BorgWarner Inc.BWA
NYSE•Consumer Cyclical•Auto Parts
BorgWarner Inc., together with its subsidiaries, provides technology solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through the Turbos & Thermal Technologies; Drivetrain & Morse Systems; PowerDrive Systems; and Battery & Charging Systems segments. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, and battery cooling systems. The company also provides chain systems and variable camshaft phasing products; friction and mechanical products for automatic transmissions, including dual clutch modules, friction clutch modules, electromagnetic clutches, friction and separator plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers; hydraulic controls products for automatic transmissions, such as electro-hydraulic solenoids for standard and hydraulic systems, transmission solenoid modules and dual clutch hydraulic control modules; and torque management products comprising transfer cases and couplings; electronic limited slip differentials, electric torque vectoring products, and axle disconnect systems. In addition, it offers power electronics, including inverters, onboard chargers, DC/DC converters, and combination boxes; rotating electric machines comprising eMotors and generators; fully integrated drive modules consisting of inverters and gear reducers; and electronic controls, such as engine control units, transmission control units, battery management systems, propulsion controllers, and domain controllers. Further, the company provides battery and charging systems, including nickel manganese cobalt battery packs and lithium iron phosphate battery packs. BorgWarner Inc. was formerly known as Borg-Warner Automotive, Inc. The company was founded in 1928 and is headquartered in Auburn Hills, Michigan.
BorgWarner Inc. (BWA) reported trailing twelve months revenue of $14.33B as of March 2026, a 2.3% increase year-over-year. Quarterly revenue reached $3.53B, reflecting continued top-line momentum.
BorgWarner Inc. generated $362.00M in TTM net income, with quarterly EBITDA of $481.00M. The operating margin expanded from 6.7% to 9.5%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (9.5%) and net margin (6.8%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 4.5% a year ago, signaling stronger bottom-line efficiency.
BWA trades at a P/E of 29.8x (in line with broad market averages) and a P/S of 0.8x. The price-to-book ratio of 1.9x reflects a moderate premium to book value.
The company generated $9.00M in free cash flow over the trailing twelve months, a 124.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $13.65B in total assets with $3.88B in long-term debt against $5.64B in stockholders equity for a debt-to-equity ratio of 0.7. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 3.9%. The business may lack pricing power or face rising costs.'
ROE is positive at ~6.7% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.7 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 9.2% — net buybacks are reducing shares outstanding and boosting per-share value.