# BorgWarner Inc. (BWA)

> Source: Nexqual · https://nexqual.com/BWA · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, BorgWarner Inc. (BWA), nexqual.com/BWA" · informational, not investment advice.

**Price:** USD 55.46 (-3.46% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 57.45 · day 54.92–56.85 · 52w 40.73–78.82 · market cap $11.3B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $14.3B, net income $415M (2.9% margin), free cash flow $1.21B (SEC filings).
- Valuation: P/E 27.2x (avg 23.2x at the last 3 fiscal year-ends).
- 2 of 80 tracked superinvestors hold BWA (13F, Q2 2026): 0 new, 0 added, 2 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 16 Form 4 filings, $11.6M; 16 not under a Rule 10b5-1 plan ($11.6M); 4 by opportunistic insiders (4 outside 10b5-1 plans), 2 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $501K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 1.87 on a 1–5 scale) (15 analysts), mean target USD 81.27 (range 62–95).
- Total return with dividends: 1Y +28.4% vs S&P 500 +14.9%; 5Y +49.8% vs S&P 500 +80.3%.
- Next earnings: 2026-10-29, EPS estimate USD 1.25, revenue estimate $3.49B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $11.8B | $12.6B | $14.2B | $14.1B | $14.3B | $14.3B |
| Gross profit | $2.17B | $2.37B | $2.57B | $2.65B | $2.67B | — |
| Operating income | $914M | $1.01B | $1.16B | $546M | $536M | $716M |
| Net income | $537M | $944M | $625M | $338M | $277M | $415M |
| EPS (diluted) | $2.24 | $3.99 | $2.67 | $1.50 | $1.28 | — |
| Free cash flow | $792M | $947M | $565M | $711M | $1.18B | $1.21B |
| Gross margin | 18.4% | 18.7% | 18.1% | 18.8% | 18.7% | — |
| Operating margin | 7.7% | 8.0% | 8.2% | 3.9% | 3.7% | 5.0% |
| Net margin | 4.5% | 7.5% | 4.4% | 2.4% | 1.9% | 2.9% |
| Revenue growth | +16.1% | +7.0% | +12.4% | -0.8% | +1.6% | — |
| Cash + short-term investments | $1.84B | $1.34B | $1.53B | $2.09B | $2.31B | — |
| Total debt | $4.26B | $4.14B | $3.71B | $4.10B | $3.90B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 27.2x · P/S 0.8x · P/FCF 9.3x · P/B 2.0x · FCF yield 10.74% · Earnings yield 3.67% · Dividend yield (paid, TTM) 1.24% · Buyback yield (TTM) 5.75%
P/E at fiscal year-ends: Dec 2025 35.2x, Dec 2024 21.1x, Dec 2023 13.4x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold BWA. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| John Rogers | Ariel Investments | 0.04% | $3.7M | Reduced -15.3% |
| Bill Nygren | Oakmark Funds | 0.02% | $12.9M | Reduced -12.8% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 16 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-28 | Hanley Michael S | Director | 5,000 | $328K | 12.7% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-24 | Calaway Tonit M | EVP, CAO, Gen Counsel & Sec | 22,000 | $1.5M | 23% | No | Routine (sold in Feb each year 2023–2025; this trade is outside those months) |
| 2026-08-18 | Kulikowski Amy B. | VP & Chief Accounting Officer | 2,900 | $199K | 23% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-17 | Demmerle Stefan | Vice President | 1,000 | $70K | 0.5% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-08-17 | Calaway Tonit M | EVP, CAO, Gen Counsel & Sec | 44,000 | $3.1M | 31.5% | No | Routine (sold in Feb each year 2023–2025; this trade is outside those months) |
| 2026-08-17 | McKenzie Isabelle | Vice President | 4,500 | $317K | 7.8% | No | Too little history (no open-market trades in 2023) |
| 2026-08-17 | McAlmont Shaun | Director | 7,000 | $486K | 27.9% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-06-05 | Shankar Sailaja | Director | 5,000 | $365K | 27.9% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-28 | Weng Volker | Vice President | 5,000 | $362K | 5.9% | No | Too little history (no open-market trades in 2023) |
| 2026-05-14 | Weng Volker | Vice President | 5,000 | $339K | 5.6% | No | Too little history (no open-market trades in 2023) |
| 2026-05-13 | Demmerle Stefan | Vice President | 5,000 | $325K | 2.4% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-13 | Fadool Joseph F. | President and CEO | 29,000 | $2.0M | 6.7% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-05-12 | McKenzie Isabelle | Vice President | 3,500 | $222K | 5.7% | No | Too little history (no open-market trades in 2023) |
| 2026-05-11 | Wingfield Tania | EVP & CHRO | 5,000 | $316K | 12.4% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-11 | Weng Volker | Vice President | 5,606 | $346K | 5.9% | No | Too little history (no open-market trades in 2023) |
| 2026-05-08…2026-05-11 | Demmerle Stefan | Vice President | 25,000 | $1.5M | 10.7% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $501K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-08-19 | Kalathur Rajesh | Director | 7,407 | $501K | 67.59 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 1.87 on a 1–5 scale), 15 analysts; mean target USD 81.27 (low 62, high 95).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-15 | B of A Securities | Upgrade | Neutral → Buy | $78 → $85 |
| 2026-10-07 | UBS | Target lowered | Buy | $95 → $91 |
| 2026-10-06 | Morgan Stanley | Upgrade | Equal-Weight → Overweight | $71 → $95 |
| 2026-09-01 | RBC Capital | Initiated | Outperform | $87 |
| 2026-08-10 | JP Morgan | Target raised | Overweight | $75 → $85 |
| 2026-08-10 | Barclays | Target raised | Overweight | $83 → $85 |
| 2026-08-06 | TD Cowen | Target raised | Hold | $67 → $68 |
| 2026-08-06 | Morgan Stanley | Target raised | Equal-Weight | $67 → $71 |
| 2026-07-09 | Barclays | Target raised | Overweight | $75 → $83 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +28.4% | +49.8% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +28.5% | +8.4% |
| Volatility (annualized) | 40.8% | 31.0% |
| Max drawdown | -27.8% (Jun 2026→Oct 2026) | -42.7% (Jul 2023→Mar 2025) |

## Peers (Auto Parts)
AUR (Aurora Innovation, Inc.) USD 4.86 -2.99% · APTV (Aptiv PLC) USD 43.81 -1.20% · ALSN (Allison Transmission Holdings, ) USD 109.57 -1.23% · ALV (Autoliv, Inc.) USD 118.88 +2.54% · HSAI (Hesai Group) USD 12.14 -7.96% · MGA (Magna International, Inc.) USD 64.72 +1.39%

## More
Full page: https://nexqual.com/BWA · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)


Other companies that name BWA in their own reports (relationship from BWA's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| customer | PHINIA INC. (PHIN) | 10-K 2026-02-12 | "On December 6, 2022, BorgWarner Inc., a manufacturer and supplier of automotive industry components and parts (BorgWarner, or Former Parent) announced plans for the complete legal and structural separ…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Drivetrain & Morse Systems | $1.45B | 39.7% | +1.8% | $277.0M | 19.1% |
| Turbos & Thermal Technologies | $1.44B | 39.5% | -2.7% | $225.0M | 15.6% |
| PowerDrive Systems | $658.0M | 18.0% | +14.4% | -$29.0M | -4.4% |
| Battery Energy Systems | $100.0M | 2.7% | -37.1% | -$2.0M | -2.0% |
| Total revenue | $3.65B | 100% | — | $471.0M | 12.9% |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Foundational products | $2.98B | 81.8% | +0.2% |
| eProducts | $663.0M | 18.2% | +0.8% |
| Total revenue | $3.65B | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Europe | $1.31B | 35.9% | -3.7% |
| Asia | $1.19B | 32.5% | -1.5% |
| North America | $1.06B | 29.1% | +5.9% |
| Other | $91.0M | 2.5% | +26.4% |
| Total revenue | $3.65B | 100% | — |

## Customer concentration

Period ended 2025-12-31: 13%, 12% of revenue from unnamed direct customers (10-K, filed 2026-02-11).

## Company outlook (8-K filed 2026-08-05)

- "Guidance and Share Repurchase Authorization By $1 Billion Announces 7 Awards Across Portfolio to Support Long-Term Profitable Growth Auburn Hills, Michigan, August 5, 2026 – BorgWarner Inc."
- "Production is expected to begin in 2029. • Torque-on-demand with mechanical lock transfer case award with a Chinese OEM for a newly developed, full-size"

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.25 | $1.30 | -3.6% | $3.49B | 13 |
| Next quarter (ends 2026-12-31) | $1.31 | $1.37 | -4.5% | $3.52B | 13 |
| Current fiscal year (ends 2026-12-31) | $5.21 | $5.18 | +0.6% | $14.18B | 13 |
| Next fiscal year (ends 2027-12-31) | $5.91 | $5.82 | +1.5% | $14.81B | 14 |