BorgWarner Q3 2026: Adjusted EPS Tops Expectations as Buybacks and Cost Cuts Deliver
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Cost cuts, a lower tax rate and buybacks lifted adjusted EPS past expectations even as sales slipped on weaker vehicle production. Management raised full-year adjusted EPS guidance to $5.20 to $5.35, with PowerDrive Systems organic growth offsetting a declining battery business.
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Adjusted EPS of $1.39 came in above expectations, extending a streak of beats across every quarter in the earnings history. Cost control, a lower effective tax rate, and share repurchases drove the gain rather than top-line strength.
Revenue of $3.49 billion was in line with estimates, though net sales fell 2.9% year over year as weaker vehicle production weighed on volumes. Adjusted operating margin still expanded 20 basis points to 10.9%, and GAAP net income climbed to $221 million.
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PowerDrive Systems posted organic sales growth of 19.6%, offsetting a 40.9% organic decline in Battery and Charging Systems. The company expects Battery Energy Systems sales to decline by about $250 million for the full year, with a strengthening Euro and Chinese Renminbi cushioning the drag.
Management raised full-year 2026 adjusted EPS guidance to $5.20 to $5.35, citing buybacks and the lower tax rate. Net sales guidance was narrowed and free cash flow guidance was left unchanged. The midpoint implies another year of margin expansion.
Mentioned: BWA