BorgWarner Beats Q4 Estimates but Issues Soft 2026 Outlook

The manufacturer posted a net loss of $262 million, or $1.23 per share, a significant improvement from the $405 million loss recorded during the same period last year. On an adjusted basis, BorgWarner delivered $1.35 per share, comfortably beating the FactSet analyst consensus of $1.19. Revenue for the quarter climbed 3.9% to $3.57 billion, supported by steady demand despite broader volatility in the automotive sector.

Despite the quarterly beat, BorgWarner’s outlook for 2026 reflects the cooling climate for electrification. The company projects full-year sales between $14 billion and $14.3 billion, missing the $14.58 billion average analyst estimate. Management attributed the expected 1.5% to 3.5% drop in organic sales to a slump in the battery and charging systems unit. This downturn follows the withdrawal of federal subsidies, which according to the report, has led several major U.S. automakers to scale back their electric vehicle production schedules.

Diversifying into Data Centers

To offset the cooling EV market, BorgWarner is expanding its industrial footprint through a new partnership with TurboCell, a power division of data-center developer Endeavour. Under the agreement, BorgWarner will supply turbine-generator systems designed for high-capacity power units. The company expects to begin production in early 2027, with the contract projected to generate approximately $300 million in revenue during its first year of operation.