HighGravityDataBorgWarner — Feb 11, 2026 release
Fiscal 2025 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000908255-26-000009
Showing in the filing
Estimated Year-Over-Year Change in Production, Light vehicle - Total BorgWarner Weighted Total
“(3)% to 0%”
Period
FY2026
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 19
Turbine generator system estimated sales, fi… for FY2027
“more than $300 million”
Turbine generator system estimated sales
“more than $300 million”
Weighted light vehicle markets for FY2026
“down 3% to approximately flat”
Net sales for FY2026
“$14.0 billion to $14.3 billion”
Organic sales change (year-over-year, implie… for FY2026
“down 3.5% to down 1.5%”
Battery & Charging Systems segment sales, ye… for FY2026
“approximately $210 million”
Battery & Charging Systems headwind to organ… for FY2026
“approximately a 1.5% headwind”
Foreign currencies impact on sales, year-ove… for FY2026
“approximately $200 million”
Operating margin for FY2026
“9.8% to 10.0%”
U.S. GAAP operating margin for FY2026
“9.8% to 10.0%”
Adjusted operating margin for FY2026
“10.7% to 10.9%”
U.S. GAAP net earnings per diluted share for FY2026
“$4.74 to $4.91”
Adjusted net earnings per diluted share for FY2026
“$5.00 to $5.20”
Operating cash flow for FY2026
“$1,600 million to $1,700 million”
Free cash flow for FY2026
“$900 million to $1,100 million”
Estimated Year-Over-Year Change in Productio… for FY2026
“(5)% to (1)%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(2)% to 0.5%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(4)% to (1)%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(3)% to 0%”
Exhibit 99.1 · the passage around this item
… earlier in the release
13 Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Three Months Ended Year Ended December 31, December 31, (in millions) 2025 2024 2025 2024 Net sales $ 3,572 $ 3,439 $ 14,316 $ 14,086 Operating (loss) income (238) (316) 536 546 Operating margin (6.7) % (9.2) % 3.7 % 3.9 % Non-comparable items: Impairment charges $ 582 $ 646 $ 624 $ 646 Restructuring expense 30 9 101 74 Accelerated depreciation 9 15 90 50 Intangible asset amortization 17 18 66 69 Legal settlement 2 — 40 — Costs to exit charging business — — 32 — Impairment of investment 16 — 16 — Chief Executive Officer ("CEO") transition compensation — — 11 — Loss on sale of assets 3 2 9 2 Adjustments associated with Spin-Off related balances — 3 7 17 Write-off customer incentive asset — — 7 — Merger and acquisition expense, net 1 2 5 2 Loss on sale of businesses — 3 2 6 Change in accounting method — (29) — (29) Commercial contract settlement — — — 15 Insurance recovery — — (21) — Other non-comparable items 5 (1) 12 19 Net non-comparable items $ 665 $ 668 $ 1,001 $ 871 Adjusted operating income $ 427 $ 352 $ 1,537 $ 1,417 Adjusted operating margin 12.0 % 10.2 % 10.7 % 10.1 % Free Cash Flow Reconciliation (Unaudited) Three Months Ended December 31, Year Ended December 31, (in millions) 2025 2024 2025 2024 Net cash provided by operating activities from continuing operations $ 619 $ 682 $ 1,648 $ 1,382 Capital expenditures, including tooling outlays (162) (161) (469) (671) Customer advances related to capital expenditures 13 18 29 18 Free cash flow $ 470 $ 539 $ 1,208 $ 729 14 Fourth Quarter 2025 Organic Net Sales Change (Unaudited) (in millions) Q4 2024 Net Sales FX Organic Net Sales Change Q4 2025 Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 1,412 $ 53 $ (65) $ 1,400 (4.6)% Drivetrain & Morse Systems 1,351 27 34 1,412 2.5% PowerDrive Systems 525 17 81 623 15.4% Battery & Charging Systems 162 7 (20) 149 (12.3)% Inter-segment eliminations (11) — (1) (12) 9.1% Net sales $ 3,439 $ 104 $ 29 $ 3,572 0.8% Full Year 2025 Organic Net Sales Change (Unaudited) (in millions) 2024 Net Sales FX Organic Net Sales Change 2025 Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 5,887 $ 77 $ (192) $ 5,772 (3.3)% Drivetrain & Morse Systems 5,577 42 35 5,654 0.6% PowerDrive Systems 1,937 22 388 2,347 20.0% Battery & Charging Systems 729 13 (152) 590 (20.9)% Inter-segment eliminations (44) — (3) (47) 6.8% Net sales $ 14,086 $ 154 $ 76 $ 14,316 0.5% Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited) Full-Year 2026 Guidance (in millions) Low High Net sales $ 14,000 $ 14,300 Operating income $ 1,373 $ 1,428 Operating margin 9.8 % 10.0 % Non-comparable items: Restructuring expense $ 70 $ 80 Intangible asset amortization 57 57 Adjusted operating income $ 1,500 $ 1,565 Adjusted operating margin 10.7 % 10.9 % Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited) Full-Year 2026 Guidance Low High Earnings per Diluted Share $ 4.74 $ 4.91 Non-comparable items: Restructuring expense 0.26 0.29 Adjusted Earnings per Diluted Share $ 5.00 $ 5.20 15 Free Cash Flow Guidance Reconciliation From Continuing Operations (Unaudited) Full-Year 2026 Guidance (in millions) Low High Net cash provided by operating activities $ 1,600 $ 1,700 Capital expenditures, including tooling outlays (700) (600) Free cash flow $ 900 $ 1,100 Full Year 2026 Organic Net Sales Change Guidance Reconciliation (Unaudited) (in millions) FY 2025 Net Sales FX Organic Net Sales Change FY 2026 Net Sales Organic Net Sales Change % LV Weighted Market Outgrowth Low $ 14,316 $ 200 $ (516) $ 14,000 (3.6)% (3.0)% (0.6)% High $ 14,316 $ 200 $ (216) $ 14,300 (1.5)% —% (1.5)% Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited) North America Europe China Total BorgWarner Weighted Total Light vehicle (5)% to (1)% (2)% to 0.5% (4)% to (1)% (2)% to 0% (3)% to 0% 16
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.