Stock Analysis · BorgWarner Inc (BWA)
Overview
BorgWarner Inc is an automotive supplier that designs and manufactures components used in vehicles. Historically, the company has been known for powertrain and drivetrain parts used in internal-combustion vehicles (for example, turbochargers and related systems), and it has also been expanding its portfolio of electrification products used in hybrid and battery-electric vehicles (such as e-motors and power electronics). Its customers are primarily global vehicle manufacturers, and the company’s results tend to follow overall vehicle production volumes and platform launches.
In simple terms, BorgWarner makes “behind-the-scenes” hardware that helps vehicles move efficiently—either by improving combustion efficiency or by enabling electric propulsion. That positioning puts it in the middle of a large industry transition: automakers are steadily increasing the share of electrified vehicles, while many conventional vehicle platforms are still produced at scale.
In its SEC filings, BorgWarner reports revenue through product/technology-focused groups rather than a consumer-facing product mix. A common high-level breakdown is:
- Air / combustion-related systems (including turbo and related technologies)
- Drivetrain & transmission-related systems
- Electrification (electric motors, inverters/power electronics, charging-related hardware, and related components)
Exact percentages can change year to year and are best taken from the most recent Form 10‑K segment and product disclosures.
Across 2021–2024, revenue fluctuated (about $12.6B to $14.8B), while profitability varied more meaningfully. For example, net income decreased from about $537M (2021) to about $338M (2024), showing that cost structure, pricing, and mix can matter as much as sales levels in this industry.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 07, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Auto Parts | |
| Market Cap ⓘ | $11.30B | |
| Beta ⓘ | 1.06 | |
| Fundamental | ||
| P/E Ratio ⓘ | 73.56 | 25.56 |
| Profit Margin ⓘ | 0.95% | 3.38% |
| Revenue Growth ⓘ | 4.10% | 4.95% |
| Debt to Equity ⓘ | 67.79% | 66.87% |
| PEG ⓘ | 1.21 | |
| Free Cash Flow ⓘ | $1.44B | |
BorgWarner’s market capitalization is about $11.3B and its beta is about 1.06, which indicates price movements roughly in line with the broader market. The latest P/E ratio is about 73.6, well above the auto parts industry median of about 25.6; this can happen when earnings are temporarily depressed rather than the share price rising sharply. Profit margin is about 1.0% versus an industry median near 3.4%, and revenue growth year over year is about 4.1% versus an industry median near 5.0%. Debt-to-equity is about 67.8%, close to the industry median (~66.9%). Trailing twelve-month free cash flow is about $1.44B.
Growth (Medium)
The auto parts industry is closely tied to global vehicle production, which is cyclical. However, BorgWarner is also exposed to a structural shift: the long-term move toward electrified powertrains. That shift can create new demand for components like e-motors and power electronics, while some traditional combustion-focused products may face slower growth over time as electric vehicle penetration increases.
A central question for long-term business growth is whether the company can grow its electrification revenue fast enough to offset slower growth (or eventual decline) in some combustion-related categories. BorgWarner’s strategy—expanding its electrification portfolio while continuing to serve current high-volume combustion platforms—aims to operate on both timelines at once: near-term scale from legacy products and longer-term positioning in EV content per vehicle.
Recent year-over-year revenue growth has been uneven, with several quarters of contraction followed by modest positive growth most recently (about 4%). This pattern is consistent with a supplier exposed to changing production schedules, customer inventory adjustments, and platform timing.
Free cash flow shows a notable improvement from 2024 to 2025 (TTM), rising from roughly $449M (as of 2024-03-31) to about $962M (as of 2025-03-31), with the latest metric table indicating around $1.44B TTM. For long-term business resilience, sustained cash generation matters because it can help fund capital spending, product development, and balance-sheet flexibility during downturns.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
