v3.26.1
REPORTABLE SEGMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Schedule of Net Sales and Expenses by Reporting Segment
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).
Schedule of Segment Earnings Before Interest and Income Taxes
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.