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BorgWarner’s $14.3 Billion Sales Outlook — Can New Awards Stabilize Growth?

BorgWarner Inc. reported first quarter 2026 sales of approximately $3.5 billion, with organic net sales—excluding declines in the Battery Energy Systems (BES) segment—down about 3% year-over-year, largely in line with decreases in global light vehicle production. Adjusted operating income rose to $372 million, corresponding to a 10.5% adjusted operating margin, an improvement of 50 basis points compared to the previous year. Adjusted earnings per share (EPS) increased by 12% to $1.13, benefiting from higher operating income and share repurchases exceeding $650 million over the last four quarters. Free cash flow generation was $13 million, marking a $48 million improvement year-over-year. The company returned approximately $185 million to shareholders through dividends and buybacks during the quarter. BorgWarner’s sales challenges were primarily driven by declines in its Battery Energy Systems segment, attributed to weaker demand in North America and Europe as well as the absence of certain incentives.