v3.26.1
REPORTABLE SEGMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Financial Information Regarding Reportable Operating Segments
Summarized financial information regarding our reportable segments for the three and six months ended June 30, 2026 and 2025 is shown in the table below:
In millionsEngineComponentsDistributionPower SystemsAcceleraTotal Segments
Three months ended June 30, 2026
External sales$2,349 $2,431 $3,320 $1,217 $140 $9,457 
Intersegment sales735 460 6 1,038 5 2,244 
Total sales3,084 2,891 3,326 2,255 145 11,701 
Cost of goods sold (excluding warranty expenses)2,337 2,300 2,633 1,516 151 8,937 
Warranty expenses100 62 14 25 30 231 
Selling expenses69 52 175 50 5 351 
Administrative expenses173 141 110 106 12 542 
Research, development and engineering expenses181 88 15 79 22 385 
Equity, royalty and interest income (loss) from investees79 10 34 34 (3)154 
Other income (expense) (1)
6 (3)4 4 1 12 
Add back: Depreciation and amortization (2)
77 126 34 35 8 280 
Segment EBITDA$386 $381 $451 $552 $(69)$1,701 
Interest income (3)
$10 $11 $7 $5 $— $33 
Three months ended June 30, 2025
External sales$2,162 $2,295 $3,034 $1,054 $98 $8,643 
Intersegment sales737 410 7 835 7 1,996 
Total sales2,899 2,705 3,041 1,889 105 10,639 
Cost of goods sold (excluding warranty expenses)2,168 2,161 2,419 1,290 132 8,170 
Warranty expenses119 28 5 26 12 190 
Selling expenses61 40 154 41 7 303 
Administrative expenses146 121 89 106 14 476 
Research, development and engineering expenses151 77 14 69 46 357 
Equity, royalty and interest income (loss) from investees60 10 26 27 (5)118 
Other income (expense) (1)
18 (18)27 11 (2)36 
Add back: Depreciation and amortization (2)
68 127 32 35 13 275 
Segment EBITDA$400 $397 $445 $430 $(100)$1,572 
Interest income (3)
$8 $10 $7 $4 $1 $30 
In millionsEngineComponentsDistributionPower SystemsAcceleraTotal Segments
Six months ended June 30, 2026
External sales$4,315 $4,569 $6,429 $2,310 $232 $17,855 
Intersegment sales1,441 852 13 1,901 14 4,221 
Total sales5,756 5,421 6,442 4,211 246 22,076 
Cost of goods sold (excluding warranty expenses)4,411 4,324 5,096 2,744 272 16,847 
Warranty expenses193 89 21 42 43 388 
Selling expenses138 99 339 98 11 685 
Administrative expenses335 275 214 207 22 1,053 
Research, development and engineering expenses345 169 30 145 54 743 
Equity, royalty and interest income (loss) from investees159 20 62 70 (9)302 
Other income (expense) (1)
23 (21)22 13 (198)
(4)
(161)
Add back: Depreciation and amortization (2)
149 254 69 71 17 560 
Segment EBITDA$665 $718 $895 $1,129 $(346)
(4)
$3,061 
Interest income (3)
$20 $22 $13 $10 $— $65 
Six months ended June 30, 2025
External sales$4,202 $4,565 $5,936 $1,926 $188 $16,817 
Intersegment sales1,468 810 12 1,612 20 3,922 
Total sales5,670 5,375 5,948 3,538 208 20,739 
Cost of goods sold (excluding warranty expenses)4,204 4,300 4,751 2,380 253 15,888 
Warranty expenses204 54 11 58 20 347 
Selling expenses120 81 311 87 14 613 
Administrative expenses284 240 180 206 27 937 
Research, development and engineering expenses306 152 28 126 89 701 
Equity, royalty and interest income (loss) from investees133 17 54 56 (11)249 
Other income (expense) (1)
38 (35)36 14 (5)48 
Add back: Depreciation and amortization (2)
135 249 64 68 25 541 
Segment EBITDA$858 $779 $821 $819 $(186)$3,091 
Interest income (3)
$18 $17 $12 $8 $1 $56 
(1) Other income (expense) includes other operating expense, net and other income, net (excluding unallocated corporate expenses) from our Condensed Consolidated Statements of Net Income.
(2) 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. A portion of depreciation expense is included in research, development and engineering expenses.
(3) Interest income is a component of other income (expense).
(4) In the first quarter of 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.
Schedule 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 endedSix months ended
June 30,June 30,
In millions2026202520262025
TOTAL SEGMENT EBITDA$1,701 $1,572 $3,061 $3,091 
Intersegment eliminations and other (1)
(48)15 (118)(44)
Less:
Interest expense80 87 156 164 
Depreciation and amortization280 275 560 541 
INCOME BEFORE INCOME TAXES$1,293 $1,225 $2,227 $2,342 
(1) Included intersegment sales, intersegment profit in inventory and unallocated corporate expenses.