Slide 1: Q2 2026 Earnings Call Presentation
Update pic Q2 2026 Earnings Call Presentation August 5, 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: Strong Second Quarter Execution, Remain Focused on Long-Term Profitable Growth and Value Creation
Strong Second Quarter Execution, Remain Focused on Long-Term Profitable Growth and Value Creation $ in millions, except EPS ▪ Organic net sales performance Net Sales Adj. EPS* Free Cash Flow* modestly ahead of market, excluding Organic Net Sales* Adj. EPS* battery sales decline Relatively Flat Decre
Slide 6: Seven Awards Across Portfolio and Regions
Seven Awards Across Portfolio and Regions Integrated Drive Modules Inverters Torque-on-Demand eTurbo Variable Cam Timing (iDM) Transfer Cases with ▪ Two high-volume Mechanical Lock ▪ Conquest award with a extension awards with a ▪ New program award ▪ Award with a global with a major European major C
Slide 7: BorgWarner Continues to Improve Product Readiness for Data Center & Other Industrial Markets Portfolio
BorgWarner Continues to Improve Product Readiness for Data Center & Other Industrial Markets Portfolio v Power Generation Energy Storage Power Conversion Turbine Generator System Battery Energy Storage System Bi-Directional Microgrid Inverter ▪ Met CARB-level emissions tests ▪ Supporting varying use
Slide 8: Q2 2026 Net Sales Walk
Q2 2026 Net Sales Walk $ in millions ▪ Organic net sales* down ~1.2%, or modestly better than industry Q2 2025 net sales $3,638 production, excluding Battery Energy Systems sales decline FX $54 ▪ North America – Outgrowth supported by transfer case volumes Battery & charging sales ex. FX $(62) ▪ Eur
Slide 9: Q2 2026 Financial Results & Adj. Operating Income
Q2 2026 Financial Results & Adj. Operating Income $ in millions Q2 2025 adj. operating $373 ($ in millions, except per share Three months income* amounts) ended Non-GAAP Financial June 30, Information 2026 2025 FX $5 Net sales $3,648 $3,638 Exit of charging business $7 Adj. operating income* $413 $3
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 net sales change* (3.5%) to (1.5%) (3.5%) to (1.5%) FX $175 Adj. operating margin* 10.7% t
Slide 11: Disciplined and Consistent Share Repurchases with $1B Additional Authorization
Disciplined and Consistent Share Repurchases with $1B Additional Authorization $1B $650M $1.35B $1B $350M 2025 Authorization Repurchases Since Q3 2025 Authorization 2026 Authorization Est. Authorization 2025 Remaining Remaining End of Q2 2026 Share Repurchases Remain an Important Component of Shareh
Slide 12: Thank You
August 5, 2026 Q2 2026 Earnings Call Presentation THANK YOU
Slide 13: Appendix
APPENDIX BORGWUARNER
Slide 14: 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. 90.0 to 92.2 93.1 YOY (3.5%) to (1%) FY’25 FY’26 FY’25 FY’26 FY’25 FY’26 Actual Est. Actual Est. Actual Est. 30.6 to 31.5 32.9 YOY (7%) to (4%) 16.7 to 17.2 14.9 to
Slide 15: 2026 Planning Assumptions
2026 Planning Assumptions ▪ CapEx $600 to $700 million ▪ Adjusted tax rate for ongoing operations ~23% 15
Slide 16: 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 17: 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 18: 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. 18
Slide 19: 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 20: 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 21: 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. 21
Slide 22: Free Cash Flow Reconciliations to US GAAP
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 management and investors in evaluating t
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,