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Q3 2026 BORGWARNER Investor Presentation
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2 Forward-Looking Statements This presentation 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,” “pur sue,” “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 presentation 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 August 5, 2026. 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 commerc ial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including origi nal equipment manufacturer (“OEM”) customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability t o innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, incl uding, 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; th e 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 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 tar iffs (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 investigati ons, 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 presentation to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.
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3 Non-GAAP Financial Measures This presentation contains certain information about BorgWarner’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 in the Appendix. The provision of these comparable U.S. GAAP financial measures in the context of guidance for 2026 is not intended to indicate that BorgWarner 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 presentation and the adjustments that management can reasonably predict. 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 BorgWarner may not be comparable to similarly titled measures reported by other companies.
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Investor Day 2023 Today’s AgendaPres ente r Na me – Title ▪ A clean, energy-efficient worldOur Vision ▪ We deliver innovative and sustainable mobility solutions Our Mission Executing on Our Vision & Mission 4
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5 BorgWarner Today Americas ~10,800 Workers 22 Locations 3 Countries Europe ~14,800 Workers 26 Locations 10 Countries Asia ~11,900 Workers 33 Locations 7 Countries Global Headquarters Auburn Hills, MI Note: Headcount and locations as of January 2026. Locations include only manufacturing and technical centers.
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Focus for 2026 and Beyond 6 ► Drive enhanced financial performance through long-term sales growth, margin expansion, cash generation and EPS accretion ► Build on our existing product portfolio through continued investment, while focusing on securing future profitable growth ► Utilize free cash flow to create additional value through accretive inorganic investments that expand capabilities and through return of capital to shareholders
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7 Sales Resiliency – Strong Diversification Across Products, Customers and Regions Americas D3 Americas Other Europe German OEMs Europe Other China Locals China Other RoW FY 2025 Regional Sales Turbos & Thermal Technologies Drivetrain & Morse Systems PowerDrive Systems Battery & Charging Systems FY 2025 Segment Sales
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Product Portfolio Well-Positioned for Long-Term Growth Turbos AWD/4WD Intake & EGRs ECUs Engine Timing Transmission Products Inverters Other Power Electronics Thermal Mgt. EV Gearboxes Electric Drive Motors eTMS Battery Systems Combustion Hybrid Electric Foundational Products eProducts 8
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9 Strategically Entered Data Center Market with Supply Agreement for Power Generation Solutions ▪ Product: Modular turbine generator system for AI driven data center market and other microgrid applications ▪ Background/Rationale: ▪ Signed agreement with TurboCell (subsidiary of Endeavour) to support growing power generation demand ▪ Endeavour provides turnkey facility solutions to Data Center and Micro Grid customers ▪ Endeavour has 25 years of experience in the data center market and is operating multiple facilities (US and Europe) ▪ Expected 2027 Sales: More than $300 million TurboCell leverages BorgWarner’s automotive core competencies to provide a competitive data center power solution
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Multi-stage Turbine System Turbine Generator System Provides Significant Advantages to Existing Power Generation Solutions Intercooler Combustor & Recuperator Cooling Fan Generator ▪ Power/Modular Flexibility: continuous (bridging power) or backup power ▪ Fuel Flexibility: natural gas, propane, diesel and hydrogen ▪ Emissions Regulations: lower than traditional diesel solution ▪ Automotive Scale: utilizing automotive and supply base scale to provide value Product Advantages Turbine generator system is a lower emission solution that provides power, fuel and load flexibility Power Electronics Adv. Software Controls 10
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Fuel Cells Turbines Diesel Gensets BorgWarner Turbine Generator System Ultra-low Emissions Affordable Long-Term Power Instant Load Acceptance Fuel Types Natural Gas, Hydrogen Natural Gas Diesel Natural Gas, Propane, Diesel, Hydrogen 11 Turbine Generator System Offers Modularity and Flexibility Compared to Competing Technologies
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12 BorgWarner Continues to Improve Product Readiness for Data Center & Other Industrial Markets Portfolio Power Generation Energy Storage Power Conversion Expected SOP 2027 >$300M Launch Year Sales Turbine Generator System ▪ Met CARB-level emissions tests ▪ Component UL certification expected to start in September ▪ Building construction inline with expectations ▪ Capital equipment installation expected to begin during Q3 Quoting Continues Est. 2027 Production Ready Testing Progressing Est. 2027 Production Ready v Battery Energy Storage System ▪ Supporting varying use cases in data center environments ▪ Portfolio includes DC blocks, UPS and high-power racks, and controls ▪ Modular, scalable, and cell chemistry independent ▪ Customer validation and UL compliance processes advancing Bi-Directional Microgrid Inverter ▪ Samples shipped to four customers and discussions with several others ▪ Existing scale and established supply base recognized by potential customers ▪ Gen 2 designs currently under development incorporating customer feedback ▪ Developing high-power full-voltage coverage with portfolio expected to span 400V to 1500V *TurboCell is available exclusively through Endeavour’s Edged Infrastructure solutions division.
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13 Estimated 2026 Light Vehicle Market Propulsion Mix Global Total Combustion Trad. Hybrid Adv. Hybrid BEV Note: 2025 detail from S&P Global architecture breakdown based on mid-January production volumes. Portfolio designed to support different rates of regional BEV adoption 52% 20% 9% 19% North America Europe China 72% 21% 1% 6% 41% 33% 7% 19% 35% 9% 19% 37% 90.0M to 92.2M LV Units 14.9M to 15.5M LV Units 16.7M to 17.2M LV Units 30.6M to 31.5M LV Units
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14 Content Opportunity Per Vehicle (COPV) Estimated 2029 BorgWarner Content Opportunity Per Light Vehicle Summary $567 $428 $1,891 $1,956 Combustion Combustion + Advanced Hybrid BEV Combustion eProduct
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15 Leadership Position Across Foundational Portfolio and Regions North America 2025 Market Position* 2025 LV Product Penetration % Turbochargers #1 52% EGRs #1 44% Timing Systems #2 94% T-Case/Couplings #2 57% Turbochargers Timing Systems EGRs AWD *Market position is based on BorgWarner Global Market Research. Europe 2025 Market Position* 2025 LV Product Penetration % Turbochargers #1 96% EGRs #1 47% Timing Systems #1 44% T-Case/Couplings #1 13% China 2025 Market Position* 2025 LV Product Penetration % Turbochargers #4 69% EGRs #2 22% Timing Systems #2 81% T-Case/Couplings #1 9% Global 2025 Market Position* 2025 LV Product Penetration % Turbochargers #1 57% EGRs #1 44% Timing Systems #1 80% T-Case/Couplings #1 57% LV Product Penetration Expected to Drive Ongoing Demand for BorgWarner Products
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16 Recent Foundational Awards Torque-on-Demand Transfer Cases with Mechanical Lock Award with a Chinese OEM for a newly developed, full-size SUV Engine, Machine, Power Module & BMS Controllers A seven-year program extension award with a world-leading off- highway manufacturer Turbochargers and Exhaust Gas Recirculation (EGR) Coolers Conquest awards with a major European commercial vehicle OEM for on-highway use Variable Cam Timing Conquest award with a major Chinese OEM and a program life extension award with a leading European premium OEM Turbochargers Three program extension awards and one conquest award with a major European OEM Variable Turbine Geometry (VTG) Turbochargers Conquest hybrid award with a major European OEM for the North American market Transfer Cases & Cross Wheel Drives Multiple awards with Chery including transfer cases for pickup trucks and cross wheel drives for SUVs Turbochargers Award with Stellantis for the Hurricane 4, a 4- cylinder gasoline engine used on the 2026 Jeep® Grand Cherokee Electric Variable Cam Timing Award with Stellantis for the Jeep Cherokee, marking the first use of an eVCT with this OEM Wastegate Turbochargers Two conquest awards with a major global OEM, one for the European hybrid market and the other for the North American hybrid market eTurbo New program award with a major European OEM for an advanced hybrid car application Dual Clutches (DCT) & Variable Cam Timing Systems (VCT) DCT award with a Chinese OEM for an SUV platform and a VCT conquest award with a Japanese OEM for a hybrid program
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17 Recent eProduct Awards Inverters Two high-volume extension awards with a major European OEM for plug-in hybrid and 800V battery-electric vehicles Integrated Drive Modules (iDM) Award with a premium European OEM supporting a hybrid range extended powertrain architecture Integrated Drive Modules (iDM) and Generator Modules with Dual Inverters North American OEM award for range extended electric vehicle trucks and large-frame SUVs eMotors Three awards with Asian OEMs including two hybrid vehicle awards in China and one electric vehicle award in South Korea Electric Cross Differentials (eXD) Award with a leading Chinese OEM used on 48V electrical and electronic architectures 7-in-1 Integrated Drive Modules Award with a leading Chinese OEM for a hybrid SUV Dual Inverters Two awards with Great Wall Motor for HEV and PHEV vehicles Dual Inverters Award with major Chinese OEM for its new energy vehicle (NEV) hybrid lineup, extending the partnership established in 2021 Electric Motors Award with a major Chinese OEM for platform-based design compatible across a full range of NEVs, including battery electric and hybrid models Electric Cross Differentials (eXD) Award with a leading Chinese OEM for electric cross differentials for battery electric vehicles (BEV) Integrated Drive Modules (iDM) Award with a global OEM utilizing BorgWarner’s next- generation iDM technology Battery Management Systems (BMS) Award with a global OEM supporting additional B/C-segment passenger cars and light commercial vehicles for both BEV and PHEV vehicles
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On-board charger (OBC) DC-DC converter Reduction gear Electric motor Inverter Integrated drive module (iDM) eFan High-voltage coolant heater (HVCH) Battery management system (BMS) THERMAL MANAGEMENT ELECTRIC PROPULSION ENERGY STORAGE & MANAGEMENT High-voltage box CV Battery pack Battery cooling plates POWER ELECTRONIC AUXILIARIES Electric Torque Vectoring and Disconnect (eTVD) 18 Electric Vehicle System Portfolio
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eLV N.A. eLV Europe eLV China eLV RoW eCV Americas eCV Europe $1.5B $2.0B $2.3B $2.6B 2022 2023 2024 2025 19 eProduct Sales Growth Despite Volatile End Markets LV eProducts ~52% BEV ~48% Adv. Hybrid eCV Battery Systems
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20 Leveraging Existing Footprint to Support eProduct Growth & Manage Market Volatility Plant Location eProduct Est. SOP Jiangshan, China HV Heaters 2021 Wuhan, China eMotor & iDM assembly 2022 Changnyeong, Korea eMotor & iDM assembly 2023 Beijing, China eTMS 2025 TBD eTMS 2027 China/ROW Zebra Plants Expected to be >25% of our Manufacturing Sites by 2027 Plant Location eProduct Est. SOP SLP, Mexico eMotor & iDM assembly 2021 Cadillac, MI, US HV Heaters 2022 Seneca, SC, US Battery Packs & Other 2024 & 2029 Ramos, Mexico Battery Coolers 2026 North America Plant Location eProduct Est. SOP Viana, Portugal HV Heaters 2021 Blonie, Poland Inverters 2023 Markdorf, Germany eFans 2024 Seixal, Portugal eFans 2025 Vigo, Spain Battery Coolers 2025 Landskrona, Sweden eTMS 2025 Oroszlany, Hungary PE Coolers 2026 Europe
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Inorganic Investment Screening Process ▪ Industrial logic – leverage BorgWarner’s core competencies (not limited to BorgWarner’s current portfolio) ▪ Near-term accretion – potential M&A intended to increase BorgWarner’s earnings power ▪ Thoughtful / diligent valuation consideration – incorporating current macro risks and industry turmoil BorgWarner Intends to Create Additional Shareholder Value with Free Cash Flow 21
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22 Historical Financial Performance 9.6% 10.1% 10.7% 10.8% 2023 2024 2025 2026E at Midpoint Adj. EPS (11% CAGR)Adj. Operating Margin $565 $729 $1,208 $1,000 2023 2024 2025 2026E at Midpoint $3.75 $4.32 $4.91 $5.18 2023 2024 2025 2026E at Midpoint Free Cash Flow (21% CAGR) $ in millions, except EPS
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BWA & Non- Controlling Interest Dividends 23% Buybacks 31% M&A Spend 46% History of Capital Allocation & Return to Shareholders Capital Allocation Balanced Between Inorganic Investments and Shareholder Return Activity Capital Allocation Since 2021 $5.2B (net of $0.4B distribution from PHINIA spin-off) 23 Since 2020 Buybacks ~$1.8 billion Shareholder Dividends ~$0.9 billion Market Cap of PHINIA at Spin-off ~$1.7 billion Total Capital Returned ~$4.4 billion Return of Capital to Shareholders
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24 Share Repurchase History 240.2 234.6 230.2 219.1 208.7 205.5 200 205 210 215 220 225 230 235 240 245 2021 2022 2023 2024 2025 Q2 2026 millions of shares 2025: $508M Outstanding Dilutive Shares $1.6B in share repurchases since 2022; $1.35B authorization with additional $1B approved by Board in 2026 2021: No Repurchases Current Authorization 2022: $240M 2023: $177M 2024: $400M Note: Repurchase dollars excludes excise taxes and commissions Q2 2026: $250M $1B $650M $350M $1B $1.35B 2025 Authorization Repurchases Since Q3 2025 2025 Authorization Remaining 2026 Authorization Est. Authorization Remaining End of Q2 2026
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25 APPENDIX
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26 2026 Outlook and Other Items Full-year Net Sales Outlook Market & Earnings Outlook $14,316 $14,000 $175 $(241) $14,300 $(250) $59 2025 net sales FX Battery sales Organic net sales change ex. Battery* 2026 net sales 10.7% to 10.9% Adj. Operating Margin* 10.7% Adj. Operating Margin* $ in millions, except EPS Prior 2026 Guidance Revised 2026 Outlook Organic net sales change* (3.5%) to (1.5%) (3.5%) to (1.5%) Adj. operating margin* 10.7% to 10.9% 10.7% to 10.9% Adj. diluted EPS* $5.00 to $5.20 $5.05 to $5.30 Free cash flow* $900M to $1,100M $900M to $1,100M *Organic net sales change, adj. operating margin, adj. diluted EPS and free cash flow on this slide are non-US GAAP measures. See reconciliation to US GAAP in Appendix. Note: FX rate assumes $1.14 for Euro.
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27 2026 Light Vehicle Market Expectations 15.3 17.0 32.9 93.1 BorgWarner Global Market FY’25 Actual FY’26 Est. FY’25 Actual FY’26 Est. FY’25 Actual FY’26 Est. FY’25 Actual FY’26 Est. North America ChinaEurope 90.0 to 92.2 YOY (3.5%) to (1%) 14.9 to 15.5 YOY (2.5%) to 1.5% 30.6 to 31.5 YOY (7%) to (4%) 16.7 to 17.2 YOY (2%) to 1% Note: Actual and estimated volumes are BorgWarner market assumptions. LV Units in millions BorgWarner Estimated LV Weighted Market Down 3% to 0%