BorgWarner raised its adjusted earnings forecast October 29 after reporting higher third-quarter profit despite declining revenue.
Sales fell 2.9% to $3.487 billion for the quarter ended September 30. The auto supplier attributed the decline mainly to lower industry production and weaker Battery Energy Systems sales.
Net earnings attributable to BorgWarner increased to $221 million from $158 million. Diluted earnings per share rose to $1.08 from 73 cents; adjusted earnings increased to $1.39 from $1.24. The adjusted figures exclude specified non-comparable items.
Reported operating income was $302 million, representing an 8.7% margin, compared with 6.9% a year earlier. Adjusted operating margin increased to 10.9% from 10.7%.
BorgWarner said it reduced gross debt by $864 million during the quarter and repurchased approximately $175 million of shares. Operating cash flow was $320 million, with $195 million in free cash flow.
Management now forecasts annual adjusted earnings of $5.20–$5.35 per share, up from $5.05–$5.30, citing tax expectations and share repurchases. It narrowed projected sales to $14 billion–$14.2 billion from a previous upper bound of $14.3 billion. These remain forecasts.
Sources: BorgWarner — October 29 Results: https://www.prnewswire.com/news-releases/borgwarner-reports-strong-third-quarter-2026-results-increases-2026-adjusted-eps-guidance-announces-9-awards-across-portfolio-to-support-long-term-profitable-growth-302922731.html