v3.26.1
REPORTABLE SEGMENTS (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2026
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,440 $1,450 $658 $100 $— $3,648 
Net sales - inter-segment2 5 7 — (14)— 
Net sales$1,442 $1,455 $665 $100 $(14)$3,648 
Cost of sales1,137 1,134 586 84 
Selling, general and administrative expenses - R&D, net48 32 82 9 
Selling, general and administrative expenses - Other32 11 25 9 
Other segment items1
— 1 1 — 
Segment Adjusted Operating Income (Loss)$225 $277 $(29)$(2)
Six Months Ended June 30, 2026
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$2,872 $2,868 $1,239 $202 $— $7,181 
Net sales - inter-segment3 9 13 — (25)— 
Net sales$2,875 $2,877 $1,252 $202 $(25)$7,181 
Cost of sales2,283 2,253 1,099 172 
Selling, general and administrative expenses - R&D, net91 65 172 18 
Selling, general and administrative expenses - Other62 22 49 16 
Other segment items1
— — (3)— 
Segment Adjusted Operating Income (Loss)$439 $537 $(65)$(4)
Three Months Ended June 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,480 $1,424 $575 $159 $— $3,638 
Net sales - inter-segment1 5 6 — (12)— 
Net sales$1,481 $1,429 $581 $159 $(12)$3,638 
Cost of sales1,181 1,129 510 151 
Selling, general and administrative expenses - R&D, net44 32 93 10 
Selling, general and administrative expenses - Other28 8 15 9 
Other segment items1
1 — (4)1 
Segment Adjusted Operating Income (Loss)$227 $260 $(33)$(12)
Six Months Ended June 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$2,934 $2,780 $1,130 $309 $— $7,153 
Net sales - inter-segment1 10 12 — (23)— 
Net sales$2,935 $2,790 $1,142 $309 $(23)$7,153 
Cost of sales2,332 2,208 1,002 301 
Selling, general and administrative expenses - R&D, net85 61 192 21 
Selling, general and administrative expenses - Other55 18 29 20 
Other segment items1
1 — (5)1 
Segment Adjusted Operating Income (Loss)$462 $503 $(76)$(34)
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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 June 30,Six Months Ended June 30,
(in millions)2026202520262025
Turbos & Thermal Technologies$225 $227 $439 $462 
Drivetrain & Morse Systems277 260 537 503 
PowerDrive Systems(29)(33)(65)(76)
Battery Energy Systems(2)(12)(4)(34)
Segment Adjusted Operating Income471 442 907 855 
Corporate, including stock-based compensation58 69 122 130 
Restructuring expense (Note 5)21 17 39 48 
Intangible asset amortization expense14 16 30 33 
Accelerated depreciation1
7 21 9 21 
Adjustments associated with Spin-Off related balances2
(1)2 1 (1)
Impairment charges— 3 — 42 
Write-off of customer incentive asset— 7 — 7 
Costs to exit charging business (Note 3)— 6 — 32 
Chief Executive Officer ("CEO") transition compensation2
— 6 — 6 
Loss on sale of assets2
— 5 — 5 
Loss on sale of businesses— — — 1 
Merger and acquisition expense, net2
— — (2)2 
Other non-comparable items2 1 2 3 
Equity in affiliates’ earnings, net of tax(10)(8)(16)(18)
Unrealized gain on equity securities(4)(1)(3)(1)
Interest expense, net10 12 21 24 
Other postretirement expense2 2 4 5 
Earnings before income taxes and noncontrolling interest$372 $284 $700 $516 
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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 June 30, 2026Three Months Ended June 30, 2025Three Months Ended June 30, 2026Three Months Ended June 30, 2025June 30, 2026December 31, 2025
Turbos & Thermal Technologies$39 $42 $46 $28 $3,861 $3,743 
Drivetrain & Morse Systems46 70 27 17 3,806 3,795 
PowerDrive Systems51 45 20 24 3,254 3,163 
Battery Energy Systems6 15 1 4 428 460 
Total142 172 94 73 11,349 11,161 
Corporate2
7 7 2 4 2,585 2,608 
Consolidated$149 $179 $96 $77 $13,934 $13,769 
Depreciation and amortization
Long-lived asset expenditures1
Six Months Ended June 30, 2026Six Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Turbos & Thermal Technologies$79 $82 $104 $69 
Drivetrain & Morse Systems92 119 56 41 
PowerDrive Systems97 88 72 68 
Battery Energy Systems12 31 3 12 
Total280 320 235 190 
Corporate14 14 4 6 
Consolidated$294 $334 $239 $196 
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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.