BorgWarner to Report Q3 Earnings: Here's What to Expect

BorgWarner Inc. BWA is slated to release third-quarter 2025 results on Oct. 30, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.15 and $3.60 billion, respectively.

For the third quarter, the consensus estimate for BorgWarner’s earnings has moved down a penny in the past 60 days. Its bottom-line estimates imply 5.5% growth from the year-ago reported numbers. 

The Zacks Consensus Estimate for BWA's quarterly revenues implies year-over-year growth of 4.4%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.9%. This is depicted in the graph below:

BorgWarner Inc. Price and EPS Surprise

BorgWarner Inc. price-eps-surprise | BorgWarner Inc. Quote

Q2 Highlights

In the second quarter of 2025, BWA’s adjusted EPS of $1.21 beat the Zacks Consensus Estimate of $1.06 and increased from $1.19 reported in the year-ago quarter. The company reported net sales of $3.64 billion, which beat the Zacks Consensus Estimate of $3.55 billion. The top line also rose 1% year over year.

Things to Note

BorgWarner’s sales continue to gain traction in the second quarter of 2025 as a result of a 31% year-over-year increase in light vehicle eProduct sales. The automotive equipment supplier expects continued growth across combustion business extensions and eProduct growth in Europe and Asia. Continued sales growth is likely to have boosted the company’s top line in the third quarter.

In the second quarter, the company’s emphasis on productivity, restructuring, supply chain efficiencies and cost management enabled it to offset much of the tariff impact on its combustion business. For full-year 2025, it raised its adjusted operating margin outlook to a range of 10.1-10.3%, up from the previous estimated range of 9.6-10.2%. This updated guidance factors in a 10-basis-point dilution from tariffs. An upward revision in the margin forecast is likely to have bolstered the company’s performance in the to-be-reported quarter.

Earnings Whispers

Our proven model predicts an earnings beat for BorgWarner for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.

Earnings ESP: BWA has an Earnings ESP of +1.38%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3.

Other Stocks With the Favorable Combination

Here are some other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.

Aptiv PLC APTV has an Earnings ESP of +4.62% and a Zacks Rank #2 at present. The company is set to release third-quarter 2025 results on Oct. 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for APTV’s to-be-reported quarter’s earnings and revenues is pegged at $1.79 per share and $5.04 billion, respectively. Aptiv beat earnings estimates in each of the trailing four quarters, the average surprise being 3.05%.

Lucid Group, Inc. LCID has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. The company is set to release third-quarter 2025 results on Nov. 5. 

The Zacks Consensus Estimate for LCID’s to-be-reported quarter’s loss per share and revenues is pegged at $2.32 per share and $325.6 million, respectively. Lucid beat earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 11.09%.

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This article originally published on Zacks Investment Research (zacks.com).

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