BORGWARNER INC Q2 FY26 Results

Summary

BorgWarner reported a slight increase in U.S. GAAP net sales of 0.3% to $3,648 million for the second quarter of 2026, driven by stronger foreign currencies, though organic net sales decreased by 1.2%. The company demonstrated improved profitability with a U.S. GAAP operating margin of 10.1% and a 17.4% year-over-year increase in adjusted net earnings per diluted share to $1.42. Management highlighted strong performance due to cost controls and announced an increase in full-year adjusted EPS guidance, alongside a significant $1 billion increase in its share repurchase authorization. The company also secured several new business awards across its portfolio, signaling future growth opportunities.

Key Highlights

1. 1

   BorgWarner's U.S. GAAP net sales increased approximately 0.3% to $3,648 million in the second quarter of 2026 compared to the second quarter of 2025.

2. 2

   The Company achieved a U.S. GAAP operating margin of 10.1% in Q2 2026, an increase of 220 basis points year-over-year.

3. 3

   Adjusted net earnings per diluted share for the second quarter of 2026 were $1.42, an increase of 17.4% compared to $1.21 in the second quarter of 2025.

4. 4

   The Company increased its 2026 full year adjusted earnings per share guidance and authorized an additional $1 billion for its share repurchase program.

5. 5

   BorgWarner secured multiple new business awards expected to support long-term profitable growth, including an eTurbo award for a hybrid passenger car and an Integrated Drive Modules award for next-generation technology.

6. 6

   Free cash flow for the second quarter of 2026 was $492 million, compared to $507 million in the second quarter of 2025.