US Market News
2月前
Alex Palou Can Earn $40,000 with Indianapolis 500 Win from BorgWarner's Rolling JackpotMay 11, 2026 9:00 AM
PR Newswire (US) Jackpot increases by $20,000 annuallyClaimed only twice since its establishment in 1995Only six drivers have won back-to-back Indianapolis 500 races AUBURN HILLS, Mich., May 11, 2026 /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. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/alex-palou-can-earn-40-000-with-indianapolis-500-win-from-borgwarners-rolling-jackpot-302768172.htmlSOURCE BorgWarner Original: Alex Palou Can Earn $40,000 with Indianapolis 500 Win from BorgWarner's Rolling Jackpot
US Market News
2月前
BorgWarner Reports Strong First Quarter 2026 ResultsMay 6, 2026 6:30 AM
PR Newswire (US) Returned $185 million to Shareholders During First Quarter 2026Announces 12 Awards Across Portfolio to Support Long-Term Profitable GrowthAUBURN HILLS, Mich., May 6, 2026 /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 PortfolioThe 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 $13 million.Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.
Three Months Ended March 31,
2026
2025Earnings per diluted share$ 1.16
$ 0.72
Non-comparable items:
Restructuring expense0.06
0.11Adjustments associated with Spin-Off related balances0.01
(0.01)Unrealized loss on equity securities0.01
—Impairment charges—
0.15Costs to exit charging business—
0.11Merger and acquisition expense, net(0.01)
0.01Tax adjustments0.01
0.01Other non-comparable items—
0.01Adjusted earnings per diluted share$ 1.24
$ 1.11Net 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
2025Net sales$ 3,533
$ 3,515Cost of sales2,856
2,876Gross profit677
639Gross margin19.2 %
18.2 %
Selling, general and administrative expenses328
315Restructuring expense18
31Other operating (income) expense, net(5)
17Impairment charges—
39Operating income336
237
Equity in affiliates' earnings, net of tax(6)
(10)Unrealized loss on equity securities1
—Interest expense, net11
12Other postretirement expense2
3Earnings before income taxes and noncontrolling interest328
232
Provision for income taxes73
61Net earnings255
171Net earnings attributable to noncontrolling interest13
14Net earnings attributable to BorgWarner Inc. $ 242
$ 157
Earnings per share attributable to BorgWarner Inc. — diluted$ 1.16
$ 0.72
Weighted average shares outstanding:
Basic205.3
217.2Diluted208.3
218.1 BorgWarner Inc.
Net Sales by Reportable Segment (Unaudited)
(in millions)
Three Months Ended March 31,
2026
2025Turbos & Thermal Technologies$ 1,433
$ 1,454Drivetrain & Morse Systems1,422
1,361PowerDrive Systems587
561Battery Energy Systems102
150Inter-segment eliminations(11)
(11)Net sales$ 3,533
$ 3,515
Segment Adjusted Operating Income (Loss) (Unaudited)(in millions)
Three Months Ended March 31,
2026
2025Turbos & Thermal Technologies$ 214
$ 235Drivetrain & Morse Systems260
243PowerDrive Systems(36)
(43)Battery Energy Systems(2)
(22)Segment Adjusted Operating Income436
413Corporate, including stock-based compensation64
61Restructuring expense18
31Intangible asset amortization expense16
17Accelerated depreciation2
—Adjustments associated with Spin-Off related balances2
(3)Impairment charges—
39Costs to exit charging business—
26Loss on sale of businesses—
1Merger and acquisition expense, net(2)
2Other non-comparable items—
2Equity in affiliates' earnings, net of tax(6)
(10)Unrealized loss on equity securities1
—Interest expense, net11
12Other postretirement expense2
3Earnings before income taxes and noncontrolling interest$ 328
$ 232Provision for income taxes73
61Net Earnings255
171Net earnings attributable to noncontrolling interest13
14Net earnings attributable to BorgWarner Inc.$ 242
$ 157 BorgWarner Inc.
Condensed Consolidated Balance Sheets (Unaudited)(in millions)
March 31,
2026
December 31,
2025ASSETS
Cash and cash equivalents$ 2,110
$ 2,313Receivables, net3,088
2,962Inventories1,200
1,207Prepayments and other current assets344
313Total current assets6,742
6,795
Property, plant and equipment, net3,259
3,330Other non-current assets3,652
3,644Total assets$ 13,653
$ 13,769
LIABILITIES AND EQUITY
Short-term debt$ 5
$ 5Accounts payable2,058
1,996Other current liabilities1,102
1,281Total current liabilities3,165
3,282
Long-term debt3,876
3,894Other non-current liabilities:970
979Total liabilities8,011
8,155
Total BorgWarner Inc. stockholders' equity5,479
5,442Noncontrolling interest163
172Total equity5,642
5,614Total liabilities and equity$ 13,653
$ 13,769 BorgWarner Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)(in millions)
Three Months Ended March 31,
2026
2025OPERATING ACTIVITIES
Net cash provided by operating activities$ 152
$ 82INVESTING ACTIVITIES
Capital expenditures, including tooling outlays(143)
(119)Customer advances related to capital expenditures4
2Proceeds from settlement of net investment hedges, net9
12Proceeds from asset disposals and other, net—
11Net 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)
22Net decrease in cash, cash equivalents and restricted cash(203)
(387)Cash and cash equivalents at beginning of year2,313
2,094Cash, cash equivalents and restricted cash at end of period$ 2,110
$ 1,707
Supplemental Information (Unaudited)
(in millions)
Three Months Ended March 31,
2026
2025Depreciation and tooling amortization$ 129
$ 138Intangible asset amortization$ 16
$ 17Non-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
2025Net sales$ 3,533
$ 3,515
Operating income$ 336
$ 237Operating margin9.5 %
6.7 %
Non-comparable items:
Restructuring expense$ 18
$ 31Intangible asset amortization expense16
17Accelerated depreciation2
—Adjustments associated with Spin-Off related balances2
(3)Impairment charges—
39Costs to exit charging business—
26Merger and acquisition expense, net(2)
2Loss on sale of businesses—
1Other non-comparable items—
2Adjusted operating income$ 372
$ 352Adjusted operating margin10.5 %
10.0 % Free Cash Flow Reconciliation (Unaudited)
Three Months Ended March 31,(in millions)2026
2025Net cash provided by operating activities$ 152
$ 82Capital expenditures, including tooling outlays(143)
(119)Customer advances related to capital expenditures4
2Free 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 Systems1,361
49
12
1,422
0.9 %PowerDrive Systems561
31
(5)
587
(0.9) %Battery Energy Systems150
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
HighNet sales$ 14,000
$ 14,300
Operating income$ 1,361
$ 1,416Operating margin9.7 %
9.9 %
Non-comparable items:
Restructuring expense$ 80
$ 90Intangible asset amortization57
57Accelerated depreciation2
2Adjustment associated with Spin-Off related balances2
2Merger and acquisition expense, net(2)
(2)Adjusted operating income$ 1,500
$ 1,565Adjusted operating margin10.7 %
10.9 % Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)
Full-Year 2026 Guidance
Low
HighEarnings per Diluted Share$ 4.70
$ 4.87
Non-comparable items:
Restructuring expense$ 0.28
$ 0.31Adjustment associated with Spin-Off related balances0.01
0.01Unrealized loss on equity securities0.01
0.01Merger and acquisition expense, net(0.01)
(0.01)Tax adjustments0.01
0.01
Adjusted Earnings per Diluted Share$ 5.00
$ 5.20 Free Cash Flow Guidance Reconciliation (Unaudited)
Full-Year 2026 Guidance(in millions)Low
HighNet cash provided by operating activities$ 1,600
$ 1,700Capital 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 TotalLight vehicle
(3)% to 1%
(3)% to 0%
(4)% to (1.5)%
(3)% to (1)%
(3)% to 0% View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-reports-strong-first-quarter-2026-results-302763218.htmlSOURCE BorgWarner Original: BorgWarner Reports Strong First Quarter 2026 Results
US Market News
5月前
BorgWarner Strategically Enters Data Center Market with Power Generation Solution AwardFebruary 11, 2026 6:30 AM
PR Newswire (US)
AUBURN HILLS, Mich., Feb. 11, 2026 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) announced it has signed a Master Supply Agreement with TurboCell, a subsidiary of full stack data center infrastructure developer Endeavour, to supply a highly modular turbine generator system. BorgWarner expects the product to be a transformative power generation solution for the next wave of artificial intelligence driven data center demand and other microgrid applications. BorgWarner believes this solution addresses the growing demand for high power alternatives to traditional power generation. The turbine generator system is expected to be deployed to support AI campuses at gigawatt scale.
BorgWarner Strategically Enters Data Center Market with Power Generation Solution AwardBorgWarner has worked with TurboCell for more than three years to bring the turbine generator system to market. The product will offer adaptability for diverse applications, including backup and prime power, advanced controls and dynamic response to manage power transients and grid peaks. It is also expected to meet future CARB emission environmental standards, or stricter emission levels, and allow for flexible fuel types including natural gas, propane, diesel and hydrogen. This exciting new technology leverages BorgWarner's many core competencies, including its world class turbocharging, thermal management, power electronics, advanced software controls and high-speed rotating electric capabilities. BorgWarner expects to leverage its robust automotive supply base and world class manufacturing capabilities to maximize vertical integration by controlling approximately 65% of the turbine generator system content."We believe this product innovation is a powerful representation of the BorgWarner team proactively identifying and seizing growth opportunities," said Joseph Fadool, President and CEO, BorgWarner. "With capabilities that we expect will address the power quality and energy needs of the data center market across hyperscalers and colocators, as well as other microgrid applications, we anticipate that the turbine generator system will open avenues for further profitable growth. We believe this solution provides many advantages to conventional power solutions, including superior transient response and fuel flexibility as well as a lower emissions footprint, while meeting the behind the meter power market demands of both bridging power and backup power. We look forward to partnering with TurboCell to deliver a solution that we expect will drive growth and supports our vision of a clean, energy-efficient world.""Our partnership with BorgWarner has been incredibly rewarding, and we are excited to combine Endeavour's cutting-edge innovation with BorgWarner's automotive scale engineering and manufacturing execution," said Jakob Carnemark, Founder and Chief Executive Officer of Endeavour. "We developed the TurboCell system to supply the dynamic, demand-responsive power required to accelerate AI infrastructure development. With BorgWarner's global supply chain and proven technical capabilities, we look forward to providing the next generation of on-site power required to unlock the full potential of AI compute."The Company expects production to begin in Hendersonville, North Carolina in 2027, with an initial 2 GW of capacity installed.TurboCell is available exclusively through Endeavour's Edged Infrastructure solutions division.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. About TurboCell
TurboCell is the first power platform engineered specifically for the AI era. Rapidly deployable and scalable, TurboCell overcomes grid interconnect delays and unlocks long-term value from data center power infrastructure by delivering immediate prime and backup power in a single solution. With its hybrid DC architecture and high-quality power delivery, TurboCell enables AI cloud providers to meet the demands of dynamically evolving AI workloads. TurboCell is an Endeavour company. For more information, please visit www.turbocell.com.About Endeavour
Endeavour is an infrastructure innovation company focused on redefining the built environment for the age of AI. The company invents and invests in breakthrough technologies to make data center infrastructure faster and more agile while transforming it into a large-scale solution for climate change and water scarcity. These technologies work as an integrated system. The company's Edged data center platform delivers the most efficient and scalable AI infrastructure in the industry. Its ThermalWorks cooling and TurboCell power platforms support AI growth while stabilizing the grid and conserving water. Endeavour's vision goes beyond minimizing harm: the company aims to build regenerative systems that restore local resources and generate global benefits. For more information, visit?www.endeavourii.com.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 and measures to implement that strategy, goals, expansion and profitable 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 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 battery management system will not achieve its intended benefits for new vehicle lines; the supply disruptions impacting us or our customers, commodity availability and pricing; competitive challenges from existing and new competitors; 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.
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Original: BorgWarner Strategically Enters Data Center Market with Power Generation Solution Award
US Market News
5月前
BorgWarner Reports 2025 Results and Provides 2026 Guidance; Returned Approximately $630 Million to Shareholders in 2025; Strategically Enters Data Center Market with Turbine Generator System AwardFebruary 11, 2026 6:30 AM
PR Newswire (US)
AUBURN HILLS, Mich., Feb. 11, 2026 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported fourth quarter and full-year 2025 results and provided 2026 guidance.
Full Year 2025 Highlights Light vehicle eProducts grew approximately 23% in 2025 compared with 2024 due to demand for the Company's leading-edge hybrid and electric technologies in Europe and Asia.The Company's U.S. GAAP operating margin was 3.7%, which includes $624 million of goodwill, intangible asset and property, plant and equipment impairment charges within our PowerDrive Systems and Battery & Charging Systems segments. BorgWarner achieved an adjusted operating margin of 10.7% during 2025, up 60 basis points compared with 2024. This increase was driven by strong eProducts growth and cost controls across the business.Operating cash flow increased to $1,648 million, up approximately 19% compared to 2024. Free cash flow increased to $1,208 million, up approximately 66% compared with 2024 due to strong operating income and capital expenditure management.The Company's U.S. GAAP net earnings per diluted share were $1.28. Adjusted net earnings per diluted share were $4.91, up approximately 14% compared with 2024 due to higher adjusted operating income and over $500 million in share repurchases.Secured a supply agreement for a turbine generator system for the artificial intelligence (AI) driven data center market and other microgrid applications.Secured a record number of light vehicle awards across the Company's Foundational and eProduct portfolios that we expect will accelerate profitable growth in 2027 and beyond.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:Turbine Generator System Award for AI Driven Data Center Market and Other Microgrid ApplicationsMaster Supply Agreement with TurboCell, a subsidiary of full stack data center infrastructure developer Endeavour, to supply a highly modular turbine generator system. This product has been in development for over three years and utilizes the Company's turbocharging, thermal management, power electronics, advanced software controls and high-speed rotating electric core competencies to bring an innovative solution for the next wave of artificial intelligence driven data center demand and other microgrid applications. BorgWarner's turbine generator system is expected to be transformative by addressing the growing demand for high-power alternatives to traditional power generation. Additionally, the turbine generator system provides significant power, modular and fuel flexibility, while also providing a lower emissions footprint versus traditional products. Production is expected to begin in early 2027 with estimated sales of more than $300 million during the first year of production.Other New Business AwardsVariable turbine geometry turbocharger (VTG) conquest award with a major European OEM for the North American market used on hybrid vehicles. Production is expected to begin in 2028.Integrated drive module (iDM) award with a major North American OEM used on range extended electric vehicle trucks and large-frame SUVs. Production is expected to begin in 2029.Integrated drive module (iDM) award with a premium European OEM to support a hybrid range extended powertrain architecture. Production is expected to begin in 2029.Battery management system (BMS) award with a global OEM supporting additional B-segment and C-segment passenger cars as well as light commercial vehicles for both battery electric and plug-in hybrid electric vehicles. Production is expected to begin in 2029.Electric cross differential (eXD) award with a leading Chinese OEM used on 48V electrical and electronic architectures.Fourth Quarter Highlights (continuing operations basis):U.S. GAAP net sales of $3,572 million, an increase of 3.9% compared with fourth quarter 2024.Excluding the impact of foreign currencies, organic sales were up 0.8% compared with fourth quarter 2024.U.S. GAAP net loss of $(1.23) per diluted share.Excluding the $2.58 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.35 per diluted share.U.S. GAAP operating loss of $(238) million, or (6.7)% of net sales.Excluding $665 million of net pretax expense related to non-comparable items, adjusted operating income was $427 million, or 12.0% of net sales.Net cash provided by operating activities of $619 million.Free cash flow of $470 million.Full Year Highlights (continuing operations basis):U.S. GAAP net sales of $14,316 million, an increase of 1.6% when compared with 2024.Excluding the impact of foreign currencies, organic sales were up 0.5% compared with 2024.U.S. GAAP net earnings of $1.28 per diluted share.Excluding $3.63 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $4.91 per diluted share, an increase of approximately 14% compared with 2024.U.S. GAAP operating income of $536 million, or 3.7% of net sales.Excluding $1,001 million of net pretax expense related to non-comparable items, adjusted operating income was $1,537 million, or 10.7% of net sales, up 60 basis points compared with 2024.Net cash provided by operating activities of $1,648 million.Free cash flow of $1,208 million, an increase of approximately 66% compared with 2024.Financial Results (continuing operations basis):
The Company believes the following table is useful in highlighting non-comparable items that impacted its GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations and related tax effects.
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024(Loss) earnings per diluted share$ (1.23)
$ (1.84)
$ 1.28
$ 1.63
Non-comparable items:
Impairment charges2.51
2.80
2.63
2.73Restructuring expense0.09
0.03
0.36
0.24Accelerated depreciation0.04
0.05
0.31
0.18Legal settlement 0.01
—
0.18
—Costs to exit charging business—
—
0.14
—Impairment of investment0.07
—
0.07
—Chief Executive Officer ("CEO") transition compensation—
—
0.05
—Loss on sale of assets0.01
—
0.03
—Adjustments associated with Spin-Off related balances—
0.01
0.03
0.14Write-off of customer incentive asset—
—
0.03
—Merger and acquisition expense, net—
0.01
0.02
—Loss on sale of businesses—
0.01
0.01
0.04Change in accounting method—
(0.10)
—
(0.10)Commercial contract settlement—
—
—
0.07Gain on debt extinguishment—
—
—
(0.01)Unrealized gain on equity securities(0.01)
—
(0.01)
—Insurance recovery—
—
(0.07)
—Tax adjustments(0.16)
0.02
(0.23)
(0.64)Other non-comparable items0.02
0.02
0.08
0.04Adjusted earnings per diluted share$ 1.35
$ 1.01
$ 4.91
$ 4.32Net sales were $3,572 million for the fourth quarter 2025, an increase of approximately 3.9% compared with the fourth quarter 2024. This increase was primarily due to light vehicle eProduct sales growth, partially offset by lower industry volume and lower Battery & Charging Systems segment sales. Net loss for the fourth quarter 2025 was $262 million, or $(1.23) per diluted share, compared with net loss of $403 million, or $(1.84) per diluted share, for the fourth quarter 2024. Adjusted net earnings per diluted share for the fourth quarter 2025 were $1.35, up approximately 34% from adjusted net earnings per diluted share of $1.01 for the fourth quarter 2024. Adjusted net earnings for the fourth quarter 2025 excluded net non-comparable items of $(2.58) per diluted share, while adjusted net earnings for the fourth quarter 2024 excluded net non-comparable items of $(2.85) per diluted share. Non-comparable items include $582 million of goodwill, intangible asset and property, plant and equipment impairment charges recorded during the fourth quarter in our PowerDrive Systems and Battery & Charging Systems segments. 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 the impact of higher adjusted operating income, the impact of our share repurchases and a lower effective tax rate.Full Year 2026 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 & Charging 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 sales of $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic 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 & Charging 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 9.8% to 10.0% 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 a range of $4.74 to $4.91 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a 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 fourth quarter and full year 2025 results and full year 2026 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 Inc. (NYSE: BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility -- to help 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 launch of the turbine generator system and our other 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: 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; 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 delays and other challenges associated with launching a new product, such as the turbine generator system, as it involves a new industry for the company; 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 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 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. BorgWarner Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except per share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024Net sales$ 3,572
$ 3,439
$ 14,316
$ 14,086Cost of sales2,841
2,756
11,642
11,438Gross profit731
683
2,674
2,648Gross margin20.5 %
19.9 %
18.7 %
18.8 %
Selling, general and administrative expenses331
340
1,304
1,350Restructuring expense30
9
101
74Other operating expense (income), net26
4
109
32Impairment charges582
646
624
646Operating (loss) income(238)
(316)
536
546
Equity in affiliates' earnings, net of tax(6)
(4)
(35)
(27)Unrealized and realized (gain) loss on debt and equity securities(1)
1
(3)
1Interest expense, net6
3
39
20Other postretirement expense3
3
11
13(Loss) earnings from continuing operations before income taxes and
noncontrolling interest(240)
(319)
524
539
Provision for income taxes1
67
189
111Net (loss) earnings from continuing operations(241)
(386)
335
428Net loss from discontinued operations—
(2)
—
(29)Net (loss) earnings(241)
(388)
335
399Net earnings from continuing operations attributable to the noncontrolling
interest, net of tax21
17
58
61Net (loss) earnings attributable to BorgWarner Inc. $ (262)
$ (405)
$ 277
$ 338
Amounts attributable to BorgWarner Inc.:
Net (loss) earnings from continuing operations$ (262)
$ (403)
$ 277
$ 367Net loss from discontinued operations—
(2)
—
(29)Net (loss) earnings attributable to BorgWarner Inc.$ (262)
$ (405)
$ 277
$ 338
(Loss) earnings per share from continuing operations — diluted$ (1.23)
$ (1.84)
$ 1.28
$ 1.63Loss per share from discontinued operations — diluted—
(0.01)
—
(0.13)(Loss) earnings per share attributable to BorgWarner Inc. — diluted$ (1.23)
$ (1.85)
$ 1.28
$ 1.50
Weighted average shares outstanding — diluted212.9
219.1
216.4
224.8 BorgWarner Inc.
Net Sales by Reporting Segment (Unaudited)
(in millions)Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024Turbos & Thermal Technologies$ 1,400
$ 1,412
$ 5,772
$ 5,887Drivetrain & Morse Systems1,412
1,351
5,654
5,577PowerDrive Systems623
525
2,347
1,937Battery & Charging Systems149
162
590
729Inter-segment eliminations(12)
(11)
(47)
(44)Net sales$ 3,572
$ 3,439
$ 14,316
$ 14,086
Segment Adjusted Operating Income (Loss) (Unaudited)
(in millions)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024Turbos & Thermal Technologies$ 198
$ 223
$ 879
$ 877Drivetrain & Morse Systems271
240
1,041
1,010PowerDrive Systems28
(14)
(83)
(144)Battery & Charging Systems2
(14)
(39)
(47)Segment Adjusted Operating Income499
435
1,798
1,696Corporate, including stock-based compensation72
83
261
279Impairment charges582
646
624
646Restructuring expense30
9
101
74Accelerated depreciation9
15
90
50Intangible asset amortization expense17
18
66
69Legal settlement2
—
40
—Costs to exit charging business—
—
32
—Impairment of investment16
—
16
—Chief Executive Officer ("CEO") transition compensation—
—
11
—Loss on sale of assets3
2
9
2Adjustments associated with Spin-Off related balances—
3
7
17Write-off customer incentive asset—
—
7
—Merger and acquisition expense, net1
2
5
2Loss on sale of business—
3
2
6Change in accounting method—
(29)
—
(29)Commercial contract settlement—
—
—
15Insurance Recovery—
—
(21)
—Other non-comparable items5
(1)
12
19Equity in affiliates' earnings, net of tax(6)
(4)
(35)
(27)Unrealized and realized (gain) loss on equity and debt securities(1)
1
(3)
1Interest expense, net6
3
39
20Other postretirement expense3
3
11
13(Loss) earnings from continuing operations before income taxes and
noncontrolling interest(240)
(319)
524
539Provision for income taxes1
67
189
111Net (loss) earnings from continuing operations(241)
(386)
335
428Net earnings from continuing operations attributable to the noncontrolling
interest, net of tax21
17
58
61Net (loss) earnings from continuing operations attributable to BorgWarner
Inc. $ (262)
$ (403)
$ 277
$ 367 BorgWarner Inc.
Condensed Consolidated Balance Sheets (Unaudited)(in millions)
December 31,
2025
December 31,
2024ASSETS
Cash and cash equivalents$ 2,313
$ 2,094Receivables, net2,962
2,843Inventories1,207
1,251Prepayments and other current assets313
333Total current assets6,795
6,521
Property, plant and equipment, net3,330
3,575Other non-current assets3,644
3,897Total assets$ 13,769
$ 13,993
LIABILITIES AND EQUITY
Notes payable and other short-term debt$ 5
$ 398Accounts payable1,996
2,032Other current liabilities1,281
1,216Total current liabilities3,282
3,646
Long-term debt3,894
3,763Other non-current liabilities979
878Total liabilities8,155
8,287
Total BorgWarner Inc. stockholders' equity5,442
5,532Noncontrolling interest172
174Total equity5,614
5,706Total liabilities and equity$ 13,769
$ 13,993 BorgWarner Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)(in millions)Year Ended
December 31,
2025
2024OPERATING ACTIVITIES OF CONTINUING OPERATIONS
Net cash provided by operating activities from continuing operations$ 1,648
$ 1,382INVESTING ACTIVITIES OF CONTINUING OPERATIONS
Capital expenditures, including tooling outlays(469)
(671)Customer advances related to capital expenditures29
18Insurance proceeds received for damage to property, plant and equipment4
—Proceeds from sale of businesses, net7
8Proceeds from settlement of net investment hedges, net18
46Payments for investments in debt and equity securities, net—
(8)Proceeds from asset disposals and other, net43
4Net cash used in investing activities from continuing operations(368)
(603)FINANCING ACTIVITIES OF CONTINUING OPERATIONS
Payments on notes payable(5)
—Additions to debt—
1,008Repayments of debt, including current portion(409)
(525)Payments for debt issuance costs—
(9)Payments for purchase of treasury stock(508)
(402)Payments for stock-based compensation items(22)
(23)Payments for business acquired, net of cash acquired—
(4)Payments for contingent consideration(4)
(1)Dividends paid to BorgWarner stockholders(119)
(98)Dividends paid to noncontrolling stockholders(49)
(113)Net cash used in financing activities from continuing operations(1,116)
(167)CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating activities of discontinued operations—
(30)Net used in discontinued operations—
(30)Effect of exchange rate changes on cash55
(22)Net increase in cash and cash equivalents219
560Cash and cash equivalents at beginning of year2,094
1,534Cash and cash equivalents at end of year$ 2,313
$ 2,094
Supplemental Financial Information (Unaudited)
(in millions)Year Ended
December 31,
2025
2024Depreciation and tooling amortization$ 653
$ 604Intangible asset amortization66
69Non-GAAP Financial Measures
This press release 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 below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures is not intended to indicate that BorgWarner 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 to facilitate comparisons and better identify trends in our business. 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 BorgWarner 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, impairment charges, 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 BorgWarner Inc. 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
Year Ended
December 31,
December 31,(in millions)2025
2024
2025
2024Net sales$ 3,572
$ 3,439
$ 14,316
$ 14,086
Operating (loss) income(238)
(316)
536
546Operating margin(6.7) %
(9.2) %
3.7 %
3.9 %
Non-comparable items:
Impairment charges$ 582
$ 646
$ 624
$ 646Restructuring expense30
9
101
74Accelerated depreciation9
15
90
50Intangible asset amortization17
18
66
69Legal settlement 2
—
40
—Costs to exit charging business—
—
32
—Impairment of investment16
—
16
—Chief Executive Officer ("CEO") transition compensation—
—
11
—Loss on sale of assets3
2
9
2Adjustments associated with Spin-Off related balances—
3
7
17Write-off customer incentive asset—
—
7
—Merger and acquisition expense, net1
2
5
2Loss on sale of businesses—
3
2
6Change in accounting method—
(29)
—
(29)Commercial contract settlement—
—
—
15Insurance recovery—
—
(21)
—Other non-comparable items5
(1)
12
19Net non-comparable items$ 665
$ 668
$ 1,001
$ 871
Adjusted operating income$ 427
$ 352
$ 1,537
$ 1,417Adjusted operating margin12.0 %
10.2 %
10.7 %
10.1 % Free Cash Flow Reconciliation (Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,(in millions)2025
2024
2025
2024Net cash provided by operating activities from continuing operations$ 619
$ 682
$ 1,648
$ 1,382Capital expenditures, including tooling outlays(162)
(161)
(469)
(671)Customer advances related to capital expenditures13
18
29
18Free cash flow$ 470
$ 539
$ 1,208
$ 729 Fourth Quarter 2025 Organic Net Sales Change (Unaudited)
(in millions)Q4 2024 Net
Sales
FX
Organic Net
Sales
Change
Q4 2025 Net
Sales
Organic Net
Sales
Change %
Turbos & Thermal Technologies$ 1,412
$ 53
$ (65)
$ 1,400
(4.6) %Drivetrain & Morse Systems1,351
27
34
1,412
2.5 %PowerDrive Systems525
17
81
623
15.4 %Battery & Charging Systems162
7
(20)
149
(12.3) %Inter-segment eliminations(11)
—
(1)
(12)
9.1 %Net sales$ 3,439
$ 104
$ 29
$ 3,572
0.8 % Full Year 2025 Organic Net Sales Change (Unaudited)
(in millions)2024 Net
Sales
FX
Organic Net
Sales
Change
2025 Net
Sales
Organic Net
Sales
Change %
Turbos & Thermal Technologies$ 5,887
$ 77
$ (192)
$ 5,772
(3.3) %Drivetrain & Morse Systems5,577
42
35
5,654
0.6 %PowerDrive Systems1,937
22
388
2,347
20.0 %Battery & Charging Systems729
13
(152)
590
(20.9) %Inter-segment eliminations(44)
—
(3)
(47)
6.8 %Net sales$ 14,086
$ 154
$ 76
$ 14,316
0.5 % Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)
Full-Year 2026 Guidance(in millions)Low
HighNet sales$ 14,000
$ 14,300
Operating income $ 1,373
$ 1,428Operating margin9.8 %
10.0 %
Non-comparable items:
Restructuring expense$ 70
$ 80Intangible asset amortization57
57Adjusted operating income$ 1,500
$ 1,565Adjusted operating margin10.7 %
10.9 % Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)
Full-Year 2026 Guidance
Low
HighEarnings per Diluted Share$ 4.74
$ 4.91
Non-comparable items:
Restructuring expense0.26
0.29Adjusted Earnings per Diluted Share$ 5.00
$ 5.20 Free Cash Flow Guidance Reconciliation From Continuing Operations (Unaudited)
Full-Year 2026 Guidance(in millions)Low
HighNet cash provided by operating activities$ 1,600
$ 1,700Capital 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
Organic Net
Sales
Change
FY 2026 Net
Sales
Organic Net
Sales
Change %
LV Weighted
Market
OutgrowthLow$ 14,316
$ 200
$ (516)
$ 14,000
(3.6) %
(3.0) %
(0.6) %High$ 14,316
$ 200
$ (216)
$ 14,300
(1.5) %
— %
(1.5) % Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)
North America
Europe
China
Total
BorgWarner
Weighted TotalLight vehicle
(5)% to (1)%
(2)% to 0.5%
(4)% to (1)%
(2)% to 0%
(3)% to 0%
View original content to download multimedia:https://www.prnewswire.com/news-releases/borgwarner-reports-2025-results-and-provides-2026-guidance-returned-approximately-630-million-to-shareholders-in-2025-strategically-enters-data-center-market-with-turbine-generator-system-award-302684344.htmlSOURCE BorgWarner
Original: BorgWarner Reports 2025 Results and Provides 2026 Guidance; Returned Approximately $630 Million to Shareholders in 2025; Strategically Enters Data Center Market with Turbine Generator System Award
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