BorgWarner Q3 Net Sales Fall 2.9% to $3.49 Billion: Adjusted EPS Rises 12.1% to $1.39, Nine New Business Awards Secured
BorgWarner Inc. (NYSE: BWA), the Auburn Hills, Michigan-based automotive supplier, reported third-quarter 2026 results on October 29: net sales were $3.487 billion, down about 2.9% year over year, driven mainly by declining market production volumes and lower Battery Energy Systems segment sales. Excluding foreign currencies, organic net sales fell 3.1%.
Net earnings rose to $221 million from $158 million a year earlier, and diluted earnings per share rose 47.9% to $1.08. Excluding $0.31 per share of net losses from non-comparable items, adjusted net earnings per diluted share were $1.39, up 12.1%, helped by a lower full-year effective tax rate and a lower share count after repurchases in 2025 and 2026. U.S. GAAP operating income was $302 million, an 8.7% margin, up 180 basis points; adjusted operating income was $381 million, a 10.9% margin.
Operating cash flow was $320 million and free cash flow was $195 million in the quarter. The company reduced its gross debt balance by $864 million through a debt tender and make-whole redemption, repurchased about $175 million of its shares and paid a $35 million cash dividend.
The company secured nine new business awards across its portfolio, including an engine control module award for a global automaker's new internal combustion pickup platform starting production in 2029, three turbocharger awards for light-vehicle gasoline platforms in South America and Europe, and several eMotor and high-voltage inverter awards with automakers in China for production between 2026 and 2028. It also reported continued progress on product readiness for the data center and industrial markets and accelerated quoting activity for industrial solutions.
For the full year, BorgWarner narrowed its 2026 net sales guidance to $14.0 billion to $14.2 billion, raised adjusted EPS guidance to $5.20 to $5.35 from $5.05 to $5.30, and kept operating cash flow guidance of $1.6 billion to $1.7 billion and free cash flow guidance of $900 million to $1.1 billion. The company expects its weighted light-vehicle market to be down 1% to 2% for the year.
Source: GSM · USA (original Chinese edition)
Photo: 图：汽车发动机涡轮增压器实物（资料图，藏于慕尼黑德意志博物馆，与 BorgWarner 本季新获涡轮增压器订单题材相关）。Tiia Monto 摄，CC BY 4.0，经 Wikimedia Commons。Photo: A car engine turbocharger (file photo, Deutsches Museum, Munich). Tiia Monto, CC BY 4.0, via Wikimedia Commons.
