Slide 1: Q2 2025 Earnings Call Presentation
Q2 2025 Earnings Call Presentation July 31, 2025
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 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 comparable
Slide 4: Agenda
Agenda ► Joe Fadool Chief Executive Officer ► Craig Aaron Chief Financial Officer ► Q&A 4
Slide 5: Strong Second Quarter Execution, Focused on Long-Term Value Creation
Strong Second Quarter Execution, Focused on Long-Term Value Creation $ in millions, except EPS ▪ Light vehicle eProduct growth of ~31% Net Sales Adj. EPS* Free Cash Flow* driven by Europe, China & RoW Organic Sales* Adj. EPS* FCF* Decrease of ~0.9% Increase of ~2% Improvement of ~71% ▪ Continued Fou
Slide 6: New Programs & Conquest Turbocharger Wins Highlight Foundational Product Leadership
New Programs & Conquest Turbocharger Wins Highlight Foundational Product Leadership Wastegate Turbochargers Wastegate Turbochargers Wastegate Turbochargers ▪ Two conquest awards with a ▪ Award with a major East Asian ▪ Award with a major global major global OEM, one for the OEM for hybrid electric O
Slide 7: eProduct Awards Across Technology-Focused Portfolio
eProduct Awards Across Technology-Focused Portfolio Dual Inverters Electric Motors High-Voltage Coolant Heaters Electric Cross Differentials (HVCH) (eXD) ▪ Award with major Chinese ▪ Award with a major Chinese OEM for its new energy OEM for platform-based ▪ Awards with two major global ▪ Award with
Slide 8: History of Balanced Capital Allocation
History of Balanced Capital Allocation Capital Allocation Since 2021 BWA & Non- Controlling Interest Dividends 23% $4.3B M&A (net of $0.4B Spend distribution from PHINIA 56% spin-off) Buybacks 21% Capital Allocation Balanced Between Inorganic Investments and Shareholder Return Activity 8 Note: Capit
Slide 9: Inorganic Investment Screening Process
Inorganic Investment Screening Process ▪ Industrial logic – leverage BorgWarner’s core competencies (not limited to BorgWarner’s current portfolio) ▪ Near-term accretion – potential M&A intended to increase BorgWarner’s earnings power ▪ Thoughtful / diligent valuation consideration – incorporating c
Slide 10: Q2 2025 Net Sales Walk
Q2 2025 Net Sales Walk $ in millions ▪ Organic sales* relatively flat, roughly in line with industry production Q2 2024 net sales $3,603 ▪ North America – Modest outgrowth supported by transfer case growth, partially offset by battery decline FX $66 ▪ China – In line with market driven by growth in
Slide 11: Q2 2025 Financial Results & Adj. Operating Income
Q2 2025 Financial Results & Adj. Operating Income $ in millions Q2 2024 adj. operating ($ in millions, except per share income* $376 Three months amounts) ended Non-GAAP Financial Information (Continuing June 30, FX $5 Operations) 2025 2024 Net sales $3,638 $3,603 Net tariff impact $(15) Adj. operat
Slide 12: 2025 Outlook and Other Items
2025 Outlook and Other Items $ in millions, except EPS Full-year Net Sales Outlook ($M) Market & Earnings Outlook Prior Revised 2025 Guidance 2025 Outlook 10.1% 2024 net sales $14,086 Adj. Operating Margin* Organic growth* (2%) to 2% (1.5%) to 1% LV/CV Weighted Market (4%) to (2%) (2.5%) to (0.5%) F
Slide 13: Strong Liquidity and Free Cash Flow Enable Disciplined Return to Shareholders
We Believe Strong Liquidity and Free Cash Flow Enable Disciplined Return to Shareholders Estimated Annualized Dividends Share Repurchase Authorization ~$145M $1.0B $98M $767M $641M Additional authorization $359M Remaining under prior authorization 2024 Dividends Paid to Estimated Annual Dividends Pr
Slide 14: Thank You
July 31, 2025 Q2 2025 Earnings Call Presentation THANK YOU
Slide 15: Appendix
APPENDIX BORGWUARNER
Slide 16: 2025 Planning Assumptions
2025 Planning Assumptions ▪ CapEx $625 to $675 million ▪ Adjusted tax rate for ongoing operations 23.5% 16
Slide 17: 2025 Light Vehicle Market Expectations
2025 Light Vehicle Market Expectations LV Units in millions BorgWarner Global Market North America Europe China FY’24 FY’25 Actual Est. 88.9 to 90.7 89.5 YOY (0.5%) to 1.5% Electric Electric FY’24 FY’25 FY’24 FY’25 FY’24 FY’25 ~13% ~17% Actual Est. Actual Est. Actual Est. Hybrid ~24% Hybrid 30.6 to
Slide 18: BorgWarner Global Production Outlook (2025 vs. 2024)
BorgWarner Global Production Outlook (2025 vs. 2024) Actual & Estimated Production Totals (in Millions of Units) North America Europe China Total 2024 2025 2024 2025 2024 2025 2024 2025 Light Vehicle 15.5 14.5 to 15.2 17.2 16.6 to 16.8 29.8 30.6 to 31.2 89.5 88.9 to 90.7 Commercial Vehicle 0.7 ~0.5
Slide 19: Second Quarter & YTD Reconciliation to US GAAP
Second Quarter & YTD 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 expense,
Slide 20: Second Quarter & YTD Reconciliation to US GAAP
Second Quarter & YTD 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, discont
Slide 21: Second Quarter & YTD Organic Net Sales Change
Second 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. 21
Slide 22: Full Year 2025 Adj. Operating Income and Margin Guidance Reconciliation
Full Year 2025 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 23: Full Year 2025 Adj. Earnings per Diluted Share Guidance Reconciliation
Full Year 2025 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 24: Full Year 2025 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation
Full Year 2025 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. 24
Slide 25: Free Cash Flow Reconciliations to US GAAP
Q2 & YTD 2025, Q2 & YTD 2024 & Full Year 2025 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
Slide 26: 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