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BorgWarner announced a series of major new contracts, including its first North American battery supply deal for HOLON’s autonomous electric shuttle, expanded dual inverter projects with Great Wall Motor, advanced all-wheel drive systems with Chery, and a 7-in-1 integrated drive module with a leading Chinese OEM, with mass production for several set to begin between 2026 and 2027.
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These contract wins highlight BorgWarner’s accelerating momentum in electrified propulsion and underline its expanded reach in both the autonomous vehicle market and China’s fast-growing electric vehicle sector.
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We’ll explore how BorgWarner’s entry into North American autonomous vehicle battery supply may realign its investment narrative and growth outlook.
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To be a BorgWarner shareholder, you have to believe in the company’s ability to transition from its legacy combustion product lines toward electrified propulsion, despite ongoing margin and demand pressures in its Battery and Charging Systems segment. The recent wave of contract wins supports growth in electric and hybrid systems, yet the most important short term catalyst remains visible improvement in electrification segment margins, while the biggest risk is continued revenue pressure if demand for EV components doesn’t rebound soon, this news, while positive, does not appear to change that risk in a material way.
BorgWarner’s contract to supply North American battery systems for HOLON’s autonomous electric shuttle is a highlight of its push into advanced EV components and suggests progress toward diversification beyond legacy markets. However, the extent to which this offsets segment volatility and external risks will depend on how rapidly orders translate to profitable growth in a still-challenging environment.
But while new contracts show real momentum in electrification, investors should also be aware of…
Read the full narrative on BorgWarner (it’s free!)
BorgWarner’s narrative projects $16.0 billion in revenue and $1.0 billion in earnings by 2028. This requires 4.4% yearly revenue growth and a $780 million increase in earnings from the current $220.0 million.
Uncover how BorgWarner’s forecasts yield a $47.00 fair value, a 10% upside to its current price.
The Simply Wall St Community’s two fair value estimates for BorgWarner range widely, from US$47 up to almost US$62 per share. As profitability in the Battery and Charging Systems segment remains under scrutiny, you can see how market participants can arrive at quite different outlooks, be sure to explore the full range of perspectives before deciding where you stand.
Explore 2 other fair value estimates on BorgWarner – why the stock might be worth as much as 45% more than the current price!
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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.
Companies discussed in this article include BWA.
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