BorgWarner Q2 2026 Earnings: Margin Expansion Offsets Organic Sales Decline

BorgWarner’s Q2 2026 net sales rose 0.3% year over year to $3.648 billion, while organic sales fell 1.2% as lower industry production and weaker Battery Energy Systems sales offset currency support. GAAP diluted EPS increased 30.1% to $1.34, and adjusted EPS rose 17.4% to $1.42. Adjusted operating margin expanded 100 basis points to 11.3%, supported by cost controls, while free cash flow was $492 million. The company raised full-year adjusted EPS guidance to $5.05-$5.30 and maintained its sales, margin, and cash flow outlooks.