Exhibit 99.1
Immediate Release
Contact: Patrick Nolan
248.754.0884

BorgWarner Reports Strong Second Quarter 2026 Results
Increases 2026 Adjusted EPS Guidance and Share Repurchase Authorization By $1 Billion
Announces 7 Awards Across Portfolio to Support Long-Term Profitable Growth

Auburn Hills, Michigan, August 5, 2026 – BorgWarner Inc. (NYSE: BWA) today reported second quarter results for 2026.

Second Quarter Results and Business Update
BorgWarner’s (the “Company”) U.S. GAAP net sales increased approximately 0.3%, while organic net sales decreased approximately 1.2%, year-over-year compared with the second quarter of 2025. Excluding the decline in Battery Energy Systems segment sales of approximately $60 million, the Company’s organic net sales were up modestly year-over-year.
The Company achieved a U.S. GAAP operating margin of 10.1% during the second quarter of 2026, or an increase of 220 basis points, compared with the second quarter of 2025. The Company achieved an adjusted operating margin of 11.3%, or an increase of 100 basis points, compared with the second quarter of 2025. The Company’s continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment.
The Company repurchased approximately $100 million of its outstanding shares and paid a $34 million cash dividend to its shareholders during the second quarter of 2026.
The Company’s Board of Directors authorized an increase to its share repurchase program of $1 billion, bringing the Company’s total authorization to approximately $1.35 billion, which is intended to allow management to repurchase the Company’s outstanding shares through 2029.
The Company continued to make progress in its product readiness across its portfolio offerings for the data center and industrial markets. The Company plans to increase 2026 R&D spending to accelerate these future growth opportunities.

New Business Awards Across Portfolio
The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:
New eTurbo award with a major European OEM for an advanced hybrid passenger car application. Production is expected to begin in 2029.
Torque-on-demand with mechanical lock transfer case award with a Chinese OEM for a newly developed, full-size SUV. Production is expected to begin in the fourth quarter of 2026.
Two variable cam timing awards. These include a conquest award with a major Chinese OEM and a program life extension award with a leading European premium OEM. Production is expected to begin in 2026 and 2027, respectively.
Integrated Drive Modules (iDM) award with a global OEM. This program utilizes the Company’s next-generation iDM technology, setting a new benchmark in performance, efficiency and system integration. Production is expected to begin in 2027.
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Two high-volume inverter extension awards with a major European OEM for plug-in hybrid and 800V battery-electric vehicles. Production is expected to begin in 2029.

Second Quarter Highlights:
U.S. GAAP net sales of $3,648 million, an increase of approximately 0.3% compared with the second quarter of 2025.
Excluding the impact of foreign currencies, organic net sales decreased 1.2% compared with the second quarter of 2025.
U.S. GAAP net earnings of $1.34 per diluted share.
Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.42 per diluted share, an increase of 17.4% compared with the second quarter of 2025.
U.S. GAAP operating income of $370 million, or 10.1% of net sales.
◦ Excluding $43 million of pretax expenses related to non-comparable items, adjusted operating income was $413 million, or 11.3% of net sales.
Net cash provided by operating activities of $586 million.
◦ Free cash flow of $492 million.
Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company’s ongoing operations and related tax effects.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Earnings per diluted share$1.34 $1.03 $2.50 $1.75 
Non-comparable items:
Restructuring expense0.07 0.06 0.13 0.17 
Accelerated depreciation0.03 0.08 0.03 0.08 
Adjustments associated with Spin-Off related balances— 0.01 0.01 (0.01)
Impairment charges— 0.01 — 0.16 
Write-off of customer incentive asset— 0.03 — 0.03 
Costs to exit charging business— 0.02 — 0.13 
Chief Executive Officer ("CEO") transition compensation— 0.03 — 0.03 
Loss on sale of assets— 0.02 — 0.02 
Merger and acquisition expense, net— — (0.01)0.01 
Unrealized gain on equity securities(0.02)— (0.01)— 
Tax adjustments(0.01)(0.08)— (0.06)
Other non-comparable items0.01 — 0.01 0.01 
Adjusted earnings per diluted share$1.42 $1.21 $2.66 $2.32 

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Net sales were $3,648 million for the second quarter of 2026, an increase of approximately 0.3% compared with the second quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the second quarter of 2026 were $277 million, compared with net earnings of $224 million for the second quarter of 2025. Net earnings per share for the second quarter of 2026 were $1.34 per diluted share, up 30.1% from $1.03 per diluted share for the second quarter of 2025. Adjusted net earnings per diluted share for the second quarter of 2026 were $1.42, up 17.4% from adjusted net earnings per diluted share of $1.21 for the second quarter of 2025. Adjusted net earnings for the second quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the second quarter of 2025 excluded net non-comparable items of $(0.18) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.

Full Year 2026 Guidance Update: The Company increased its 2026 full year adjusted earnings per share guidance, while maintaining its sales, adjusted operating margin and cash flow expectations.
At the mid-point of its 2026 guidance, the Company expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company’s expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company’s Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company’s net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company’s net sales guidance includes an expected year-over-year sales decline of approximately $250 million in the Company’s Battery Energy Systems segment, which represents approximately a 1.7% headwind to organic net sales growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $175 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.

U.S. GAAP operating margin is expected to be in the range of 9.6% to 9.8% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.72 to $4.94 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be in the range of $5.05 to $5.30 per diluted share, compared to the Company’s previous adjusted net earnings range of $5.00 to $5.20 per diluted share. The increase is due to the impact of the Company’s share repurchases during the first half of 2026. Full year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.

At 9:30 a.m. ET today, a brief conference call concerning second quarter 2026 results and full year guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.
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For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we’re helping to build a cleaner, healthier, safer future for all.

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Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “could,” “designed,” “effect,” “estimates,” “evaluates,” “expects,” “forecasts,” “goal,” “guidance,” “initiative,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of increased investments in research and development, our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading “Critical Accounting Policies and Estimates” in Item 7 of our most recently filed Annual Report on Form 10-K (“Form 10-K”), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company’s actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer (“OEM”) customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve
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its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs (and any potential refund recovery of tariffs imposed under the International Emergency Economic Powers Act) and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. “Risk Factors” in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.
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BorgWarner Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net sales$3,648 $3,638 $7,181 $7,153 
Cost of sales2,927 2,998 5,783 5,874 
Gross profit721 640 1,398 1,279 
Gross margin19.8 %17.6 %19.5 %17.9 %
Selling, general and administrative expenses331 317 659 632 
Restructuring expense21 17 39 48 
Other operating (income) expense, net(1)14 (6)31 
Impairment charges— — 42 
Operating income370 289 706 526 
Equity in affiliates’ earnings, net of tax(10)(8)(16)(18)
Unrealized gain on equity securities(4)(1)(3)(1)
Interest expense, net10 12 21 24 
Other postretirement expense
Earnings before income taxes and noncontrolling interest372 284 700 516 
Provision for income taxes81 52 154 113 
Net earnings291 232 546 403 
Net earnings attributable to noncontrolling interest14 27 22 
Net earnings attributable to BorgWarner Inc. $277 $224 $519 $381 
Earnings per share attributable to BorgWarner Inc. — diluted$1.34 $1.03 $2.50 $1.75 
Weighted average shares outstanding:
Basic203.0 216.3 204.2 216.7 
Diluted206.3 218.2 207.3 218.1 
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BorgWarner Inc.
Net Sales by Reportable Segment (Unaudited)
(in millions)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Turbos & Thermal Technologies$1,442 $1,481 $2,875 $2,935 
Drivetrain & Morse Systems1,455 1,429 2,877 2,790 
PowerDrive Systems665 581 1,252 1,142 
Battery Energy Systems100 159 202 309 
Inter-segment eliminations(14)(12)(25)(23)
Net sales$3,648 $3,638 $7,181 $7,153 
Segment Adjusted Operating Income (Loss) (Unaudited)
(in millions)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Turbos & Thermal Technologies$225 $227 $439 $462 
Drivetrain & Morse Systems277 260 537 503 
PowerDrive Systems(29)(33)(65)(76)
Battery Energy Systems(2)(12)(4)(34)
Segment Adjusted Operating Income471 442 907 855 
Corporate, including stock-based compensation58 69 122 130 
Restructuring expense21 17 39 48 
Intangible asset amortization expense14 16 30 33 
Accelerated depreciation21 21 
Adjustments associated with Spin-Off related balances(1)(1)
Impairment charges— — 42 
Write-off of customer incentive asset— — 
Costs to exit charging business— — 32 
Chief Executive Officer ("CEO") transition compensation— — 
Loss on sale of assets— — 
Loss on sale of businesses— — — 
Merger and acquisition expense, net— — (2)
Other non-comparable items
Equity in affiliates’ earnings, net of tax(10)(8)(16)(18)
Unrealized gain on equity securities(4)(1)(3)(1)
Interest expense, net10 12 21 24 
Other postretirement expense
Earnings before income taxes and noncontrolling interest$372 $284 $700 $516 
Provision for income taxes81 52 154 113 
Net earnings291 232 546 403 
Net earnings attributable to noncontrolling interest14 27 22 
Net earnings attributable to BorgWarner Inc.$277 $224 $519 $381 
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BorgWarner Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(in millions)
June 30,
2026
December 31,
2025
ASSETS
Cash and cash equivalents$2,448 $2,313 
Receivables, net3,056 2,962 
Inventories1,232 1,207 
Prepayments and other current assets352 313 
Total current assets7,088 6,795 
Property, plant and equipment, net3,220 3,330 
Other non-current assets3,626 3,644 
Total assets$13,934 $13,769 
LIABILITIES AND EQUITY
Short-term debt$$
Accounts payable2,138 1,996 
Other current liabilities1,190 1,281 
Total current liabilities3,333 3,282 
Long-term debt3,863 3,894 
Other non-current liabilities:940 979 
Total liabilities8,136 8,155 
Total BorgWarner Inc. stockholders’ equity5,621 5,442 
Noncontrolling interest177 172 
Total equity5,798 5,614 
Total liabilities and equity$13,934 $13,769 


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BorgWarner Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in millions)
Six Months Ended June 30,
20262025
OPERATING ACTIVITIES
Net cash provided by operating activities$738 $661 
INVESTING ACTIVITIES
Capital expenditures, including tooling outlays(239)(196)
Customer advances related to capital expenditures
Proceeds from settlement of net investment hedges, net
Payments for investments in equity securities(2)— 
Proceeds from the sale of business, net— 
Proceeds from asset disposals and other, net16 
Net cash used in investing activities(225)(158)
FINANCING ACTIVITIES
Payments of notes payable— (5)
Repayments of debt, including current portion(3)(403)
Payments for purchase of treasury stock(250)(108)
Payments for excise tax on purchase of treasury stock(5)— 
Payments for stock-based compensation items(28)(18)
Payment for business acquired, net of cash acquired(3)— 
Payments for contingent consideration— (4)
Dividends paid to BorgWarner stockholders(69)(48)
Dividends paid to noncontrolling stockholders(10)(20)
Net cash used in financing activities(368)(606)
Effect of exchange rate changes on cash(10)50 
Net increase (decrease) in cash and cash equivalents 135 (53)
Cash and cash equivalents at beginning of year2,313 2,094 
Cash, cash equivalents and restricted cash at end of period$2,448 $2,041 
Supplemental Information (Unaudited)
(in millions)
Six Months Ended June 30,
20262025
Depreciation and tooling amortization$264 $301 
Intangible asset amortization$30 $33 

Non-GAAP Financial Measures
This press release contains information about the Company’s financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

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Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company’s ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company’s ability to service and repay its debt.

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Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange (“FX”) and net mergers, acquisitions and divestitures.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Net sales$3,648 $3,638 $7,181 $7,153 
Operating income$370 $289 $706 $526 
Operating margin10.1%7.9%9.8%7.4%
Non-comparable items:
Restructuring expense$21 $17 $39 $48 
Intangible asset amortization expense14 16 30 33 
Accelerated depreciation21 21 
Adjustments associated with Spin-Off related balances(1)(1)
Impairment charges— — 42 
Costs to exit charging business— — 32 
Chief Executive Officer ("CEO") transition compensation— — 
Write-off of customer incentive asset— — 
Loss on sale of assets— — 
Loss on sale of businesses— — — 
Merger and acquisition expense, net— — (2)
Other non-comparable items
Adjusted operating income$413 $373 $785 $725 
Adjusted operating margin11.3%10.3%10.9%10.1%


Free Cash Flow Reconciliation (Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
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
Free cash flow$492 $507 $505 $472 


Second Quarter 2026 Organic Net Sales Change (Unaudited)
(in millions)Q2 2025 Net SalesFXOrganic Net Sales ChangeQ2 2026 Net SalesOrganic Net Sales Change %
Turbos & Thermal Technologies$1,481$24$(63)$1,442 (4.3)%
Drivetrain & Morse Systems1,42911151,455 1.0%
PowerDrive Systems5811668665 11.7%
Battery Energy Systems1593(62)100 (39.0)%
Inter-segment eliminations(12)(2)(14)16.7%
Net sales$3,638$54$(44)$3,648(1.2)%

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Year to Date 2026 Organic Net Sales Change (Unaudited)
(in millions)
Q2 2025 YTD Net Sales
FXOrganic 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 Systems2,79060272,8771.0%
PowerDrive Systems1,14247631,2525.5%
Battery Energy Systems3099(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)LowHigh
Net sales$14,000 $14,300 
Operating income$1,343 $1,398 
Operating margin9.6 %9.8 %
Non-comparable items:
Restructuring expense$90 $100 
Intangible asset amortization57 57 
Accelerated depreciation
Adjustment associated with Spin-Off related balances
Merger and acquisition expense, net(2)(2)
Other non-comparable items
Adjusted operating income$1,500 $1,565 
Adjusted operating margin10.7 %10.9 %


Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)
Full Year 2026 Guidance
LowHigh
Earnings per Diluted Share$4.72 $4.94 
Non-comparable items:
Restructuring expense$0.30 $0.33 
Accelerated depreciation0.03 0.03 
Adjustment associated with Spin-Off related balances0.01 0.01 
Unrealized gain on equity securities(0.01)(0.01)
Merger and acquisition expense, net(0.01)(0.01)
Other non-comparable items0.01 0.01 
Adjusted Earnings per Diluted Share$5.05 $5.30 

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Free Cash Flow Guidance Reconciliation (Unaudited)
Full Year 2026 Guidance
(in millions)LowHigh
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 SalesFXBattery Energy Systems (“BES”) Sales ChangeOrganic Net Sales ChangeFY 2026 Net SalesOrganic 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$14,3000.4%(1.3)%—%

Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)
North AmericaEuropeChinaTotalBorgWarner Weighted Total
Light vehicle(2.5)% to 1.5%(2)% to 1%(7)% to (4)%(3)% to (1)%(3)% to 0%




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