BorgWarner (BWA) Q2 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 5, 2026 astatine 9:30 a.m. ET

CALL PARTICIPANTS

• Vice President of Investor Relations - Patrick Nolan

• Chief Executive Officer - Joseph Fadool

• Executive Vice President and Chief Financial Officer - Craig Aaron

Full Conference Call Transcript

Operator: Good morning. My sanction is Nick, and I volition beryllium your league specialist. At this time, I would similar to invited everyone to the BorgWarner 2026 Second Quarter Results Conference Call. [Operator Instructions] I would present similar to crook the telephone implicit to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you whitethorn statesman your conference.

Patrick Nolan: Thank you, Nick. Good morning, everyone, and convey you for joining america today. We issued our net merchandise earlier this morning. It's posted connected our website, borgwarner.com, some connected our location leafage and connected our Investor Relations homepage. With respect to our Investor Relations calendar, we volition beryllium attending capitalist conferences betwixt present and our adjacent net release. Please spot the Events conception of our Investor Relations homepage for a afloat list. Before we begin, I request to pass you that during this call, we whitethorn marque forward-looking statements, which impact risks and uncertainties arsenic elaborate successful our 10-K. Our existent results whitethorn disagree importantly from the matters discussed today.

In addition, during today's presentation, we'll item definite non-GAAP measures successful bid to supply a clearer representation of however the halfway concern performed and for examination purposes with anterior periods. When you perceive america accidental adjusted, that means excluding noncomparable items. When you perceive america accidental organic, that means excluding the interaction of FX and nett M&A. We volition besides notation to our incremental borderline performance. Our incremental borderline is defined arsenic the integrated alteration successful our adjusted operating income divided by the integrated alteration successful our sales. We volition besides notation to our maturation compared to our market. When you perceive america accidental market, that means the alteration successful airy conveyance accumulation weighted for our geographic exposure.

Please enactment that we posted today's net telephone presumption to the IR leafage of our website. We promote you to travel on with these slides during our discussion. With that, I'm blessed to crook the telephone implicit to Joe.

Joseph Fadool: Thank you, Pat, and bully morning, everyone. I'm pleased to stock our results for the 2nd 4th of 2026 and supply an wide institution update, starting connected Slide 5. I privation to statesman by thanking our employees, customers and suppliers for each of their trust, efforts and continued support. In the quarter, we achieved income of implicit $3.6 billion. Excluding the diminution successful our Battery Energy Systems segment, our integrated nett income were up modestly year-over-year, outperforming the diminution successful marketplace production, chiefly owed to beardown North American transportation lawsuit volumes. Our adjusted operating margin, adjusted net per stock and currency travel show was beardown successful the quarter.