BorgWarner Expects Turbine Generator Sales To Exceed $300 Million In First Production Year

BorgWarner (BWA) stock rose 55.9% in the past year, with sales up 2.2% and profits nearly flat. The company has been buying back shares, retiring 6.1% of its shares in the past year, driving earnings per share growth of 6.6% annually. BorgWarner spent $650M on buybacks and $140M on dividends in the past year, funded by strong cash flow. The company plans to invest $10M-$15M in R&D for a turbine generator launching in 2027, expected to generate $300M in revenue.

BorgWarner (BWA) shares fell 0.1% since its last earnings report, despite beating Q2 2026 estimates with $1.42 EPS and $3.65B revenue. Sales grew 0.3% YoY, but organic sales declined 1.2%. The company raised its full-year EPS guidance to $5.05-$5.30. Analysts have downgraded estimates, and BWA has a Zacks Rank #3 (Hold).

BorgWarner (BWA) Q2 2026 earnings call transcript says adjusted margins rose 100 bps and EPS grew 17% in a flat sales year, citing cost controls. The company reported 7 new business awards, $134 million returned to shareholders via buybacks and dividends, and a $1 billion increase to its repurchase authorization to $1.35 billion. It also updated data center and industrial readiness milestones.

BorgWarner says it has extended multiple high-volume high-voltage inverter programs with a European OEM, covering updated designs for plug-in hybrid and 800V battery-electric vehicles. The company will use its ASIC technology for PHEVs and a new Viper SiC-based traction inverter with dual-sided cooling for BEVs. Start of production is planned for 2029, per a media release.

BorgWarner (NYSE:BWA) said it won new variable cam timing system contracts in Europe and China, including a conquest award, and that the wins expand positions with existing customers and replace a competitor on a China program. It also received awards for high voltage inverters and integrated drive modules for hybrid and EV platforms, which it said add to backlog.

BorgWarner said it won new variable cam timing (VCT) programme awards for its center-bolt Cam Torque Actuated (CTA) system. In Europe, it received a life extension and a “significant” volume increase for a premium carmaker’s V6 engine family, starting Jan 2027. In China, it won a conquest award for a 1.5L turbo petrol engine family, replacing the prior supplier, with production starting Sept 2026.