BorgWarner's stock surged 5.04% during intraday trading on Wednesday, following the release of its fourth-quarter financial results that exceeded analyst expectations.

The auto parts supplier reported adjusted earnings per share of $1.35 for Q4 2025, surpassing the FactSet consensus estimate of $1.19. Revenue for the quarter reached $3.57 billion, also beating expectations of $3.53 billion. The company attributed the profit growth to strong demand for its electrified powertrain products and effective cost-saving measures across its operations.

Additionally, BorgWarner announced a strategic expansion into the data center power generation market, securing a master supply agreement with TurboCell for modular turbine generator systems aimed at AI-driven data centers. The company also reported multiple new contract wins, including agreements to supply 800-volt drive modules for a North American OEM and variable turbine geometry turbochargers for a European OEM's hybrid electric vehicle platform.