Slide 1: Q1 2026 Earnings Call Presentation
Update pic Q1 2026 Earnings Call Presentation May 6, 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: Solid Adj. Margin, Adj. EPS & Free Cash Flow Expansion
Solid Adj. Margin, Adj. EPS & Free Cash Flow Expansion; Awards Across Portfolio Support Future Profitable Growth $ in millions, except EPS ▪ Organic net sales performance in-line Net Sales Adj. EPS* Free Cash Flow* with market, excluding Battery Organic Net Sales* Adj. EPS* FCF* Energy Systems sales
Slide 6: Twelve Awards Across Portfolio and Regions
Twelve Awards Across Portfolio and Regions Turbochargers and Dual Clutches (DCT) & Engine, Machine, Power eMotors Turbochargers Exhaust Gas Recirculation Variable Cam Timing Module & BMS Controllers (EGR) Coolers Systems (VCT) ▪ Three awards with Asian ▪ Three program ▪ A seven-year program OEMs inc
Slide 7: BorgWarner Continues to Expand Portfolio to Serve Data Center and Other Industrial Markets
BorgWarner Continues to Expand Portfolio to Serve Data Center and Other Industrial Markets v Power Generation Energy Storage Power Conversion Turbine Generator System Battery Energy Storage System Bi-Directional Microgrid Inverter ▪ Strong customer demand indicators ▪ Data centers (AI and mechanical
Slide 8: Q1 2026 Net Sales Walk
Q1 2026 Net Sales Walk $ in millions ▪ Organic net sales* down ~4.2%, or in- line with market, excluding Battery Q1 2025 net sales $3,515 Energy Systems sales decline FX $167 ▪ North America – Outgrowth supported by transfer case volumes Battery & charging sales ex. FX $(54) ▪ China – Modestly below
Slide 9: Q1 2026 Financial Results & Adj. Operating Income
Q1 2026 Financial Results & Adj. Operating Income $ in millions Q1 2025 adj. operating Three months income* $352 ($ in millions, except per share amounts) ended Non-GAAP Financial March 31, Information 2026 2025 FX $16 Net sales $3,533 $3,515 Exit of charging business $8 Adj. operating income* $372
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 growth* (3.5%) to (1.5%) (3.5%) to (1.5%) FX $200 Adj. operating margin* 10.7% to 10.9% 10
Slide 11: Thank You
May 6, 2026 Q1 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. 90.4 to 92.2 93.1 YOY (3%) to (1%) FY’25 FY’26 FY’25 FY’26 FY’25 FY’26 Actual Est. Actual Est. Actual Est. 31.5 to 32.4 32.9 YOY (4%) to (1.5%) 16.5 to 17.0 14.8 to
Slide 14: 2026 Planning Assumptions
2026 Planning Assumptions ▪ CapEx $600 to $700 million ▪ Adjusted tax rate for ongoing operations ~23% 14
Slide 15: First Quarter Reconciliation: Adjusted Operating Income and Margin
First Quarter 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, other
Slide 16: First Quarter Reconciliation: Adjusted Earnings Per Diluted Share
First Quarter 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, discontinued o
Slide 17: First Quarter Organic Net Sales Change
First 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. 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 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 19: Full Year 2026 Adj. EPS 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 20: Full Year 2026 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: Q1 2026, Q1 2025 & Full Year 2026 Guidance Free Cash Flow Reconciliations
Q1 2026, Q1 2025 & Full Year 2026 Guidance 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 bo
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,