BorgWarner Inc. (NYSE:BWA) reported fourth-quarter results on Wednesday that exceeded Wall Street expectations, prompting a modest rise in its stock.
The automotive components supplier posted adjusted earnings per share of $1.35, ahead of the $1.18 consensus estimate. Revenue reached $3.57 billion, beating forecasts of $3.51 billion. Shares gained about 0.4% following the release.
Fourth-quarter sales increased 3.9% year over year, supported by continued strength in light vehicle electric products, even as broader industry volumes softened and the Battery & Charging Systems division faced headwinds. Excluding currency effects, organic sales grew 0.8% from a year earlier. The company delivered an adjusted operating margin of 12.0% for the quarter.
“Our strong performance in 2025 demonstrates our ability to grow our electric product portfolio while maintaining disciplined cost controls across the business,” said BorgWarner’s CEO. “We achieved a 23% increase in light vehicle eProducts compared to 2024, positioning us well for future growth.”
Looking ahead, BorgWarner issued 2026 guidance that came in slightly below analyst expectations. The company forecast revenue between $14.0 billion and $14.3 billion, compared with a consensus estimate of $14.55 billion. Adjusted earnings per share are expected in the range of $5.00 to $5.20, versus analyst projections of $5.14.
The outlook incorporates expected pressure from a 3% to flat decline in weighted light vehicle markets, as well as a projected $210 million drop in sales within the Battery & Charging Systems segment.
For full-year 2025, BorgWarner reported adjusted EPS of $4.91, up roughly 14% from 2024. Free cash flow surged 66% to $1.21 billion, driven by strong operating performance and disciplined capital spending.