Abstract

BorgWarner will release its quarterly results on February 11, 2026 Pre-Market. This preview consolidates the company’s latest guidance and market expectations to frame revenue, margin, GAAP and adjusted EPS dynamics, and the outlook for electrification businesses heading into the print.

Market Forecast

Consensus for BorgWarner’s current quarter points to revenue of USD 3.53 billion, EBIT of USD 376.41 million, and adjusted EPS of USD 1.19, implying estimated year-over-year growth of 2.21% for revenue, 11.21% for EBIT, and 24.09% for adjusted EPS; company-level margin commentary implies a focus on sustaining the prior quarter’s 17.91% gross profit margin and around 4.40% net profit margin, with adjusted EPS supported by mix and cost control. The main business is expected to deliver steady demand across traditional propulsion and thermal systems, while electrification product momentum remains the central outlook theme. The most promising segment remains batteries and charging systems, supported by growing adoption in electrified platforms; revenue last quarter was USD 132.00 million with continued year-over-year expansion aligned to broader EV penetration.

Last Quarter Review

BorgWarner’s previous quarter delivered revenue of USD 3.59 billion, a gross profit margin of 17.91%, GAAP net profit attributable to the parent company of USD 158.00 million, a net profit margin of 4.40%, and adjusted EPS of USD 1.24, with year-over-year revenue growth of 4.12% and adjusted EPS growth of 13.76%. A key business highlight was EBIT of USD 385.00 million, exceeding the prior consensus by USD 15.69 million, reflecting operational efficiency and disciplined pricing. The company’s main businesses posted revenue of USD 1.45 billion in transmission systems and Morse systems, USD 1.44 billion in turbo and thermal technologies, USD 582.00 million in powertrain systems, and USD 132.00 million in batteries and charging systems, illustrating a diversified mix across propulsion and electrification.

Current Quarter Outlook

Main Business Performance Drivers

The core propulsion and thermal businesses remain the anchor of BorgWarner’s near-term performance. Stable global light-vehicle production, product mix favoring higher-content applications, and disciplined pricing support revenue and margin continuity into this quarter. Cost initiatives executed in the second half of the prior year, including footprint optimization and productivity gains, should carry forward into gross margin, balancing wage and input inflation. A modest year-over-year revenue increase of 2.21% is consistent with a market for internal combustion-related components that is plateauing but still generating maintenance and upgrade demand from OEM programs. With EBIT guided at USD 376.41 million, the operating conversion remains consistent with the prior quarter’s beat, while adjusted EPS at USD 1.19 reflects execution on cost and mix despite FX and raw-material variability.

Electrification and the Most Promising Business

Batteries and charging systems stand out as the most promising growth vector, reflecting stepped-up customer launches and platform wins tied to EV adoption. Last quarter’s USD 132.00 million revenue base continues to benefit from backlog conversion in commercial vehicle and passenger EV programs. Incremental volume from inverters, onboard chargers, and related power electronics supports a favorable mix shift, improving adjusted EPS quality even as near-term margins may trail legacy propulsion due to scale-up costs. As OEMs rationalize EV offerings and prioritize profitable models, BorgWarner’s content per vehicle in electrified platforms becomes a clearer driver for multi-quarter growth. The segment’s trajectory, coupled with engineering milestones, should provide positive read-throughs for bookings and revenue visibility, supporting the guidance for 24.09% year-over-year adjusted EPS growth.

Key Stock Price Sensitivities This Quarter

Stock performance into and after the print will be sensitive to the relationship between revenue growth and margin preservation. Investors will focus on whether gross margin can hold near 17.91% while EBIT grows at 11.21%, confirming operating leverage without sacrificing price. Any commentary on program timing, especially EV component ramps and supply normalization, will influence sentiment because it affects the batteries and charging systems revenue run-rate. Guidance updates for adjusted EPS relative to USD 1.19 will be scrutinized for sustainability, with particular attention to cost inputs, FX, and customer mix. The magnitude of sequential changes in net profit margin versus the prior 4.40% will also be a key indicator of pricing discipline and operating efficiency.

Analyst Opinions

Across recent institutional commentary, the majority stance is cautiously optimistic, with analysts emphasizing stabilization in core propulsion and meaningful progress in electrification content. Preview notes highlight that a revenue outcome near USD 3.53 billion and adjusted EPS around USD 1.19 would validate execution on cost actions and product mix, setting a baseline for improved year-over-year profitability. Several well-followed sell-side teams frame upside risk in EBIT if EV content deliveries and thermal management orders land as scheduled, while cautioning that FX and input costs could temper margin expansion. The prevailing view expects BorgWarner to meet or modestly exceed its adjusted EPS forecast, acknowledging that incremental beats may depend on the pace of electrification program ramps and the timing of commercial vehicle demand recovery.