Is BorgWarner profitable in 2026?

Yes. FY2025 net sales were $14.3 billion with a 10.7% adjusted operating margin and over $1.2 billion free cash flow as of December 31, 2025. Q1 2026 revenue hit $3.53 billion with adjusted EPS of $1.24, beating the $1.16 consensus estimate.

Did BorgWarner really exit its EV charging business?

Yes. New CEO Joe Fadool exited the EV charging business in May 2025, avoiding about $45 million in projected losses, after the electrification push (via Rhombus Energy Solutions and other acquisitions) had already led to over $1.2 billion in impairment charges.

Who are BorgWarner's biggest competitors?

Larger diversified rivals include Bosch, DENSO, Continental, and ZF. Garrett Motion competes directly in turbochargers, while Vitesco, Schaeffler, and Valeo contest e-motor and inverter business as BorgWarner's eProducts grew 23% in 2025 to about 18% of sales.

Could AI replace BorgWarner?

No. BorgWarner makes physical hardware, turbochargers, e-motors, and transmissions, work that AI does not directly automate. Instead, in February 2026 it signed a Master Supply Agreement with TurboCell to supply turbine generators into AI data centers at gigawatt scale, becoming a supplier to the AI buildout.

Is it safe to take a job at BorgWarner?

Headcount fell from 52,700 in 2022 to 37,500 by December 2025, roughly 2% annual decline post PHINIA spin-off. However job postings rose 17.3% in 2025 even as headcount shrank, suggesting selective hiring tied to the eProducts and data-center pivot rather than broad contraction.

BorgWarner is a public company on the NYSE under ticker BWA with no controlling parent. As of July 12, 2026, about 95.7% of shares were institutionally held and only about 0.8% were insider-held, per MarketBeat data.

Manufacturing companies · United States

BorgWarner

borgwarner.com ↗

BorgWarner makes turbochargers, thermal systems, and e-propulsion parts for car and truck makers worldwide.

Protection under test

Assessed 20 July 2026 · Evidence as of 20 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 20 July 2026 · Checkable from August 5, 2026 · Every call on the record Checkpoint: Q2 2026 earnings report, testing eProduct growth and Battery & Charging drag

The call

BorgWarner is cash-generative and contractually locked into current vehicle programs, but its bet on electrification is still small, costly, and unproven at scale.

BorgWarner makes parts for car engines and cooling systems, mostly for gas-powered cars that are being phased out. It is hard to replace because car makers lock in suppliers for years, but that advantage only buys time: the company's old business is shrinking while its new electric motor and power electronics business is growing slowly and making less profit per dollar of sales. The one thing that could change everything is whether BorgWarner can convince data-center and power companies to use its new turbine technology (called TurboCell), which would open a completely different market beyond cars, or whether its core combustion engine parts fall off a cliff faster than it can grow electric alternatives.

Why

AI pressure: None apparent. AI mostly feeds BorgWarner here: its new TurboCell turbine deal targets AI data-center power demand, not the other way around. Could AI do the core job? Unlikely.

Bigger players: Bosch, DENSO, Continental, ZF, Vitesco, Schaeffler, Valeo, Garrett Motion. These larger or specialist suppliers fight BorgWarner directly for e-motor, inverter, and turbo contracts as combustion volume shrinks. Could a giant copy it? Probably.

What protects it. Long OEM qualification cycles and multi-year production contracts lock in current programs and give time to shift the mix.

What would change this call

Q2 2026 earnings (Aug 5) showing eProduct growth rate versus prior quarters. Whether electrification revenue keeps growing fast enough to offset combustion decline.
TurboCell/Endeavour data-center turbine deal converting Master Supply Agreement into booked, awarded revenue. Whether the new data-center power business becomes a real revenue stream or stays a pilot.
Any major OEM like Ford or VW awarding a flagship EV platform's e-propulsion content to a rival supplier. Whether BorgWarner is losing ground in the electrified-platform sourcing competition.

Key numbers

FY2025 revenue $14.3B, adjusted margin 10.7% (2025-12-31)
eProducts $2.6B, ~18% of sales, up 23% YoY (2025-12-31)
2026 guidance: organic sales down 1.5-3.5% (2026-02-11)

Named risks

ICE parts revenue shrinking faster than eProducts can offset, FY2026 organic sales guided down 1.5-3.5%. Severity: high
Failed $1.2B+ electrification and EV charging bet, exited May 2025 after major impairments. Severity: high
TurboCell data-center turbine deal unproven, stock fell 5.9% on Feb 25 2026 amid mixed reaction. Severity: medium
Ongoing legacy asbestos litigation with thousands of mesothelioma claims and no trust fund. Severity: medium
Margin dilution risk as mix shifts toward lower-margin eProducts while ICE base declines. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Garrett Motion	contesting	Turbocharger-specialist rival as BorgWarner's ICE base shrinks, 2025-2026
Bosch, DENSO, Continental, ZF	contesting	Larger diversified auto-electronics conglomerates, no exclusivity moat as of 2026
Vitesco, Schaeffler, Valeo	contesting	e-motor and inverter rivals as BorgWarner eProducts grew 23% in 2025
PHINIA	contesting	Spun off July 2023, now separate combustion and aftermarket competitor

Questions people ask

Is BorgWarner profitable in 2026?: Yes. FY2025 net sales were $14.3 billion with a 10.7% adjusted operating margin and over $1.2 billion free cash flow as of December 31, 2025. Q1 2026 revenue hit $3.53 billion with adjusted EPS of $1.24, beating the $1.16 consensus estimate.
Did BorgWarner really exit its EV charging business?: Yes. New CEO Joe Fadool exited the EV charging business in May 2025, avoiding about $45 million in projected losses, after the electrification push (via Rhombus Energy Solutions and other acquisitions) had already led to over $1.2 billion in impairment charges.
Who are BorgWarner's biggest competitors?: Larger diversified rivals include Bosch, DENSO, Continental, and ZF. Garrett Motion competes directly in turbochargers, while Vitesco, Schaeffler, and Valeo contest e-motor and inverter business as BorgWarner's eProducts grew 23% in 2025 to about 18% of sales.
Could AI replace BorgWarner?: No. BorgWarner makes physical hardware, turbochargers, e-motors, and transmissions, work that AI does not directly automate. Instead, in February 2026 it signed a Master Supply Agreement with TurboCell to supply turbine generators into AI data centers at gigawatt scale, becoming a supplier to the AI buildout.
Is it safe to take a job at BorgWarner?: Headcount fell from 52,700 in 2022 to 37,500 by December 2025, roughly 2% annual decline post PHINIA spin-off. However job postings rose 17.3% in 2025 even as headcount shrank, suggesting selective hiring tied to the eProducts and data-center pivot rather than broad contraction.
Who owns BorgWarner?: BorgWarner is a public company on the NYSE under ticker BWA with no controlling parent. As of July 12, 2026, about 95.7% of shares were institutionally held and only about 0.8% were insider-held, per MarketBeat data.

Timeline

2026-07-14Stock trades around $62-64, market cap roughly $12.8-13.2 billion
2026-05-06Q1 2026 earnings beat: revenue $3.53B, adjusted EPS $1.24 vs $1.16 consensus
2026-02-25Stock falls 5.9% on mixed reaction to TurboCell deal and 2026 guidance
2026-02-11FY2025 results reported ($14.3B revenue) and TurboCell data-center MSA announced
2026-02-04Wins summary judgment in Nevada asbestos litigation case
2025-05-09New CEO Joe Fadool exits EV charging business, avoiding ~$45M in losses
2023-07-03PHINIA spin-off completed, separating Fuel Systems and Aftermarket segments
2020Acquires Delphi Technologies in ~$3.3B all-stock deal, 16% shareholder dilution

Revision history

20 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

In the same band

Ford Motor Whirlpool EchoStar