BORGWARNER INC (NYSE:BWA) Q3 2025 Earnings: EPS Beats Estimates, Revenue Slightly Misses

BORGWARNER INC (NYSE:BWA) has released its third quarter 2025 financial results, presenting a mixed performance against analyst expectations while demonstrating significant operational strength. The automotive supplier's latest earnings report reveals both triumphs and challenges as the company navigates the evolving vehicle technology landscape.

Earnings Performance Versus Expectations

The company's Q3 2025 results showed a clear divergence between revenue and earnings performance relative to analyst forecasts. While BorgWarner fell slightly short on the top line, it delivered a meaningful beat on profitability metrics.

• Revenue: $3.59 billion reported versus $3.62 billion estimated
• Non-GAAP EPS: $1.24 reported versus $1.17 estimated

The earnings per share beat of approximately 6% suggests effective cost management and operational efficiency, even as revenue came in roughly 1% below expectations. This performance indicates the company's ability to maintain profitability despite potential headwinds affecting top-line growth.

Market Reaction and Price Action

Trading activity following the earnings release reflects cautious optimism among investors. The stock has shown modest upward movement in pre-market trading, gaining approximately 0.16%, which suggests the market is responding positively to the earnings beat and increased guidance. This immediate reaction contrasts with the stock's performance over recent periods, which has seen some pressure with declines of 1.6% over the past week and 3.2% over the past month. The positive pre-market movement indicates that investors may be focusing more on the earnings surprise and forward-looking guidance rather than the slight revenue miss.

Updated Guidance and Analyst Estimates

A significant development from the earnings announcement was the company's decision to raise its full-year 2025 guidance, signaling management confidence in the business trajectory. While the press release highlights this increased guidance, specific numerical targets were not detailed in the provided context. This optimistic outlook from management comes against the backdrop of analyst expectations for the coming periods, including Q4 2025 revenue estimates of $3.60 billion and full-year sales projections of $14.53 billion. The raised guidance suggests BorgWarner anticipates outperforming these market expectations through the remainder of the fiscal year.

Strategic Highlights and Capital Return

Beyond the financial metrics, BorgWarner emphasized its commitment to shareholder returns, announcing it returned $136 million to stockholders during the third quarter through share repurchases and dividends. This capital return program underscores the company's financial health and disciplined capital allocation strategy. As a provider of technology solutions across combustion, hybrid, and electric vehicles, this consistent return of capital demonstrates BorgWarner's balanced approach to investing in future growth while rewarding current shareholders.

For detailed historical earnings data and future analyst estimates, readers can access comprehensive information through the BorgWarner earnings and estimates page.

Disclaimer: This article presents factual information about BorgWarner's financial results and should not be construed as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.