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BorgWarner Inc (BWA)

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Upturn Advisory Summary
12/19/2025: BWA (3-star) is a STRONG-BUY. BUY since 1 days. Simulated Profits (0.00%). Updated daily EoD!
1 Year Target Price $50.08
1 Year Target Price $50.08
| 7 | Strong Buy |
| 6 | Buy |
| 5 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 14.98% | Avg. Invested days 35 | Today’s Advisory Strong Buy |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.74B USD | Price to earnings Ratio 63.42 | 1Y Target Price 50.08 |
Price to earnings Ratio 63.42 | 1Y Target Price 50.08 | ||
Volume (30-day avg) 18 | Beta 1.04 | 52 Weeks Range 24.13 - 46.21 | Updated Date 12/20/2025 |
52 Weeks Range 24.13 - 46.21 | Updated Date 12/20/2025 | ||
Dividends yield (FY) 1.11% | Basic EPS (TTM) 0.71 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.95% | Operating Margin (TTM) 8.41% |
Management Effectiveness
Return on Assets (TTM) 5.44% | Return on Equity (TTM) 3.04% |
Valuation
Trailing PE 63.42 | Forward PE 9.7 | Enterprise Value 11548993492 | Price to Sales(TTM) 0.69 |
Enterprise Value 11548993492 | Price to Sales(TTM) 0.69 | ||
Enterprise Value to Revenue 0.81 | Enterprise Value to EBITDA 9.02 | Shares Outstanding 213928111 | Shares Floating 211908630 |
Shares Outstanding 213928111 | Shares Floating 211908630 | ||
Percent Insiders 0.99 | Percent Institutions 104.25 |
Upturn AI SWOT
BorgWarner Inc

Company Overview
History and Background
BorgWarner Inc. was founded in 1928 through the merger of several automotive component manufacturers, including Borg & Beck Company, Warner Gear Company, and Marvel-Schebler Company. The company has a long history of innovation in powertrain technology, evolving from mechanical components to advanced electronic and electrified solutions. Key milestones include the development of early automatic transmissions, turbochargers, and more recently, significant investments in electrification technologies.
Core Business Areas
- Air Management: Designs and manufactures systems that control and enhance the flow of air into and out of the engine, including turbochargers, exhaust gas recirculation (EGR) systems, and thermal management components. This segment is crucial for improving fuel efficiency and reducing emissions in internal combustion engines, and increasingly for thermal management in electric vehicles.
- Emissions Systems: Develops and produces components and systems to reduce harmful emissions from internal combustion engines, such as exhaust catalysts and diesel particulate filters. This segment is vital for meeting stringent global emissions regulations.
- Drivetrain Systems: Provides a wide range of products for vehicle drivetrain systems, including four-wheel-drive (4WD) systems, all-wheel-drive (AWD) systems, dual-clutch transmissions (DCT) components, and automatic transmission components. This segment also includes solutions for electric vehicle transmissions and e-axles.
- Electronics and Electrification: This rapidly growing segment focuses on developing and manufacturing electrification components and systems, including electric motors, power electronics, battery management systems, and integrated drive modules for electric and hybrid vehicles. This segment is a key driver of BorgWarner's future growth.
Leadership and Structure
BorgWarner operates with a global footprint, overseen by a Board of Directors and a senior executive leadership team. The company is organized into business units aligned with its core technology areas, allowing for focused product development and market strategies. The current CEO is Fru00e9du00e9ric Lissalde.
Top Products and Market Share
Key Offerings
- Turbochargers: BorgWarner is a leading global supplier of turbochargers for a wide range of gasoline and diesel engines. These enhance engine performance and fuel efficiency. Competitors include Honeywell Garrett, Continental AG, and Mitsubishi Heavy Industries. Market share data is proprietary but BorgWarner is considered a top-tier player.
- Electric Motors for EVs: BorgWarner manufactures a variety of electric motors, including permanent magnet synchronous motors (PMSM) and induction motors, for electric and hybrid vehicles. This is a rapidly growing area with significant market potential. Key competitors include Valeo, Bosch, and ZF Friedrichshafen. Market share is nascent and highly fragmented.
- Dual-Clutch Transmission (DCT) Components: The company supplies critical components for DCT systems, enabling faster and more efficient gear shifts. Competitors include Magna International and Schaeffler. BorgWarner holds a significant position in this niche market.
- E-Axles: BorgWarner offers integrated e-axle solutions for electric vehicles, combining electric motors, power electronics, and gear reduction in a single unit. This is a key product for their electrification strategy. Competitors include ZF, Magna, and GKN Automotive. This is a growing market with evolving share dynamics.
Market Dynamics
Industry Overview
The automotive components industry is undergoing a profound transformation driven by the shift towards electrification, autonomous driving, and stricter emissions regulations. Companies are investing heavily in new technologies, particularly for electric vehicles, while also managing the transition of internal combustion engine (ICE) related products. Supply chain resilience and sustainability are also key focus areas.
Positioning
BorgWarner is well-positioned due to its diversified portfolio and strategic focus on electrification. Its long-standing expertise in powertrain technology provides a strong foundation, and its acquisitions and R&D investments are geared towards becoming a leader in clean and efficient mobility solutions. The company benefits from strong relationships with global automakers and a reputation for quality and innovation.
Total Addressable Market (TAM)
The global automotive components market is vast and estimated to be in the hundreds of billions of dollars, with the electrification segment experiencing rapid growth. BorgWarner is positioned to capture a significant share of this TAM, particularly within its core competencies of powertrain components, with a strong focus on capturing the increasing demand for EV-specific technologies.
Upturn SWOT Analysis
Strengths
- Strong global presence and long-standing customer relationships with major OEMs.
- Diversified product portfolio, including both ICE and growing electrification solutions.
- Significant R&D capabilities and a history of technological innovation.
- Proven ability to integrate acquired technologies and businesses.
Weaknesses
- Exposure to the cyclical nature of the automotive industry.
- Reliance on internal combustion engine (ICE) related products, which are facing long-term decline.
- Integration challenges and costs associated with rapid acquisitions.
- Intensifying competition in the rapidly evolving EV component market.
Opportunities
- Accelerating adoption of electric vehicles globally.
- Increasing demand for advanced driver-assistance systems (ADAS) and software-defined vehicles.
- Growth in emerging markets and their adoption of cleaner automotive technologies.
- Strategic partnerships and joint ventures to expand technological reach.
Threats
- Global supply chain disruptions and rising raw material costs.
- Intense price competition from both established and new players in the EV space.
- Rapid technological obsolescence, particularly in the EV component sector.
- Potential changes in government regulations and incentives impacting vehicle production.
Competitors and Market Share
Key Competitors
- Magna International (MGA)
- Denso Corporation (DNZOY)
- Continental AG (CTAGY)
- Bosch GmbH (Private)
- Valeo SA (VLEEF)
Competitive Landscape
BorgWarner benefits from its established position in ICE components, which provides stable revenue. Its advantage in electrification lies in its acquired technologies and focused R&D. However, it faces intense competition from large, diversified suppliers and agile new entrants in the EV space. The company's ability to innovate and execute its electrification strategy will be critical for maintaining and growing its market share.
Major Acquisitions
Delphi Technologies
- Year: 2020
- Acquisition Price (USD millions): 1780
- Strategic Rationale: To bolster its electrification capabilities, expand its product portfolio in propulsion and electronics, and create a more comprehensive offering for automakers transitioning to EVs. It significantly enhanced BorgWarner's position in power electronics and advanced propulsion.
AKASOL AG
- Year: 2021
- Acquisition Price (USD millions): 740
- Strategic Rationale: To acquire leading battery system technology and manufacturing capabilities, strengthening BorgWarner's position in the rapidly growing battery electric vehicle (BEV) market and providing essential components for electrification.
Growth Trajectory and Initiatives
Historical Growth: BorgWarner has historically achieved growth through organic expansion of its ICE components business and strategic acquisitions. The past decade has seen a significant pivot towards electric vehicle technologies, with the company actively investing in R&D and expanding its electrification product lines. Acquisitions have played a crucial role in accelerating this transition.
Future Projections: Analyst projections generally indicate continued revenue growth, driven by the increasing adoption of EV components and sustained demand for advanced ICE technologies in the near to medium term. Profitability is expected to improve as the mix shifts further towards higher-margin electrification products. Growth in the e-mobility segment is a key focus for future projections.
Recent Initiatives: Recent initiatives include significant acquisitions (e.g., Delphi Technologies' electronics and propulsion business, and AKASOL), strategic investments in battery technology and electric motor manufacturing, and the development of integrated e-propulsion solutions. The company is also focused on sustainability initiatives and reducing its environmental footprint.
Summary
BorgWarner Inc. is a well-established automotive supplier strategically navigating the industry's shift towards electrification. Its strengths lie in its diversified portfolio, R&D prowess, and strong OEM relationships. While facing headwinds from the decline of ICE, the company is aggressively investing in and acquiring EV technologies, positioning itself for future growth. Careful management of integration costs and intense competition in the EV sector are key areas to monitor.
Similar Stocks
Sources and Disclaimers
Data Sources:
- BorgWarner Inc. Investor Relations (Annual Reports, SEC Filings)
- Industry Analysis Reports (e.g., S&P Global Mobility, IHS Markit)
- Financial News Outlets (e.g., Bloomberg, Reuters, Wall Street Journal)
- Market Research Firms (e.g., Statista, MarketsandMarkets)
Disclaimers:
This JSON output is for informational purposes only and does not constitute financial advice. Market share data and future projections are estimates and subject to change. Investors should conduct their own due diligence before making any investment decisions. Data accuracy is based on publicly available information at the time of generation.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About BorgWarner Inc
Exchange NYSE | Headquaters Auburn Hills, MI, United States | ||
IPO Launch date 1993-08-12 | President, CEO & Director Mr. Joseph F. Fadool | ||
Sector Consumer Cyclical | Industry Auto Parts | Full time employees 38300 | Website https://www.borgwarner.com |
Full time employees 38300 | Website https://www.borgwarner.com | ||
BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, and battery heaters. The company also provides control modules, friction, and mechanical clutch products for automatic transmissions, torque-management products and rear-wheel drive, all-wheel drive transfer case systems, and coupling systems; and power electronics, such as inverters, onboard chargers, DC/DC converters and combination boxes, rotating electric machines, fully integrated drive modules, and electronic controls. It sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was founded in 1928 and is headquartered in Auburn Hills, Michigan.

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