Core Viewpoint - BorgWarner Inc. is recognized as one of the best very cheap stocks to buy in 2026, with a recent upgrade from UBS analyst Joseph Spak indicating a more favorable outlook for the company's stock due to its emerging TurboCell opportunity in data-center power generation [1][2]. Financial Performance - In 2025, BorgWarner reported net sales of approximately $14.3 billion, an increase of about $200 million from the previous year [3]. - Adjusted earnings per share rose by 14% year over year, and free cash flow exceeded $1.2 billion, marking a roughly 66% increase from 2024 [3]. - The company returned about 52% of its free cash flow to shareholders, totaling approximately $630 million through share repurchases and other capital returns [3]. Share Repurchase Program - BorgWarner repurchased $400 million worth of shares in 2025 and has $600 million remaining under its repurchase authorization [3]. - Since 2021, the company has repurchased around 31 million shares, reducing its share count by approximately 13% [3]. 2026 Guidance - For 2026, BorgWarner's guidance projects total sales between $14.0 billion and $14.3 billion, with expectations of a $200 million benefit from foreign exchange movements [4]. - The company anticipates organic sales to decline between 3.5% and 1.5%, with light-vehicle markets expected to align with overall industry trends [4]. - Adjusted operating margins are expected to range from 10.7% to 10.9%, and adjusted earnings per share are projected to be between $5.00 and $5.20, indicating approximately 4% growth at the midpoint [4]. Company Overview - BorgWarner is a global automotive supplier headquartered in Auburn Hills, Michigan, focusing on technologies that enhance efficiency and performance in combustion, hybrid, and electric vehicles [5]. - The company operates in 24 countries and produces components such as turbochargers, electric propulsion modules, and advanced battery systems for automakers worldwide [5].