BorgWarner Reports Increased Net Sales and Profitability in Q2 and First Half of 2026

BorgWarner Inc. reported its financial results for the second quarter and first half of 2026, revealing a slight increase in net sales and profitability compared to the same period in 2025. For the three months ended June 30, 2026, the company achieved net sales of $3.648 billion, a marginal increase from $3.638 billion in the prior year. The gross profit for the quarter was $721 million, resulting in a gross margin of 19.8%, up from 17.6% a year earlier. Net earnings attributable to BorgWarner Inc. were $277 million, or $1.34 per diluted share, compared to $224 million, or $1.03 per diluted share, in the same quarter of 2025.

In the first half of 2026, BorgWarner's net sales reached $7.181 billion, a slight increase from $7.153 billion in the first half of 2025. The company reported a gross profit of $1.398 billion, with a gross margin of 19.5%, compared to 17.9% in the previous year. Net earnings for the six-month period were $546 million, or $2.50 per diluted share, compared to $381 million, or $1.75 per diluted share, in the first half of 2025. The increase in profitability was attributed to improved cost management and operational efficiencies, despite challenges in market conditions.

BorgWarner's strategic developments included the exit from its charging business, which was part of a broader restructuring initiative aimed at streamlining operations and focusing on core competencies. The company also completed the acquisition of Hubei Surpass Sun Electric's electric vehicle solutions business, enhancing its presence in the Chinese market. The restructuring efforts are expected to yield annualized savings of approximately $30 million by the end of 2026.

Operationally, BorgWarner reported a total employee headcount of 50,000 as of June 30, 2026, reflecting a slight reduction from the previous year. The company continues to focus on expanding its product offerings in electric and hybrid vehicle technologies, with eProducts accounting for approximately 18% of total revenue in both the second quarter and first half of 2026. The company also noted fluctuations in foreign currency exchange rates, which positively impacted sales by approximately $54 million in the second quarter.

Looking ahead, BorgWarner anticipates a challenging market environment, projecting global industry production to decline by 1% to 3% year-over-year in 2026. The company expects total sales to decrease, excluding the impact of foreign currencies, particularly in its Battery Energy Systems segment. Despite these challenges, BorgWarner maintains a positive long-term outlook, emphasizing its commitment to innovation and strategic investments in clean and efficient technology solutions for the automotive industry.