Slide 1: Q3 2025 Earnings Call Presentation
Q3 2025 Earnings Call Presentation October 30, 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 Third Quarter Execution Supports Full-year Guidance Increase
Strong Third Quarter Execution Supports Full-year Guidance Increase $ in millions, except EPS ▪ Organic sales growth of ~2%, despite Net Sales Adj. EPS* Free Cash Flow* headwinds from lower battery sales Organic Sales* Adj. EPS* FCF* and the impact of a European Increase of ~2.1% Increase of ~14% Im
Slide 6: New Program Awards Highlight Continued Foundational Product Leadership
New Program Awards Highlight Continued Foundational Product Leadership Transfer Cases & Cross Wheel Turbochargers Electric Variable Cam Timing Drives ▪ Award with Stellantis for the ▪ Award with Stellantis for the ▪ Multiple awards with Chery Hurricane 4, a 4-cylinder Jeep Cherokee, marking the incl
Slide 7: eProduct Awards Across Technology-Focused Portfolio
eProduct Awards Across Technology-Focused Portfolio 7-in-1 Integrated Drive Modules Dual Inverters Battery Systems ▪ Award with a leading Chinese ▪ Two awards with Great Wall ▪ Award for the HOLON Urban, OEM for a hybrid SUV Motor for HEV and PHEV a 15-person, Level 4 vehicles autonomous, fully elec
Slide 8: Q3 2025 Net Sales Walk
Q3 2025 Net Sales Walk $ in millions ▪ Organic sales* up ~2.1%, or up ~4.1% excl. Battery & Charging Systems sales Q3 2024 net sales $3,449 decline, in line with market ▪ North America – Outgrowth supported by transfer case and FX $69 turbocharger growth ▪ China – Modestly below market due to Founda
Slide 9: Q3 2025 Financial Results & Adj. Operating Income
Q3 2025 Financial Results & Adj. Operating Income $ in millions Q3 2024 adj. operating ($ in millions, except per share income* $350 Three months amounts) ended Non-GAAP Financial Information (Continuing September 30, FX $6 Operations) 2025 2024 Net sales $3,591 $3,449 Net tariff impact $(17) Adj. o
Slide 10: 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 Adj. Operating Margin* $14,086 Organic growth* (1.5%) to 1% (1%) to 0% LV/CV Weighted Market (2.5%) to (0.5%) (1%) to 0% FX
Slide 11: Thank You
October 30, 2025 Q3 2025 Earnings Call Presentation THANK YOU
Slide 12: Appendix
APPENDIX BORGWUARNER
Slide 13: 2025 Planning Assumptions
2025 Planning Assumptions ▪ CapEx $550 to $600 million ▪ Adjusted tax rate for ongoing operations 23% 13
Slide 14: 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. 90.7 to 91.6 89.6 YOY 1.5% to 2.5% Electric Electric FY’24 FY’25 FY’24 FY’25 FY’24 FY’25 ~13% ~16% Actual Est. Actual Est. Actual Est. Hybrid ~24% Hybrid 31.6 to 31
Slide 15: 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 15.0 to 15.2 17.2 16.7 to 17.0 29.8 31.6 to 31.9 89.6 90.7 to 91.6 Commercial Vehicle 0.7 ~0.5
Slide 16: Third Quarter & YTD Reconciliation to US GAAP
Third 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 17: Third Quarter & YTD Reconciliation to US GAAP
Third 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, disconti
Slide 18: Third Quarter Organic Net Sales Change
Third 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. Q3 2025 Organic Net Battery & Sales Excl. Organic N
Slide 19: Full Year 2025 Adj. Operating Income and Adj. Operating 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 20: 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 21: 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. 21
Slide 22: Free Cash Flow Reconciliations
Q3 & YTD 2025, Q3 & 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 23: 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