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REPORTABLE SEGMENTS AND RELATED INFORMATION
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS AND RELATED INFORMATION REPORTABLE SEGMENTS AND RELATED INFORMATION
The Company’s business is comprised of two reportable segments, which are further described below. These segments are strategic business groups, which are managed separately as each represents a specific grouping of related automotive components and systems.
Effective September 1, 2026, to reflect the Company’s strategic priorities, the Company’s Fuel Systems reportable segment has been renamed Power Systems, and the Company’s Aftermarket reportable segment has been renamed Aftermarket Solutions. The reporting segment disclosures have been updated accordingly.
In the fourth quarter of 2025, the Company made a strategic decision to shift a significant portion of the original equipment service (OES) business, previously reported in its Aftermarket Solutions segment, to the Power Systems segment, as distribution will now be handled by the Power Systems locations that manufacture the products. This is expected to streamline the sales structure to external customers while also reducing administrative efforts. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.
•Power Systems. This segment provides advanced fuel injection systems, fuel delivery modules, canisters, sensors, fuel ignition systems, injector stators, linear position sensors, precision machined components, electronic control modules and associated software. Our highly engineered fuel injection systems portfolio includes pumps, injectors, fuel rail assemblies, engine control modules, and complete systems, including software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications.
•Aftermarket Solutions. Through this segment, the Company sells products to independent aftermarket solutions customers. Its product portfolio includes a wide range of products as well as maintenance, test equipment and vehicle diagnostics solutions. Additionally, it offers a diverse
portfolio of original equipment service solutions and remanufactured products. The Aftermarket Solutions segment also includes sales of starters and alternators to OEM and OES customers.
Segment Adjusted Operating Income (AOI) is the measure of segment income or loss used by the Company. Segment AOI is comprised of segment operating income adjusted for restructuring, separation-related costs, merger and acquisition costs, acquisition-related intangible asset amortization expense, impairment charges, other net expenses and other items not reflective of ongoing operating income or loss. The Company believes Segment AOI is most reflective of the operational profitability or loss of its reportable segments. Segment AOI excludes certain corporate costs, which primarily represent corporate expenses not directly attributable to the individual segments.
The Company’s chief operating decision maker (CODM) is the chief executive officer.
The CODM uses Segment AOI for the financial planning and review process. The CODM considers actual-to-forecast and actual-to-actual variances on a quarterly basis for Segment AOI when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Segment AOI for evaluating pricing strategy and to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The following tables show segment revenues and significant expenses for the Company’s reportable segments:
Three Months Ended September 30, 2026
Power Systems
Aftermarket SolutionsInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$561 $351 $— $912 
Inter-segment eliminations$38 $— $(38)$— 
Net Sales$599 $351 $(38)$912 
Less:
Cost of sales492 254 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
18 34 
Net R&D costs22 3 
Other segment items2
(1)— 
Segment AOI$68 $60 
Three Months Ended September 30, 2025
Power Systems
Aftermarket SolutionsInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$571 $337 $— $908 
Inter-segment eliminations$39 $— $(39)$— 
Net Sales$610 $337 $(39)$908 
Less:
Cost of sales501 246 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
18 34 
Net R&D costs18 2 
Other segment items2
(3)4 
Segment AOI$76 $51 
Nine Months Ended September 30, 2026
Power Systems
Aftermarket SolutionsInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,694 $1,036 $— $2,730 
Inter-segment eliminations$97 $— $(97)$— 
Net Sales$1,791 $1,036 $(97)$2,730 
Less:
Cost of sales1,478 741 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
59 107 
Net R&D costs78 9 
Other segment items2
(7)2 
Segment AOI$183 $177 
Nine Months Ended September 30, 2025
Power Systems
Aftermarket SolutionsInter-segment EliminationsConsolidated
(in millions)
Net sales to external customers$1,617 $977 $— $2,594 
Inter-segment eliminations$114 $— $(114)$— 
Net Sales$1,731 $977 $(114)$2,594 
Less:
Cost of sales1,432 707 
Selling, general and administrative expenses (excluding Net R&D costs shown separately below)1
50 97 
Net R&D costs70 8 
Other segment items2
(5)6 
Segment AOI$184 $159 
____________
1 Excludes acquisition-related intangibles amortization.

2 Other segment items include inter-segment fees and other income.
The following table shows a reconciliation of Segment AOI to Earnings before income taxes for the Company’s reportable segments:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Power Systems
$68 $76 $183 $184 
Aftermarket Solutions60 51 177 159 
Segment AOI128 127 360 343 
Corporate, including stock-based compensation26 26 78 75 
Amortization of acquisition-related intangibles8 8 24 22 
Restructuring expense5 4 16 11 
Merger and acquisition expense2 4 5 9 
Separation-related costs2 53 3 43 
Losses (gains) for other one-time events1 (2)1 (2)
Interest income(2)(3)(6)(11)
Interest expense21 20 62 60 
Equity in affiliates’ earnings, net of tax(4)(3)(13)(11)
Other postretirement (income) expense, net(1)1 (4)3 
Earnings before income taxes$70 $19 $194 $144 
Segment Information
Segment information as of September 30, 2026 and December 31, 2025 and for the three and nine months ended September 30, 2026 and 2025 is presented in the tables below:
Assets
(in millions)September 30, 2026December 31, 2025
Power Systems$2,055 $2,088 
Aftermarket Solutions1,413 1,351 
Total3,468 3,439 
Corporate1
491 378 
Consolidated$3,959 $3,817 
_______________
1 Corporate assets include cash and cash equivalents, investments and long-term receivables, and deferred income taxes.
Depreciation and amortizationThree Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Power Systems$35 $34 $103 $96 
Aftermarket Solutions6 6 18 19 
Total41 40 121 115 
Corporate— — 1 1 
Consolidated$41 $40 $122 $116 
Long-lived asset expenditures1
Nine Months Ended September 30,
(in millions)20262025
Power Systems$63 $85 
Aftermarket Solutions6 7 
Total69 92 
Corporate2 3 
Consolidated$71 $95 
_______________
1 Long-lived asset expenditures include capital expenditures and tooling outlays.