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REPORTABLE SEGMENTS
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company discloses segment information under four reportable segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems and Battery Energy Systems. The four reportable segments are consistent with the operating segments that are evaluated by management, including the chief operating decision maker (“CODM”). The Company’s CODM is its Chief Executive Officer. The reportable segments are further described below. These segments are strategic business groups that are managed separately as each represents a specific grouping of related automotive components and systems.

As further described in Note 3, “Acquisitions and Dispositions,” in February 2025, the Company made the decision to exit its charging business within its Battery Energy Systems reportable segment. This plan did not result in a change to the Company’s reportable segments.

Segment Adjusted Operating Income (Loss) is the measure of segment income or loss used by the Company. Segment Adjusted Operating Income (Loss) is comprised of operating income for the Company’s reportable segments adjusted to exclude restructuring, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges and other items not reflective of ongoing operating income or loss. The Company believes Segment Adjusted Operating Income (Loss) is most reflective of the operational profitability or loss of our reportable segments.

The Company’s CODM uses Segment Adjusted Operating Income (Loss) and the expenses disclosed below to assess the performance of its reportable segments. The CODM uses this information to assist with decisions about future growth, capital investments and cost reduction initiatives by reviewing trends in the business, monitoring variances to historical results and previously forecasted information and performing other analytical comparisons.
The following tables show net sales, segment expenses, Segment Adjusted Operating Income (Loss) and other segment information for the Company’s reportable segments. The segment expenses do not include non-comparable items that are excluded in the calculation of Segment Adjusted Operating Income (Loss):

Net Sales and Expenses by Reportable Segment
Three Months Ended March 31, 2026
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,432 $1,418 $581 $102 $— $3,533 
Net sales - inter-segment1 4 6 — (11)— 
Net sales$1,433 $1,422 $587 $102 $(11)$3,533 
Cost of sales1,146 1,119 513 88 
Selling, general and administrative expenses - R&D, net43 33 90 9 
Selling, general and administrative expenses - Other30 11 24 7 
Other segment items1
— (1)(4)— 
Segment Adjusted Operating Income (Loss)$214 $260 $(36)$(2)
Three Months Ended March 31, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,454 $1,356 $555 $150 $— $3,515 
Net sales - inter-segment— 5 6 — (11)— 
Net sales$1,454 $1,361 $561 $150 $(11)$3,515 
Cost of sales1,151 1,079 492 150 
Selling, general and administrative expenses - R&D, net41 29 99 11 
Selling, general and administrative expenses - Other27 10 14 11 
Other segment items1
— — (1)— 
Segment Adjusted Operating Income (Loss)$235 $243 $(43)$(22)
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1 Other segment items include other income and expenses to derive Segment Adjusted Operating Income (Loss).
Segment Adjusted Operating Income (Loss)
Three Months Ended March 31,
(in millions)20262025
Turbos & Thermal Technologies$214 $235 
Drivetrain & Morse Systems260 243 
PowerDrive Systems(36)(43)
Battery Energy Systems(2)(22)
Segment Adjusted Operating Income436 413 
Corporate, including stock-based compensation64 61 
Restructuring expense (Note 5)18 31 
Intangible asset amortization expense16 17 
Accelerated depreciation1
2 — 
Adjustments associated with Spin-Off related balances2
2 (3)
Impairment charges— 39 
Costs to exit charging business (Note 3)— 26 
Loss on sale of businesses— 1 
Merger and acquisition expense, net2
(2)2 
Other non-comparable items— 2 
Equity in affiliates’ earnings, net of tax(6)(10)
Unrealized loss on equity securities1 — 
Interest expense, net11 12 
Other postretirement expense2 3 
Earnings before income taxes and noncontrolling interest$328 $232 
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1 Accelerated depreciation represents charges related to property, plant and equipment that were decommissioned or are in the process of being decommissioned.
2 Refer to Note 7, “Other Operating (Income) Expense, Net,” to the Condensed Consolidated Financial Statements for more information.
    

Segment information
Depreciation and amortization
Long-lived asset expenditures1
Total assets
(in millions)Three Months Ended March 31, 2026Three Months Ended March 31, 2025Three Months Ended March 31, 2026Three Months Ended March 31, 2025March 31, 2026December 31, 2025
Turbos & Thermal Technologies$40 $40 $58 $41 $3,843 $3,743 
Drivetrain & Morse Systems46 49 29 24 3,843 3,795 
PowerDrive Systems46 43 52 44 3,164 3,163 
Battery Energy Systems6 16 2 8 448 460 
Total138 148 141 117 11,298 11,161 
Corporate2
7 7 2 2 2,355 2,608 
Consolidated$145 $155 $143 $119 $13,653 $13,769 
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1 Long-lived asset expenditures include capital expenditures, excluding customer advances, and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables and deferred income taxes.