At a glance
BorgWarner Inc is worth $11.23B, about 44 times its fiscal 2025 earnings. Revenue grew 1.6% to $14.32B in fiscal 2025, with 1.9% kept as profit; over 4 years it has grown 4.9% a year. It pays a 1.22% dividend yield, and returned $2.00B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +30.0% over the past year with dividends reinvested and +8.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 43.6% in the 2020 crash (S&P 500: 33.7%) and 36.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 5 months after the lows.
The business in plain English
BorgWarner makes parts that help vehicles produce and use power more efficiently, for combustion, hybrid and electric models. It supplies nearly every major automaker in the world, mostly under annual contracts or long-term supply agreements. For 2025, light vehicles made up about 82% of net sales, commercial trucks and buses 10%, farm, construction and marine equipment 5% and aftermarket replacement parts 3%.
Net sales were $14.3 billion in 2025. Turbos & Thermal Technologies, about 40% of sales, makes turbochargers plus emissions and thermal systems. Light-vehicle turbochargers alone were about 21% of the total. Drivetrain & Morse Systems, about 39%, makes transmission clutches and controls, all-wheel-drive parts and engine timing chains. PowerDrive Systems, about 16%, makes inverters, electric motors and other electronics for hybrid and electric cars. Battery & Charging Systems, about 4%, makes battery packs for electric buses and trucks. The company exited the charging business in 2025.
Combustion engines still dominate. Foundational products, used on combustion engines and hybrids, made up 82% of 2025 revenue, and eProducts for electric and hybrid vehicles made up 18%. About 84% of sales were outside the US. China led at about 21%, followed by the US (16%), Mexico (12%) and Germany (11%). Volkswagen (13%) and Ford (12%) were the biggest customers, and the top ten made up 71% of sales.
Price history
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BWA +30.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Foundational products | $11.75B | 82% |
| eProducts | $2.57B | 18% |
By business segment
| Turbos & Thermal Technologies | $5.77B | 40.3% |
| Drivetrain & Morse Systems | $5.63B | 39.4% |
| PowerDrive Systems | $2.32B | 16.2% |
| Battery & Charging Systems | $590.0M | 4.1% |
By geography
| China | $2.97B | 20.7% |
| United States | $2.29B | 16% |
| Mexico | $1.74B | 12.2% |
| Germany | $1.62B | 11.3% |
| Other Europe | $1.51B | 10.5% |
| Poland | $1.25B | 8.7% |
| South Korea | $1.15B | 8% |
| Other foreign | $1.02B | 7.1% |
| Hungary | $771.0M | 5.4% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $3.49B, down 2.9% from a year earlier, and net income was $221.0M (+39.9%).
- For fiscal 2025, revenue was $14.32B (+1.6% year over year; +4.9% a year from FY2021 to FY2025) with a 1.9% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2025) | +4.9% watch |
|---|---|
| Operating margin | 3.7% weak |
| Free cash flow margin | 8.2% watch |
| Return on equity (FY2025) | 5.1% weak |
| Return on assets (FY2025) | 2% weak |
| Net cash (cash minus debt) | $-1.42B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $10.16B | $500.0M | $743.0M |
| FY2021 | $11.80B | $537.0M | $792.0M |
| FY2022 | $12.63B | $944.0M | $947.0M |
| FY2023 | $14.20B | $625.0M | $565.0M |
| FY2024 | $14.09B | $338.0M | $711.0M |
| FY2025 | $14.32B | $277.0M | $1.18B |
Valuation snapshot
| Market value | $11.23B |
|---|---|
| P/E ratio | 43.7 |
| Dividend yield | 1.22% |
Rank among 1514 US companies
Market value at each year end
BorgWarner’s market value went from $7.37B at the end of 2016 to $11.23B on Oct 28, 2026, up 52%; since the end of 2025 it is up 17%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $11.23B | +16.5% |
| 2025 | $9.64B | +38.7% |
| 2024 | $6.95B | -17.5% |
| 2023 | $8.43B | +1.9% |
| 2022 | $8.27B | -12.8% |
| 2021 | $9.48B | +14.4% |
| 2020 | $8.29B | +5.5% |
| 2019 | $7.86B | +23.8% |
| 2018 | $6.35B | -32.8% |
| 2017 | $9.45B | +28.2% |
| 2016 | $7.37B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| BWA price data to Oct 28, 2026 | +25.1% | +30.0% | +16.6% | +8.6% | +7.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +25.1% |
| 2025 | +43.9% |
| 2024 | -10.2% |
| 2023 | +2.9% |
| 2022 | -9.2% |
| 2021 | +18.4% |
| 2020 | -9.2% |
| 2019 | +27.2% |
| 2018 | -31.0% |
| 2017 | +31.2% |
| 2016 | -7.3% |
| 2015 | -20.5% |
| 2014 | -0.8% |
| 2013 | +57.7% |
| 2012 | +12.4% |
| 2011 | -11.9% |
| 2010 | +117.8% |
| 2009 | +54.6% |
| 2008 | -53.9% |
| 2007 | +67.2% |
| 2006 | -1.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 67.5% over that stretch · deepest drop along the way 71.7%, back to its old high 19.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.9% over that stretch · deepest drop along the way 43.6%, back to its old high 2.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.9% over that stretch · deepest drop along the way 36.2%, back to its old high 4.5 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 1 open-market purchases ($501K) and 18 sales ($11.6M).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 13, 2026 | Joseph F. Fadool President and CEO, Director | sell | $2.0M |
| Aug 17, 2026 | Tonit M Calaway EVP, CAO, Gen Counsel & Sec | sell | $1.8M |
| Aug 24, 2026 | Tonit M Calaway EVP, CAO, Gen Counsel & Sec | sell | $1.5M |
| Aug 17, 2026 | Tonit M Calaway EVP, CAO, Gen Counsel & Sec | sell | $1.2M |
| May 8, 2026 | Stefan Demmerle Vice President | sell | $1.2M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 8.6% | Dec 31, 2025 |
| Vanguard Portfolio Management | 6.59% | Mar 31, 2026 |
| Vanguard Capital Management | 5.27% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 5.2% | Dec 31, 2024 |
| BlackRock Portfolio Management LLC | 4.2% | Mar 31, 2026 |
| Victory Capital Management, Inc. | 3.55% | Jun 30, 2025 |
| HARRIS ASSOCIATES L P | 1.3% | Jun 30, 2025 |
ETFs with the most weight in BWA
| ETEC iShares Breakthrough Environmental Solutions ETF | 6.35% |
| PSCD Invesco S&P SmallCap Consumer Discretionary ETF | 3.82% |
| FTXR First Trust Nasdaq Transportation ETF | 1.76% |
| SMOT VanEck Morningstar SMID Moat ETF | 1.29% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 1.06% |
| SLYV SPDR S&P 600 Small Cap Value ETF | 1.01% |
| IJS iShares S&P Small-Cap 600 Value ETF | 1% |
| GMOV GMO US Value ETF | 0.9% |
What could go wrong
- Electric vehicle bets may not pay off. BorgWarner keeps investing heavily to grow its electric vehicle (EV) products, which were 18% of 2025 revenue. If EV adoption stays slower than expected, those investments may fall short and lead to further losses.
- A few automakers drive most sales. Volkswagen (13%) and Ford (12%) were the largest customers in 2025, and the top ten made up 71% of sales. Orders follow each customer's production, so a cutback at one hurts revenue.
- Constant pressure to cut prices. Automakers push suppliers hard for lower prices, and commodity costs can swing sharply. In 2025, BorgWarner kept just 3.7 cents of operating profit per dollar of sales, leaving little cushion.
- Heavy exposure to China. China was BorgWarner's largest market, at about 21% of 2025 sales. The company says competition there is aggressive and results are sensitive to Chinese economic, political and market conditions.
- Write-downs on acquired businesses. Goodwill, the premium paid for acquired companies, is a significant part of total assets. Weak results or a lower market value can force write-downs, which hit earnings in both 2024 and 2025.
- Tariffs and shifting trade rules. BorgWarner runs plants across Europe, the Americas and Asia, and 84% of 2025 sales were outside the US. New or higher tariffs, or changes to trade agreements, could raise costs or disrupt business.
Recent events
- Quarterly results released
- Investor presentation or announcement
- Investor presentation or announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Executive or board change
- Quarterly results released
- Executive or board change; Shareholder vote results; Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement
For income and retirement investors
BorgWarner pays a modest dividend with an uneven record. Dividends per share held at $0.68 from FY2020 through FY2022, fell to $0.56 in FY2023 and $0.44 in FY2024, then rose to $0.56 in FY2025. That makes a one-year streak of increases. The FY2025 dividend used 43% of earnings but only about 10% of free cash flow (cash left after capital spending). The yield was 1.22% as of October 28, 2026. For income seekers, that is a small payout with no steady growth. The company has favored buybacks: $1.33 billion over FY2021–FY2025, versus $670 million in dividends. The share count fell 15.1% between October 2021 and July 2026.
The shares have fallen sharply in past downturns: 71.7% in the 2008 financial crisis (recovered by October 2010), 43.6% in the 2020 COVID crash (recovered by June 2020) and 36.2% in the 2022 bear market (recovered by February 2023). A single stock like this carries more risk than a diversified fund.
Questions investors ask
How does BorgWarner make money?
BorgWarner makes money by selling engineered parts to automakers and other vehicle makers. Net sales were $14.3 billion in 2025. Turbochargers and thermal systems brought in about 40%, and drivetrain parts such as transmission clutches and timing chains about 39%. Inverters and electric motors for hybrid and electric cars added about 16%, and battery packs about 4%. Light vehicles made up about 82% of sales. Profits were thin: net income was $277 million, a 1.9% net margin.
Does BorgWarner raise its dividend every year?
No. BorgWarner pays a dividend, but its record is uneven. Dividends per share held at $0.68 from FY2020 to FY2022, fell to $0.44 by FY2024, then rose to $0.56 in FY2025. Over FY2020–FY2025, regular dividends per share shrank about 3.8% a year on average. The yield was 1.22% as of October 28, 2026. Over FY2021–FY2025, the company spent more on buybacks ($1.33 billion) than on dividends ($670 million).
Is BorgWarner an electric vehicle stock?
Only partly. BorgWarner's eProducts, used in electric vehicles and in hybrids that use similar technology, brought in about $2.6 billion in 2025. That was 18% of revenue, up from 14% in 2023. The other 82% came from Foundational products used on combustion engines and hybrids. The company calls its approach a balanced portfolio, because electric vehicle adoption has been volatile across regions. It also exited its charging business in 2025.
What is BorgWarner's P/E ratio?
About 43.7 as of October 28, 2026, based on FY2025 earnings. The price-to-earnings (P/E) ratio compares the share price with profit per share. It is high mainly because profits were thin: net income fell 18% in FY2025 to $277 million, or $1.28 per diluted share, on $14.3 billion of sales. Free cash flow, the cash left after capital spending, was much stronger at about $1.18 billion. The company's market value was about $11.4 billion.
How has BorgWarner stock performed?
Unevenly. As of October 28, 2026, the share price was up 30% over one year. Over five years the price rose 8.6% a year on average, and over ten years 7.6% a year. Calendar years swing widely: the stock rose 43.9% in 2025 after falling 10.2% in 2024, and it fell 31% in 2018. Its worst drop from a peak was 71.7%, during the 2008 financial crisis.