BORGWARNER INC (NYSE:BWA) Beats Q2 Earnings Estimates and Raises Full-Year Guidance

BORGWARNER INC (NYSE:BWA) reported second-quarter earnings that surpassed analyst expectations, driven by strong performance across its product portfolio. The company also raised its full-year guidance, signaling confidence in its growth trajectory.

Earnings and Revenue Performance

• Q2 2025 Revenue: $3.64 billion, slightly below the consensus estimate of $3.65 billion.
• Q2 2025 EPS: $1.21 per share, beating estimates of $1.09.
• Full-Year 2025 Estimates: Analysts project revenue of $14.15 billion and EPS of $4.35, though BorgWarner’s updated guidance suggests potential upside.

The modest revenue miss was offset by stronger-than-expected profitability, likely due to cost efficiencies and favorable product mix. The earnings beat appears to be the primary driver behind the stock's positive pre-market reaction, which saw shares rise approximately 4.5%.

Market Reaction and Price Action

Despite the pre-market surge, BorgWarner’s stock has been relatively flat over the past month, declining 0.8%, and down 0.05% over the past week. The muted performance prior to earnings suggests investor caution, possibly due to macroeconomic concerns or sector-specific headwinds. The post-earnings jump indicates relief among investors, particularly given the company’s improved outlook.

Key Takeaways from the Press Release

• Dividend Increase: The board approved a 55% hike in the quarterly dividend to $0.17 per share, reflecting strong cash flow and confidence in future earnings.
• Share Repurchases: The company expanded its buyback authorization, signaling a commitment to returning capital to shareholders.
• New Business Wins: BorgWarner secured additional contracts across its electrification and combustion segments, supporting long-term growth.
• Raised 2025 Guidance: Management increased full-year expectations, aligning with or potentially exceeding current analyst estimates.

Outlook vs. Analyst Expectations

While BorgWarner did not provide explicit numerical guidance in the press release, the upward revision suggests management expects performance to meet or exceed current consensus estimates for revenue ($14.15 billion) and EPS ($4.35) for 2025. The company’s positioning in both traditional and electric vehicle markets provides a balanced growth profile.

For a deeper dive into BorgWarner’s earnings history and future estimates, see the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.