in the upcoming IndyCar Series, striving to become the seventh driver to win back-to-back titles, showcasing the strong competitive edge of him and his team, which indicates significant potential for future success.
See More
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- Electrical Architecture Innovation: Ford's adoption of a 48-volt electrical architecture is expected to enhance production efficiency for its electric pickup by reducing parts by 20% and workstations by 40%, significantly lowering production costs and improving market competitiveness.
- Market Competition Strategy: Ford plans to launch a small electric pickup starting at $30,000 in 2027, aiming to compete against Tesla and rapidly expanding Chinese brands, thereby promoting broader EV adoption.
- Production Efficiency Improvement: The new electric pickup's wiring harness will be over 4,000 feet shorter and 22 pounds lighter than that of the first-generation electric SUV, and combined with new technologies, assembly time will be reduced by 15%, enhancing overall production efficiency.
- Future Development Vision: CEO Jim Farley describes this transformation as a
See More
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- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
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- Stock Price Upside: Following a more than 22% surge on Wednesday, Wall Street analysts believe BorgWarner's shares still have room to run, primarily driven by a deal with TurboCell to supply turbine generator systems for AI data centers, marking a strategic pivot towards the AI-driven economy.
- Rating Upgrade: Deutsche Bank upgraded BorgWarner's rating from neutral to buy with a price target of $82, indicating a potential 24% upside from Wednesday's close, with analyst Edison Yu highlighting that the agreement is expected to generate over $300 million in revenue by 2027, showcasing significant revenue potential.
- Long-term Revenue Opportunity: Yu estimates that if BorgWarner fully engages in the deployment, the revenue opportunity could reach $1.5 to $2.0 billion over multiple years, representing a substantial tailwind for growth and reflecting positive market sentiment towards the company's transformation.
- Cautious Market Share Outlook: Morgan Stanley maintained an equal weight rating on BorgWarner but raised its price target from $49 to $60, indicating a potential loss from Wednesday's close; analyst Andrew Percoco cautioned that new technology validation may take years, suggesting a prudent assumption of low single-digit market share.
See More
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- Strategic Market Shift: BorgWarner's entry into the AI data center market signifies a pivotal transition from a traditional Tier-1 powertrain supplier to a diversified industrial entity, which is expected to significantly enhance its competitive position in the market.
- New Partnership Agreements: The company has signed a series of new agreements with European and North American OEMs, including its first 48V electro cross differential program and a supply agreement for a turbine generator system, anticipating to control at least two-thirds of the system content, further solidifying its market position.
- Profit Growth Potential: CEO Joseph Fadool expects the turbine generator system to meet the power quality and energy needs of the data center market, opening avenues for further profitable growth, particularly driven by the expansion of AI and cloud computing.
- Target Price Upgrade: Deutsche Bank upgraded BorgWarner's rating from Hold to Buy and raised its target price by 78% to $82, indicating a 24% upside from Wednesday's closing price, reflecting market optimism about its future growth prospects.
See More
Major Wall Street Rating Updates
- Apple Siri Upgrade Delay: Evercore ISI reiterates Apple as outperform, suggesting that reports of delays in Siri upgrades are overstated, with expectations for a multi-phase rollout of AI features this year, emphasizing the importance of privacy protection and seamless integration.
- Shopify Attractiveness Upgrade: TD Cowen upgrades Shopify from hold to buy, citing its strong quarterly performance and continued growth momentum as compelling reasons for investors to consider the stock, especially given its recent price decline.
- Fastly's Stellar Performance: William Blair upgrades Fastly from market perform to outperform following impressive earnings, driven by a significant increase in AI traffic contributions, indicating substantial growth potential in this emerging sector.
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