BorgWarner Inc. (BWA) shares surged 5.01% in pre-market trading on Wednesday, propelled by the auto parts supplier's stronger-than-expected second-quarter results and an upward revision to its full-year profit outlook.

The company reported adjusted earnings per share of $1.42 for the quarter, easily surpassing the consensus estimate of $1.28. Net sales rose marginally to $3.65 billion, also beating expectations of $3.58 billion, as steady demand for powertrain systems and turbochargers offset headwinds in its battery segment. BorgWarner additionally raised its 2026 adjusted EPS guidance to a range of $5.05 to $5.30, up from the prior $5.00 to $5.20, and announced a $1 billion increase in its share repurchase authorization.

The earnings beat and improved outlook signal resilient demand from automakers producing more efficient internal combustion engines, while the expanded buyback program demonstrates management's confidence in the company's cash generation and long-term growth strategy.