BorgWarner Inc. (BWA) Stock Price & How to Invest

BorgWarner makes the parts between an engine or a battery and the wheels. Four reportable segments carry the business: Turbos & Thermal Technologies (~$1.44 billion of second-quarter 2026 sales), Drivetrain & Morse Systems (~$1.45 billion), PowerDrive Systems (~$658 million) and Battery Energy Systems (~$100 million). Split a different way, management separates Foundational products, which touch internal combustion and hybrid powertrains, from eProducts, which touch electric ones. Foundational was ~$2.99 billion of the ~$3.65 billion quarter and eProducts ~$663 million, so roughly four fifths of revenue still rides on engines. Geographically the business is genuinely global rather than American: first-half 2026 sales split ~$2.65 billion Europe, ~$2.29 billion Asia and ~$2.07 billion North America. Customers are vehicle OEMs, which means BorgWarner's volumes are set by other people's production schedules.

The investment picture is a margin story attached to a flat revenue line. Sales barely moved in the second quarter of 2026, up to ~$3.65 billion from ~$3.64 billion, yet operating income jumped to ~$370 million from ~$289 million as gross margin widened to roughly 19.8% from 17.6%. Trailing net income of ~$415 million and GAAP EPS near ~$2.00 make the headline price-to-earnings ratio look expensive at ~35x, but that figure is distorted by 2025 impairments and charges tied to exiting the charging business. Management's 2026 adjusted EPS guidance of ~$5.05 to ~$5.30 implies a mid-teens multiple instead. Free cash flow of roughly ~$1.19 billion against a ~$14.1 billion market value funds a buyback that had already consumed ~$650 million of a $1 billion authorization before the board added another $1 billion in July 2026. Balance sheet leverage is light, with ~$2.45 billion of cash against ~$3.87 billion of long-term debt.

Auto suppliers do not control their own volumes, and BorgWarner's revenue is set by OEM build schedules that can be cut with little notice. Tariff policy and regional trade friction matter unusually here because roughly ~$2.65 billion of first-half sales came from Europe and ~$2.29 billion from Asia, so cost pass-through negotiations with customers are a recurring drag on margin. Electrification timing cuts both ways: a faster transition strands foundational capacity, while a slower one leaves the ~$1.26 billion eProducts book underutilized against the capital already spent on it. On legal matters, the company and its predecessors have been named potentially responsible parties at 16 Superfund or equivalent sites as of June 30, 2026, carrying a ~$5 million environmental accrual covering four of them, and the June 2026 10-Q reports the ordinary course of warranty, intellectual property and governmental claims without identifying any matter management considers reasonably likely to be material. A separate dispute with PHINIA, the 2023 spin-off, over roughly ~$120 million of value added tax refunds was settled in October 2025 for ~$78 million payable to BorgWarner, of which about ~$23 million remained receivable at mid-2026. No securities fraud class action appears in the company's current legal proceedings disclosure.

15 analysts publish price targets on BWA, averaging $78.87 against a $69.28 price as of August 2026, or +13.8%. The published targets run from $62.00 to $95.00, a moderate spread, and the ratings split 10 buy, 5 hold, 0 sell. Over the last six months there have been 12 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full BWA forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on BorgWarner Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Margin repair without volume growth. Second-quarter 2026 revenue rose less than half a percent year over year while operating income climbed roughly 28%. The most optimistic published target, $95.00, assumes this works close to its best case.

The case against. Auto suppliers do not control their own volumes, and BorgWarner's revenue is set by OEM build schedules that can be cut with little notice. The most pessimistic target, $62.00, is roughly what BWA is worth if this bites instead.

Read the full bull and bear case on BWA, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see BorgWarner Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$14.34B
• Net income (TTM): ~$415M
• GAAP EPS (TTM): ~$2.00
• 2026 adjusted EPS guidance: ~$5.05 to ~$5.30
• Free cash flow (TTM): ~$1.19B
• Cash vs long-term debt: ~$2.45B vs ~$3.87B

Headline valuation looks contradictory: a ~35x trailing GAAP price-to-earnings ratio against a ~$14.1 billion market capitalization sits beside guidance that implies roughly a mid-teens multiple on adjusted earnings. Reconciling the two comes down to 2025 charges, including ~$42 million of impairments and ~$32 million of costs to exit the charging business, which depressed the trailing base without reflecting current run-rate profitability. Free cash flow near ~$1.19 billion, or roughly 8% of sales, is arguably the cleaner read on what the business earns.

If you want BWA exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to BWA: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get BWA exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (DFAS, DFAT, DFSV), which spreads the position across many companies. Or build it into a focused thematic portfolio, so BWA sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where BWA fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

BWA is a cash-generative, modestly valued components supplier whose combustion franchise funds an electric transition arriving far slower than the industry modelled in 2021.

Whether BWA is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is BWA a buy or a sell?, and where the stock could go from here in the BWA stock forecast.

For income investors, whether BWA pays a dividend and how the payout looks is covered in does BWA pay a dividend? And to weigh BWA against a peer, read the full side-by-side comparisons: BWA vs MGA and BWA vs DAN.