HighGravityDataBorgWarner — Aug 5, 2026 release
Fiscal 2026 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000908255-26-000049
Showing in the filing
Estimated Year-Over-Year Change in Production, Light vehicle - China
“(7)% to (4)%”
Period
FY2026
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 20
Share repurchase program authorization incre… for FY2029
“$1 billion”
Total share repurchase authorization for FY2029
“approximately $1.35 billion”
R&D spending for FY2026
“plans to increase 2026 R&D spending”
Weighted light vehicle markets for FY2026
“down 3% to approximately flat”
Net sales for FY2026
“$14.0 billion to $14.3 billion”
Net sales implied year-over-year organic net… for FY2026
“down 3.5% to down 1.5%”
Organic net sales for FY2026
“down 3.5% to down 1.5%”
Battery Energy Systems segment year-over-yea… for FY2026
“approximately $250 million”
Foreign currencies impact on sales for FY2026
“a year-over-year increase in sales of approximately $175 million”
U.S. GAAP operating margin for FY2026
“9.6% to 9.8%”
Adjusted operating margin for FY2026
“10.7% to 10.9%”
U.S. GAAP net earnings per diluted share for FY2026
“$4.72 to $4.94”
Adjusted net earnings per diluted share for FY2026
“$5.05 to $5.30”
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
“(2.5)% to 1.5%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(2)% to 1%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(7)% to (4)%”
Estimated Year-Over-Year Change in Productio… for FY2026
“(3)% 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
Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Net sales $ 3,648 $ 3,638 $ 7,181 $ 7,153 Operating income $ 370 $ 289 $ 706 $ 526 Operating margin 10.1 % 7.9 % 9.8 % 7.4 % Non-comparable items: Restructuring expense $ 21 $ 17 $ 39 $ 48 Intangible asset amortization expense 14 16 30 33 Accelerated depreciation 7 21 9 21 Adjustments associated with Spin-Off related balances (1) 2 1 (1) Impairment charges — 3 — 42 Costs to exit charging business — 6 — 32 Chief Executive Officer ("CEO") transition compensation — 6 — 6 Write-off of customer incentive asset — 7 — 7 Loss on sale of assets — 5 — 5 Loss on sale of businesses — — — 1 Merger and acquisition expense, net — — (2) 2 Other non-comparable items 2 1 2 3 Adjusted operating income $ 413 $ 373 $ 785 $ 725 Adjusted operating margin 11.3 % 10.3 % 10.9 % 10.1 % Free Cash Flow Reconciliation (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Net cash provided by operating activities $ 586 $ 579 $ 738 $ 661 Capital expenditures, including tooling outlays (96) (77) (239) (196) Customer advances related to capital expenditures 2 5 6 7 Free cash flow $ 492 $ 507 $ 505 $ 472 Second Quarter 2026 Organic Net Sales Change (Unaudited) (in millions) Q2 2025 Net Sales FX Organic Net Sales Change Q2 2026 Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 1,481 $ 24 $ (63) $ 1,442 (4.3)% Drivetrain & Morse Systems 1,429 11 15 1,455 1.0% PowerDrive Systems 581 16 68 665 11.7% Battery Energy Systems 159 3 (62) 100 (39.0)% Inter-segment eliminations (12) — (2) (14) 16.7% Net sales $ 3,638 $ 54 $ (44) $ 3,648 (1.2)% 11 Year to Date 2026 Organic Net Sales Change (Unaudited) (in millions) Q2 2025 YTD Net Sales FX Organic Net Sales Change Q2 2026 YTD Net Sales Organic Net Sales Change % Turbos & Thermal Technologies $ 2,935 $ 105 $ (165) $ 2,875 (5.6)% Drivetrain & Morse Systems 2,790 60 27 2,877 1.0% PowerDrive Systems 1,142 47 63 1,252 5.5% Battery Energy Systems 309 9 (116) 202 (37.5)% Inter-segment eliminations (23) — (2) (25) 8.7% Total $ 7,153 $ 221 $ (193) $ 7,181 (2.7)% 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 $ 1,343 $ 1,398 Operating margin 9.6 % 9.8 % Non-comparable items: Restructuring expense $ 90 $ 100 Intangible asset amortization 57 57 Accelerated depreciation 9 9 Adjustment associated with Spin-Off related balances 1 1 Merger and acquisition expense, net (2) (2) Other non-comparable items 2 2 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 $ 4.72 $ 4.94 Non-comparable items: Restructuring expense $ 0.30 $ 0.33 Accelerated depreciation 0.03 0.03 Adjustment associated with Spin-Off related balances 0.01 0.01 Unrealized gain on equity securities (0.01) (0.01) Merger and acquisition expense, net (0.01) (0.01) Other non-comparable items 0.01 0.01 Adjusted Earnings per Diluted Share $ 5.05 $ 5.30 12 Free Cash Flow Guidance Reconciliation (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 Battery Energy Systems (“BES”) Sales Change Organic Net Sales Change FY 2026 Net Sales Organic Net Sales Change Excluding BES % Organic Net Sales Change Including BES % BorgWarner LV Weighted Market % Low $ 14,316 $ 175 $ (250) $ (241) $ 14,000 (1.7)% (3.4)% (3.0)% High $ 14,316 $ 175 $ (250) $ 59 $ 14,300 0.4% (1.3)% —% Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited) North America Europe China Total BorgWarner Weighted Total Light vehicle (2.5)% to 1.5% (2)% to 1% (7)% to (4)% (3)% to (1)% (3)% to 0% 13
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.