BWA earnings analysis
What we found in BWA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BorgWarner reported Q1 2026 revenue of $3.53B, slightly exceeding estimates, with diluted EPS at $1.16, outperforming consensus expectations. The company continues to face challenges in its Battery Energy Systems segment, which drove a 32% decrease in sales for that segment, while overall net sales increased 1% year-over-year. Despite these challenges, management has maintained its full-year revenue outlook at $14.0B to $14.3B.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth YoY
- Q1 2026 revenue reached $3.53B, a $18M increase or 1% from Q1 2025.
- EPS Exceeds Consensus
- Diluted EPS of $1.16 for Q1 2026 exceeded estimates by $0.01.
- Improved Gross Profit
- Gross profit was $677M with a gross margin increase to 19.2%, up from 18.2% in the prior year.
- Increased Operating Income
- Operating income rose to $336M, up from $237M in Q1 2025, marking a significant improvement.
- Strong Cash Position
- Company liquidity totaled $4.1B including $2.1B in cash and equivalents.
- Ongoing Share Repurchase
- $150M in shares repurchased in Q1 2026 as part of a $1B authorization.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Sales in Key Segment
- The Battery Energy Systems segment experienced a 32% decline in sales, impacting overall performance.
- Decrease in Organic Sales
- Management indicated declining organic sales and anticipates continued challenges in the market.
- Negative Market Conditions
- Global vehicle production expected to decline modestly, affecting sales outlook.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.16
- Gross margin
- 19.2%
- Operating margin
- 9.5%
- Segment
- Turbos & Thermal Technologies
- Segment
- Drivetrain & Morse Systems
- Segment
- PowerDrive Systems
- Segment
- Battery Energy Systems
What they said about what is next.
Revenue guidance maintained despite expected decline in organic net sales.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 11, 2026
- BorgWarner reported stable full-year net sales of $14,316 million for 2025, up from $14,086 million in 2024, with eProducts revenue growing to approximately $2.6 billion (18% of sales) and PowerDrive Systems…
- 10-Q · May 7, 2025
- BorgWarner reported revenue of $3,515 million for the quarter ended March 31, 2025, down versus $3,595 million a year earlier, with gross profit of $639 million and operating income of $237 million. Diluted EPS from…
- 10-Q · October 31, 2024
- BorgWarner reported Q3 net sales of $3,449 million, down versus both the prior quarter and prior year, while GAAP diluted EPS improved to $1.04 driven by a much lower tax provision. Cash increased to $2,000 million and…
- 10-K · February 8, 2024
- BorgWarner reported full-year net sales of $14,198 million in 2023 (up from $12,635 million in 2022) while accelerating its Charging Forward electrification strategy: eProduct revenue was approximately $2.0 billion (14%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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