Slide 1: Q4 & FY 2025 Earnings Call Presentation
Update pic Q4 & FY 2025 Earnings Call Presentation February 11, 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: Significant Adj. Margin, Adj. EPS & Free Cash Flow Expansion; Record Awards Support Future Profitable Growth
Significant Adj. Margin, Adj. EPS & Free Cash Flow Expansion; Record Awards Support Future Profitable Growth $ in millions, except EPS ▪ YOY Light vehicle eProduct growth Net Sales Adj. EPS* Free Cash Flow* of ~23% Organic Sales* Adj. EPS* FCF* Increase of ~0.5% Increase of ~14% Increase of ~66% ▪ A
Slide 6: Awards Across Technology-Focused Portfolio
Awards Across Technology-Focused Portfolio Integrated Drive Modules Variable Turbine Integrated Drive Modules Battery Management Electric Cross (iDM) and Generator Geometry (VTG) (iDM) Systems (BMS) Differentials (eXD) Modules with Dual Turbochargers Inverters ▪ Award with a premium ▪ Award with a g
Slide 7: Strategically Enters Data Center Market with Supply Agreement for Power Generation Solutions
Strategically Enters Data Center Market with Supply Agreement for Power Generation Solutions ▪ Product: Modular turbine generator system for AI driven data center market and other microgrid applications ▪ Background/Rationale: ▪ Signed agreement with TurboCell (subsidiary of Endeavour) to support gr
Slide 8: Turbine Generator System Provides Significant Advantages to Existing Power Generation Solutions
Turbine Generator System Provides Significant Advantages to Existing Power Generation Solutions Adv. Software Product Advantages Controls ▪ Power/Modular Flexibility: continuous Cooling Fan (bridging power) or backup power Intercooler ▪ Fuel Flexibility: natural gas, propane, diesel and hydrogen Com
Slide 9: Q4 2025 Net Sales Walk
Q4 2025 Net Sales Walk $ in millions ▪ Organic sales* up ~0.8%, or up ~1.5% versus our weighted market Q4 2024 net sales $3,439 ▪ North America – Outgrowth supported by strong turbocharger FX $104 sales as well as tariff and other customer recoveries ▪ China – Modestly below market due Organic net s
Slide 10: Q4 2025 Financial Results & Adj. Operating Income
Q4 2025 Financial Results & Adj. Operating Income $ in millions Q4 2024 adj. operating ($ in millions, except per share income* $352 Three months amounts) ended Non-GAAP Financial Information (Continuing December 31, FX $8 Operations) 2025 2024 Net sales $3,572 $3,439 Net tariff impact $11 Adj. oper
Slide 11: 2026 Outlook and Other Items
2026 Outlook and Other Items $ in millions, except EPS Full-year Net Sales Outlook ($M) Market & Earnings Outlook 2025 Actual 2026 Outlook 10.7% 2025 net sales Adj. Operating Margin* $14,316 Organic growth* 0.5% (3.5%) to (1.5%) FX $200 Adj. operating margin* 10.7% 10.7% to 10.9% Adj. diluted EPS* $
Slide 12: Share Repurchase History
Share Repurchase History Current Authorization Outstanding Dilutive Shares 245 240.2 2022: $240M 240 2023: $177M 235 $400M 234.6 230 millions of shares 2021: No 230.2 225 Repurchases $1B 2024: $400M 220 $600M 215 219.1 210 205 2025: $508M 208.7 2025 Q3/Q4 2025 2025 200 Authorization Repurchases Auth
Slide 13: Thank You
February 11, 2026 Q4 & FY 2025 Earnings Call Presentation THANK YOU
Slide 14: Appendix
APPENDIX BORGWUARNER
Slide 15: 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. 90.8 to 93.1 92.9 YOY (2%) to 0% FY’25 FY’26 FY’25 FY’26 FY’25 FY’26 Actual Est. Actual Est. Actual Est. 31.7 to 32.6 32.9 YOY (4%) to (1%) 16.6 to 17.1 14.5 to 15.
Slide 16: 2026 Planning Assumptions
2026 Planning Assumptions ▪ CapEx $600 to $700 million ▪ Adjusted tax rate for ongoing operations ~23% 16
Slide 17: Fourth Quarter & Full Year Reconciliation to US GAAP
Fourth Quarter & Full Year Reconciliation to US 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 ex
Slide 18: Fourth Quarter & Full Year Reconciliation to US GAAP
Fourth Quarter & Full Year Reconciliation to US 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, d
Slide 19: Fourth Quarter Organic Net Sales Change
Fourth Quarter 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. 19
Slide 20: Full Year 2026 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation
Full Year 2026 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation to US 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 divestit
Slide 21: Full Year 2026 Adj. Earnings per Diluted Share Guidance Reconciliation
Full Year 2026 Adj. Earnings per Diluted Share Guidance Reconciliation to US 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 e
Slide 22: 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. Or
Slide 23: Q4 & FY 2025, Q4 & FY 2024 & FY 2026 Free Cash Flow Reconciliations
Q4 & FY 2025, Q4 & FY 2024 & FY 2026 Free Cash Flow Reconciliations to US 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 man
Slide 24: 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,