Research Alert: Bwa: Q1 Earnings Well Ahead; Full-year Guidance Maintained
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:BorgWarner (BWA) posted Q1 adjusted EPS of $1.24 vs. $1.11 (+12%), well ahead of the $1.17 consensus. The beat was attributable to stronger-than-expected sales and margins, as revenue rose 0.5% to $3.53B ($30M above consensus) and gross margin expanded 100 bps to 19.2% (40 bps ahead of consensus). The results demonstrated strong operational execution despite a 4.2% organic revenue decline. BWA maintained prior 2026 net sales and adjusted EPS guidance of $14.0B-$14.3B and $5.00-$5.20, respectively, the midpoints of which are below the $14.18B and $5.16 consensus. BWA returned $185M to shareholders in Q1, and with expected 2026 FCF of $0.9B-$1.1B, we expect cash returns to shareholders to continue. BWA shares are currently trading 2% higher in pre-market trading following the release. BWA is executing well through the cycle, delivering margin expansion, and double-digit EPS growth despite volume headwinds. In our view, BWA's Q1 results validate management's ability to control costs in a challenging environment.
