Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is BorgWarner Inc. (BWA) Halal?

PASS

BorgWarner Inc. · NYSE: BWA · Consumer Discretionary

The short answer

BorgWarner passes all three Shariah gates: it manufactures automotive propulsion components (no interest-based business), carries about $3.90B of interest-bearing debt (31.5% of its ~$12.38 billion market cap - under the 33% ceiling but close to it), and separately disclosed interest income of about 0.42% of revenue is under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. BorgWarner Inc., per its FY2025 Form 10-K (year ended December 31, 2025, filed February 11, 2026), designs and manufactures propulsion components and systems for combustion, hybrid, and electric vehicles. It reports four segments: Turbos & Thermal Technologies (turbochargers, eBoosters, thermal and emissions systems; $5,769 million of 2025 customer net sales), Drivetrain & Morse Systems (transmissions, transfer cases, clutches, chain systems; $5,635 million), PowerDrive Systems (inverters, onboard chargers, electric drive modules; $2,322 million), and Battery & Charging Systems ($590 million; the charging business exit was announced in February 2025).

It is not an interest-based lender and is not involved in tobacco, gambling, pork, or conventional banking or insurance. Volkswagen and Ford are its largest customers (about 13% and 12% of 2025 net sales). The business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (31.5%, ceiling 33%). Per BorgWarner's FY2025 Form 10-K Consolidated Balance Sheets, at December 31, 2025 the company carried $5 million of notes payable and other short-term debt plus $3,894 million of long-term debt — total interest-bearing debt of about $3,899 million.

$3,899 million against a market capitalization of about $12.38 billion (Finnhub, live quote October 2, 2026) is about 31.5% — under the 33% ceiling, but close to it. Debt rose with borrowing in prior years; cash and cash equivalents of $2,313 million at December 31, 2025 represent about 18.7% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.42%, ceiling 5%). BorgWarner's FY2025 Form 10-K separately discloses interest income in the debt note's interest-expense detail table: $60 million of interest income (primarily on cash, investments, and net investment hedges) against net sales of $14,316 million is about 0.42% — under the 5% ceiling (2024: $54 million; 2023: $35 million; interest expense was $99 million and interest expense, net was $39 million in 2025).

The most recent annual figure (0.42%) is used for this gate.

Key figures used

Frequently asked questions

What does BorgWarner do?

BorgWarner Inc. (NYSE: BWA) designs and manufactures propulsion components and systems for combustion, hybrid, and electric vehicles. Per its FY2025 Form 10-K (year ended December 31, 2025, filed February 11, 2026), it reports four segments: Turbos & Thermal Technologies ($5,769 million of 2025 customer net sales - turbochargers, eBoosters, thermal and emissions systems), Drivetrain & Morse Systems ($5,635 million - transmissions, transfer cases, clutches, chain systems), PowerDrive Systems ($2,322 million - inverters, onboard chargers, electric drive modules), and Battery & Charging Systems ($590 million; the company announced its exit of the charging business in February 2025). Volkswagen and Ford are its largest customers (about 13% and 12% of 2025 net sales), and turbochargers for light vehicles are about 21% of sales.

Is BorgWarner's business Shariah compliant?

BorgWarner manufactures automotive propulsion components - it is not an interest-based lender and is not involved in tobacco, gambling, pork, or conventional banking or insurance. Its products (turbochargers, transmissions, power electronics, electric drive modules) are industrial auto-parts manufacturing, an ordinary commercial business. Assessed on the filed business description, the business passes this screener's first gate.

How much interest-bearing debt does BorgWarner have?

BorgWarner's FY2025 Form 10-K balance sheet shows notes payable and other short-term debt of $5 million and long-term debt of $3,894 million at December 31, 2025 - total interest-bearing debt of about $3,899 million. $3,899 million against a market capitalization of about $12.38 billion (Finnhub, live quote October 2, 2026) is about 31.5% - under the 33% ceiling, but close to it. Interest expense was $99 million in 2025. Cash and cash equivalents of $2,313 million at December 31, 2025 represent about 18.7% of market capitalization.

How much interest income does BorgWarner earn?

BorgWarner's FY2025 Form 10-K separately discloses interest income in the debt note's interest-expense detail table: $60 million of interest income (primarily on cash, investments, and net investment hedges) against net sales of $14,316 million - about 0.42%, under the 5% non-compliant income ceiling (2024: $54 million; 2023: $35 million). The most recent annual figure (0.42%) is used for this gate.

What do third-party Shariah screeners say about BorgWarner?

I could not verify a Zoya rating page, a Musaffa rating, or a ShariaPortfolio rating for BWA from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).