BorgWarner Inc.

BWA: Is BorgWarner Inc. Halal?

BorgWarner Inc.

NYSEConsumer CyclicalUS

$65.91

+3.76%

Market Cap: 13.5B

Compliance Status

Doubtful

Screened on Jul 14, 2026 · AAOIFI Standard 21

B

Acceptable

60Score

Is BorgWarner Inc. (BWA) halal? Doubtful. Based on AAOIFI screening, BorgWarner Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 60/100 (Grade: B).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

29.6% of 30.0% limit

What this means for you

You may own BWA, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

Purify 0.5% of your income from BWA

That is about $0.50 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About BorgWarner Inc.

BorgWarner Inc. (BWA) is a prominent global supplier of advanced propulsion technologies, catering to a wide spectrum of vehicles including those powered by internal combustion engines, hybrids, and fully electric drivetrains. The company's operations are divided into four primary business units: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment is responsible for components that optimize engine performance and thermal control. This includes various turbocharging solutions (such as turbochargers, eBoosters, and eTurbos), engine timing and emissions control systems, thermal management products, gasoline ignition technology, smart actuators, powertrain sensors, and a range of battery-related items like modules, packs, heaters, and charging systems. The E-Propulsion & Drivetrain segment focuses on electrical powertrains and power transmission. Its offerings encompass rotating electrical components, sophisticated power electronics, control modules with embedded software, as well as friction and mechanical parts for automatic transmissions and torque management systems. The Fuel Injection segment specializes in the design and production of precision fuel delivery components and systems for both gasoline and diesel engines. The Aftermarket segment serves both independent repair facilities and original equipment service providers. It supplies a comprehensive array of solutions, including fuel injection parts, electronic and engine management systems, maintenance products, and diagnostic tools for vehicle testing. BorgWarner's extensive customer base includes original equipment manufacturers (OEMs) of light vehicles (such as passenger cars, SUVs, vans, and light trucks), commercial vehicles (like medium and heavy-duty trucks, and buses), and off-highway machinery (including agricultural, construction, and marine applications). Additionally, the company supplies Tier 1 vehicle systems suppliers and the aftermarket segments for all these vehicle categories. Established in 1987, the corporation was originally known as Borg-Warner Automotive, Inc. BorgWarner Inc. is presently headquartered in Auburn Hills, Michigan.

Sector: Consumer Cyclical · Industry: Auto - Parts

Why This Stock Is Doubtful

  • Debt is 29.6% of market cap, only 0.4 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 14, 2026

Compliance History

  1. Doubtfulnow

    since Jun 2026

  2. Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR
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Frequently Asked Questions

Is BorgWarner Inc. (BWA) halal to invest in?
BorgWarner Inc. (BWA) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did BorgWarner Inc. get a B compliance rating?
BorgWarner Inc. (BWA) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 29.6% (limit 30%); interest-bearing deposits of 15.9% (limit 30%); prohibited income of 0.46% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change BorgWarner Inc.'s Shariah verdict?
BorgWarner Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is BorgWarner Inc. re-screened for Shariah compliance?
BorgWarner Inc. (BWA) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 14, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.