Detailed financial statements for BorgWarner Inc. (BWA): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
BorgWarner Inc. (BWA) is a prominent global supplier of advanced propulsion technologies, catering to a wide spectrum of vehicles including those powered by internal combustion engines, hybrids, and fully electric drivetrains. The company's operations are divided into four primary business units: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket.
Analysis Summary
BorgWarner Inc. reported revenue of $14.32B in the most recent fiscal year, growing at a 5-year CAGR of 7.1%. Net income reached $277.0M, with a -11.1% 5-year CAGR.
Trailing-twelve-month margins: gross margin 19.5%, operating margin 5.1%, net margin 2.9%. Free cash flow grew at 10.8% CAGR over 5 years.
At $55.93 (closing price, October 28, 2026), BWA trades at a P/E of 27.55 and an ROE of 7.37%. Market capitalisation stands at $11.4B, placing it among large-cap names.
Balance sheet quality for BWA: current ratio of 2.1, net debt of $1.74B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.21B represents 436% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $9.07B | $9.80B | $10.53B | $10.17B | $10.16B | $14.84B | $12.63B | $14.20B | $14.08B | $14.32B |
| Cost of Revenue | $7.14B | $7.68B | $8.30B | $8.07B | $8.26B | $11.98B | $10.27B | $11.63B | $11.47B | $11.64B |
| Gross Profit | $1.93B | $2.11B | $2.23B | $2.10B | $1.91B | $2.86B | $2.37B | $2.57B | $2.61B | $2.67B |
| Research & Development | $343.2M | $407.5M | $440.1M | $413.0M | $476.0M | $707.0M | $701.0M | $717.0M | $736.0M | $710.0M |
| Selling, General & Admin | $474.6M | $491.6M | $505.3M | $460.0M | $476.0M | $765.0M | $612.0M | $618.0M | $617.0M | $594.0M |
| Operating Expenses | $817.8M | $899.1M | $945.4M | $873.0M | $952.0M | $1.47B | $1.31B | $1.33B | $1.35B | $2.14B |
| Operating Income | $1.12B | $1.21B | $1.29B | $1.23B | $957.0M | $1.39B | $1.06B | $1.23B | $1.26B | $536.0M |
| EBITDA | $666.5M | $1.54B | $1.69B | $1.77B | $1.58B | $1.49B | $1.56B | $1.67B | $1.32B | $1.28B |
| Interest Expense | $84.6M | $70.5M | $59.0M | $55.0M | $73.0M | $82.0M | $71.0M | $73.0M | $84.0M | $99.0M |
| Pre-tax Income | $190.5M | $1.06B | $1.20B | $1.26B | $964.0M | $789.0M | $913.0M | $991.0M | $539.0M | $524.0M |
| Income Tax | $30.3M | $580.3M | $211.3M | $468.0M | $397.0M | $150.0M | $195.0M | $289.0M | $111.0M | $189.0M |
| Net Income | $118.5M | $439.9M | $930.7M | $746.0M | $500.0M | $537.0M | $944.0M | $625.0M | $338.0M | $277.0M |
| EPS | $2.78 | $2.09 | $4.47 | $3.63 | $2.35 | $2.26 | $4.01 | $2.72 | $1.51 | $1.29 |
| EPS (Diluted) | $2.76 | $2.08 | $4.44 | $3.61 | $2.34 | $2.24 | $3.99 | $2.67 | $1.50 | $1.28 |
| Shares Outstanding (Diluted) | 215.3 M | 211.5 M | 209.5 M | 206.8 M | 214.0 M | 239.5 M | 236.8 M | 234.4 M | 224.8 M | 216.4 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $3.59B | $3.57B | $3.53B | $3.65B |
| Gross Profit | $664.0M | $731.0M | $677.0M | $721.0M |
| Operating Income | $248.0M | -$238.0M | $349.0M | $370.0M |
| EBITDA | $492.0M | -$100.0M | $484.0M | $527.0M |
| Net Income | $158.0M | -$262.0M | $242.0M | $277.0M |
| EPS | $0.73 | $-1.21 | $1.18 | $1.32 |
| EPS (Diluted) | $0.73 | $-1.20 | $1.16 | $1.34 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $443.7M | $545.3M | $739.0M | $832.0M | $1.65B | $1.84B | $1.08B | $1.53B | $2.09B | $2.31B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $1.69B | $2.02B | $1.73B | $1.93B | $2.94B | $2.92B | $2.48B | $3.13B | $2.86B | $2.98B |
| Inventory | $641.2M | $766.3M | $781.0M | $807.0M | $1.29B | $1.53B | $1.22B | $1.31B | $1.25B | $1.21B |
| Total Current Assets | $2.91B | $3.54B | $3.80B | $3.84B | $6.17B | $6.60B | $6.62B | $6.22B | $6.52B | $6.79B |
| Property, Plant & Equipment | $2.50B | $2.86B | $2.90B | $3.01B | $4.80B | $4.58B | $3.53B | $3.93B | $3.75B | $3.48B |
| Goodwill | $1.70B | $1.88B | $1.85B | $1.84B | $2.63B | $3.28B | $2.98B | $3.01B | $2.36B | $2.06B |
| Intangible Assets | $463.5M | $492.7M | $439.0M | $402.0M | $1.10B | $1.09B | $619.0M | $564.0M | $474.0M | $394.0M |
| Total Assets | $8.83B | $9.79B | $10.10B | $9.70B | $16.03B | $16.57B | $16.99B | $14.45B | $13.99B | $13.77B |
| Accounts Payable | $1.26B | $1.55B | $1.49B | $1.32B | $2.35B | $2.28B | $2.15B | $2.55B | $2.03B | $2.00B |
| Short-term Debt | $175.9M | $84.6M | $173.0M | $286.0M | $49.0M | $66.0M | $60.0M | $73.0M | $398.0M | $5.0M |
| Total Current Liabilities | $2.09B | $2.43B | $2.40B | $2.33B | $3.81B | $3.80B | $4.24B | $3.77B | $3.65B | $3.28B |
| Long-term Debt | $2.04B | $2.10B | $1.94B | $1.67B | $3.74B | $4.26B | $4.14B | $3.71B | $3.76B | $3.89B |
| Total Liabilities | $5.53B | $5.96B | $5.75B | $4.86B | $9.30B | $9.31B | $9.49B | $8.39B | $8.29B | $8.15B |
| Retained Earnings | $4.22B | $4.53B | $5.34B | $5.94B | $6.30B | $6.67B | $7.45B | $6.15B | $6.41B | $6.57B |
| Total Equity | $3.22B | $3.72B | $4.23B | $4.71B | $6.43B | $6.95B | $7.22B | $5.83B | $5.53B | $5.44B |
| Total Debt | $2.22B | $2.19B | $2.11B | $2.04B | $4.01B | $4.52B | $4.31B | $3.93B | $4.34B | $4.06B |
| Net Debt | $1.78B | $1.64B | $1.38B | $1.21B | $2.36B | $2.68B | $3.22B | $2.40B | $2.25B | $1.74B |
| Working Capital | $819.8M | $1.12B | $1.41B | $1.51B | $2.36B | $2.80B | $2.38B | $2.45B | $2.88B | $3.51B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $2.17B | $2.31B | $2.11B | $2.45B |
| Total Assets | $14.50B | $13.77B | $13.65B | $13.93B |
| Total Liabilities | $8.35B | $8.15B | $8.01B | $8.14B |
| Total Equity | $5.99B | $5.44B | $5.48B | $5.62B |
| Total Debt | $4.06B | $4.06B | $4.07B | $4.07B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $636.7M | $483.0M | $985.0M | $797.0M | $567.0M | $445.0M | $718.0M | $702.0M | $428.0M | $335.0M |
| Depreciation & Amortization | $391.4M | $408.0M | $431.0M | $439.0M | $530.0M | $574.0M | $552.0M | $582.0M | $673.0M | $719.0M |
| Stock-based Compensation | $43.6M | $52.0M | $53.0M | $42.0M | $41.0M | $50.0M | $64.0M | $58.0M | $62.0M | $66.0M |
| Change in Working Capital | -$116.3M | -$145.0M | -$277.0M | -$149.0M | $319.0M | -$184.0M | -$152.0M | -$93.0M | -$208.0M | -$34.0M |
| Operating Cash Flow | $1.04B | $1.18B | $1.13B | $1.01B | $1.18B | $1.31B | $1.57B | $1.31B | $1.35B | $1.65B |
| Capital Expenditure | -$500.6M | -$560.0M | -$546.0M | -$481.0M | -$461.0M | -$516.0M | -$622.0M | -$832.0M | -$671.0M | -$440.0M |
| Acquisitions | $96.4M | -$181.0M | 0 | $14.0M | -$449.0M | -$737.0M | -$285.0M | -$100.0M | $8.0M | $7.0M |
| Stock Repurchased | -$288.0M | -$100.0M | -$150.0M | -$100.0M | -$216.0M | 0 | -$240.0M | -$177.0M | -$402.0M | -$508.0M |
| Dividends Paid | -$113.4M | -$124.1M | -$142.0M | -$140.0M | -$146.0M | -$162.0M | -$161.0M | -$130.0M | -$98.0M | -$119.0M |
| Free Cash Flow | $535.1M | $620.0M | $580.0M | $527.0M | $723.0M | $791.0M | $948.0M | $477.0M | $681.0M | $1.21B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $368.0M | $619.0M | $152.0M | $586.0M |
| Capital Expenditure | -$111.0M | -$133.0M | -$143.0M | -$96.0M |
| Free Cash Flow | $257.0M | $486.0M | $9.0M | $490.0M |
| Dividends Paid | -$36.0M | -$35.0M | -$35.0M | -$34.0M |
| Stock-based Compensation | $19.0M | $14.0M | $10.0M | $16.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +8.0% | +7.5% | -3.4% | -0.1% | +46.0% | -14.8% | +12.4% | -0.8% | +1.7% | |
| Net Income Growth (YoY) | +271.2% | +111.6% | -19.8% | -33.0% | +7.4% | +75.8% | -33.8% | -45.9% | -18.0% | |
| EPS Growth (YoY) | -24.8% | +113.9% | -18.8% | -35.3% | -3.8% | +77.4% | -32.2% | -44.5% | -14.6% | |
| Shares Change (YoY) | -1.8% | -0.9% | -1.3% | +3.5% | +11.9% | -1.1% | -1.0% | -4.1% | -3.7% | |
| FCF Growth (YoY) | +15.9% | -6.5% | -9.1% | +37.2% | +9.4% | +19.8% | -49.7% | +42.8% | +77.4% | |
| Gross Margin | 21.3% | 21.6% | 21.2% | 20.7% | 18.8% | 19.3% | 18.7% | 18.1% | 18.5% | 18.7% |
| Operating Margin | 12.3% | 12.4% | 12.2% | 12.1% | 9.4% | 9.3% | 8.4% | 8.7% | 8.9% | 3.7% |
| EBITDA Margin | 7.3% | 15.8% | 16.1% | 17.4% | 15.6% | 10.0% | 12.4% | 11.8% | 9.4% | 9.0% |
| Net Margin | 1.3% | 4.5% | 8.8% | 7.3% | 4.9% | 3.6% | 7.5% | 4.4% | 2.4% | 1.9% |
| FCF Margin | 5.9% | 6.3% | 5.5% | 5.2% | 7.1% | 5.3% | 7.5% | 3.4% | 4.8% | 8.4% |
| Effective Tax Rate | 15.9% | 54.6% | 17.7% | 37.0% | 41.2% | 19.0% | 21.4% | 29.2% | 20.6% | 36.1% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $2.49 | $2.93 | $2.77 | $2.55 | $3.38 | $3.30 | $4.00 | $2.03 | $3.03 | $5.58 |
| Dividends Per Share | $0.53 | $0.59 | $0.68 | $0.68 | $0.68 | $0.68 | $0.68 | $0.55 | $0.44 | $0.55 |
| Shares Outstanding (Basic) | 214.4 M | 210.4 M | 208.2 M | 205.7 M | 213.0 M | 238.1 M | 235.5 M | 229.8 M | 223.5 M | 214.2 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 7.37% |
| Return on Invested Capital | 4.63% |
| Return on Assets | 2.98% |
| Gross Margin | 19.47% |
| Operating Margin | 5.08% |
| Net Margin | 2.89% |
Financial Health
| Debt / Equity | 0.72 |
| Current Ratio | 2.13 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 2.85 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 12.48 | 21.50 | 6.84 | 10.51 | 14.46 | 17.54 | 8.83 | 13.18 | 21.05 | 34.93 |
| P/B | 2.31 | 2.54 | 1.51 | 1.67 | 1.13 | 1.36 | 1.15 | 1.41 | 1.28 | 1.77 |
| P/S | 0.82 | 0.97 | 0.60 | 0.77 | 0.71 | 0.64 | 0.66 | 0.58 | 0.50 | 0.67 |
| Gross Margin | 21.3% | 21.6% | 21.2% | 20.7% | 18.8% | 19.3% | 18.7% | 18.1% | 18.5% | 18.7% |
| Operating Margin | 12.3% | 12.4% | 12.2% | 12.1% | 9.4% | 9.3% | 8.4% | 8.7% | 8.9% | 3.7% |
| Net Margin | 1.3% | 4.5% | 8.8% | 7.3% | 4.9% | 3.6% | 7.5% | 4.4% | 2.4% | 1.9% |
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