BorgWarner — Oct 31, 2024 release

Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Net sales $ 3,449  $ 3,622  $ 10,647  $ 10,676  Operating income $ 270  $ 272  $ 862  $ 879  Operating margin 7.8  % 7.5  % 8.1  % 8.2  % Non-comparable items: Restructuring expense $ 21  $ 56  $ 65  $ 68  Intangible asset amortization expense 17  17  51  51  Accelerated depreciation 27  1  35  4  Commercial contract settlement —  —  15  —  Adjustments associated with Spin-Off related balances 3  —  14  —  Collective bargaining agreement ratification bonus 4  —  4  —  Loss (gain) on sale of businesses 6  —  3  (5) Merger and acquisition expense, net (5) 2  —  18  Asset impairment and lease modification —  2  —  11  Gain on sale of assets —  (7) —  (13) Corporate synergy from Spin-Off —  —  —  10  Other non-comparable items 7  6  16  3  Adjusted operating income $ 350  $ 349  $ 1,065  $ 1,026  Adjusted operating margin 10.1  % 9.6  % 10.0  % 9.6  % Free Cash Flow Reconciliation (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2024 2023 2024 2023 Net cash provided by operating activities from continuing operations $ 356  $ 221  $ 700  $ 510  Capital expenditures, including tooling outlays (155) (185) (510) (624) Free cash flow $ 201  $ 36  $ 190  $ (114) 10 Third Quarter 2024 Organic Net Sales Change (Unaudited) (in millions) Q3 2023 Net Sales FX Acquisition Impact Organic Net Sales Change Q3 2024 Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 1,474 $ (1) $ — $ (87) $ 1,386 (5.9)% Drivetrain & Morse Systems 1,449 2 — (86) 1,365 (5.9)% PowerDrive Systems 571 2 9 (70) 512 (12.3)% Battery & Charging Systems 146 1 — 50 197 34.2% Inter-segment eliminations (18) — — 7 (11) (38.9)% Net sales $ 3,622 $ 4 $ 9 $ (186) $ 3,449 (5.1)% Year to Date 2024 Organic Net Sales Change (Unaudited) (in millions) Q3 2023 YTD Net Sales FX Acquisition Impact Organic Net Sales Change Q3 2024 YTD Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 4,570 $ (21) $ — $ (74) $ 4,475 (1.6)% Drivetrain & Morse Systems 4,146 (52) — 132 4,226 3.2% PowerDrive Systems 1,624 (17) 21 (216) 1,412 (13.3)% Battery & Charging Systems 395 — 5 167 567 42.3% Inter-segment eliminations (59) — — 26 (33) (44.1)% Total $ 10,676 $ (90) $ 26 $ 35 $ 10,647 0.3% Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited) Full-Year 2024 Guidance (in millions) Low High Net sales $ 14,000  $ 14,200  Operating income 1,128  1,158  Operating margin 8.1  % 8.2  % Non-comparable items: Restructuring expense $ 90  $ 100  Intangible asset amortization expense 70  70  Accelerated depreciation 35  35  Commercial contract settlement 15  15  Adjustments associated with Spin-Off related balances 14  14  Collective bargaining agreement ratification bonus 4  4  Loss on sale of businesses 3  3  Other non-comparable items 16  16  Adjusted operating income $ 1,375  $ 1,415  Adjusted operating margin 9.8  % 10.0  % 11 Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited) Full-Year 2024 Guidance Low High Earnings per Diluted Share from Continuing Operations $ 4.17  $ 4.28  Non-comparable items: Restructuring expense 0.29  0.33  Accelerated depreciation 0.13  0.13  Commercial contract settlement 0.06  0.06  Adjustments associated with Spin-Off related balances 0.06  0.06  Loss on sale of businesses 0.02  0.02  Collective bargaining agreement ratification bonus 0.01  0.01  Gain on debt extinguishment (0.01) (0.01) Tax adjustments (0.65) (0.65) Other non-comparable items 0.07  0.07  Adjusted Earnings per Diluted Share from Continuing Operations $ 4.15  $ 4.30  Free Cash Flow Guidance Reconciliation (Unaudited) Full-Year 2024 Guidance (in millions) Low High Net cash provided by operating activities $ 1,325 $ 1,375 Capital expenditures, including tooling outlays (850) (800) Free cash flow $ 475 $ 575 Full Year 2024 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation From Continuing Operations (Unaudited) (in millions) FY 2023 Net Sales FX FY 2024 Acquisition Impact Organic Net Sales Change FY 2024 Net Sales Organic Net Sales Change % LV/CV Weighted Market Outgrowth Low $ 14,198 $ (20) $ 30 $ (208) $ 14,000 (1.5)% (3.5)% 2.0% High $ 14,198 $ (20) $ 30 $ (8) $ 14,200 (0.1)% (3.0)% 2.9% Full Year 2024 Estimated Year-Over-Year Change in Production (Unaudited) North America Europe China Total Light vehicle (1.5)% to (0.5)% (5.5)% to (5)% 1% to 1.5% (2.5)% to (2)% Commercial vehicle ~(4.5)% ~(15)% ~2% ~(2.5)% BorgWarner-Weighted (2)% to (1)% (7)% to (6.5)% 1 to 1.5% (3.5)% to (3)% 12 Recast Reportable Segment Information Effective July 1, 2024, the Company implemented a new business unit and management structure designed to further enhance the execution of the Company’s Charging Forward strategy. The Company now reports its results in the following four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems (formerly ePropulsion) and Battery & Charging Systems. The reportable segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure. For informational purposes only, in the following tables, the Company has recast the quarterly segment information for fiscal 2024 and 2023 to align with this presentation. BorgWarner Reportable Segment Information (Unaudited) 2024 (in millions) Three Months Ended March 31, 2024 Three Months Ended June 30, 2024 Revenue Turbos & Thermal Technologies $ 1,574  $ 1,515  Drivetrain & Morse Systems 1,419  1,442  PowerDrive Systems 436  464  Battery & Charging Systems 177  193