BorgWarner Backs Guidance as Profit Rises

Dow Jones05-06 18:55

By Rob Curran

BorgWarner's first-quarter net income rose sharply and the auto-parts maker reiterated adjusted earnings and revenue forecasts for the year as strength in drive-train sales offset weakness in other categories.

The Auburn Hills, Mich., maker of auto parts and other industrial products posted earnings of $242 million, or $1.16 a share, up from $157 million, or 72 cents a share, a year earlier.

Stripping out certain one-off items such as restructuring expenses, BorgWarner logged adjusted earnings of $1.24 a share, surpassing the mean analyst estimate of $1.17 a share, as tallied by FactSet.

First-quarter sales rose 1% to $3.53 billion, edging the average analyst target of $3.5 billion, as per FactSet. Growth in Drivetrain and PowerDrive categories offset weakness in other product lines.

For 2026, BorgWarner forecast earnings of $4.70-to-$4.87 a share. The manufacturer reiterated its projection for adjusted earnings of $5 to $5.20 a share. Analysts, on average, are targeting adjusted earnings of $5.16 a share.

The company also continues to expect sales in a range between $14 billion and $14.3 billion, compared to the mean analyst estimate of $14.19 billion. That reflects BorgWarner's expectation for a drop in organic sales of 1.5% to 3.5%, partially reflecting weakness in its battery energy systems unit.

BorgWarner said it has expanded offerings of battery energy systems and other products to data centers, in line with a trend of heavy industrial companies tailoring products to developers of artificial-intelligence infrastructure amid booming demand.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

May 06, 2026 06:55 ET (10:55 GMT)

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BorgWarner Backs Guidance as Profit Rises

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