BorgWarner reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.35 beating the consensus estimate of $1.18. The automotive supplier's revenue reached $3.57 billion, surpassing the expected $3.51 billion. Shares edged up 0.4% following the announcement.

For the full year, BorgWarner reported adjusted earnings per share of $4.91, up approximately 14% from 2024, while free cash flow increased 66% to $1.21 billion. The company's fourth-quarter sales increased 3.9% compared to the same period in 2024, driven primarily by growth in light vehicle electric products. BorgWarner achieved an adjusted operating margin of 12.0% for the quarter.

Despite the strong quarterly performance, BorgWarner's 2026 guidance fell short of analyst expectations. The company projects revenue between $14.0 billion and $14.3 billion, compared to the consensus estimate of $14.55 billion, and expects adjusted earnings per share between $5.00 and $5.20, below the analyst consensus of $5.14. This guidance reflects anticipated headwinds from a 3% to flat decline in weighted light vehicle markets and an expected $210 million sales decline in the Battery & Charging Systems segment.