Overview

• Auto parts supplier's Q4 revenue rose, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company enters data center market with turbine generator system award

Outlook

• BorgWarner expects 2026 net sales between $14.0 bln and $14.3 bln

• Company projects 2026 adjusted EPS between $5.00 and $5.20

• BorgWarner anticipates 2026 free cash flow between $900 mln and $1,100 mln

Result Drivers

• EPRODUCTS GROWTH - Light vehicle eProducts sales grew approximately 23% in 2025, driven by demand for hybrid and electric technologies in Europe and Asia

• COST CONTROLS - Adjusted operating margin improved to 10.7% due to strong eProducts growth and cost controls across the business

• DATA CENTER ENTRY - Secured a supply agreement for a turbine generator system for AI-driven data centers, marking entry into a new market

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$3.57 bln	$3.53 bln (12 Analysts)
Q4 Adjusted EPS	Beat	$1.35	$1.19 (13 Analysts)
Q4 EPS		-$1.23
Q4 Gross Margin		20.50%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Borgwarner Inc is $51.00, about 5.5% below its February 10 closing price of $53.98

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn2hl0gxa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.