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AUBURN HILLS, Mich., April 30, 2026 /PRNewswire/ -- On April 29, 2026, the Board of Directors of BorgWarner Inc. (NYSE: BWA) declared a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on June 15, 2026, to stockholders of record on June 1, 2026.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

SOURCE BorgWarner

Returned $185 million to Shareholders During First Quarter 2026

Announces 12 Awards Across Portfolio to Support Long-Term Profitable Growth

, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported first quarter results for 2026.

First Quarter Results and Business Update

BorgWarner's (the "Company") U.S. GAAP net sales increased approximately 1%, while organic net sales decreased approximately 4.2%, year-over-year compared with the first quarter of 2025. Excluding the decline in Battery Energy Systems segment sales, this performance was roughly in line with the Company's weighted light vehicle markets. The Company achieved a U.S. GAAP operating margin of 9.5% during the first quarter of 2026, or a decrease of 280 basis points, compared with the first quarter of 2025. The Company achieved an adjusted operating margin of 10.5%, or an increase of 50 basis points, compared with the first quarter of 2025. The Company's continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment. The Company returned approximately $185 million to its shareholders during the first quarter of 2026. This included the repurchase of approximately $150 million of its outstanding shares and a $35 million cash dividend payment. The Company continues to expand its data center and industrial portfolio. This now includes battery energy storage systems and bi-directional microgrid inverters. Additionally, the Company's planned 2027 turbine generator system launch is on track with B-samples being delivered to the customer. New Business Awards Across Portfolio

The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:

Seven-year contract extension to supply eight families of engine, machine, power module, and battery management system controllers. This program starts in 2026 with a world-leading off-highway engine and machine manufacturer for large diesel engine applications. Three turbocharger program extension awards and one conquest award with a major European OEM. Production is expected to begin in phases starting in 2026 through 2029. Conquest variable turbine geometry (VTG) turbocharger and exhaust gas recirculation (EGR) cooler awards with a major European commercial vehicle OEM for on-highway use. Production is expected to begin in 2028. Dual clutch (DCT) award with a Chinese OEM for an SUV platform and a variable cam timing system (VCT) conquest award with a Japanese OEM for a hybrid program. Production is expected to begin in 2026 and 2028, respectively. Three eMotor awards with Asian OEMs, including two hybrid vehicle awards in China and one electric vehicle award in South Korea. Production is expected to begin in 2026 and 2027 in China and 2027 in South Korea. First Quarter Highlights:

U.S. GAAP net sales of $3,533 million, an increase of approximately 1% compared with the first quarter of 2025. Excluding the impact of foreign currencies, organic net sales decreased 4.2% compared with the first quarter of 2025. U.S. GAAP net earnings of $1.16 per diluted share. Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.24 per diluted share, an increase of 12% compared with the first quarter of 2025. U.S. GAAP operating income of $336 million, or 9.5% of net sales. Excluding $36 million of pretax expenses related to non-comparable items, adjusted operating income was $372 million, or 10.5% of net sales. Net cash provided by operating activities of $152 million. Free cash flow of $13 million. Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.

Three Months Ended March 31,

2026

2025

Earnings per diluted share

$           1.16

$           0.72

Non-comparable items:

Restructuring expense

0.06

0.11

Adjustments associated with Spin-Off related balances

0.01

(0.01)

Unrealized loss on equity securities

0.01

—

Impairment charges

—

0.15

Costs to exit charging business

—

0.11

Merger and acquisition expense, net

(0.01)

0.01

Tax adjustments

0.01

0.01

Other non-comparable items

—

0.01

Adjusted earnings per diluted share

$           1.24

$           1.11

Net sales were $3,533 million for the first quarter of 2026, an increase of approximately 1% compared with the first quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the first quarter of 2026 were $242 million, or $1.16 per diluted share, compared with net earnings of $157 million, or $0.72 per diluted share for the first quarter of 2025. Adjusted net earnings per diluted share for the first quarter of 2026 were $1.24, up approximately 12% from adjusted net earnings per diluted share of $1.11 for the first quarter of 2025. Adjusted net earnings for the first quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the first quarter of 2025 excluded net non-comparable items of $(0.39) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.

Full Year 2026 Guidance Update: The Company maintained its 2026 full year guidance. At the mid-point of its 2026 guidance, BorgWarner expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company's expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company's Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company's net sales guidance includes an expected year-over-year sales decline of approximately $210 million in the Company's Battery Energy Systems segment, which represents approximately a 1.5% headwind to organic growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $200 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.

U.S. GAAP operating margin is expected to be in the range of 9.7% to 9.9% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.70 to $4.87 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to increase and be in the range of $5.00 to $5.20 per diluted share. Full-year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.

At 9:30 a.m. ET today, a brief conference call concerning first quarter 2026 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share amounts)

Three Months Ended March 31,

2026

2025

Net sales

$       3,533

$       3,515

Cost of sales

2,856

2,876

Gross profit

677

639

Gross margin

19.2 %

18.2 %

Selling, general and administrative expenses

328

315

Restructuring expense

18

31

Other operating (income) expense, net

(5)

17

Impairment charges

—

39

Operating income

336

237

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

328

232

Provision for income taxes

73

61

Net earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc. 

$         242

$         157

Earnings per share attributable to BorgWarner Inc. — diluted

$        1.16

$        0.72

Weighted average shares outstanding:

Basic

205.3

217.2

Diluted

208.3

218.1

BorgWarner Inc.

Net Sales by Reportable Segment (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$         1,433

$         1,454

Drivetrain & Morse Systems

1,422

1,361

PowerDrive Systems

587

561

Battery Energy Systems

102

150

Inter-segment eliminations

(11)

(11)

Net sales

$         3,533

$         3,515

Segment Adjusted Operating Income (Loss) (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$           214

$           235

Drivetrain & Morse Systems

260

243

PowerDrive Systems

(36)

(43)

Battery Energy Systems

(2)

(22)

Segment Adjusted Operating Income

436

413

Corporate, including stock-based compensation

64

61

Restructuring expense

18

31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Loss on sale of businesses

—

1

Merger and acquisition expense, net

(2)

2

Other non-comparable items

—

2

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

$           328

$           232

Provision for income taxes

73

61

Net Earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc.

$           242

$           157

BorgWarner Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

March 31,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$         2,110

$         2,313

Receivables, net

3,088

2,962

Inventories

1,200

1,207

Prepayments and other current assets

344

313

Total current assets

6,742

6,795

Property, plant and equipment, net

3,259

3,330

Other non-current assets

3,652

3,644

Total assets

$        13,653

$        13,769

LIABILITIES AND EQUITY

Short-term debt

$              5

$              5

Accounts payable

2,058

1,996

Other current liabilities

1,102

1,281

Total current liabilities

3,165

3,282

Long-term debt

3,876

3,894

Other non-current liabilities:

970

979

Total liabilities

8,011

8,155

Total BorgWarner Inc. stockholders' equity

5,479

5,442

Noncontrolling interest

163

172

Total equity

5,642

5,614

Total liabilities and equity

$        13,653

$        13,769

BorgWarner Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

OPERATING ACTIVITIES

Net cash provided by operating activities

$           152

$             82

INVESTING ACTIVITIES

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Proceeds from settlement of net investment hedges, net

9

12

Proceeds from asset disposals and other, net

—

11

Net cash used in investing activities

(130)

(94)

FINANCING ACTIVITIES

Payments of notes payable

—

(5)

Repayments of debt, including current portion

(2)

(346)

Payments for purchase of treasury stock

(150)

—

Payments for stock-based compensation items

(28)

(18)

Payment for business acquired, net of cash acquired

(3)

—

Dividends paid to BorgWarner stockholders

(35)

(24)

Dividends paid to noncontrolling stockholders

—

(4)

Net cash used in financing activities

(218)

(397)

Effect of exchange rate changes on cash

(7)

22

Net decrease in cash, cash equivalents and restricted cash

(203)

(387)

Cash and cash equivalents at beginning of year

2,313

2,094

Cash, cash equivalents and restricted cash at end of period

$         2,110

$         1,707

Supplemental Information (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Depreciation and tooling amortization

$           129

$           138

Intangible asset amortization

$             16

$             17

Non-GAAP Financial Measures
This press release contains information about the Company's financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange ("FX") and net mergers, acquisitions and divestitures.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net sales

$       3,533

$       3,515

Operating income

$         336

$         237

Operating margin

9.5 %

6.7 %

Non-comparable items:

Restructuring expense

$          18

$          31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Merger and acquisition expense, net

(2)

2

Loss on sale of businesses

—

1

Other non-comparable items

—

2

Adjusted operating income

$         372

$         352

Adjusted operating margin

10.5 %

10.0 %

Free Cash Flow Reconciliation (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net cash provided by operating activities

$           152

$             82

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Free cash flow

$             13

$           (35)

First Quarter 2026 Organic Net Sales Change (Unaudited)

(in millions)

Q1 2025
Net Sales

FX

Organic
Net Sales
Change

Q1 2026
Net Sales

Organic
Net Sales
Change %

Turbos & Thermal Technologies        

$  1,454

$      81

$  (102)

$   1,433

(7.0) %

Drivetrain & Morse Systems

1,361

49

12

1,422

0.9 %

PowerDrive Systems

561

31

(5)

587

(0.9) %

Battery Energy Systems

150

6

(54)

102

(36.0) %

Inter-segment eliminations

(11)

—

—

(11)

— %

Net sales

$  3,515

$    167

$  (149)

$  3,533

(4.2) %

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net sales

$     14,000

$     14,300

Operating income

$       1,361

$       1,416

Operating margin

9.7 %

9.9 %

Non-comparable items:

Restructuring expense

$          80

$          90

Intangible asset amortization

57

57

Accelerated depreciation

2

2

Adjustment associated with Spin-Off related balances

2

2

Merger and acquisition expense, net

(2)

(2)

Adjusted operating income

$       1,500

$       1,565

Adjusted operating margin

10.7 %

10.9 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

Low

High

Earnings per Diluted Share

$           4.70

$           4.87

Non-comparable items:

Restructuring expense

$           0.28

$           0.31

Adjustment associated with Spin-Off related balances

0.01

0.01

Unrealized loss on equity securities

0.01

0.01

Merger and acquisition expense, net

(0.01)

(0.01)

Tax adjustments

0.01

0.01

Adjusted Earnings per Diluted Share

$           5.00

$           5.20

Free Cash Flow Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net cash provided by operating activities

$        1,600

$        1,700

Capital expenditures, including tooling outlays

(700)

(600)

Free cash flow

$          900

$        1,100

Full Year 2026 Organic Net Sales Change Guidance Reconciliation (Unaudited)

(in millions)

FY 2025 Net
Sales

FX

Battery
Energy
Systems
("BES")
Sales
Change

Organic Net
Sales
Change

FY 2026 Net
Sales

Organic Net
Sales
Change
Excluding
BES %

Organic Net
Sales
Change
Including
BES %

BorgWarner
LV
Weighted
Market %

Low

$  14,316

$      200

$    (210)

$    (306)

$  14,000

(2.1) %

(3.6) %

(3.0) %

High

$  14,316

$      200

$    (210)

$       (6)

$  14,300

— %

(1.5) %

— %

Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)

North America

Europe

China

Total

BorgWarner
Weighted Total

Light vehicle

(3)% to 1%

(3)% to 0%

(4)% to (1.5)%

(3)% to (1)%

(3)% to 0%

SOURCE BorgWarner

New business awards support passenger car and van programs across multiple combustion engine platforms BorgWarner's broad turbocharger portfolio helps support performance, fuel economy and emissions targets The awards include both extensions of existing business and a conquest win with a long-standing European customer , /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured multiple turbocharger business awards with a major European OEM for a range of passenger car and van applications. The awards, which include both extensions of existing business and a conquest win, further strengthen BorgWarner's position in combustion vehicle applications. Production is expected to begin in phases from the second quarter of 2026 through the second quarter of 2029.

BorgWarner Secures Multiple Turbocharger Awards with Major European OEM "These business wins reflect BorgWarner's strong turbocharging technology portfolio, our competitive solutions and the trust we have built with this long-standing customer," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "As the industry continues to demand highly efficient combustion solutions, BorgWarner remains committed to delivering advanced turbocharger technologies, reliable supply and strong launch execution for our customers around the world."

The awarded business includes turbocharger solutions for multiple vehicle programs spanning both gasoline and diesel applications. The portfolio includes variable turbine geometry, twin-scroll wastegate and regulated two-stage turbocharging technologies tailored to a range of engine and vehicle requirements, helping the customer meet increasingly demanding performance, fuel economy and emissions targets across a broad range of applications.

The products for these awards will be manufactured at BorgWarner's facilities in Rzeszów, Poland and Kirchheimbolanden, Germany. The programs also highlight BorgWarner's ability to combine advanced engineering with strong supply chain execution to support complex, high-volume customer launches.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our turbocharging technology will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

BorgWarner (BWA - Free Report) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.83%. A quarter ago, it was expected that this auto parts supplier would post earnings of $1.16 per share when it actually produced earnings of $1.35, delivering a surprise of +16.38%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

BorgWarner, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $3.53 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $3.52 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

BorgWarner shares have added about 27.1% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for BorgWarner?While BorgWarner has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for BorgWarner was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $3.59 billion in revenues for the coming quarter and $5.14 on $14.18 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ChargePoint Holdings, Inc. (CHPT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026.

This company is expected to post quarterly loss of $1.11 per share in its upcoming report, which represents a year-over-year change of +7.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ChargePoint Holdings, Inc.'s revenues are expected to be $94.86 million, down 2.9% from the year-ago quarter.

BorgWarner Inc. (BWA) Q1 2026 Earnings Call Transcript

Jackpot increases by $20,000 annually Claimed only twice since its establishment in 1995 Only six drivers have won back-to-back Indianapolis 500 races   , /PRNewswire/ -- The BorgWarner Rolling Jackpot currently stands at $40,000, awaiting the moment a driver wins the Indianapolis 500 in consecutive years to claim the prize. Following his victory in the 2025 Indianapolis 500, Alex Palou has the opportunity to earn the jackpot if he captures his second win at the 2026 Indianapolis 500, to be held Sunday, May 24, at the Indianapolis Motor Speedway.

Alex Palou has the opportunity to earn the BorgWarner Rolling Jackpot with a win at the 2026 Indianapolis 500. Established by BorgWarner in 1995, the Rolling Jackpot increases by $20,000 each year and rewards drivers who achieve the rare feat of winning the Indianapolis 500 back-to-back. The jackpot has been cashed in only twice since its inception—by Helio Castroneves in 2002 ($160,000) and Josef Newgarden in 2024 ($440,000). Since the inaugural race in 1911, only six drivers have captured consecutive victories at the legendary race, including Wilbur Shaw (1939–1940), Mauri Rose (1947–1948), Bill Vukovich (1953–1954), Al Unser (1970–1971), Castroneves, and Newgarden.

Palou, who has won the series championship for the last three consecutive years, drives for Chip Ganassi Racing and enters the 2026 Indianapolis 500 in first place in the NTT INDYCAR Series point standings after the first six races with 237 points. Palou has three wins this season and 22 career INDYCAR wins.

"The Indianapolis 500 is one of the most iconic races in motorsports, and BorgWarner is proud to continue building the excitement through the Rolling Jackpot," said Joseph Fadool, President and CEO, BorgWarner. "Alex is driving great this season with three wins and five top-5 finishes, so there's a good chance we'll meet him again this year in Victory Circle."

Beyond the Rolling Jackpot, a repeat victory would earn Palou another appearance on the iconic Borg-Warner Trophy, which features the sculpted faces of all race winners. He would also be presented with another BorgWarner Championship Driver's Trophy™, commonly known as the "Baby Borg," a miniature version of the legendary 110-pound sterling silver trophy.

If Palou does not win the 2026 Indianapolis 500, the jackpot will roll over to next year with an additional $20,000 to the total.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

The Borg-Warner Trophy, BorgWarner Championship Driver's Trophy, and BorgWarner Championship Team Owner's Trophy are trademarks of BorgWarner Inc.

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, goals, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our engine and machine controllers will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.99; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.16 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BWA should be on investors' short list.

On May 26, 2026, BorgWarner Inc (BWA) shares rose 3.7% today, bringing the stock price to $68.26. The price has fluctuated between a 52-week high of $70.31 and

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.79; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $5.18 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BWA should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.5% for the current fiscal year.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $5.18 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

Posted by Defense World Staff on Apr 19th, 2026

Magnolia Oil & Gas Corp (NYSE:MGY – Get Free Report) shares were down 7% on Friday . The company traded as low as $26.57 and last traded at $26.5350. Approximately 163,312 shares traded hands during mid-day trading, a decline of 95% from the average daily volume of 2,977,866 shares. The stock had previously closed at $28.54.

Analyst Upgrades and Downgrades A number of equities research analysts recently weighed in on MGY shares. The Goldman Sachs Group increased their price target on Magnolia Oil & Gas from $23.00 to $26.00 and gave the company a “neutral” rating in a research note on Wednesday, February 11th. Roth Mkm restated a “neutral” rating and issued a $32.00 price target (up from $29.00) on shares of Magnolia Oil & Gas in a research note on Wednesday, April 8th. Citigroup dropped their price target on Magnolia Oil & Gas from $35.00 to $32.00 and set a “neutral” rating on the stock in a research note on Monday, April 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Magnolia Oil & Gas in a research report on Thursday, January 22nd. Finally, BMO Capital Markets assumed coverage on Magnolia Oil & Gas in a research report on Friday, January 9th. They set an “outperform” rating and a $27.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $31.00.

Read Our Latest Analysis on MGY

Magnolia Oil & Gas Trading Down 3.3% The company has a market capitalization of $5.15 billion, a price-to-earnings ratio of 16.05, a price-to-earnings-growth ratio of 1.70 and a beta of 0.83. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.54 and a current ratio of 1.54. The firm has a fifty day moving average price of $29.05 and a 200-day moving average price of $25.11.

Magnolia Oil & Gas (NYSE:MGY – Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. The company had revenue of $317.63 million for the quarter, compared to analyst estimates of $322.18 million. Magnolia Oil & Gas had a return on equity of 16.67% and a net margin of 24.79%.Magnolia Oil & Gas’s quarterly revenue was down 2.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.44 EPS. As a group, equities analysts anticipate that Magnolia Oil & Gas Corp will post 2.1 EPS for the current year.

Magnolia Oil & Gas Increases Dividend The business also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Tuesday, February 10th were issued a dividend of $0.165 per share. This is an increase from Magnolia Oil & Gas’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $0.66 annualized dividend and a dividend yield of 2.4%. Magnolia Oil & Gas’s payout ratio is currently 38.37%.

Insider Activity at Magnolia Oil & Gas In other news, Director Dan F. Smith sold 18,000 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $29.01, for a total transaction of $522,180.00. Following the sale, the director directly owned 119,204 shares of the company’s stock, valued at approximately $3,458,108.04. This represents a 13.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Edward P. Djerejian sold 18,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $28.98, for a total value of $521,640.00. Following the sale, the director directly owned 110,425 shares in the company, valued at approximately $3,200,116.50. This trade represents a 14.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 338,954 shares of company stock worth $9,911,733 in the last quarter. 0.92% of the stock is currently owned by corporate insiders.

Institutional Trading of Magnolia Oil & Gas Large investors have recently modified their holdings of the stock. Mather Group LLC. acquired a new stake in shares of Magnolia Oil & Gas during the 3rd quarter worth $31,000. Salomon & Ludwin LLC boosted its stake in Magnolia Oil & Gas by 130.1% in the fourth quarter. Salomon & Ludwin LLC now owns 1,344 shares of the company’s stock valued at $29,000 after buying an additional 760 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in Magnolia Oil & Gas by 165.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the company’s stock valued at $31,000 after buying an additional 864 shares in the last quarter. Torren Management LLC acquired a new stake in Magnolia Oil & Gas in the fourth quarter valued at about $38,000. Finally, Parallel Advisors LLC boosted its stake in Magnolia Oil & Gas by 79.8% in the fourth quarter. Parallel Advisors LLC now owns 1,769 shares of the company’s stock valued at $39,000 after buying an additional 785 shares in the last quarter. 94.73% of the stock is owned by institutional investors and hedge funds.

Magnolia Oil & Gas Company Profile (Get Free Report)

Magnolia Oil & Gas Corp (NYSE: MGY) is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.

The company’s core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).

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Wall Street expects a year-over-year decline in earnings on lower revenues when Magnolia Oil & Gas Corp (MGY - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -10.9%.

Revenues are expected to be $335.12 million, down 4.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 31.99% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Magnolia Oil & Gas Corp?For Magnolia Oil & Gas Corp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.38%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination indicates that Magnolia Oil & Gas Corp will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Magnolia Oil & Gas Corp would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of +2.78%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Magnolia Oil & Gas Corp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Talos Energy (TALO - Free Report) , is soon expected to post loss of $0.09 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -250%. Revenues for the quarter are expected to be $433.71 million, down 15.5% from the year-ago quarter.

The consensus EPS estimate for Talos Energy has been revised 155.1% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Talos Energy will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Magnolia Oil & Gas will report Q1 earnings May 6, with EPS projected at 49 cents and revenues at $335M.MGY may benefit from higher oil prices, unhedged exposure and rising production volumes.MGY faces revenue declines and higher operating costs, including rising expenses across key segments. Magnolia Oil & Gas Corporation (MGY - Free Report) is set to report first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share and the same for revenues is pinned at $335.12 million.

Let us delve into the factors that might have influenced MGY’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of MGY’s Q4 Earnings & Surprise HistoryIn the last quarter, the Houston, TX-based oil and gas exploration and production company reported net profit of 37 cents per share, which marginally beat the Zacks Consensus Estimate of 36 cents. This was primarily driven by record quarterly production volumes attributed to strong well productivity in the company’s Giddings asset. The company’s total revenues were $318 million, which beat the Zacks Consensus Estimate of $312 million, driven by higher revenues from natural gas. MGY’s earnings beat the consensus estimate in each of the trailing four quarters, delivering an average surprise of 3.51%.

This is depicted in the graph below: 

Trend in MGY’s Estimate RevisionThe Zacks Consensus Estimate for first-quarter 2026 earnings has remained unchanged, with a downward revision recorded in the past seven days. The estimated figure indicates a 10.91% year-over-year decrease. Additionally, the Zacks Consensus Estimate for revenues indicates a decline of 4.33% from the year-ago period’s level.

Factors to Consider Ahead of MGY’s Q1 ReleaseMGY makes revenues by acquiring land or leases with oil and natural gas reserves, primarily in South Texas. The company explores these properties, drills wells to extract the oil and gas and sells the resources to other energy companies. By focusing on areas such as the Eagle Ford Shale and Austin Chalk, MGY profits from the difference between the costs of drilling and production and the income from selling the extracted oil and gas.

The company is likely to have benefited from stronger oil prices toward the end of the to-be-reported quarter, as the month of March witnessed a sharp rally driven by geopolitical disruptions, which is expected to have lifted average realized prices sequentially.

Magnolia's largely unhedged position is expected to have allowed it to fully capture the upside in commodity prices, supporting higher revenues, margins and operating cash flows. Steady production growth is likely to have provided incremental volume support, which, combined with improved pricing, might have driven earnings expansion on both a sequential and year-over-year basis. As per our model, we expect MGY to report higher daily production volumes.

Oil production, in thousand barrels per day (MBbls/d), is projected to increase 3.7% year over year, while natural gas liquids production, in MBbls/d, is expected to rise 8.9%. Gas production, in million cubic feet per day (Mmcf/d), is anticipated to grow 5.2% year over year. Additionally, Magnolia’s disciplined capital spending strategy is expected to have enhanced operating efficiency and free cash flow generation, particularly in a higher price environment.

On the bearish side, MGY’s revenues are likely to have come under pressure in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is expected to be down from the year-ago quarter’s $350 million. According to our model, we expect the company’s oil, natural gas liquids and natural gas revenues to decrease 17.6%, 2.3% and 6.4%, respectively, from the year-ago quarter. Additionally. The appreciation in MGY’s costs is expected to have dented its bottom line.

To begin with, MGY’s total operating expenses are expected to reach $218.9 million in the first quarter, which is 2.1% up from last quarter’s level of $214.5 million. According to our model, the company’s lease operating expenses, gathering, transportation and processing costs, and depreciation, depletion and amortization expenses are expected to increase 9.8%, 3.9% and 9%, respectively, from the year-ago quarter.

What Does Our Model Say About MGY Stock?Our proven model predicts an earnings beat for Magnolia this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.

MGY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +5.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MGY’s Zacks Rank: Magnolia currently sports a Zacks Rank #1.

Other Stocks to ConsiderHere are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Shell (SHEL - Free Report) is scheduled to release earnings on May 7. The firm has an Earnings ESP of +3.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the Zacks Consensus Estimate for SHEL’s 2026 earnings per share indicates 52.38% year-over-year growth. Valued at around $248.04 billion, SHEL’s shares have risen 37.9% in a year.

Ovintiv (OVV - Free Report) has an Earnings ESP of +21.28% and a Zacks Rank #2. The firm is scheduled to release earnings on May 11. 

Notably, the Zacks Consensus Estimate for Ovintiv’s 2026 earnings per share indicates 32.64%     year-over-year growth. Valued at around $16.56 billion, Ovintiv’s shares have risen 81.9% in a year.

Venture Global, Inc. (VG - Free Report) has an Earnings ESP of +9.36% and a Zacks Rank #2. The firm is scheduled to release earnings on May 12.  

Notably, the Zacks Consensus Estimate for Venture Global’s 2026 earnings per share indicates 25% year-over-year growth. Valued at around $29.88 billion, Venture Global’s shares have risen 56.9% in a year.

HOUSTON--(BUSINESS WIRE)--Magnolia Oil & Gas Corporation Announces First Quarter 2026 Results.

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Magnolia Oil & Gas Corp (MGY - Free Report) reported $358.51 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.3%. EPS of $0.54 for the same period compares to $0.55 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $335.12 million, representing a surprise of +6.98%. The company delivered an EPS surprise of +5.2%, with the consensus EPS estimate being $0.51.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Magnolia Oil & Gas Corp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average daily production - Total: 102,564.00 BOE/D compared to the 102,117.00 BOE/D average estimate based on six analysts.Average daily production - Natural Gas: 193,143.00 Mcf/D compared to the 193,842.90 Mcf/D average estimate based on six analysts.Average daily production - Natural gas liquids: 29,696.00 BBL/D versus the six-analyst average estimate of 29,551.43 BBL/D.Average daily production - Oil: 40,678.00 BBL/D versus 40,047.31 BBL/D estimated by six analysts on average.Average sales prices - Natural gas: $2.98 compared to the $2.94 average estimate based on five analysts.Average sales prices - Natural gas liquids: $18.48 versus $19.51 estimated by four analysts on average.Average sales prices - Oil: $70.29 versus the four-analyst average estimate of $66.79.Total Production: 9,231.00 MBOE compared to the 9,174.52 MBOE average estimate based on two analysts.Revenues- Natural gas: $51.8 million compared to the $51.39 million average estimate based on five analysts. The reported number represents a change of +0.8% year over year.Revenues- Natural gas liquids: $49.38 million versus the four-analyst average estimate of $52.46 million. The reported number represents a year-over-year change of -7.5%.Revenues- Oil: $257.33 million versus the four-analyst average estimate of $240.83 million. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Magnolia Oil & Gas Corp here>>>

Shares of Magnolia Oil & Gas Corp have returned -3.4% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

2 hours ago

Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

NYSE:CHD

The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Magnolia Oil & Gas Corp (MGY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.

Magnolia Oil & Gas Corp is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Magnolia Oil & Gas Corp is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for MGY's full-year earnings has moved 84.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, MGY has returned 30.8% so far this year. In comparison, Oils-Energy companies have returned an average of 29%. This means that Magnolia Oil & Gas Corp is outperforming the sector as a whole this year.

Another stock in the Oils-Energy sector, Talos Energy (TALO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 39.3%.

The consensus estimate for Talos Energy's current year EPS has increased 112.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Magnolia Oil & Gas Corp belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #9 in the Zacks Industry Rank. On average, stocks in this group have gained 25.9% this year, meaning that MGY is performing better in terms of year-to-date returns. Talos Energy is also part of the same industry.

Investors with an interest in Oils-Energy stocks should continue to track Magnolia Oil & Gas Corp and Talos Energy. These stocks will be looking to continue their solid performance.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Magnolia Oil & Gas Corp (MGY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Magnolia Oil & Gas Corp currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if MGY is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For MGY, shares are up 6.33% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.02% compares favorably with the industry's 4.12% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Magnolia Oil & Gas Corp have risen 9.04%, and are up 30.57% in the last year. On the other hand, the S&P 500 has only moved 8.69% and 26.52%, respectively.

Investors should also pay attention to MGY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. MGY is currently averaging 2,294,858 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MGY.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MGY's consensus estimate, increasing from $1.83 to $2.91 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that MGY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Magnolia Oil & Gas Corp on your short list.

Energy sector M&A is hot again. With West Texas Intermediate (WTI) crude recently trading at $94.77 per barrel and the EIA’s May 2026 Short-Term Energy Outlook projecting continued growth in Permian output, larger operators are hunting for accretive bolt-ons, scarcity acreage, and discounted offshore portfolios. Onshore consolidation in the Permian and Eagle Ford continues, and offshore/liquefied natural gas (LNG) M&A has accelerated as majors pursue long-life barrels.

To rank acquisition candidates, we focused on four criteria:

Small-to-mid-cap size Scarcity or premium asset quality Balance-sheet pressure or debt-free profiles Cheap valuations against peers Three names stand out.

3. Magnolia Oil & Gas (Least Likely) Magnolia Oil & Gas (NYSE: MGY | MGY Price Prediction) is the least-pressured but most premium candidate. At a market cap of roughly $5.3 billion and a trailing P/E of 16x, Magnolia is a pure-play Eagle Ford and Giddings operator with a fortress balance sheet.

Q1 2026 delivered EPS of $0.54 against a $0.52 estimate. Revenue totaled $358.51 million, and free cash flow was $145.57 million, up 32% year over year. Production hit 102.6 Mboe/d (thousand barrels of oil equivalent per day), with Giddings volumes up 9%. Magnolia closed roughly $155 million in bolt-on acquisitions across Karnes and Giddings during the quarter.

Magnolia would be a good fit for a Permian-heavy major or large Eagle Ford consolidator seeking south Texas scale without integration complexity. CEO Chris Stavros runs an unhedged, low-leverage model with $124.4 million in cash. Analysts carry a $33.88 price target, against a June 2 close of $27.75. This is a premium asset with no urgency.

2. Northern Oil & Gas Northern Oil & Gas (NYSE: NOG) offers a different angle: the non-operator model. It owns working interests across the Williston, Permian, and Appalachia/Utica after closing a $464.6 million Joint Ohio Utica acquisition from Antero Resources in February 2026.

Q1 2026 adjusted EPS came in at $0.74 versus a $0.68 estimate, with production of 148,303 Boe/d. The GAAP number was a $522.85 million net loss driven by mark-to-market derivative losses. Northern also raised $227.9 million net via an 8.3 million share offering, diluting holders.

At a market cap near $2.4 billion, a forward P/E of 5x, and an 8.2% dividend yield, Northern screens cheap. Non-op working interests are valued and integrated differently than operated acreage, but a larger non-op aggregator or basin consolidator could find value. Analyst targets stand at $34.44, well above the $22.04 June 2 close. Recent dilution and impairments could push management toward strategic alternatives.

1. Kosmos Energy (Most Likely) Kosmos Energy (NYSE: KOS) checks every box. The Dallas-based deepwater operator runs assets in Ghana (Jubilee, TEN), the Gulf of Mexico (Odd Job, Kodiak, Winterfell, Tiberius), and the GTA LNG project across Mauritania and Senegal. Its market cap stands at $1.7 billion, with a forward P/E of 6x.

Q1 2026 posted a loss of $0.07 versus a $0.02 estimate, a 450% earnings miss versus estimates, marking five straight quarters of negative GAAP earnings. Net debt entered 2026 at approximately $3 billion, and CEO Andrew Inglis has aggressively pivoted toward deleveraging. On the Q1 call, he told investors: “We remain focused on increasing our financial resilience and utilizing our free cash flow to accelerate debt paydown with deleveraging.” Management doubled the 2026 net-debt reduction target from 10% to roughly 20%. It plans to sell its Equatorial Guinea assets around mid-year and targets EBITDAX north of $1 billion in 2026. Q1 production hit a record 75,000 BOE/d, up 25% year over year, with operating costs down 47% year over year.

The likely acquirer is a supermajor or national oil company seeking long-life deepwater barrels plus LNG optionality at a distressed entry price. Shell is already a Gulf of Mexico alliance partner. BP operates GTA. Either could make a move. Despite a 226.4% year-to-date rally to $2.97, the stock trades below its $3.11 consensus analyst target and well below 2024 highs.

The Consolidation Setup Scarcity, balance-sheet pressure, and discounted valuations make small and mid-cap plays credible takeout targets in 2026. Magnolia offers premium Eagle Ford assets with no urgency. Northern offers cheap, diversified non-op exposure complicated by structure. Kosmos offers globally rare deepwater plus LNG at distressed multiples, with management actively reshaping the balance sheet. Against a backdrop of onshore basin rollups and renewed offshore and LNG dealmaking, Kosmos is the most likely 2026 acquisition target of this trio. Watch the Equatorial Guinea asset sale, the RBL facility extension process, and any Shell alliance developments as the next catalysts.

Darling Ingredients (DAR - Free Report) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to a loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +49.09%. A quarter ago, it was expected that this producer of natural ingredients from edible and inedible bionutrients would post earnings of $0.43 per share when it actually produced earnings of $0.64, delivering a surprise of +48.84%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Darling, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.55 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.35%. This compares to year-ago revenues of $1.38 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Darling shares have added about 74.4% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Darling?While Darling has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Darling was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $1.66 billion in revenues for the coming quarter and $4.02 on $6.63 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Celsius Holdings Inc. (CELH - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +61.1%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.

Celsius Holdings Inc.'s revenues are expected to be $755.22 million, up 129.4% from the year-ago quarter.

Darling Ingredients Inc. (DAR) Q1 2026 Earnings Call Transcript

Key Takeaways DAR's Feed segment EBITDA climbed to $169M from $111M on strong poultry demand.DAR gains from improved pricing, regulatory tailwinds and shift to higher-priced markets.Margins rose to 25.3% as efficiency and pricing offset flat volumes near 3.1M tons. Darling Ingredients Inc.’s (DAR - Free Report) Feed Ingredients segment emerged as a key performance driver in the first quarter of 2026, reflecting improved performance in the core ingredients business. Despite a stagnant North American cattle herd, the segment achieved substantial EBITDA growth, rising to $169 million from $111 million in the prior-year quarter. This improvement was driven mainly by strong global poultry volumes and better operational efficiency.

The segment’s resilience is further bolstered by shifting regulatory and market dynamics. The finalization of the Renewable Volume Obligation in late March 2026 has already begun to drive favorable movement in fat prices as renewable diesel demand grows. Management anticipates this regulatory framework will act as a sustained "tailwind" for the Feed segment throughout the remainder of 2026.

Furthermore, Darling Ingredients shifted sales toward higher-priced markets, helping offset weaker pricing earlier in the quarter and minimizing the usual delay in realizing price gains. This strategic execution, combined with a focus on product quality and cost reduction, resulted in significant margin expansion, with gross margins improving to 25.3% in the first quarter, compared with 20.3% in the same period last year.

Although volumes remained largely flat at around 3.1 million metric tons, stronger pricing and operational efficiencies highlight global feed demand as a key factor supporting the segment’s current momentum.

What Do the Latest Metrics Say About Darling Ingredients?Darling Ingredients, which competes with Tyson Foods Inc. (TSN - Free Report) and Ingredion Inc. (INGR - Free Report) , has seen its shares rally 98.3% in the past year against the industry’s 24.5% decline. Shares of Tyson Foods have risen 22.6%, while Ingredion has declined 20% during the same period.

Image Source: Zacks Investment Research

From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 14.5, higher than the industry’s 13.82. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 15.89) while trading at a premium to Ingredion (9.18). 

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Key Takeaways DAR says final RVO rules created a "clear path forward" for Diamond Green Diesel growth.DGD sold 272.4M gallons in Q1 2026 with an average EBITDA of $1.11 per gallon.Darling Ingredients expects stronger fat pricing to support both Fuel and Feed segments in 2026. Darling Ingredients Inc. (DAR - Free Report) believes it has reached a clear “inflection point,” driven largely by the finalization of the Renewable Volume Obligation (“RVO”) in late March 2026. This regulatory clarity has fundamentally shifted the operating environment for Diamond Green Diesel (“DGD”), Darling Ingredients’ joint venture, providing a "clear path forward" that is expected to strengthen results throughout the year.

The durability of these tailwinds is evidenced by the immediate market reaction. The constructive RVO has already led to favorable upward movement in fat prices, as improving regulatory clarity and stronger renewable diesel demand continue to tighten feedstock markets. In the first quarter of 2026, DGD reported robust performance with 272.4 million gallons sold at an average EBITDA of $1.11 per gallon. Results were further supported by a favorable lower-of-cost-or-market inventory valuation adjustment of approximately $48.4 million attributable to Darling Ingredients.

Importantly, the renewable diesel recovery is creating benefits beyond the Fuel segment alone. As renewable diesel demand increases competition for feedstocks, Darling Ingredients’ Feed segment is also expected to benefit from stronger fat pricing trends, which management believes should remain a “nice tailwind” throughout 2026.

Overall, the improving regulatory backdrop and strengthening renewable diesel demand are contributing to a more favorable operating environment for Darling Ingredients, supporting momentum across key areas of the business.

What Do the Latest Metrics Say About Darling Ingredients?Darling Ingredients, which competes with Tyson Foods Inc. (TSN - Free Report) and Ingredion Inc. (INGR - Free Report) , has seen its shares rally 77.8% in the past year against the industry’s 24.4% decline. Shares of Tyson Foods have risen 22.2%, while Ingredion has declined 21.7% during the same period.

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From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 13.49, slightly lower than the industry’s 13.65. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 15.37) while trading at a premium to Ingredion (9.32).

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2 hours ago

Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

NYSE:CHD

Darling Ingredients Inc. (DAR) Presents at 21st Annual Global Farm to Market Conference Transcript