v3.26.3
REPORTABLE SEGMENTS (Tables)
 9 Months Ended
Sep. 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 September 30, 2026
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,370 $1,340 $699 $78 $— $3,487 
Net sales - inter-segment2 6 6 — (14)— 
Net sales$1,372 $1,346 $705 $78 $(14)$3,487 
Cost of sales1,098 1,060 607 65 
Selling, general and administrative expenses - R&D, net45 29 87 8 
Selling, general and administrative expenses - Other28 9 17 7 
Other segment items1
— (2)(1)1 
Segment Adjusted Operating Income (Loss)$201 $250 $(5)$(3)
Nine Months Ended September 30, 2026
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$4,242 $4,208 $1,938 $280 $— $10,668 
Net sales - inter-segment5 15 19 — (39)— 
Net sales$4,247 $4,223 $1,957 $280 $(39)$10,668 
Cost of sales3,381 3,313 1,706 237 
Selling, general and administrative expenses - R&D, net136 94 259 26 
Selling, general and administrative expenses - Other90 31 66 23 
Other segment items1
— (2)(4)1 
Segment Adjusted Operating Income (Loss)$640 $787 $(70)$(7)
Three Months Ended September 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$1,436 $1,447 $576 $132 $— $3,591 
Net sales - inter-segment1 5 6 — (12)— 
Net sales$1,437 $1,452 $582 $132 $(12)$3,591 
Cost of sales1,138 1,137 498 124 
Selling, general and administrative expenses - R&D, net50 34 94 9 
Selling, general and administrative expenses - Other29 18 26 8 
Other segment items1
1 (4)(1)(2)
Segment Adjusted Operating Income (Loss)$219 $267 $(35)$(7)
Nine Months Ended September 30, 2025
(in millions)Turbos & Thermal TechnologiesDrivetrain & Morse SystemsPowerDrive SystemsBattery Energy SystemsInter-segment eliminationsTotal
Net sales - customers$4,370 $4,227 $1,706 $441 $— $10,744 
Net sales - inter-segment2 15 18 — (35)— 
Net sales$4,372 $4,242 $1,724 $441 $(35)$10,744 
Cost of sales3,470 3,345 1,500 425 
Selling, general and administrative expenses - R&D, net135 95 286 30 
Selling, general and administrative expenses - Other84 36 55 28 
Other segment items1
2 (4)(6)(1)
Segment Adjusted Operating Income (Loss)$681 $770 $(111)$(41)
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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 September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Turbos & Thermal Technologies$201 $219 $640 $681 
Drivetrain & Morse Systems250 267 787 770 
PowerDrive Systems(5)(35)(70)(111)
Battery Energy Systems(3)(7)(7)(41)
Segment Adjusted Operating Income443 444 1,350 1,299 
Corporate, including stock-based compensation62 59 184 189 
Restructuring expense (Note 5)50 23 89 71 
Intangible asset amortization expense13 16 43 49 
Accelerated depreciation1
11 60 20 81 
Adjustments associated with Spin-Off related balances2
— 8 1 7 
Legal settlement (Note 20)— 38 — 38 
Impairment charges— — — 42 
Write-off of customer incentive asset— — — 7 
Costs to exit charging business (Note 3)— — — 32 
Chief Executive Officer ("CEO") transition compensation2
— 5 — 11 
Loss on sale of assets2
— 1 — 6 
Loss on sale of businesses— 1 — 2 
Insurance recovery (Note 12)— (21)— (21)
Merger and acquisition expense (income), net2
1 2 (1)4 
Other non-comparable items4 4 6 7 
Equity in affiliates’ (earnings) loss, net of tax(10)(11)(26)(29)
Unrealized (gain) loss on equity securities(4)(1)(7)(2)
Interest expense (income), net6 9 27 33 
Other postretirement expense (income)12 3 16 8 
Earnings before income taxes and noncontrolling interest$298 $248 $998 $764 
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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 Expense (Income), 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 September 30, 2026Three Months Ended September 30, 2025Three Months Ended September 30, 2026Three Months Ended September 30, 2025September 30, 2026December 31, 2025
Turbos & Thermal Technologies$42 $43 $60 $46 $3,896 $3,743 
Drivetrain & Morse Systems55 47 27 26 3,794 3,795 
PowerDrive Systems45 44 36 33 3,357 3,163 
Battery Energy Systems4 75 2 4 427 460 
Total146 209 125 109 11,474 11,161 
Corporate2
7 10 — 2 1,742 2,608 
Consolidated$153 $219 $125 $111 $13,216 $13,769 
Depreciation and amortization
Long-lived asset expenditures1
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Turbos & Thermal Technologies$121 $125 $164 $115 
Drivetrain & Morse Systems147 166 83 67 
PowerDrive Systems142 132 108 101 
Battery Energy Systems16 106 5 16 
Total426 529 360 299 
Corporate21 24 4 8 
Consolidated$447 $553 $364 $307 
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1 Long-lived asset expenditures include tooling outlays and capital expenditures, excluding customer advances.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables and deferred income taxes.