- In late July 2025, BorgWarner announced a series of new contracts with global automotive OEMs spanning its turbocharger, hybrid, and electric vehicle technology portfolios, alongside an upgraded 2025 full-year sales outlook and a 55% increase in its quarterly dividend to US$0.17 per share.
- This wave of business wins underscores BorgWarner's expanding penetration across both established and new energy vehicle markets, highlighting its active transition toward electrified propulsion and advanced components worldwide.
- We'll explore how BorgWarner's upgraded guidance and major new electrification contracts could influence the company's long-term investment story.
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BorgWarner Investment Narrative Recap
To be a BorgWarner shareholder today, you’d need to believe in the company’s ability to bridge its traditional strengths in combustion technologies with a successful pivot to electrified and hybrid systems. The surge of new contracts in turbochargers and EV components underscores strong demand and may reinforce investor confidence in near-term top-line growth, but it does not materially resolve the longer-term risk of shrinking revenues if the shift away from internal combustion accelerates or regulations tighten more rapidly than expected.
Among recent developments, BorgWarner’s contracts to supply high-voltage coolant heaters to major automotive manufacturers stand out. These wins highlight customer trust in the company’s electrification technology, directly supporting BorgWarner’s catalyst of increasing integration into the global EV supply chain as automakers expand hybrid and electric offerings.
Yet, while these wins may boost momentum, investors still need to watch for signs that...
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 is based on an assumed annual revenue growth rate of 4.9% and a $780 million increase in earnings from the current $220.0 million.
Uncover how BorgWarner's forecasts yield a $42.27 fair value, in line with its current price.
Exploring Other Perspectives
Simply Wall St Community members place BorgWarner’s fair value between US$39.17 and US$63.04, drawing from three independent viewpoints. These differing views exist as new hybrid and EV contract wins potentially drive higher content per vehicle, which could influence long-term earnings and challenge current risk assumptions.
Explore 3 other fair value estimates on BorgWarner - why the stock might be worth 6% less than the current price!
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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