Borgwarner Inc. · NYSE:BWA
Borgwarner — Q3 2026 Earnings Presentation
22 slides from Borgwarner's earnings presentation, Oct 29, 2026
Slide 1: Q3 2026 Earnings Call Presentation
Q3 2026 Earnings Call Presentation October 29, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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,” “cou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain information about BorgWarner’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 in the Appendix. The provision of these co
Slide 4: Agenda
Agenda ► Joe Fadool Chief Executive Officer ► Craig Aaron Chief Financial Officer ► Q&A 4
Slide 5: Strong Third Quarter Execution Supports EPS Guidance Increase
Strong Third Quarter Execution Supports EPS Guidance Increase; Remain Focused on Long-Term Value Creation $ in millions, except EPS ▪ Organic net sales performance roughly Net Sales Adj. EPS* Free Cash Flow* in line with market, excluding battery Organic Net Sales* Adj. EPS* Strong Free Cash sales d
Slide 6: Nine New Program Awards Highlight Continued Product Leadership
Nine New Program Awards Highlight Continued Product Leadership Foundational eProduct Engine Control Modules Turbochargers eMotors HVH Motors High-Voltage Inverters ▪ Award with a global ▪ Three conquest awards ▪ First aluminum-wire ▪ Three awards with ▪ Award with a global OEM for a new internal- wi
Slide 7: Improving Product Readiness & Accelerating Quoting Activity for Data Center & Industrial Markets Portfolio
Improving Product Readiness & Accelerating Quoting Activity for Data Center & Industrial Markets Portfolio Power Generation Energy Storage Power Conversion Turbine Generator System Battery Energy Storage System Bi-Directional Microgrid Inverter ▪ Customer interest remains strong with ▪ Supporting va
Slide 8: Q3 2026 Net Sales Walk
Q3 2026 Net Sales Walk $ in millions ▪ Organic net sales* down ~2%, or roughly in line with industry production, Q3 2025 net sales $3,591 excluding Battery Energy Systems sales decline FX $8 ▪ North America – Outgrowth supported by transfer case volumes Battery & charging sales ex. FX $(54) ▪ Europe
Slide 9: Q3 2026 Financial Results & Adj. Operating Income
Q3 2026 Financial Results & Adj. Operating Income $ in millions Q3 2025 adj. operating ($ in millions, except per share Three months $385 income* amounts) ended Non-GAAP Financial September 30, Information 2026 2025 FX $2 Net sales $3,487 $3,591 Adj. operating income* $381 $385 Adj. operating margin
Slide 10: 2026 Outlook and Other Items
2026 Outlook and Other Items $ in millions, except EPS Full Year Net Sales Outlook Market & Earnings Outlook Prior 2026 Revised 2026 Guidance Outlook 10.7% 2025 net sales Adj. Operating Margin* $14,316 Organic net sales change* (3.5%) to (1.5%) (4%) to (2.5%) FX $250 Adj. operating margin* 10.7% to
Slide 11: Thank You
October 29, 2026 Q3 2026 Earnings Call Presentation THANK YOU
Slide 12: Appendix
APPENDIX BORGWUARNER
Slide 13: 2026 Light Vehicle Market Expectations
2026 Light Vehicle Market Expectations LV Units in millions BorgWarner Global Market North America Europe China FY’25 FY’26 Actual Est. 90.7 to 91.8 93.1 YOY (2.5%) to (1.5%) FY’25 FY’26 FY’25 FY’26 FY’25 FY’26 Actual Est. Actual Est. Actual Est. 30.2 to 30.9 32.9 YOY (8%) to (6%) 17.1 to 17.2 14.9
Slide 14: 2026 Planning Assumptions
2026 Planning Assumptions ▪ CapEx $600 to $700 million ▪ Adjusted tax rate for ongoing operations ~22.5% 14
Slide 15: Third Quarter & YTD Reconciliation to U.S. GAAP
Third Quarter & YTD Reconciliation to U.S. GAAP Adjusted Operating Income and 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
Slide 16: Third Quarter & YTD Reconciliation to U.S. GAAP
Third Quarter & YTD Reconciliation to U.S. GAAP 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, discon
Slide 17: Third Quarter & YTD Organic Net Sales Change
Third Quarter & YTD Organic Net Sales Change 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. 17
Slide 18: Full Year 2026 Adj. Operating Income and Margin Guidance Reconciliation
Full Year 2026 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation to U.S. GAAP Adjusted Operating Income and Operating Margin The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divest
Slide 19: Full Year 2026 Adj. EPS Guidance Reconciliation
Full Year 2026 Adj. Earnings per Diluted Share Guidance Reconciliation to U.S. GAAP 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
Slide 20: Full Year 2026 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation
Full Year 2026 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation 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. 20
Slide 21: Free Cash Flow Reconciliations to U.S. GAAP
Free Cash Flow Reconciliations to U.S. GAAP 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
Slide 22: Key Definitions
Key Definitions The terms below are commonly used by management and investors in assessing ongoing financial performance: 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,