New York, February 11, 2026, 18:25 (EST) — After-hours
- BorgWarner shares surged after the auto supplier beat quarterly profit expectations and issued 2026 guidance.
- A new TurboCell supply agreement puts BorgWarner into on-site power equipment for AI-driven data centers.
- Traders are now watching 2026 demand signals, margin discipline and the timing of a 2027 production ramp.
BorgWarner Inc (BWA) shares were last up about 22.5% at $66.10 in U.S. after-hours trading on Wednesday, after trading between $54.00 and $68.57 during the session. Peer Aptiv was down about 1.6%, while Lear was little changed.
The surge lands at an awkward moment for the auto supply chain, with electric-vehicle demand softer and carmakers reworking product plans as Chinese competition bites and U.S. policy risks swirl. BorgWarner’s 2026 sales outlook of $14.0 billion to $14.3 billion came in below analysts’ $14.7 billion view, even as quarterly adjusted profit topped estimates, according to LSEG data. (Reuters)
BorgWarner said fourth-quarter net sales rose 3.9% to $3.57 billion, while “organic” sales — excluding currency effects — were up 0.8%. On an adjusted basis (a company-defined measure that strips out items such as impairment charges and restructuring), it earned $1.35 a share and posted an adjusted operating margin of 12%, even as it reported a GAAP loss of $1.23 a share; it also said free cash flow totaled $1.21 billion in 2025 and that it returned about $630 million to shareholders. (Prnewswire)
BorgWarner is trying to widen the story beyond cars. It signed a master supply agreement with TurboCell, an Endeavour unit, to supply a modular turbine generator system for AI-driven data centers and microgrids, with production planned in Hendersonville, North Carolina, in 2027 and an initial 2 gigawatts of installed capacity; CEO Joseph Fadool called it “a powerful representation of the BorgWarner team proactively identifying and seizing growth opportunities,” while Endeavour founder Jakob Carnemark said the partnership would “combine Endeavour’s cutting-edge innovation with BorgWarner’s automotive scale engineering and manufacturing execution.” (Prnewswire)
The company also stacked up new auto awards, including a deal to supply a variable turbine geometry turbocharger for a major European OEM’s hybrid-electric platform in North America, with production expected to start in 2028. “BorgWarner is proud to extend our long-lasting, trusted partnership with this OEM,” said Volker Weng, vice president and general manager for turbos and thermal technologies. (Stock Titan)
For traders, the next question is whether Wednesday’s rerating sticks once the headlines fade. The stock move puts a spotlight on capital spending for the turbine generator launch, how quickly “bridging” hybrid programs can offset uneven EV demand, and whether margins can hold if light-vehicle production cools.
There is a clear risk case, too. BorgWarner’s 2026 sales view is below the Street’s, and parts of the growth story are back-end loaded — the data-center product is slated for 2027 production, and the core business still rides vehicle builds, customer launch timing and pricing pressure.
A regulatory filing on Wednesday showed BorgWarner furnished its quarterly and full-year results release in an 8-K and pointed investors to its website for the earnings call presentation. (SEC)
Next up, investors will be listening for more detail on 2026 margins, capital spending and the 2027 turbine generator ramp when the company appears at the Barclays 43rd Annual Industrial Select Conference on Feb. 19. (Borgwarner)
