REPORTABLE SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Summary of Financial Information Regarding Reportable Operating Segments

Summarized financial information regarding our reportable segments for the three months ended March 31, 2026 and 2025 is shown in the table below:


In millions						Engine						Components												Distribution												Power Systems						Accelera						Total Segments
Three months ended March 31, 2026
External sales						$	1,966					$	2,138											$	3,109											$	1,093					$	92					$	8,398
Intersegment sales						706						392												7												863						9						1,977
Total sales						2,672						2,530												3,116												1,956						101						10,375
Cost of goods sold (excluding warranty expenses)						2,074						2,024												2,463												1,228						121						7,910
Warranty expenses						93						27												7												17						13						157
Selling expenses						69						47												164												48						6						334
Administrative expenses						162						134												104												101						10						511
Research, development and engineering expenses						164						81												15												66						32						358
Equity, royalty and interest income (loss) from investees						80						10												28												36						(6)						148
Other income (expense) (1)						17						(18)												18												9						(199)			(2)			(173)
Add back: Depreciation and amortization (3)						72						128												35												36						9						280
Segment EBITDA						$	279					$	337											$	444											$	577					$	(277)		(2)			$	1,360

Interest income (4)						$	10					$	11											$	6											$	5					$	—					$	32

Three months ended March 31, 2025
External sales						$	2,040					$	2,270											$	2,902											$	872					$	90					$	8,174
Intersegment sales						731						400												5												777						13						1,926
Total sales						2,771						2,670												2,907												1,649						103						10,100
Cost of goods sold (excluding warranty expenses)						2,036						2,139												2,332												1,090						121						7,718
Warranty expenses						85						26												6												32						8						157
Selling expenses						59						41												157												46						7						310
Administrative expenses						138						119												91												100						13						461
Research, development and engineering expenses						155						75												14												57						43						344
Equity, royalty and interest income (loss) from investees						73						7												28												29						(6)						131
Other income (expense) (1)						20						(17)												9												3						(3)						12
Add back: Depreciation and amortization (3)						67						122												32												33						12						266
Segment EBITDA						$	458					$	382											$	376											$	389					$	(86)					$	1,519

Interest income (4)						$	10					$	7											$	5											$	4					$	—					$	26





































(1) Other income (expense) includes other operating expense, net and other income, net from our Condensed Consolidated Statements of Net Income.
(2) On March 31, 2026, we sold our low pressure fuel cell business to a customer, cancelled future commitments and resolved certain claims against us with that customer resulting in a net payment by us of $175 million. These transactions resulted in a net charge of $199 million which is reflected in other operating expense, net in our Condensed Consolidated Statements of Net Income.
(3) Depreciation and amortization are not considered significant segment expenses but are presented here to reconcile to EBITDA, the measure used by our CODM. Depreciation and amortization, as shown on a segment basis, excludes the amortization of debt discount and deferred costs included in our Condensed Consolidated Statements of Net Income as interest expense. The amortization of debt discount and deferred costs was $2 million and $3 million for the three months ended March 31, 2026 and 2025, respectively. A portion of depreciation expense is included in research, development and engineering expenses.
(4) Interest income is a component of other income (expense).

Summary of Reconciliation of Segment Information

A reconciliation of our segment information to the corresponding amounts in the Condensed Consolidated Statements of Net Income is shown in the table below:


						Three months ended
						March 31,
In millions						2026						2025
TOTAL SEGMENT EBITDA						$	1,360					$	1,519

Intersegment eliminations and other (1)						(70)						(59)

Less:
Interest expense						76						77
Depreciation and amortization						280						266
INCOME BEFORE INCOME TAXES						$	934					$	1,117





(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses.