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REPORTABLE SEGMENTS (Tables) | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Schedule of Net Sales and Expenses by Reporting Segment | The following tables show net sales, segment expenses, Segment Adjusted Operating Income (Loss) and other segment information for the Company’s reportable segments. The segment expenses do not include non-comparable items that are excluded in the calculation of Segment Adjusted Operating Income (Loss): Net Sales and Expenses by Reportable Segment
| Three Months Ended June 30, 2025
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 1,480 |  |  | $ | 1,424 |  |  | $ | 575 |  |  | $ | 159 |  |  | $ | — |  |  | $ | 3,638 |
Net sales - inter-segment | 1 |  |  | 5 |  |  | 6 |  |  | — |  |  | (12) |  |  | — |
Net sales | $ | 1,481 |  |  | $ | 1,429 |  |  | $ | 581 |  |  | $ | 159 |  |  | $ | (12) |  |  | $ | 3,638 |
Cost of sales | 1,181 |  |  | 1,129 |  |  | 510 |  |  | 151 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 44 |  |  | 32 |  |  | 93 |  |  | 10 |  |  |  |  |
Selling, general and administrative expenses - Other | 28 |  |  | 8 |  |  | 15 |  |  | 9 |  |  |  |  |
Other segment items 1 | 1 |  |  | — |  |  | (4) |  |  | 1 |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 227 |  |  | $ | 260 |  |  | $ | (33) |  |  | $ | (12) |  |  |  |  |
| Six Months Ended June 30, 2025
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 2,934 |  |  | $ | 2,780 |  |  | $ | 1,130 |  |  | $ | 309 |  |  | $ | — |  |  | $ | 7,153 |
Net sales - inter-segment | 1 |  |  | 10 |  |  | 12 |  |  | — |  |  | (23) |  |  | — |
Net sales | $ | 2,935 |  |  | $ | 2,790 |  |  | $ | 1,142 |  |  | $ | 309 |  |  | $ | (23) |  |  | $ | 7,153 |
Cost of sales | 2,332 |  |  | 2,208 |  |  | 1,002 |  |  | 301 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 85 |  |  | 61 |  |  | 192 |  |  | 21 |  |  |  |  |
Selling, general and administrative expenses - Other | 55 |  |  | 18 |  |  | 29 |  |  | 20 |  |  |  |  |
Other segment items 1 | 1 |  |  | — |  |  | (5) |  |  | 1 |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 462 |  |  | $ | 503 |  |  | $ | (76) |  |  | $ | (34) |  |  |  |  |
| Three Months Ended June 30, 2024
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 1,515 |  |  | $ | 1,440 |  |  | $ | 455 |  |  | $ | 193 |  |  | $ | — |  |  | $ | 3,603 |
Net sales - inter-segment | — |  |  | 2 |  |  | 9 |  |  | — |  |  | (11) |  |  | — |
Net sales | $ | 1,515 |  |  | $ | 1,442 |  |  | $ | 464 |  |  | $ | 193 |  |  | $ | (11) |  |  | $ | 3,603 |
Cost of sales | 1,219 |  |  | 1,143 |  |  | 401 |  |  | 179 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 43 |  |  | 25 |  |  | 103 |  |  | 12 |  |  |  |  |
Selling, general and administrative expenses - Other | 28 |  |  | 9 |  |  | 10 |  |  | 11 |  |  |  |  |
Other segment items 1 | 1 |  |  | (1) |  |  | (1) |  |  | 1 |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 224 |  |  | $ | 266 |  |  | $ | (49) |  |  | $ | (10) |  |  |  |  |
| Six Months Ended June 30, 2024
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 3,087 |  |  | $ | 2,856 |  |  | $ | 885 |  |  | $ | 370 |  |  | $ | — |  |  | $ | 7,198 |
Net sales - inter-segment | 2 |  |  | 5 |  |  | 15 |  |  | — |  |  | (22) |  |  | — |
Net sales | $ | 3,089 |  |  | $ | 2,861 |  |  | $ | 900 |  |  | $ | 370 |  |  | $ | (22) |  |  | $ | 7,198 |
Cost of sales | 2,494 |  |  | 2,267 |  |  | 787 |  |  | 350 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 85 |  |  | 57 |  |  | 203 |  |  | 24 |  |  |  |  |
Selling, general and administrative expenses - Other | 56 |  |  | 18 |  |  | 23 |  |  | 22 |  |  |  |  |
Other segment items 1 | 2 |  |  | — |  |  | (2) |  |  | (1) |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 452 |  |  | $ | 519 |  |  | $ | (111) |  |  | $ | (25) |  |  |  |  |
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1 Other segment items include other income and expenses to derive at segment adjusted operating income.
Schedule of Segment Earnings Before Interest and Income Taxes | Segment Adjusted Operating Income (Loss)
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Turbos & Thermal Technologies | $ | 227 |  |  | $ | 224 |  |  | $ | 462 |  |  | $ | 452 |
Drivetrain & Morse Systems | 260 |  |  | 266 |  |  | 503 |  |  | 519 |
PowerDrive Systems | (33) |  |  | (49) |  |  | (76) |  |  | (111) |
Battery & Charging Systems | (12) |  |  | (10) |  |  | (34) |  |  | (25) |
Segment Adjusted Operating Income | 442 |  |  | 431 |  |  | 855 |  |  | 835 |
Corporate, including stock-based compensation | 69 |  |  | 55 |  |  | 130 |  |  | 120 |
Restructuring expense (Note 5) | 17 |  |  | 25 |  |  | 48 |  |  | 44 |
Impairment charges | 3 |  |  | — |  |  | 42 |  |  | — |
Intangible asset amortization expense | 16 |  |  | 17 |  |  | 33 |  |  | 34 |
Costs to exit charging business | 6 |  |  | — |  |  | 32 |  |  | — |
Accelerated depreciation | 21 |  |  | 8 |  |  | 21 |  |  | 8 |
Write-off of customer incentive asset | 7 |  |  | — |  |  | 7 |  |  | — |
Chief Executive Officer ("CEO") transition compensation | 6 |  |  | — |  |  | 6 |  |  | — |
Loss on sale of assets | 5 |  |  | — |  |  | 5 |  |  | — |
Merger and acquisition expense, net | — |  |  | — |  |  | 2 |  |  | 5 |
Loss (gain) on sale of businesses | — |  |  | — |  |  | 1 |  |  | (3) |
Commercial contract settlement | — |  |  | 15 |  |  | — |  |  | 15 |
Adjustments associated with Spin-Off related balances | 2 |  |  | 11 |  |  | (1) |  |  | 11 |
Other non-comparable items | 1 |  |  | 3 |  |  | 3 |  |  | 9 |
Equity in affiliates’ earnings, net of tax | (8) |  |  | (12) |  |  | (18) |  |  | (17) |
Unrealized (gain) loss on equity securities | (1) |  |  | — |  |  | (1) |  |  | 2 |
Interest expense, net | 12 |  |  | 8 |  |  | 24 |  |  | 13 |
Other postretirement expense | 2 |  |  | 3 |  |  | 5 |  |  | 6 |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 284 |  |  | $ | 298 |  |  | $ | 516 |  |  | $ | 588 |
Segment information
|  | Depreciation and amortization |  | Long-lived asset expenditures 1 |  | Total assets
(in millions) |  | Three Months Ended June 30, 2025 |  | Three Months Ended June 30, 2024 |  | Three Months Ended June 30, 2025 |  | Three Months Ended June 30, 2024 |  | June 30, 2025 |  | December 31, 2024
Turbos & Thermal Technologies |  | $ | 42 |  |  | $ | 44 |  |  | $ | 28 |  |  | $ | 41 |  |  | $ | 3,935 |  |  | $ | 3,693 |
Drivetrain & Morse Systems |  | 70 |  |  | 56 |  |  | 17 |  |  | 24 |  |  | 3,925 |  |  | 3,872 |
PowerDrive Systems |  | 45 |  |  | 41 |  |  | 24 |  |  | 66 |  |  | 2,885 |  |  | 2,792 |
Battery & Charging Systems |  | 15 |  |  | 11 |  |  | 4 |  |  | 29 |  |  | 1,038 |  |  | 1,082 |
Total |  | 172 |  |  | 152 |  |  | 73 |  |  | 160 |  |  | 11,783 |  |  | 11,439 |
Corporate 2 |  | 7 |  |  | 8 |  |  | 4 |  |  | 5 |  |  | 2,616 |  |  | 2,554 |
Consolidated |  | $ | 179 |  |  | $ | 160 |  |  | $ | 77 |  |  | $ | 165 |  |  | $ | 14,399 |  |  | $ | 13,993 |
|  | Depreciation and amortization |  | Long-lived asset expenditures 1 |  |  |  |
|  | Six Months Ended June 30, 2025 |  | Six Months Ended June 30, 2024 |  | Six Months Ended June 30, 2025 |  | Six Months Ended June 30, 2024 |  |  |  |
Turbos & Thermal Technologies |  | $ | 82 |  |  | $ | 87 |  |  | $ | 69 |  |  | $ | 81 |  |  |  |  |
Drivetrain & Morse Systems |  | 119 |  |  | 108 |  |  | 41 |  |  | 59 |  |  |  |  |
PowerDrive Systems |  | 88 |  |  | 77 |  |  | 68 |  |  | 154 |  |  |  |  |
Battery & Charging Systems |  | 31 |  |  | 23 |  |  | 12 |  |  | 51 |  |  |  |  |
Total |  | 320 |  |  | 295 |  |  | 190 |  |  | 345 |  |  |  |  |
Corporate |  | 14 |  |  | 15 |  |  | 6 |  |  | 10 |  |  |  |  |
Consolidated |  | $ | 334 |  |  | $ | 310 |  |  | $ | 196 |  |  | $ | 355 |  |  |  |  |
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables and deferred income taxes.

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