BorgWarner Inc. reported its financial results for the third quarter and nine months ended September 30, 2026, in a filing released on October 29, 2026. The company reported U.S. GAAP net sales of $3,487 million for the third quarter of 2026, a decrease of approximately 2.9% compared to the same period in 2025. Excluding the impact of foreign currency, organic net sales decreased by 3.1%.
Net earnings for the third quarter of 2026 were $221 million, or $1.08 per diluted share, an increase of 47.9% compared to $158 million, or $0.73 per diluted share, in the prior year. Adjusted net earnings per diluted share were $1.39, up 12.1% from $1.24 in the third quarter of 2025. The company achieved a U.S. GAAP operating margin of 8.7% and an adjusted operating margin of 10.9% for the quarter.
BorgWarner announced several business developments during the quarter. The company successfully executed a debt tender and make-whole redemption, reducing its gross debt balance by $864 million. Additionally, the company repurchased approximately $175 million of its shares and paid a $35 million cash dividend. The company secured multiple new business awards, including an engine control module award for a new internal combustion engine pickup truck platform expected to begin production in 2029, and several eProduct awards for electric and hybrid vehicle programs with production expected to begin between 2026 and 2028.
In terms of full-year guidance, BorgWarner increased its 2026 adjusted earnings per share outlook. The company now expects adjusted net earnings per diluted share to be in the range of $5.20 to $5.35, compared to the previous range of $5.05 to $5.30. The company attributes this increase to the expected impacts of share repurchases and a decline in its full-year effective tax rate. Net sales for 2026 are expected to be between $14.0 billion and $14.2 billion, representing a year-over-year decline of 4% to 2.5% on an organic basis. U.S. GAAP operating margin is expected to be between 9.3% and 9.6%, while adjusted operating margin is expected to be between 10.7% and 10.9%.
