BorgWarner Inc. raised its 2026 adjusted earnings-per-share outlook after third-quarter sales fell 2.9% year over year, citing share repurchases and a lower expected tax rate in its higher forecast.
The updated adjusted earnings-per-share range is $5.20 to $5.35, compared with the previous $5.05 to $5.30. The company projected sales of $14 billion to $14.2 billion in 2026, compared with about $14.3 billion in 2025. BorgWarner cited share repurchases and a lower expected full-year tax rate as reasons for the higher forecast.
Third-quarter net earnings totaled $221 million on sales of $3.487 billion. Diluted GAAP earnings were $1.08 per share, compared with 73 cents a year earlier, while adjusted earnings rose to $1.39 per share from $1.24. BorgWarner reported an 8.7% GAAP operating margin and a 10.9% adjusted margin.
BorgWarner said the sales decline mainly reflected “declining market production volumes” and lower sales in its Battery Energy Systems segment. It expects 2026 sales in that segment to be about $250 million below the 2025 level.
During the quarter, BorgWarner’s debt tender and make-whole redemption cut gross debt by $864 million. The company also bought back about $175 million in shares and distributed $35 million in cash dividends.
BorgWarner reported the results in an Oct. 29 Form 8-K filed with the Securities and Exchange Commission (SEC). The filing lists results of operations and financial condition under Item 2.02 and financial statements and exhibits under Item 9.01. The index contains 13 documents under accession number 0000908255-26-000060 and gives Oct. 29 as the period-of-report date. The company’s earnings release appears as Exhibit 99.1. BorgWarner had scheduled its third-quarter results conference call for 9:30 a.m. ET on Oct. 29.
