- In the past week, BorgWarner announced a series of major global contract wins for its electrified vehicle components and technologies, raised its 2025 full-year guidance, declared a 55% dividend increase, and expanded its share buyback authorization by US$233 million to US$1 billion, with an extension to 2028.
- The new supply agreements with leading Chinese, East Asian, European, and North American OEMs highlight sustained demand for BorgWarner’s electrification portfolio and reflect growing confidence in the company’s ability to capture market share as vehicle powertrain technologies evolve.
- We’ll now examine how BorgWarner’s strengthened 2025 outlook and large-scale electrified contract awards could reshape its long-term investment narrative.
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BorgWarner Investment Narrative Recap
Being a shareholder in BorgWarner means believing in the company’s ability to transition from its ICE-heavy core towards electrified vehicle growth, while managing the risk that electrification demand volatility or legacy reliance could hinder margin expansion. The latest contract wins and guidance raise do reinforce the near-term catalyst, growth in EV and hybrid components contracts, but do not fundamentally reduce exposure to legacy product headwinds or electrification uncertainty in key segments.
Among recent announcements, the expanded supply agreement for dual inverters with a major Chinese OEM stands out as highly relevant, providing tangible evidence of progress toward deeper integration in electrified platforms. However, durability of these wins against shifting OEM capex and possible supply chain or regulatory hurdles remains something to keep front of mind. Yet, while electrification momentum is promising, investors should also consider...
Read the full narrative on BorgWarner (it's free!)
BorgWarner's outlook forecasts $16.2 billion in revenue and $1.0 billion in earnings by 2028. This reflects a 4.8% annual revenue growth rate and a $780 million increase in earnings from the current $220 million level.
Uncover how BorgWarner's forecasts yield a $42.13 fair value, a 9% upside to its current price.
Exploring Other Perspectives
Fair value estimates from three members of the Simply Wall St Community range widely, from US$39.17 to just under US$62.95 per share. Such contrasting views reflect how sustained BCS segment volatility and electrification adoption trends continue to drive divergent expectations about BorgWarner’s business model and earnings stability.
Explore 3 other fair value estimates on BorgWarner - why the stock might be worth just $39.17!
Build Your Own BorgWarner Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your BorgWarner research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
- Our free BorgWarner research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BorgWarner's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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