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REPORTING SEGMENTS AND RELATED INFORMATION | 12 Months Ended
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Dec. 31, 2025
Segment Reporting [Abstract] |
REPORTING SEGMENTS AND RELATED INFORMATION | REPORTABLE SEGMENTS AND RELATED INFORMATION The Company discloses segment information under four reportable segments, consistent with the operating segments that are evaluated by management, including the chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer. The reportable segments are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems. •Turbos & Thermal Technologies. This segment’s products include turbochargers, eBoosters, eTurbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters and battery cooling systems. •Drivetrain & Morse Systems. This segment’s products include hydraulic controls, friction and mechanical clutch products for automatic transmissions and torque-management products, such as transfer cases for 4-wheel drive (“4WD”) and all-wheel drive (“AWD”) applications, electronic limited slip differentials (“eLSD”), and electric torque vectoring and axle disconnect systems. Additionally, the Drivetrain & Morse Systems products include chain systems and variable camshaft phasing products. •PowerDrive Systems. This segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters and combination boxes, rotating electric machines, fully integrated drive modules (consisting of inverter, eMotor and gear reducer) and electronic controls. •Battery & Charging Systems. This segment’s products include high-performance lithium-ion battery systems for electrified bus-, truck- and off-highway applications. In February 2025, the Company made the decision to exit its charging business within the Battery & Charging Systems reportable segment. This exit did not result in a change to the Company’s reportable segments. Refer to Note 2, “Acquisitions and Dispositions,” to the Consolidated Financial Statements for more information. Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) is comprised of operating income for the Company’s reportable segments adjusted to exclude restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment Adjusted Operating Income (Loss) is most reflective of the operational profitability or loss of its reportable segments. The Company’s CODM uses Segment Adjusted Operating Income (Loss) and the expenses disclosed below to assess the performance of its reportable segments. The CODM uses this information to assist with decisions about future growth, capital investments and cost reduction initiatives by reviewing trends in the business, monitoring variances to historical results and previously forecasted information and performing other analytical comparisons. 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
| Year ended December 31, 2025
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 5,769 |  |  | $ | 5,635 |  |  | $ | 2,322 |  |  | $ | 590 |  |  | $ | — |  |  | $ | 14,316 |
Net sales - inter-segment | 3 |  |  | 19 |  |  | 25 |  |  | — |  |  | (47) |  |  | — |
Net sales | $ | 5,772 |  |  | $ | 5,654 |  |  | $ | 2,347 |  |  | $ | 590 |  |  | $ | (47) |  |  | $ | 14,316 |
Cost of sales | 4,602 |  |  | 4,430 |  |  | 1,995 |  |  | 555 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 178 |  |  | 132 |  |  | 354 |  |  | 37 |  |  |  |  |
Selling, general and administrative expenses - Other | 114 |  |  | 55 |  |  | 89 |  |  | 37 |  |  |  |  |
Other segment items 1 | (1) |  |  | (4) |  |  | (8) |  |  | — |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 879 |  |  | $ | 1,041 |  |  | $ | (83) |  |  | $ | (39) |  |  |  |  |
| Year ended December 31, 2024
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 5,885 |  |  | $ | 5,564 |  |  | $ | 1,908 |  |  | $ | 729 |  |  | $ | — |  |  | $ | 14,086 |
Net sales - inter-segment | 2 |  |  | 13 |  |  | 29 |  |  | — |  |  | (44) |  |  | — |
Net sales | $ | 5,887 |  |  | $ | 5,577 |  |  | $ | 1,937 |  |  | $ | 729 |  |  | $ | (44) |  |  | $ | 14,086 |
Cost of sales | 4,724 |  |  | 4,413 |  |  | 1,648 |  |  | 681 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 170 |  |  | 118 |  |  | 384 |  |  | 51 |  |  |  |  |
Selling, general and administrative expenses - Other | 114 |  |  | 38 |  |  | 60 |  |  | 47 |  |  |  |  |
Other segment items 1 | 2 |  |  | (2) |  |  | (11) |  |  | (3) |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 877 |  |  | $ | 1,010 |  |  | $ | (144) |  |  | $ | (47) |  |  |  |  |
| Year ended December 31, 2023
(in millions) | Turbos & Thermal Technologies |  | Drivetrain & Morse Systems |  | PowerDrive Systems |  | Battery & Charging Systems |  | Inter-segment eliminations |  | Total
Net sales - customers | $ | 6,007 |  |  | $ | 5,543 |  |  | $ | 2,102 |  |  | $ | 546 |  |  | $ | — |  |  | $ | 14,198 |
Net sales - inter-segment | 5 |  |  | 6 |  |  | 64 |  |  | — |  |  | (75) |  |  | — |
Net sales | $ | 6,012 |  |  | $ | 5,549 |  |  | $ | 2,166 |  |  | $ | 546 |  |  | $ | (75) |  |  | $ | 14,198 |
Cost of sales | 4,865 |  |  | 4,413 |  |  | 1,826 |  |  | 581 |  |  |  |  |
Selling, general and administrative expenses - R&D, net | 175 |  |  | 122 |  |  | 362 |  |  | 44 |  |  |  |  |
Selling, general and administrative expenses - Other | 100 |  |  | 49 |  |  | 73 |  |  | 40 |  |  |  |  |
Other segment items 1 | (2) |  |  | 7 |  |  | (5) |  |  | (3) |  |  |  |  |
Segment Adjusted Operating Income (Loss) | $ | 874 |  |  | $ | 958 |  |  | $ | (90) |  |  | $ | (116) |  |  |  |  |
_______________
1 Other segment items include other income and expenses to derive Segment Adjusted Operating Income (Loss).
Segment Adjusted Operating Income (Loss)
| Year Ended December 31,
(in millions) | 2025 |  | 2024 |  | 2023
Turbos & Thermal Technologies | $ | 879 |  |  | $ | 877 |  |  | $ | 874 |
Drivetrain & Morse Systems | 1,041 |  |  | 1,010 |  |  | 958 |
PowerDrive Systems | (83) |  |  | (144) |  |  | (90) |
Battery & Charging Systems | (39) |  |  | (47) |  |  | (116) |
Segment Adjusted Operating Income | 1,798 |  |  | 1,696 |  |  | 1,626 |
Corporate, including stock-based compensation | 261 |  |  | 279 |  |  | 278 |
Impairment charges | 624 |  |  | 646 |  |  | 29 |
Restructuring expense (Note 4) | 101 |  |  | 74 |  |  | 79 |
Accelerated depreciation 1 | 90 |  |  | 50 |  |  | 4 |
Intangible asset amortization expense | 66 |  |  | 69 |  |  | 67 |
Legal settlement (Note 21) | 40 |  |  | — |  |  | — |
Costs to exit charging business (Note 2) | 32 |  |  | — |  |  | — |
Impairment of investment | 16 |  |  | — |  |  | — |
Chief Executive Officer ("CEO") transition compensation 2 | 11 |  |  | — |  |  | — |
Loss (gain) on sale of assets 2 | 9 |  |  | 2 |  |  | (13) |
Adjustments associated with Spin-Off related balances 2 | 7 |  |  | 17 |  |  | — |
Write-off customer incentive asset (Note 3) | 7 |  |  | — |  |  | — |
Merger and acquisition expense, net 2 | 5 |  |  | 2 |  |  | 23 |
Loss (gain) on sale of businesses 2 | 2 |  |  | 6 |  |  | (5) |
Change in accounting method | — |  |  | (29) |  |  | — |
Commercial contract settlement 2 | — |  |  | 15 |  |  | — |
Insurance recovery (Note 13) | (21) |  |  | — |  |  | — |
Other non-comparable items | 12 |  |  | 19 |  |  | 4 |
Equity in affiliates' earnings, net of tax | (35) |  |  | (27) |  |  | (30) |
Unrealized and realized (gain) loss on equity and debt securities | (3) |  |  | 1 |  |  | 174 |
Interest expense, net | 39 |  |  | 20 |  |  | 10 |
Other postretirement expense | 11 |  |  | 13 |  |  | 15 |
Earnings from continuing operations before income taxes and noncontrolling interest | $ | 524 |  |  | $ | 539 |  |  | $ | 991 |
_____________
1 Accelerated depreciation represents charges related to property, plant and equipment that were decommissioned or are in the process of being decommissioned.
2 Refer to Note 6, “Other Operating Expense (Income), Net,” to the Consolidated Financial Statements for more information.
Segment Information
|  | Depreciation and amortization |  | Long-lived asset expenditures 1 |
(in millions) |  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023 |
Turbos & Thermal Technologies |  | $ | 171 |  |  | $ | 177 |  |  | $ | 170 |  |  | $ | 188 |  |  | $ | 170 |  |  | $ | 184 |  |
Drivetrain & Morse Systems |  | 214 |  |  | 246 |  |  | 215 |  |  | 101 |  |  | 115 |  |  | 134 |  |
PowerDrive Systems |  | 184 |  |  | 164 |  |  | 127 |  |  | 149 |  |  | 291 |  |  | 384 |  |
Battery & Charging Systems |  | 120 |  |  | 57 |  |  | 39 |  |  | 18 |  |  | 82 |  |  | 96 |  |
Total |  | 689 |  |  | 644 |  |  | 551 |  |  | 456 |  |  | 658 |  |  | 798 |  |
Corporate 2 |  | 30 |  |  | 29 |  |  | 31 |  |  | 13 |  |  | 13 |  |  | 34 |  |
Consolidated |  | $ | 719 |  |  | $ | 673 |  |  | $ | 582 |  |  | $ | 469 |  |  | $ | 671 |  |  | $ | 832 |  |
|  | Total assets |  |  |  |  |
|  | 2025 |  | 2024 |  | 2023 |  |  |  |  |  |  |
Turbos & Thermal Technologies |  | $ | 3,743 |  |  | $ | 3,693 |  |  | $ | 3,938 |  |  |  |  |  |  |  |
Drivetrain & Morse Systems |  | 3,795 |  |  | 3,872 |  |  | 4,262 |  |  |  |  |  |  |  |
PowerDrive Systems |  | 3,163 |  |  | 2,792 |  |  | 3,185 |  |  |  |  |  |  |  |
Battery & Charging Systems |  | 460 |  |  | 1,082 |  |  | 1,335 |  |  |  |  |  |  |  |
Total |  | 11,161 |  |  | 11,439 |  |  | 12,720 |  |  |  |  |  |  |  |
Corporate 2 |  | 2,608 |  |  | 2,554 |  |  | 1,733 |  |  |  |  |  |  |  |
Consolidated |  | $ | 13,769 |  |  | $ | 13,993 |  |  | $ | 14,453 |  |  |  |  |  |  |  |
_______________
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.
Geographic Information During the year ended December 31, 2025, approximately 84% of the Company’s consolidated net sales were outside the U.S., attributing sales to the location of production rather than the location of the customer. Outside the U.S., China, Mexico, Germany, Poland, South Korea and Hungary exceeded 5% of consolidated net sales during the year ended December 31, 2025. The following table shows sales to customers and property, plant and equipment by country.
| Sales |  | Property, plant and equipment
(in millions) | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
United States | $ | 2,293 |  |  | $ | 2,240 |  |  | $ | 2,334 |  |  | $ | 677 |  |  | $ | 718 |  |  | $ | 778 |
Europe: |  |  |  |  |  |  |  |  |  |  |
Germany | 1,624 |  |  | 1,680 |  |  | 1,669 |  |  | 220 |  |  | 352 |  |  | 393 |
Poland | 1,245 |  |  | 1,160 |  |  | 1,121 |  |  | 393 |  |  | 356 |  |  | 342 |
Hungary | 771 |  |  | 820 |  |  | 904 |  |  | 166 |  |  | 154 |  |  | 167 |
Other Europe | 1,508 |  |  | 1,586 |  |  | 1,387 |  |  | 501 |  |  | 472 |  |  | 456 |
Total Europe | 5,148 |  |  | 5,246 |  |  | 5,081 |  |  | 1,280 |  |  | 1,334 |  |  | 1,358 |
China | 2,968 |  |  | 2,862 |  |  | 2,998 |  |  | 652 |  |  | 720 |  |  | 876 |
Mexico | 1,741 |  |  | 1,644 |  |  | 1,759 |  |  | 325 |  |  | 412 |  |  | 374 |
South Korea | 1,150 |  |  | 1,181 |  |  | 1,163 |  |  | 199 |  |  | 189 |  |  | 197 |
Other foreign | 1,016 |  |  | 913 |  |  | 863 |  |  | 197 |  |  | 202 |  |  | 200 |
Total | $ | 14,316 |  |  | $ | 14,086 |  |  | $ | 14,198 |  |  | $ | 3,330 |  |  | $ | 3,575 |  |  | $ | 3,783 |
Sales to Major Customers Consolidated net sales to Volkswagen (including its subsidiaries) were approximately 13%, 10% and 11% for the years ended December 31, 2025, 2024 and 2023. Consolidated net sales to Ford (including its subsidiaries) were approximately 12%, 13% and 14% for the years ended December 31, 2025, 2024 and 2023, respectively. Such sales consisted of a variety of products to a variety of customer locations and regions. No other single customer accounted for more than 10% of consolidated net sales in any of the years presented. Sales by Product Line Sales of turbochargers for light vehicles represented approximately 21%, 21% and 22% of consolidated net sales for the years ended December 31, 2025, 2024 and 2023, respectively. No other single product line accounted for more than 10% of consolidated net sales in any of the years presented.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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