博格華納 (BWA) 2026 Q2 法說會逐字稿

Good morning. My name is Nick, and I will be your conference specialist. At this time, I would like to welcome everyone to the BorgWarner 2026 second quarter results conference call. (Operator Instructions) I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

早安。我叫 Nick，將擔任本次會議的專員。此刻，我想歡迎各位參加 BorgWarner 2026 年第二季財報電話會議。(接線員指示) 現在我想把電話交給投資人關係副總裁 Patrick Nolan。Nolan 先生，您可以開始您的會議。

Thank you, Nick. Good morning, everyone, and thank you for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on our home page and on our Investor Relations home page. With regard to our Investor Relations calendar, we will be attending investor conferences between now and our next earnings release.

謝謝你，Nick。各位早安，感謝今天加入我們。我們今天一早已發布盈餘新聞稿。已張貼於我們的網站 borgwarner.com，包含首頁以及投資人關係首頁。就投資人關係行事曆而言，在下一次發布財報之前，我們將出席多場投資人會議。

Please see the Events section of our Investor Relations home page for a full list. Before we begin a inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. In addition, during today's presentation, we'll highlight certain non-GAAP measures in order to provide a clearer picture about the core business of platforms and for comparison purposes with prior periods.

完整清單請參閱投資人關係首頁的「活動」區。在開始之前先提醒各位，本次電話會議中我們可能會發表前瞻性陳述，相關風險與不確定性已於我們的 10-K 中詳述。我們的實際結果可能與今日討論事項有重大差異。此外，在今天的簡報中，我們將強調若干非 GAAP 指標，以便更清楚呈現平台核心業務，並用於與前期比較。

We heartly adjusted that means excluding noncomparable items. When you hear us say organic, that means excluding the impact of FX and net M&A. We'll also refer to our incremental margin performance. Our incremental margin is defined as the organic change in our adjusted operating income divided by the organic car sales. We will also refer to our growth compared to our market.

我們所稱的 adjusted（調整後）係指排除不可比項目。當您聽到我們說 organic（有機），係指排除匯率（FX）以及淨併購（net M&A）的影響。我們也會提到增量利潤率（incremental margin）的表現。增量利潤率定義為：調整後營業利益的有機變動，除以有機汽車銷售額。我們也會提到相較於市場的成長。

When you hear us say market, that means the change in light vehicle production weighted for our geographic exposure. Please note that we posted earnings call presentation to the IR on-page or our website. We encourage you to follow along with these slides during our discussion.

當您聽到我們說 market（市場），係指依我們地理曝險加權後的輕型車產量變動。請注意，我們已將財報電話會議簡報上傳至本公司網站的投資人關係頁面。我們鼓勵各位在討論期間搭配這些投影片一同閱讀。

With that, I'm happy to turn the call over to Joe.

接下來，我很高興把電話交給 Joe。

Thank you, Pat, and good morning, everyone. I'm pleased to share our results for the second quarter of 2026 and provide an overall company update, starting on slide 5. I want to begin by thanking our employees, customers and suppliers for all of their trust, efforts, and continued support. In the quarter, we achieved sales of over $3.6 billion.

謝謝你，Pat，各位早安。我很高興分享我們 2026 年第二季的業績，並提供公司整體最新進展，從第 5 頁投影片開始。首先我要感謝我們的員工、客戶與供應商，感謝各位的信任、努力與持續支持。本季我們的銷售額超過 36 億美元。

Excluding the decline in our Battery Energy Systems segment, our organic net sales were up modestly year-over-year outperformed the decline in market production primarily due to strong North American transfer case volumes. Our adjusted operating margin, adjusted earnings per share and cash flow performance was strong in the quarter.

若排除電池能源系統（Battery Energy Systems）事業部的下滑，我們的有機淨銷售額年增小幅上升，並優於市場產量下滑，主要受惠於北美分動箱（transfer case）出貨量強勁。本季我們的調整後營業利益率、調整後每股盈餘以及現金流表現皆相當強勁。

The company continued to operate at a very high level and delivered 100 basis points of adjusted margin expansion and 17% of earnings per share growth in a relatively flat year-over-year sales environment. This outstanding result was once again driven by our focus on cost controls across our business. I am excited to report that our strong award activity continued into the second quarter.

公司持續以非常高的水準營運，在年對年銷售相對持平的環境下，仍交出調整後利潤率擴張 100 個基點，以及每股盈餘成長 17% 的成績。這項出色成果再次來自我們對全公司成本控管的專注。我很高興報告，我們強勁的得標動能在第二季仍持續。

Today, I'll highlight seven new business awards across our foundational and e-products portfolios. These wins represent only a portion of the awards secured during the quarter, but I believe they underscore the strength of our technology-focused portfolio, our deeper relationships and the global demand for our efficient powertrain technologies around the globe.

今天我將重點介紹我們在基礎產品與電動化產品（e-products）組合中取得的 7 項新業務獎項。這些勝利僅代表本季所獲獎項的一部分，但我相信它們凸顯了我們以技術為核心的產品組合實力、更深厚的客戶關係，以及全球對我們高效率動力總成技術的需求。

Equally exciting is the progress we've made in the quarter in taking meaningful steps in our product readiness across our data center and other industrial markets portfolio. I will share a detailed update in a few moments.

同樣令人振奮的是，本季我們在資料中心及其他工業市場產品組合方面，於產品就緒度（product readiness）上採取了具實質意義的步驟並取得進展。我將在稍後提供更詳細的更新。

Lastly, we remain focused on efficient deployment of capital to drive shareholder value. In the quarter, we returned approximately $134 million to shareholders through share repurchases and payment of a cash dividend. Additionally, our Board of Directors approved a $1 billion increase to our current share repurchase authorization, increasing our authorization to $1.35 billion or approximately 10% of BorgWarner's market cap. These actions demonstrate our confidence in the long-term cash generating ability of our business. and our focus on driving shareholder value through a balanced capital allocation approach.

最後，我們仍專注於有效部署資本以提升股東價值。本季我們透過庫藏股回購與現金股利發放，合計回饋股東約 1.34 億美元。此外，我們董事會核准將現行庫藏股回購授權額度增加 10 億美元，使授權總額提高至 13.5 億美元，約相當於 BorgWarner 市值的 10%。這些行動展現我們對公司長期現金創造能力的信心，以及透過均衡的資本配置策略推動股東價值的專注。

As I look back on the second quarter and the first half of 2026, I'm very proud of our team and our results. Once again, we execute at a very high level, which I believe puts the company in a strong position to achieve our full year sales, margin, EPS and free cash flow guidance. Our strong first half performance has also allowed the con to increase our second half 2026 industrial R&D investment to accelerate our product readiness. We are doing this while delivering our full year 2026 financial commitments.

回顧第二季以及 2026 年上半年，我對我們的團隊與成果感到非常自豪。我們再次以非常高的水準執行，我相信這使公司處於有利位置，可達成全年銷售、利潤率、每股盈餘與自由現金流的指引。我們上半年強勁的表現，也讓公司得以提高 2026 年下半年工業研發（R&D）投資，以加速產品就緒度。我們在做到這些的同時，仍將履行 2026 年全年的財務承諾。

Turning to slide 6. I'd like to highlight seven recent product awards that demonstrate both the competitiveness of our technology and our ability to support our customers' powertrain needs in key markets. Let's start with our foundational product awards. First, Fort Warner has been awarded a new E-Turbo program with a major European OEM for an advanced hybrid passenger car application. Further strengthening Fort Warner's leading position in electrified boosting technologies.

接著看第 6 頁投影片。我想重點介紹 7 項近期產品得標，展現我們技術的競爭力，以及在關鍵市場支援客戶動力總成需求的能力。先從我們的基礎產品得標談起。第一，BorgWarner 獲得一家主要歐洲 OEM 的新 E-Turbo 專案，用於先進混合動力乘用車應用。進一步強化 BorgWarner 在電動化增壓（electrified boosting）技術的領先地位。

Production is scheduled to begin in 2029. I believe BorgWarner's E-Turbo innovation and leadership remains a core technology underpinning the industrial power generation product line leveraging our automotive scale to disrupt the data center market.

預計於 2029 年開始量產。我相信 BorgWarner 在 E-Turbo 的創新與領導地位，仍是工業發電產品線的核心技術基礎，並可運用我們的汽車規模優勢來顛覆資料中心市場。

Second, BorgWarner has secured new business with a Chinese OEM to supply our Torque-On-Demand transfer case with mechanical lock for a newly developed full-size SUV in China. We have built a 20-year relationship with this customer, and we're proud to continue supplying our all-wheel drive technology for their newest unit.

第二，BorgWarner 與一家中國 OEM 取得新業務，將為其在中國新開發的全尺寸 SUV 供應具機械鎖止功能的 Torque-On-Demand 分動箱。我們與該客戶建立了 20 年的合作關係，並很自豪能持續為其最新車款供應我們的四輪驅動技術。

Start of production is planned for the fourth quarter of 2026. Fort Warner continues to expand its variable cam timing business with new program awards in Europe and China. These programs include a program life extension and significant volume increase for a leading European premium OEMs V6 engine family. And a complex plan from a major Chinese OEMs 1.5-liter turbodarge gasoline engine family, replacing the previous incumbent supplier.

預計於 2026 年第四季開始量產。BorgWarner 持續透過在歐洲與中國的新專案得標，擴大可變汽門正時（variable cam timing）業務。這些專案包括：針對一家領先的歐洲高端 OEM 的 V6 引擎家族，延長專案生命週期並大幅提升出貨量。以及一家主要中國 OEM 的 1.5 升渦輪增壓汽油引擎家族之複雜方案，取代先前的既有供應商。

These awards underscore the long-term competitiveness of our PCT portfolio across both hybrid and combustion engines. Switching now to our recent e-product awards. First, Fort Werner has secured a new integrated drive module award with a global OEM. This IBM features Board Warner's latest three in one integrated co-axl drive system, combining an advanced team or gearbox and fully integrated Gen 4 inverter in a compact high-performance package.

這些得標凸顯我們 PCT 產品組合在混合動力與燃油引擎領域的長期競爭力。接著談我們近期的電動化產品得標。第一，BorgWarner 與一家全球 OEM 取得新的整合式驅動模組（integrated drive module）專案。此 IDM 採用 BorgWarner 最新的三合一同軸整合驅動系統，將先進的馬達或變速箱，以及完全整合的第 4 代逆變器（Gen 4 inverter）結合於緊湊且高性能的套件中。

I believe this award reflects BorgWarner's continued commitment to delivering advanced electrified drive solutions through the strength of our global technology portfolio and localized capabilities. Production is expected to begin in 2027.

我相信這項得標反映 BorgWarner 持續致力於憑藉我們全球技術產品組合的優勢與在地化能力，提供先進的電動化驅動解決方案。預計於 2027 年開始量產。

Second, BorgWarner has secured a major extension of two high-volume, high-voltage inverter programs with a major European OEM. These awards cover updated and burner designs for both plug-in hybrid and 800 fold battery electric vehicle applications, building on a trusted partnership and power electronics.

第二，BorgWarner 與一家主要歐洲 OEM 取得兩項高出貨量、高電壓逆變器專案的重大延長。這些獎項涵蓋插電式混合動力與 800 伏電池電動車應用的更新與全新設計，並建立在彼此信賴的合作夥伴關係與電力電子技術之上。

I believe that extending several high-volume programs at the same time confirms BorgWarner's leading position at power electronics and the strength of our technology in-house expertise and customer focus, involving our inverters generation by generation, together with our customers, for both hybrid and fully electric applications is how we build trusted long-term partnerships with the world's leading OEMs. Production is expected to begin in 2029.

我相信，同時延長多個高產量專案，印證了博格華納在電力電子領域的領先地位，以及我們在技術內部專業能力與以客戶為中心方面的實力；我們與客戶一代又一代共同開發逆變器，涵蓋混合動力與純電動應用，正是我們與全球領先 OEM 建立值得信賴的長期合作夥伴關係的方式。預計將於 2029 年開始量產。

Importantly, all the product awards I just highlighted include BorgWarner's in further technology, and it speaks to the world-class technology leadership and scale or nor have and high-powered inverters. This expertise has been developed over decades of engineering effort and represents our product leadership in this area. Our automotive and burner competence is another great example of a world-class technology that BorgWarner could use as we continue to advance our product readiness to capture additional growth factors outside of our core automotive markets.

重要的是，我剛才強調的所有產品獎項都包含博格華納在進一步技術方面的投入，這也說明了我們在高功率逆變器方面具備世界級的技術領導力與規模。這項專業能力是經過數十年的工程努力所累積而成，並代表我們在此領域的產品領導地位。我們在汽車與燃燒（相關）能力也是另一個世界級技術的絕佳例子；隨著我們持續提升產品就緒度，以掌握核心汽車市場以外的額外成長動能，博格華納可加以運用。

As I will discuss in a moment, the world is a need for more power and our highly efficient inverter is a solution that solves this growing problem. Next, on slide 7. As I would like to discuss the acceleration of our product readiness across our data center and other industrial markets portfolio. Let's discuss with an update on our turbine generator launch progress. I'm very pleased with the advancements that we've made over the past quarter.

正如我稍後將討論的，全球對更多電力的需求正在增加，而我們的高效率逆變器正是一項可解決此日益嚴峻問題的方案。接下來看第 7 頁投影片。我想討論我們在資料中心及其他工業市場產品組合中，加速提升產品就緒度的進展。先更新我們渦輪發電機的上市進度。我對過去一季我們所取得的進展感到非常滿意。

First, I'm excited to share that our testing has confirmed that we have achieved carbon-level emission standards. I view this as an important milestone as we continue to expect our turbine generator to provide a lower emission solution relative to competing technologies. Our compliance process continues to progress well. UL component certification is expected to start in September and our component level evidence books have already been submitted.

首先，我很高興分享，我們的測試已確認我們達成碳等級排放標準。我認為這是一個重要里程碑，因為我們持續期待渦輪發電機相較於競爭技術能提供更低排放的解決方案。我們的合規流程持續順利推進。UL 元件認證預計於 9 月開始，而我們的元件層級佐證文件（evidence books）已提交。

Construction of the final assembly plant is quickly moving forward with the footprint largely complete. We expect our capital equipment installation to begin in the third quarter. And overall, I'm excited and pleased with the team's progress, which will position us well to meet the strong interest that we continue to see from end customers, including multiple hyperscalers.

最終組裝廠的建設正快速推進，廠區規劃大致已完成。我們預期資本設備安裝將於第三季開始。整體而言，我對團隊的進度感到振奮且滿意，這將使我們能夠妥善因應終端客戶（包括多家超大規模業者 hyperscalers）持續展現的強勁興趣。

Turning next to our Battery Energy Storage system. Our energy storage solutions are intended to support a range of use cases and data center environments. We continue to position our battery energy storage solutions to support data center, AI, and mechanical loads. Our product scope spans the entire energy power time requirement spectrum, operate high energy long duration and/or high-power, short-duration solutions. .

接著談我們的電池儲能系統。我們的儲能解決方案旨在支援多種使用情境與資料中心環境。我們持續將電池儲能解決方案定位為支援資料中心、AI 與機電負載。我們的產品範疇涵蓋整個能量/功率/時間需求光譜，提供高能量長時長及/或高功率短時長的解決方案。.

We are working to widen our portfolio, which includes DC blocks uninterruptible power supplies, high-power racks and controls. Our solutions are modular, scalable, and sell chemistry independent. Customer validation and UL compliance is advancing, and we expect to be production ready in 2027, our quoting activity for our battery energy storage systems continues, and I look forward to providing you with additional updates later this year. Turning to our microgrid inverter offerings. Initial customer feedback has been extremely positive.

我們正致力於擴大產品組合，包含直流匯流排不斷電系統（DC blocks UPS）、高功率機架與控制系統。我們的解決方案具備模組化、可擴充，且不受電池化學體系限制。客戶驗證與 UL 合規正在推進，我們預期於 2027 年具備量產就緒；我們對電池儲能系統的報價活動仍在持續，並期待在今年稍晚提供更多更新。接著談我們的微電網逆變器產品。初期客戶回饋極為正面。

We believe that we have the right value proposition, including US manufacturing and supply chain. Our automotive supply chain is increasingly being viewed as a differentiator, and our decades-long experience in highly engineered, high voltage power events and liquid cooled power electronics is recognized and confirmed by potential customers.

我們相信我們具備正確的價值主張，包括美國製造與供應鏈。我們的汽車供應鏈日益被視為差異化優勢，而我們在高度工程化的高電壓電力事件與液冷電力電子方面數十年的經驗，也獲得潛在客戶的認可與確認。

Our customers now have BorgWarner samples and discussions with other potential customers are underway. With feedback already we received, we are quickly moving to develop Gen 2 designs. While we continue to see the move toward 800 volts supporting our entry into this market, we have now begun to develop a high-power portfolio, spanning applications ranging from 400 volts to 1,500 volts as we see potential for volumes across the spectrum.

我們的客戶目前已取得博格華納樣品，並且與其他潛在客戶的討論也在進行中。基於我們已收到的回饋，我們正快速推進第二代（Gen 2）設計開發。在我們持續看到朝向 800 伏的趨勢、支持我們進入此市場的同時，我們也已開始開發高功率產品組合，涵蓋 400 伏至 1,500 伏的應用，因為我們看見整個光譜皆具備量的潛力。

I look forward to progressing toward customer quoting later this year. To summarize, I believe there are three key takeaways from today's call. First, BorgWarner's second quarter results were outstanding. Our sales remained strong at over $3.6 billion. Our adjusted operating margin expanded 100 basis points and adjusted EPS grew by 17% to the second quarter of 2025.

我期待在今年稍晚推進至客戶報價階段。總結而言，我認為今天電話會議有三項關鍵重點。第一，博格華納第二季業績表現出色。我們的銷售額維持強勁，超過 36 億美元。我們的調整後營業利益率擴大 100 個基點，調整後 EPS 較 2025 年第二季成長 17%。

Additionally, we increased our full year adjusted EPS guidance, reflecting our continued focus on growing the earnings power of the company. Second, we announced seven new business awards across our portfolio in the quarter, which we believe further demonstrates our focus on product leadership, and the need for our highly engineered solutions across combustion, hybrid, and architectures.

此外，我們上調全年調整後 EPS 指引，反映我們持續聚焦於提升公司的獲利能力。第二，我們在本季於產品組合中宣布取得 7 項新業務獎項，我們認為這進一步展現我們對產品領導地位的專注，以及市場對我們在燃油、混合動力與架構方面高度工程化解決方案的需求。

Third, we further improved our product readiness across our data center and other industrial markets portfolio. We see strong customer demand and are confident that our mechanical and electronic core competencies will enable us to successfully capture growth outside of our core automotive market. This confidence in our strong first half 2026 performance has allowed us to increase our second half industrial R&D spending to further accelerate our industrial product readiness.

第三，我們進一步提升了在資料中心及其他工業市場產品組合的產品就緒度。我們看到強勁的客戶需求，並有信心我們在機械與電子方面的核心能力，將使我們能成功掌握核心汽車市場以外的成長。基於我們對 2026 年上半年強勁表現的信心，我們已提高 2026 年下半年工業研發支出，以進一步加速工業產品就緒度。

And finally, we took meaningful steps to return capital to shareholders during the second quarter with approximately $134 million returned to our cash dividend and share repurchases. Additionally, the $1 billion increase to our share repurchase authorization and $1.35 billion total authorization demonstrates our commitment to following a disciplined approach of consistently returning cash to shareholders to create value.

最後，我們在第二季採取了具實質意義的行動回饋股東，透過現金股利與庫藏股回購合計返還約 1.34 億美元。此外，將股票回購授權額度增加 10 億美元、使總授權達 13.5 億美元，展現我們承諾以紀律性的方式，持續將現金返還股東以創造價值。

Overall, I believe our year-to-date results illustrate the strength of our team, our product portfolio and the long-term earnings power of our business. I'm excited to continue our positive momentum into the second half of 2026.

整體而言，我認為截至目前的年度表現展現了我們團隊、產品組合以及業務長期獲利能力的實力。我很期待在 2026 年下半年延續我們的正向動能。

With that, I will turn the call over to Craig.

接下來，我把電話會議交給 Craig。

Thank you, Joe, and good morning, everyone. I'm excited to share the details of our second quarter financials by turning to slide 8 for a look at our year-over-year sales matter. Last year's Q2 sales were just over $3.6 billion. In the second quarter of this year, stronger foreign currency drove a year-over-year increase in sales of $54 million. Then you can see the sales headwind from our battery business, which drove a year-over-year decrease in sales of $62 million.

謝謝你，Joe，各位早安。我很高興透過第 8 頁投影片，分享我們第二季財務的細節，並看看我們年對年銷售的變動。去年第二季銷售額略高於 36 億美元。今年第二季，較強的外幣匯率帶動銷售額年對年增加 5,400 萬美元。接著你可以看到來自我們電池業務的銷售逆風，使銷售額年對年減少 6,200 萬美元。

The remaining organic sales increase of $18 million, 0.5% was modestly ahead of the decline in light vehicle market production for the quarter. This increase was primarily driven by transfer case outgrowth in North America. Ultimately, sales were relatively flat year-over-year and remained strong at over $3.6 billion. Turning to slide 9, you can see our earnings and cash flow performance for the quarter. Our second quarter adjusted operating income was $413 million, equating to a strong 11.3% adjusted operating margin.

其餘的有機銷售增加 1,800 萬美元（0.5%），略高於本季輕型車市場產量下滑的幅度。這項增加主要由北美分動箱（transfer case）業務的優於市場表現所帶動。最終，銷售額年對年大致持平，並維持在超過 36 億美元的強勁水準。接著看第 9 頁投影片，你可以看到我們本季的獲利與現金流表現。我們第二季調整後營業利益為 4.13 億美元，相當於 11.3% 的強勁調整後營業利益率。

That compares to adjusted operating income of $373 million or a 10.3% adjusted operating margin from a year ago. The exit of our charging business in 2025 increased operating income by $7 million year-over-year. Excluding this benefit and FX impacts, adjusted operating income increased $28 million on $44 million of lower sales, this strong year-over-year performance benefited from ongoing cost reduction actions that our teams continue to take across our business.

相較之下，一年前的調整後營業利益為 3.73 億美元，或 10.3% 的調整後營業利益率。我們於 2025 年退出充電業務，使營業利益年對年增加 700 萬美元。排除此項利益與匯率影響後，在銷售額減少 4,400 萬美元的情況下，調整後營業利益仍增加 2,800 萬美元；這項強勁的年對年表現受惠於我們團隊在全公司持續推動的成本降低措施。

Equally exciting, with every business unit expanded operating margins in the quarter and lower corporate costs provided an additional tailwind to our sunsets. Our adjusted EPS was up $0.21 or 17% compared to a year ago as a result of higher adjusted operating income and the impact of approximately $650 million in share repurchases or approximately 5% of our market capitalization over the past four quarters.

同樣令人振奮的是，本季每個事業單位的營運利潤率皆有所擴張，而較低的公司成本也為我們的成果提供了額外助力。由於調整後營業利益提高，以及過去四個季度約6.5億美元的庫藏股回購（約占我們市值的5%）所帶來的影響，我們的調整後每股盈餘（EPS）較去年同期增加0.21美元或17%。

And finally, we generated free cash flow of $492 million in the second quarter which supported $250 million in share repurchases and $70 million in dividend payments in the first half of 2026. I believe this once again demonstrates our focus on creating value with our consistent and strong free cash flow. Now let's turn to Slide 10 and take a look at our full year 2026 outlook. We are maintaining our full year sales, adjusted operating margin and free cash flow guidance.

最後，我們在第二季產生了4.92億美元的自由現金流，支撐了2026年上半年2.5億美元的股票回購與7,000萬美元的股利支付。我相信這再次展現了我們憑藉穩健且強勁的自由現金流來創造價值的聚焦。現在讓我們翻到第10頁，看看我們2026年全年展望。我們維持全年銷售、調整後營業利潤率與自由現金流的指引不變。

However, we are increasing our full year adjusted EPS guidance based on our share repurchases in the first half of 2026. We continue to project total 2026 sales in the range of $14.0 billion to $14.3 billion compared to $14.3 billion in 2025. Starting with foreign currencies. Our guidance now assumes an expected full year sales benefit of $175 million compared to 2025 due to the strengthening of the euro and the renminbi versus the US dollar.

不過，基於2026年上半年的股票回購，我們上調了全年調整後EPS指引。我們仍預估2026年總銷售額介於140億至143億美元之間，相較於2025年的143億美元。先從外幣因素談起。我們目前的指引假設，由於歐元與人民幣相對美元走強，2026年全年銷售額相較2025年可望增加1.75億美元。

This benefit is modestly lower than our previous guidance. We continue to expect our weighted end markets to be flat to down 3% for the year. We expect our light vehicle business, which comprises over 80% of our sales to perform broadly in line with our weighted light vehicle market consistent with how we performed in the first half of 2026. However, we expect a sales decline in our battery business due to lack of North American incentives and weaker European demand.

此項利多較我們先前的指引略低。我們仍預期加權終端市場全年持平至下滑3%。我們的輕型車業務占銷售額逾80%，預期表現將大致與我們加權的輕型車市場一致，與我們在2026年上半年的表現相符。然而，由於北美缺乏補貼激勵以及歐洲需求轉弱，我們預期電池業務銷售將下滑。

We now expect this decline to represent roughly 170 basis point headwind to our year-over-year sales growth. Based on these assumptions, we expect our 2026 organic sales change to be down 3.5% to down 1.5% year-over-year, which is roughly in line with our market and consistent with our previous outlook. Now let's switch to margin. We continue to expect our full year adjusted operating margin to be in the range of 10.7% to 10.9%, and compared to our 2025 adjusted operating margin of 10.7%.

我們目前預期此下滑將對年對年銷售成長造成約170個基點的逆風。基於上述假設，我們預期2026年有機銷售變動將年對年下滑3.5%至下滑1.5%，大致與市場一致，亦與先前展望相符。接著我們來看利潤率。我們仍預期全年調整後營業利潤率介於10.7%至10.9%，相較於2025年調整後營業利潤率10.7%。

On a year-over-year basis, we expect the exit of our charging business to drive a 10 basis point improvement in adjusted operating margin. Excluding this benefit, the low end of our margin outlook contemplates the business delivering a full year decremental conversion in the low double digits. At the high end, our outlook assumes we largely offset the impact of the organic sales decline through further cost control similar to what we delivered in the first half of 2026.

以年對年來看，我們預期退出充電業務將帶動調整後營業利潤率改善10個基點。若排除此項利多，我們利潤率展望的低端假設，業務全年遞減轉換率（decremental conversion）為低雙位數。在高端情境下，我們的展望假設可透過進一步成本控管（類似我們在2026年上半年的表現）大致抵銷有機銷售下滑的影響。

Our strong first half performance is enabling the company to increase our planned industrial R&D spending while maintaining our full-year adjusted operating margin and guidance comment. We continue to see strong customer interest in our growing industrial portfolio and believe BorgWarner's mechanical and electronic powertrain core competencies fit extremely well to serve the needs of a high-power industrial market.

我們上半年強勁的表現，使公司得以在維持全年調整後營業利潤率與指引不變的同時，提高原先規劃的工業研發支出。我們持續看到客戶對我們不斷擴大的工業產品組合抱持高度興趣，並相信BorgWarner在機械與電子動力系統方面的核心能力，非常契合高功率工業市場的需求。

Given these factors, we are leaning forward in accelerating our R&D spending on these products by investing an incremental $10 million to $15 million to support our future growth. This is a great testament. The Board want our team's ability to execute at a high level in the short term to support our long-term sustainable sales growth in a growing market.

基於這些因素，我們將更積極加速這些產品的研發投入，額外投資1,000萬至1,500萬美元以支持未來成長。這是一項很好的證明。董事會肯定我們團隊在短期內高水準執行的能力，以支撐我們在成長型市場中的長期、可持續銷售成長。

Importantly, we are making this R&D investment while maintaining our full year margin guidance. Based on this sales and margin outlook, we are now expecting full year adjusted EPS and in the range of $5.05 to $5.30 per diluted share, which is an increase compared to our initial guidance range of $5 to $5.20 per diluted share.

重要的是，我們在進行這項研發投資的同時，仍維持全年利潤率指引不變。基於此銷售與利潤率展望，我們目前預期全年調整後EPS介於每股稀釋後5.05至5.30美元，較我們最初指引的每股稀釋後5.00至5.20美元有所上調。

This increase is primarily due to the share repurchases completed during the first half of 2026. The midpoint of this adjusted EPS guidance represents approximately a 5% increase versus our 2025 adjusted EPS and once again demonstrates our focus on consistently driving earnings expansion despite lower industry production.

此次上調主要來自2026年上半年完成的股票回購。此調整後EPS指引的中位數相較2025年調整後EPS約增加5%，並再次展現即使產業產量下降，我們仍專注於持續推動獲利擴張。

And finally, we continue to expect full year free cash flow to be in the range of $900 million to $1.1 billion, building off a strong 2025. With that, that's our 2026 outlook. Now let's turn to slide 11 and discuss our recently increased share repurchase authorization. As Joe highlighted in his opening remarks, we repurchased approximately $100 million in BorgWarner stock during the second quarter. This takes our share repurchases over the last four quarters to approximately $650 million and leaves $350 million remaining under our prior share repurchase authorization.

最後，我們仍預期全年自由現金流介於9億至11億美元，延續2025年的強勁表現。以上就是我們對2026年的展望。現在讓我們翻到第11頁，討論我們近期提高的股票回購授權額度。如Joe在開場致詞中所提到，我們在第二季回購了約1億美元的BorgWarner股票。這使得我們過去四個季度的股票回購總額約為6.5億美元，且在先前的回購授權下仍剩餘3.5億美元額度。

Our Board of Directors approved an increase of up to $1 billion through 2029. When combined with the $350 million remaining under our prior authorization, management has the ability to repurchase up to $1.35 billion of the company's outstanding shares or just over 10% of our current market cap. I believe this authorization increase demonstrates the confidence we have in the long-term cash-generating strength of our business and our focus on driving shareholder value through a balanced capital allocation approach that rewards shareholders, so let me summarize my financial remarks.

我們董事會核准將回購授權提高，至2029年前合計最多增加10億美元。加上先前授權剩餘的3.5億美元，管理團隊可回購最多13.5億美元的公司流通在外股份，約略超過目前市值的10%。我認為此次提高授權額度，展現了我們對公司長期現金創造能力的信心，以及我們透過平衡的資本配置方式來提升股東價值、回饋股東的聚焦；接下來我總結一下我的財務重點。

Overall, we were very pleased with our second quarter results. Our light vehicle sales performance was modestly stronger than industry production. We achieved a 100 basis points adjusted operating margin improvement and a 17% adjusted earnings per share increase on relatively flat reported sales. Our strong free cash flow performance supported a cash return of approximately $134 million to shareholders in the quarter.

整體而言，我們對第二季的結果非常滿意。我們的輕型車銷售表現略優於產業產量。在報告銷售額大致持平的情況下，我們達成調整後營業利潤率提升100個基點，且調整後每股盈餘成長17%。我們強勁的自由現金流表現，使本季得以向股東返還約1.34億美元現金。

Q2 performance once again demonstrates the Board Werner team's ability to deliver strong financial results and a declining production environment. We believe this increased share repurchase authorization by our Board of Directors demonstrates our long-term confidence in the cash-generating ability of our business. As we look ahead to the balance of 2026, we intend to remain focused on expanding the earnings power of the company.

第二季的表現再次展現BorgWarner團隊在產量下滑的環境中，仍能交出強勁財務成果的能力。我們相信董事會此次提高股票回購授權，展現了我們對公司長期現金創造能力的信心。展望2026年剩餘期間，我們將持續專注於提升公司的獲利能力。

At the midpoint of our guidance, we expect another year of adjusted operating margin expansion and adjusted earnings per share growth despite our expectations that market volumes and battery sales will define in 2026 and an incremental $10 million to $15 million investment in industrial R&D to accelerate our long-term sales growth. With another year of anticipated strong free cash flow of $1 billion at the midpoint of our guidance, we expect to continue to deploy capital in a balanced approach that reward shareholders.

以指引中位數來看，儘管我們預期2026年市場量與電池銷售將下滑，且將額外投入1,000萬至1,500萬美元於工業研發以加速長期銷售成長，我們仍預期調整後營業利潤率將再度擴張、調整後每股盈餘也將成長。在指引中位數下，預期自由現金流仍將強勁、約為10億美元，我們預期將持續以平衡方式配置資本以回饋股東。

By continuing to focus on near-term execution, growing the long-term earnings power of Kony through organic and inorganic investments and following a ballast deployment of our capital, we believe BorgWarner will create significant shareholder value for many years to come.

透過持續聚焦短期執行、藉由有機與無機投資提升Kony的長期獲利能力，並遵循平衡的資本部署，我們相信BorgWarner將在未來多年為股東創造顯著價值。

With that, I'd like to turn the call back over to Pat.

接下來，我想把電話交回給Pat。

Thank you, Craig. Nick, are to open it up for questions. .

謝謝你，Craig。Nick，請開放提問。.

(Operator Instructions)

(操作員指示)

Chris McNally, Evercore.

Chris McNally，Evercore。

Thanks, team. Joe, could you maybe provide a little more color on some of the quoting progress you discussed on the AI initiatives. I think in particular, maybe you could give like a really quick one-on-one on the BorgEndeavor Turbocel relationship I think given most of us are keeping cloud kind of busy mapping out the different public entities such as Edge, which is also recently in the news. So one of the questions I think that would be great to answer is will Borg announce every smaller DC win within the relationship? Or is it likely to back them together as they become material? And then a follow-up.

謝謝，各位。Joe，你能否就你提到的 AI 計畫在報價進展方面，再多補充一些細節。我想特別是，你或許可以很快地一對一說明一下 BorgEndeavor 與 Turbocel 的合作關係；我想鑑於我們大多數人都在忙著把雲端相關的不同公開實體（例如最近也上了新聞的 Edge）做對應梳理。所以我認為一個很值得回答的問題是：Borg 是否會在這段合作關係中，宣布每一個較小的資料中心（DC）得標？還是更可能等到它們變得具重要性時再一起打包公布？然後還有一個追問。

Yes. Chris. So as I mentioned in the remarks, we're really pleased with the progress we made in the second quarter. And we remain on track starting with the TG. So as you know, we're launching that next year in 2027. And a couple of data points here that business, first of all, the customer interest remains really strong, including multiple hyperscalers. And as you know, endeavor, that is their value in this relationship. So we're really pleased with that. We achieved the car level of missions, which is really a differentiator for us compared to what's out there.

是的。Chris。如我在發言中提到的，我們對第二季取得的進展感到非常滿意。而且我們仍按計畫推進，從 TG 開始。如你所知，我們將在明年、也就是 2027 年推出。這裡有幾個數據點：首先，客戶興趣依然非常強勁，包括多家超大規模雲端業者（hyperscalers）。而且如你所知，Endeavor 在這段合作關係中的價值就在於此。所以我們對此非常滿意。我們達成了 car 等級的任務（missions），這相較於市面上的方案，對我們而言是一項真正的差異化優勢。

And then the UL compliance is in process. So from where I stand, we're on track to deliver -- with regard to the Endeavour relationship, it continues to grow and get stronger as time passes on. We won't decide do we announce every individual event. We try to share the important events and milestones with the investors. And then with the recent news on Endeavour and their partner in Coke.

另外，UL 認證合規正在進行中。所以就我所見，我們仍按計畫交付——至於與 Endeavour 的合作關係，隨著時間推移，它持續成長並更加穩固。我們尚未決定是否要宣布每一個單獨事件。我們會嘗試與投資人分享重要事件與里程碑。至於近期關於 Endeavour 以及其在 Coke 的合作夥伴的新聞。

We're also aware of it. It's not unusual that these financial partners are constantly out raising money for the data center growth, which is out there. But we don't think it materially changes anything between us and our relationship with Endeavour. Partnership is stronger than ever. We see a great fit between our company and also how we see the future of the world. If anything, this has credibility to Endeavour. It adds credibility to their edge data center business that they're a fantastic player, and we're just happy to be partnered with them.

我們也注意到了。這並不罕見，這些金融合作夥伴會持續在外募資，以支持資料中心的成長。但我們不認為這會對我們與 Endeavour 的關係造成任何重大改變。合作關係比以往任何時候都更強。我們看到我們公司與他們之間非常契合，也符合我們對世界未來的看法。如果說有什麼影響的話，這反而提升了 Endeavour 的可信度。它也提升了他們邊緣資料中心業務的可信度，證明他們是非常出色的玩家，而我們很高興能與他們合作。

That's great. I agree. And I think the hyperscale wins obviously would be material by themselves. And -- so then just a quick follow-up is on the BFS side. You reiterated start of production '27. The quoting continues Nick, you even shared in your prepared remarks, more to share later this year, which is great, and I imagine aligns with RFP timing.

太好了。我同意。而且我認為超大規模客戶的得標顯然本身就會具重要性。那麼再快速追問一下 BFS 這一端。你重申 2027 年開始量產。報價仍在進行中，Nick 你甚至在事先準備的發言中提到，今年稍晚會分享更多內容，這很棒，我想也與 RFP 時程一致。

Is there any order of magnitude for what a typical contract or win size maybe that you can give sort of rule of thumb. I know no contract is the same. But anything rule thumb because we're trying to start to think about what an average contract could be there.

你能否提供一個大致量級，說明典型合約或得標規模的經驗法則？我知道每份合約都不一樣。但若能給個概略的參考，因為我們正試著開始思考那邊平均合約可能會是什麼樣子。

Yeah. I wouldn't say there's any type of rule of thumb. Every data center project is bespoke, what we find is important is that our TG and Turbo cell solution, our battery business and our power conversion all play a very important role in these future data centers. So any award in the battery space with hyperscaler obviously to be substantial. We continue to see a strong pipeline of quoting.

是的。我不會說有任何一種經驗法則。每個資料中心專案都是量身打造；我們認為重要的是，我們的 TG 與 Turbo cell 解決方案、我們的電池業務以及電力轉換，都在這些未來資料中心中扮演非常重要的角色。因此，任何在電池領域拿下超大規模客戶的案子，顯然都會是相當可觀的。我們持續看到強勁的報價管線。

We're progressing our product offering here. In fact, we're expanding the range of products that we're offering. So I'm really pleased with the progress we're making here, and we'll likely share more updates later this year.

我們也在推進我們的產品供應。事實上，我們正在擴大所提供的產品範圍。所以我對我們在這裡取得的進展非常滿意，我們很可能會在今年稍晚分享更多更新。

Colin Langan, Wells Fargo.

Colin Langan，Wells Fargo。

Oh, great. Thanks for taking my questions. Just a follow-up on the turbine generator. I think in the past, you commented that you'd consider announcing adding more capacity in the second half of this year. Is that still the plan? I mean, any thoughts on the need to add more capacity given the customer interest? And if you do decide how quickly can the new capacity come online?

哦，很好。謝謝回答我的問題。我想追問一下渦輪發電機（turbine generator）。我記得過去你們曾評論過，會考慮在今年下半年宣布增加更多產能。這仍是計畫嗎？我的意思是，考量客戶興趣，你們對於是否需要增加更多產能有什麼想法？如果你們決定要做，新產能最快多久可以上線？

Yes. Colin, so we do continue to see strong demand, as we have mentioned. So we're really encouraged by that. And as we've shared with you, we do anticipate we're going to have to make a decision in the second half of this year on capacity and also decide is that capacity going to serve this market or maybe a different market, which we're also active with our partner in Deveron. No decisions made yet, but I am encouraged by the demand side of the equation, so more to come.

是的。Colin，我們確實如先前所提到的，持續看到強勁需求。所以我們對此非常受到鼓舞。而且如我們與你們分享的，我們預期今年下半年必須就產能做出決策，同時也要決定這些產能是要服務這個市場，或是可能服務另一個市場——我們也正與我們在 Deveron 的合作夥伴在那邊積極布局。目前尚未做出任何決定，但就需求面而言我感到鼓舞，所以後續還會有更多消息。

And just one question on the results today. I mean if I look at your sales were up just $10 million EBITDA $40 million. That's quite a strong conversion. Even if I take batteries out, it's up $40 million on $70 million in sales. What is driving this extremely high sort of strong conversion on growth?

另外一個問題是關於今天的業績。如果我看你們的銷售額只增加了 1,000 萬美元，但 EBITDA 增加了 4,000 萬美元。這樣的轉換率相當強。即使把電池拿掉，也是 7,000 萬美元的銷售帶來 4,000 萬美元的增量。是什麼在推動這種極高、非常強的成長轉換？

And I think you mentioned strong cost controls sort of can possibly continue in the second half, would be the upper end of guidance. What are those cost controls? And why wouldn't they continue since you have a couple of quarters of that under your belt?

而且我想你提到強勁的成本控管，可能在下半年也能延續，這會落在財測區間的上緣。那些成本控管是什麼？既然你們已經連續幾季做到，為什麼它們不會持續？

Thanks, Colin, for the question. It was great execution on all fronts across our business. 11.3% margin in the quarter, up 100 basis points. When you break down that 100 basis point improvement year-over-year, 60 basis points came from strong performance from our foundational businesses, TT and DMS great job by those teams. We had 20 basis points of enhancement through BES, the restructuring actions that they've taken in 2025 and 2026 as well as the exit of the charging business.

謝謝你，Colin，這個問題。這是我們整個業務在各方面都執行得非常到位。本季毛利率（margin）11.3%，提升了 100 個基點。把這 100 個基點的年增改善拆開來看，其中 60 個基點來自我們基礎業務的強勁表現，TT 和 DMS 團隊做得非常好。另外有 20 個基點的提升來自 BES——他們在 2025 與 2026 年採取的重整措施，以及退出充電業務。

Then the final 20 basis points came from strong cost controls. What I was most excited about was we expanded margins every business unit, and I was equally happy that corporate provided a nice tailwind. It was just strong execution across the Board.

最後 20 個基點來自強勁的成本控管。我最興奮的是，我們每個事業單位的利潤率都擴張了；同時我也很高興公司層面帶來了不錯的順風。整體而言就是全方位的強勁執行。

Luke Junk, Baird.

Luke Junk，Baird。

Joe, curious to double click on one of your comments in the script around inverter efficiency. Just hoping you speak a little more to what you see as the company's motinverter efficiency, especially potential future applications that could stem from that?

Joe，我想針對你講稿中關於逆變器效率（inverter efficiency）的一段評論再深入問一下。希望你能多談談你所看到的公司在逆變器效率方面的動能，尤其是可能由此延伸出的未來應用？

Do you have an ambition to expand the portfolio further there? And in terms of scope, maybe if you could just remind us also of some of the markers for efficiency the outline at the 23 Investor Day, I think you'd outlined a path to kind of industry-leading levels for automotive.

你們是否有企圖在那個領域進一步擴充產品組合？另外在範疇上，也請你提醒我們一下 2023 年投資人日所提到的一些效率指標；我記得你們曾概述一條路徑，朝向汽車領域的產業領先水準。

So thanks for that question. So when you think about efficiency, why is that important, especially on the industrial side, power is the constraint. So any improvement in efficiency is important we continue to see efficiency gains as we develop next-gen inverters. Sometimes that comes from the silicon and silicon carbide technology, often, it comes from our proprietary power module, which we produce and develop ourselves.

所以謝謝你的提問。當你思考效率時，為什麼它很重要，尤其是在工業端，電力是限制因素。因此，任何效率的提升都很重要；我們在開發下一代逆變器時，持續看到效率增益。有時候這來自矽與碳化矽技術；但更多時候，來自我們自有的專有功率模組，這是我們自行生產並開發的。

And a lot of that just has to do with how you cool the device as we're driving a lot of power through it. So efficiency numbers from generation to generation, they tend to vary. But similar to the fuel economy improvements, you tend to see a few basis points or even a few hundred basis points at times with major steps forward.

而其中很大一部分其實與你如何為裝置散熱有關，因為我們正讓大量功率通過它。所以效率數據在不同世代之間，往往會有變動。但類似於油耗改善，你通常會看到幾個基點，甚至在重大躍進時會有幾百個基點的提升。

Yeah. And then just in terms of the investment in scope, I think if I think Microcat inverter, I mean there certainly could be other places in the gray space or even getting more into the transformation of power. Just how should we think about the scope of opportunities that you might be looking at in inverter type things?

是的。然後就投資範圍而言，我想如果我想到 Microcat 逆變器，我的意思是，當然也可能在一些灰色地帶有其他切入點，甚至更深入到電力變換領域。我們應該如何看待你們在逆變器相關事項上可能評估的機會範圍？

So our leading product to the market is like they're going to be a microgrid tie type of inverter. So tying together power gen, with all the other power sources and possibly even the bid, which of course, is outside the building. So that's what we're leading with. But we see other possible opportunities here. So on the grid side, we've started to expand our range.

所以我們推向市場的主力產品，會像是一種微電網併網型的逆變器。也就是把發電端與所有其他電源整合在一起，甚至可能包含 BID（當然那是在建築物外）。這就是我們目前主打的方向。但我們也看到其他可能的機會。因此在電網端，我們已開始擴展我們的產品範圍。

We were leading with 800 volts, and it's likely that will be the first award. But we've expanded the range from 400 volts to 1,500 volts. And then secondly, our teams evaluating other opportunities in the gray space and inside the building, as you know, with the next-generation Nvidia chipsets there's a high demand for power at the rack level, and this plays very well into the work we do on the automotive side.

我們原本主打 800 伏，而且很可能那會是第一個得標案。但我們已把範圍從 400 伏擴展到 1,500 伏。其次，我們的團隊也在評估灰色地帶以及建築物內的其他機會；如你所知，隨著下一代 Nvidia 晶片組推出，機櫃（rack）層級對電力的需求很高，而這與我們在汽車端所做的工作非常契合。

And then for my follow-up, Joe, could you just maybe give us some additional color on the new product your website that you briefly touched on the script, things like UPS battery backup units and similar sort of what the incremental R&D that you're putting in the back half of the year is pointing to?

接著我的追問，Joe，你能否就你在講稿中簡要提到、網站上的新產品再多補充一些細節，例如 UPS 不斷電系統的電池備援單元等；以及你們在下半年增加投入的研發，主要指向哪些方向？

Little incremental products are some of the examples when we talk about expanding the portfolio, whether it's energy storage, like you mentioned, on boundary backup, or some of the new power conversion products, which I just mentioned. And those are the areas where the $10 million to $15 million incremental R&D are to support.

當我們談到擴展產品組合時，一些小幅增量產品就是例子；不論是你提到的儲能、邊界備援，或是我剛提到的一些新的電力轉換產品。而這些領域，就是那額外 1,000 萬到 1,500 萬美元研發投入所要支持的方向。

So we're really excited about that. A year ago, we weren't even talking about these products. If you can imagine the progress our teams have made, especially in the first and second quarter, I'm just extremely pleased with that. So excited to see what comes with this additional investment.

所以我們對此非常興奮。一年前，我們甚至還沒有在談這些產品。你可以想像我們團隊所取得的進展，尤其是在第一季和第二季，我對此非常滿意。因此也很期待這筆額外投資會帶來什麼成果。

Joseph Spak, UBS.

Joseph Spak，瑞銀（UBS）。

Good morning, everyone. So you came in about almost $40 million higher this quarter. You're raising R&D said by 10% to 15%. So the other in OI is basically flat, so for the full year. So the other $25 million to $30 million, is that just some higher cost. Maybe you could just talk about that.

各位早安。所以你們本季的表現大約高出將近 4,000 萬美元。你們把研發提高了 10% 到 15%。因此其他的 OI（營業利益）基本上持平，就全年而言。那另外的 2,500 萬到 3,000 萬美元，是不是只是一些較高的成本？也許你可以談談這部分。

And then just with this higher level of R&D, should we think of this as a more sustained pace into the future? Or is it something of a pull forward because you see some of these emerging opportunities that you alluded to in your prepared remarks?

另外，在研發提高到這個水準之後，我們是否應該把它視為未來更為持續的節奏？還是說，因為你們在事先準備的談話中提到的一些新興機會，所以這只是把投入提前（pull forward）？

Yeah, thanks for the question. So I think it would be helpful to walk you first half to second half revenue and then operating income or margin. When you think about sales, sales in the first half came in just under $7.2 billion. The midpoint of our guide puts us right around $7 billion from a top line perspective. We have 3 headwinds, first half to second half.

是的，謝謝你的問題。我想先帶你看一下上半年到下半年的營收，以及營業利益或利潤率，會比較有幫助。談到銷售，上半年銷售額略低於 72 億美元。我們指引的中位數，從營收角度看大約是 70 億美元。上半年到下半年我們有三個逆風因素。

First is the battery decline. That's about $60 million. FX is a headwind, it's about $80 million, and the rest is industry production, we're assuming a modest decline in industry production of about 1%. That, again, takes us to $7 billion of revenue at the midpoint.

第一是電池業務下滑。大約是 6,000 萬美元。匯率（FX）也是逆風，大約 8,000 萬美元；其餘則是產業產量，我們假設產業產量小幅下滑約 1%。這些因素加總後，在中位數情境下，營收大約就是 70 億美元。

On those lower revenues, we're decrementing at 15%, call it mid-teens and then we're leaning forward with that $10 million to $15 million in industrial R&D. If you were to exclude that step-up in R&D, our margin would be at 10.8% that's effectively in line with first half if you include industrial R&D, at the midpoint, we're at 10.6%. So from our perspective, this makes a lot of sense, and we're excited to invest that extra $10 million to $15 million to enhance our portfolio.

在較低的營收之下，我們的遞減率（decrement）是 15%，可說是中十位數百分比；同時我們也把那 1,000 萬到 1,500 萬美元的工業研發往前投入。如果排除這次研發的增加，我們的利潤率會是 10.8%，基本上與上半年一致；若包含工業研發，在中位數情境下是 10.6%。所以從我們的角度來看，這非常合理，我們也很期待額外投入這 1,000 萬到 1,500 萬美元來強化產品組合。

And Joe, I can answer the question on sustained investment. So from my standpoint, these opportunities that are what's driving the R&D investment. So as we continue to see more opportunities in the industrial space, we're going to go after them these products, keep in mind, they think probably 18 to 24 months to develop in general.

Joe，我也可以回答關於是否為持續性投資的問題。就我看來，正是這些機會在驅動研發投資。因此，隨著我們在工業領域持續看到更多機會，我們會去爭取它們；請記住，這些產品一般需要大約 18 到 24 個月的開發時間。

So when we start investing, you can expect to have some level of sustained spending, but I think we know that BorgWarner is pretty efficient with how we spend our R&D and in this case, focused on really attractive growth.

所以當我們開始投資時，你可以預期會有一定程度的持續性支出；但我想大家也知道，BorgWarner 在研發支出上相當有效率，而這次的投入是聚焦在非常具吸引力的成長上。

And Joe, maybe just one other comment. We got to step back and think about we're executing in the short term. We're still expanding margins. We're still expanding EPS. We're still generating a significant amount of free cash flow. And at the same time, we're investing in our long term in a high-growth market. It's a great time to be a worried.

Joe，另外再補充一點。我們得退一步想想：我們在短期內正在執行到位。我們的利潤率仍在擴張。我們的 EPS 仍在成長。我們仍在產生可觀的自由現金流。同時，我們也在高成長市場中投資長期發展。現在是成為 BorgWarner 的好時機。

No, absolutely. Second question, maybe just sort of turning back to the automotive business. One of the things that has clearly come a little bit more into focus is some of the vehicles being exported from China and similarly, some of the maybe European luxury programs into China. Can you remind us like what you think your exposure is to I guess, China export this as a percent of your overall China business? And then have you seen any impact from some reduced demand of, let's say, legacy European vehicles in China?

不，完全同意。第二個問題，回到汽車業務。有一件事顯然變得更清楚：有些車款從中國出口；同樣地，也有一些可能是歐洲豪華車型的專案銷往中國。你能提醒我們，你認為你們對「中國出口」的曝險，大概占你們整體中國業務的百分比是多少嗎？另外，你們是否看到例如傳統歐洲車在中國需求下降所帶來的任何影響？

So maybe to frame that a bit. So China is about 20% of BorgWarner's global sales. We don't break out global versus export. I mean, quite frankly, we don't know when they're exporting a vehicle or not. So that's not something. I don't know if you really break out. What we are feeling good about is that position, a strong position we have in China has led to some tailwinds as they export more to the other markets.

我先稍微框架一下。中國約占 BorgWarner 全球銷售的 20%。我們不會把內銷與出口拆分揭露。坦白說，我們也不知道他們是否把某一款車出口。所以那不是我們會去追蹤的事情。我也不確定你是否真的能把它拆分出來。我們感到樂觀的是：我們在中國的強勢地位，隨著他們更多出口到其他市場，已帶來一些順風。

So the Chinese OEMs had an amazing first half in terms of export. And we don't see any reason why that won't continue. With regard to the European luxury car makers. We really don't see a big issue and mix of a lot of that just comes down to our customer diversity. When a few others are down. Most of that tends to just kind of wash out. So that's what we see at this point.

因此，中國的 OEM 上半年在出口方面表現非常亮眼。而我們看不出有任何理由會使這種趨勢無法延續。至於歐洲豪華車製造商。我們確實不認為會有什麼大問題，而其中很大一部分只是取決於我們客戶的多元性。當少數客戶表現下滑時。大多數情況往往就會彼此抵消。所以這就是我們目前所看到的情況。

Andrew Percoco, Morgan Stanley.

Andrew Percoco，摩根士丹利。

Great. Thanks for taking the question. I want to come back to some of the comments you made on the turbine generator product in the hyperscaler interest that you're seeing. Can you just provide some context on whether they're looking at this product on a primary power basis or a backup power basis? And Also, if you can provide any insight in terms of if the economics look any different from your perspective on your side on whether or not they end up using it prime versus backup?

很好。謝謝讓我提問。我想回到你先前對渦輪發電機產品、以及你們看到超大規模雲端業者（hyperscaler）興趣的一些評論。你能否提供一些背景：他們是在把這個產品視為主電力（primary power）方案，還是備援電力（backup power）方案？另外，從你們的角度來看，若最終用於主用而非備援，在經濟性上是否會有任何不同？

Yeah, hi, James. So our turbine generator can serve in both primary and backup. In fact, when we started this project a few years ago, we thought the majority of applications would be in back up, I would say, in the last 12 months, that's flopped that we see more of them in prime use. So I think that just speaks to the speed to compute and the shortage of power generation in general.

好的，嗨，James。我們的渦輪發電機既可作為主用電力，也可作為備援電力。事實上，幾年前我們啟動這個專案時，我們原本認為大多數應用會在備援；但我會說，在過去 12 個月裡情況反轉了，我們看到更多是用於主用。所以我認為這反映了算力需求的速度，以及整體發電能力的短缺。

So this turbo cell unit using BorgWarner TG serves equally well. And both of those are very low emissions, lower noise than some of our competitors and speed to market is really important. So we're excited about it. In terms of the economics, I would just say, overall, we're very pleased with the terms in the agreement that we have with Endeavour across of all use cases.

因此，這個使用 BorgWarner TG 的渦輪電池（turbo cell）機組同樣適用。而且這兩者的排放都非常低、噪音也比一些競爭對手更低，並且快速導入市場（speed to market）非常重要。所以我們對此感到很興奮。就經濟性而言，我只能說，整體來看，我們對與 Endeavour 的協議條款在所有使用情境下都非常滿意。

Okay. That's helpful. And you mentioned time to power obviously being probably more important at this point than just cost of power. So as you scale production in 2027. Like what's your targeted order to kind of delivery conversion time line? Like what are you trying to advertise to the customers that are talking to you about taking delivery of this product?

好的。這很有幫助。你提到「通電時間」（time to power）顯然在此刻可能比單純的電力成本更重要。那麼當你們在 2027 年擴大產能時。你們目標的下單到交付的轉換時間線是什麼？你們希望對正在洽談、想要交付這項產品的客戶宣傳的是什麼樣的交期？

Yeah. So we've announced we're installing 2 gigawatts of capacity and in the initial year, which is next year, about $300 million of revenue. So we are quoting through Endeavour lead times to deliver these units. I would say it's another advantage we have and this. I mean think about it this way.

是的。我們已宣布將安裝 2 吉瓦的容量，而在初始年度（也就是明年）約有 3 億美元的營收。因此，我們是透過 Endeavour 報價這些機組的交付前置時間（lead times）。我會說這也是我們的一項優勢。我的意思是，這樣想。

we're standing up materially automotive production and supply chain in an environment that's probably not used to that type of speed. So we feel this is also a competitive advantage for us. So the order time as well within the lead times of our capacity and the capacity of our suppliers.

我們正在建立具規模的汽車級量產與供應鏈，而所處的環境可能並不習慣那種速度。所以我們認為這同樣是我們的競爭優勢。因此，下單時間也會落在我們產能與供應商產能的交期範圍內。

So you're talking about like potentially less than six months from when you -- when someone places in order to when you can deliver? Is that a fair way to think about it? Once you have capacity?

所以你的意思是，可能在你們具備產能之後，從有人下單到你們能交付，可能少於六個月？這樣理解合理嗎？在你們有產能之後？

Yeah. I would say we haven't really disclosed our lead times, and I'm not going to talk about that. But I would say the main focus right now is on launching the unit in 2026. And we'll share more as we get into 2027 with regard to your questions.

是的。我會說我們其實尚未披露我們的交期，我也不打算談這個。但我會說，目前的主要重點是在 2026 年推出這個機組。至於你的問題，我們會在進入 2027 年時分享更多。

Okay. Thank you. I'll take the rest offline. Appreciate it.

好的。謝謝。其餘我會私下再跟進。感謝。

James Picariello, BNP Paribas.

James Picariello，法國巴黎銀行（BNP Paribas）。

I know Coke Industries has already been mentioned, I mean, the recent news flow of Coke potentially looking to sell its stake in edge at an i $15 billion valuation maybe. My question is, I know it's all speculation at this point, but within the contractual relationship you have with Edge by way of turbo cell, are there any change in control triggers involved? Anything that could affect the $300 million plus in revenue that you have slated for next year?

我知道剛才已經提到 Koch Industries；我是說，近期新聞提到 Koch 可能考慮以約 150 億美元估值出售其在 Edge 的持股。我的問題是，我知道目前都還只是推測，但在你們透過 turbo cell 與 Edge 的合約關係中，是否包含任何控制權變更（change in control）的觸發條款？是否有任何事情可能影響你們明年預計的 3 億美元以上營收？

Yes, so there's nothing in our agreement that triggers change in control. You keep in mind that there are several edged legal entities. The one that directly deal with is 100% owned by Endeavour. That's not what being spoken about.

是的，所以我們的協議中沒有任何會因控制權變更而觸發的條款。你要記得，Edge 有好幾個法律實體。我們直接往來的那個實體是由 Endeavour 100% 持有。而被討論的並不是那個。

It's more about what we understand how coe can raise additional money to support the growth that's coming. So again, we don't see this as a material issue. We're just excited to be partnered with Endeavour and their edge business unit. And we just think it has great credibility to what they're doing if partners like Coke and others are out there raising money to fund their projects.

更多是關於我們所理解的，Koch 如何籌集額外資金以支持即將到來的成長。所以再次強調，我們不認為這是重大問題。我們只是很高興能與 Endeavour 及其 Edge 事業單位合作。而且我們認為，如果像 Koch 和其他夥伴都在外部募資以資助其專案，這也為他們正在做的事情增添了很高的可信度。

Yeah, no, for sure. Totally agree. And then on battery systems, losses through the first half only totaled $4 million. I know there are charging exit and battery plant consolidation savings in play.

是的，當然。完全同意。另外在電池系統方面，上半年虧損合計只有 400 萬美元。我知道你們有退出充電業務以及電池工廠整併所帶來的節省。

But like if we scrub for those, the underlying performance is still far and away better than the company targeted mid-teens decremental. Can you just shed some light on what's driving that? And just directionally, how we should be thinking about the first half to second half bridge for this particular segment?

但如果把那些因素剔除，基礎表現仍然遠遠好於公司原先目標的「十幾個百分點」遞減（decremental）。你能否說明一下是什麼在驅動這個結果？以及就方向性而言，我們應該如何看待這個部門從上半年到下半年的銜接（bridge）？

So really pleased with BS on their performance. They've taken a lot of restructuring actions both in 2025, we continue to take actions in 2026 to get that cost structure right. On top of that, you mentioned that we have the benefit of the exit of our charging business last year. That's benefiting our financials this year. Ultimately, as you walk from first half to second half, we would expect to manage it in that mid-teens decremental conversion to us that success, and that's what we're focused on executing.

所以我們對 BS 的表現非常滿意。他們在 2025 年採取了許多重整措施，而我們在 2026 年也持續採取行動，以把成本結構調整到位。此外，你提到我們去年退出充電業務所帶來的效益。這在今年對我們的財務表現有正面貢獻。最終，當你從上半年走到下半年，我們預期會以那個「十幾個百分點」的遞減轉換來管理；對我們而言那就是成功，而這也是我們專注執行的方向。

Mid-teens decremental half over.

十幾個百分點的遞減，上半年對下半年。

Half Cap over.

上半年 Cap over。

Emmanuel Rosner, Wolfe Research.

Emmanuel Rosner，Wolfe Research。

My first question, you've been obviously announcing a real significant amount of awards pretty consistently every quarter, another sort of like seven today. And to help us frame what is would do for your close over market on a go-forward basis and the timing of it? Can we expect it to be already positive in 2027? And where could the trend sort of like over time as you launch a lot of these businesses?

我的第一個問題是，你們顯然每一季都相當持續地宣布大量得標（awards），今天又大概有七個。為了幫助我們理解，這對你們未來的收盤後市場（close over market）的影響以及時點會是什麼？我們是否可以預期在 2027 年就已經是正面貢獻？而當你們啟動許多這些業務時，這個趨勢隨時間可能會如何發展？

Sure. So what I am pleased with and you reference said is this booking strength that we've had over the last two years, and it's been across all of our product lines. So I do expect these bookings to support improvement in our objective in outgrowth across portfolio in 2027. And then, of course, we announced the $300 million of new growth associated with the industrial business. So overall, Craig and I are pleased with the progress we're making, and we'll share more early next year on 2027.

當然。我很高興的是——你也提到了——過去兩年我們的接單（bookings）力道很強，而且涵蓋我們所有產品線。因此，我確實預期這些接單將支持我們在 2027 年於整體產品組合中達成超越市場的成長（outgrowth）目標之改善。此外，當然我們也宣布了與工業業務相關的 3 億美元新增成長。所以整體而言，Craig 和我都對我們取得的進展感到滿意，我們會在明年初就 2027 年分享更多。

But if it started even longer term without being specific in 2027, like and does that enable you to go back to historical levels of growth of the market?

但如果它是從更長期開始、而不是特別鎖定在 2027 年，例如，這是否能讓你回到市場歷史性的成長水準？

Yeah, so Emmanuel, what we've clearly stated is Greg and I are not pleased with the current outgrowth that the company has witnessing. And that is why we adjusted the strategy to drive growth across the entire portfolio. So as you can probably imagine, the strong bookings that we've had over the last two years, they take time to come to production, but we're clearly expecting that they're going to improve the outgrowth of the company.

是的，所以 Emmanuel，我們已經很清楚地表示，Greg 和我對公司目前所呈現的成長表現並不滿意。這也是為什麼我們調整了策略，以推動整個產品組合的成長。因此你大概可以想像，過去兩年我們取得的強勁訂單（bookings）需要時間才能轉入量產，但我們明確預期這些將改善公司的成長表現。

And as those volumes move through launch and into peak volumes, we're anticipating those improvements will continue to come. So we'll share more in 2027, but I think that probably gives you a good idea of where we're heading.

而隨著這些量在導入（launch）後逐步爬升到高峰產量，我們預期這些改善會持續到來。所以我們會在 2027 年分享更多，但我想這大概已經讓你對我們的方向有不錯的概念。

Yes. And on the industrial side, can you help us dimension the inverter size of the opportunity for you, not so much in terms of addressable market, but more in terms of how much capacity you're planning to have, right? Because for the turbines, we kind of know the initial capacity that's put in the ground. On the energy storage side, I think your capacity is essentially the available one from some of your battery pack earlier investments. So we kind of have an order of size, but I'm not super clear on the inverter side, what do you have in terms of facilities, in terms of investment and capacity.

是。另外在工業端，你能否協助我們量化你們在逆變器（inverter）方面的機會規模——不是以可服務市場（addressable market）的角度，而是以你們計畫具備多少產能來看，對吧？因為在渦輪機方面，我們大致知道一開始落地的裝置產能。在儲能端，我認為你們的產能基本上來自先前對部分電池模組的投資所形成的可用產能。所以我們大概有個量級概念，但我對逆變器端還不是很清楚：你們在廠房、投資與產能方面目前是什麼狀況？

So we haven't announced any capacity availability or what we plan to install. I mean, frankly, we're going to move to quoting at the end of this year. That will be what we used to kind of gauge how do we leverage the existing capacity investment versus where we may need new capacity.

所以我們尚未宣布任何可用產能或我們計畫安裝多少產能。坦白說，我們會在今年底開始進入報價（quoting）。那將是我們用來衡量：我們要如何運用既有的產能投資，以及在哪些地方可能需要新增產能。

One of the things we're really excited about with especially our grid tie inverters, is their majority is designed in the US. We made plans some US manufacturing even so we've got a lot of opportunity on that product line. But it's early days in terms of quoting, and I'm sure we'll be in a position to share more in 2027.

我們對於（尤其是）我們的併網逆變器（grid tie inverters）非常興奮的一點是，其中大多數是在美國設計的。我們甚至也規劃了一些美國製造，因此在這條產品線上我們有很多機會。但就報價進展而言仍屬早期階段，我相信我們會在 2027 年有條件分享更多。

Dan Levy, Barclays.

Dan Levy，巴克萊（Barclays）。

Hi. Thank you. I wanted to start with a question on capital allocation. And I know that you, in your release issued a new $1 billion buyback authorization, you've been buying back a fair amount of stock -- how are you thinking about your capital allocation program in light of this new growth opportunity that you have in light of a multiple that is better, I know you've talked about stepping up the spend a little bit, but that doesn't seem fairly modest.

嗨。謝謝。我想先問一個關於資本配置的問題。我知道你們在新聞稿中發布了新的 10 億美元庫藏股回購授權，你們也回購了相當多的股票——在你們面臨這個新的成長機會、以及在估值倍數更好的情況下，你們如何看待資本配置計畫？我知道你們談到會把支出稍微提高一些，但看起來幅度似乎相當有限。

Is there more that can be done on accelerating spend, be it R&D or CapEx that would then accelerate the growth opportunity? Is there any M&A that can be done? Just how are you thinking about spending accelerating the industrial opportunity?

是否還有更多可以做的，例如加速支出——不論是研發（R&D）或資本支出（CapEx）——以便加速成長機會？是否有任何可以進行的併購（M&A）？總體而言，你們如何思考透過加速投入來推動工業端的機會？

Thanks, Dan. As I step back, what are Joe and what are we focused on? And we're focused on growing the earnings power of the company. And we want to create value with our cash. That's the ultimate goal and we're always balancing inorganic opportunities, organic opportunities, share repurchases. We review it every quarter to make sure that we're creating value quarter after quarter.

謝謝，Dan。如果我退一步看，Joe 以及我們在聚焦什麼？我們聚焦在提升公司的獲利能力（earnings power）。我們希望用現金創造價值。這是最終目標，而我們一直在無機成長機會、有機成長機會與股票回購之間取得平衡。我們每一季都會檢視，以確保我們能一季接一季地創造價值。

When I take a look back over the past year, we repurchased $650 million, it's 5% of our market cap. That was success for us over the past four quarters. We're excited that we have the flexibility from our Board of Directors with another $1.35 billion. That represents 10% of our market cap. But presently, it gives us a lot of flexibility. And I think it also shows the confidence we have in the future cash-generating ability of our business. But ultimately, our goal is to drive the earnings power of the company, and we're going to use every lever at our disposal to do just that.

回顧過去一年，我們回購了 6.5 億美元，約占我們市值的 5%。這是我們過去四個季度的成果。我們很高興董事會又給了我們額外 13.5 億美元的彈性。那相當於我們市值的 10%。但就目前而言，這讓我們有很大的彈性。我認為這也展現了我們對未來業務現金創造能力的信心。但最終，我們的目標是提升公司的獲利能力，而我們會運用手上所有可用的槓桿來達成這一點。

And maybe to add a little bit, we will always prioritize these organic investments as we see growth opportunities, both on the R&D side and the CapEx side.

另外補充一點，只要我們看到成長機會，不論是在研發端或資本支出端，我們都會一貫地優先投入這些有機投資。

From a tech perspective on the new growth opportunities, do you have everything you need in house? Or is there something you still need to acquire to sort of beef up the portfolio from a tech perspective?

從技術角度來看，針對新的成長機會，你們內部是否已具備所需的一切？還是說，從技術面要強化產品組合，你們仍需要透過收購來補強某些部分？

I mean, I think we're moving from a position of strength. When I look at our portfolio, especially that we've invested and grown over the last 10 years, these three new product lines for industrial, our able leverage a lot of that competence now there may be opportunities through inorganic growth that we want to continue to strengthen the current portfolio or improve market position. So in terms of M&A, we're sticking to the three criteria, which, again, is leverage the core competence of the company is the first priority.

我的意思是，我認為我們是站在優勢位置前進。當我看我們的產品組合，特別是過去 10 年我們投入並成長起來的部分，這三條面向工業的新產品線，現在都能大量運用那些能力；當然也可能會有透過無機成長的機會，讓我們進一步強化現有產品組合或提升市場地位。因此在併購方面，我們仍遵循三項標準：第一優先是能夠運用公司的核心能力。

The second is making sure it's near-term accretive. And then third, that we don't overpay and we pay a fair value for any assets. So we continue to look at inside mobility and outside, but I would say we've really raised the hurdle in terms of any decision we're going to make.

第二是確保在短期內具增益性（accretive）。第三是我們不會付過高的價格，會以合理價值收購任何資產。所以我們持續在內部（inside mobility）以及外部尋找機會，但我會說，我們對任何決策的門檻確實提高了。

Okay. And as a follow-up, I wanted to ask about your battery storage opportunity, from some of the other players, we've heard a lot about the importance of having access to domestic LFP supply, which gives you the right chemistry, but also give you ITC and PTC compliance. It looks here like your focus on battery storage is more on data centers. I know you've talked about being chemistry agnostic, but to what extent does having access to LFP matter? And to what extent does PTC and ITC eligibility matter as you're building out the business case for battery storage.

了解。另外追問一下，我想問你們的電池儲能機會。從其他業者那邊，我們聽到很多關於取得國內 LFP 供應的重要性，這能提供合適的化學體系，也能符合 ITC 與 PTC 的合規要求。看起來你們在電池儲能的重點更偏向資料中心。我知道你們談到對化學體系保持中立（chemistry agnostic），但取得 LFP 的重要性到底有多大？以及在你們建立儲能商業模式時，PTC 與 ITC 的適用資格（eligibility）重要性又有多大？

So I think the way to see our energy storage first as we want to leverage the existing technology and capacity we have in, especially in our Senegal plant. So that's our first priority. But we have always and we continue to work with other cell types and cell supply manufacturers. So LFP is included in that sodium ion is included in that.

我認為看待我們的儲能業務，首先是我們希望運用既有的技術與產能，特別是在我們的塞內加爾（Senegal）工廠。所以那是我們的第一優先。但我們一直以來、也持續與其他電芯類型及電芯供應製造商合作。因此其中包含 LFP，也包含鈉離子（sodium ion）。

I think it's one of the great advantages of being so agnostic is we have a lot of competence in how to integrate these cells, package them control them and sell EMS and ship them as a unit. So we do anticipate that we will require some of those other cell technologies on a go-forward basis and we continue to invest and how we bring those to market and to each partner.

我認為保持高度中立的一大優勢在於：我們在如何整合這些電芯、將其封裝、控制，並提供 EMS、以及以整體單元出貨方面，具備很強的能力。因此我們確實預期，未來我們會需要其中一些其他電芯技術，我們也持續投入，推動它們上市並與各合作夥伴對接。

Alex Perry, Bank of America.

Alex Perry，美國銀行（Bank of America）。

Hi, thanks for taking our questions here. Just for the core auto business, I wanted to follow up. So how the organic sales was slightly lowered the sort of low end of the range of production. Maybe just talk to us sort of what you're seeing in schedules. And particularly, I wanted to circle back on China. It's been a more challenging market for most of the supplier group so far. Maybe talk to us what you're seeing in customer schedules there and maybe versus Europe and North America.

嗨，謝謝讓我們在這裡提問。針對核心汽車業務，我想再追問一下。你們將有機銷售（organic sales）略微下調到產量區間的低端。能否談談你們在排程（schedules）方面看到的情況？另外我特別想回到中國市場。到目前為止，對大多數供應商族群而言，那是一個更具挑戰的市場。能否談談你們在那邊看到的客戶排程情況，以及相較於歐洲與北美的差異？

So starting on a global level, production range has largely remained unchanged in our view. We still see schedules holding up as we expected. I would say there are some small regional changes in China likely to be down 4% to 7%. Europe down slightly, a little bit wider range, I would say, in North America, between up 1.5% and down 2.5% to 3%, so there is a little bit of volatility still, especially on the pass car side.

因此，從全球層面來看，我們認為產量區間大致維持不變。我們仍然看到排程如我們預期般維持穩健。我會說，中國有一些小幅的區域性變化，可能下滑4%到7%。歐洲小幅下滑；北美的區間我會說更寬一些，介於成長1.5%到下滑2.5%至3%之間，因此仍有一些波動，尤其是在乘用車端。

But overall, no big changes. I think what people are recognizing is the strength of the Chinese OEMs ex from China. They had very strong exports in the first half. So if you play that forward, you can imagine they're going to be exporting them where from, I don't know, 9 million to 11 million units, which would be a big year-over-year increase. For us, it doesn't change much. We're very strong at these leading Chinese OEMs and our customer diversity more or less washes out some of those mix issues that maybe others see in their business.

但整體而言，沒有重大變化。我認為大家正在認知到中國OEM在中國以外市場的實力。他們在上半年出口非常強勁。所以如果把這個趨勢往前推，你可以想像他們的出口量可能會在某個區間內，我不知道，大約900萬到1,100萬台，這將是相當可觀的年增幅。對我們而言，影響不大。我們在這些領先的中國OEM客戶上非常強，而我們的客戶多元化也或多或少能抵消一些產品組合問題——也許其他公司在其業務中會看到這些組合影響。

Really helpful. And then just another follow-up on the power gen. Any sort of sense on how fast you can scale the power gen sales with the existing capacity. So I think you're sort of earmarking $300 million for next year. What can that sort of scale to over time? And then any sort of Palmer sent in sizing the sort of EBIT contribution as we start to build out our models here?

非常有幫助。接著再追問一個關於發電（power gen）業務的問題。在既有產能下，你們大概能以多快速度擴大發電業務的銷售規模？我想你們明年大概是預留了3億美元。那隨著時間推進，這個規模可以擴大到什麼程度？另外，在我們開始建立模型時，能否提供一些參考，用以估算EBIT貢獻的量級？

Yeah, I would first say we're very focused. Our teams are very focused on a successful launch. And so we have announced $300 million of revenue, which we're very comfortable with next year. But right now, we're focused on executing flawlessly and doing everything we need to and supporting our suppliers and doing the same.

是的，我首先要說我們非常專注。我們的團隊非常專注於成功上市。因此我們已宣布明年3億美元的營收目標，對此我們非常有把握。但目前我們專注於零失誤地執行，做好所有必要工作，並支持我們的供應商也做到同樣水準。

We haven't shared any ratios of revenue to capacity that might be something we do in the future. But we don't see really demand as a constraint on our ability to scale as a constraint. It really comes down to our leading our quality milestones and our operational milestones to be able to serve those requirements that we see out there.

我們尚未分享任何「營收對產能」的比率，未來也許會分享。但我們不認為需求會成為我們擴產能力的限制因素。真正的關鍵在於我們能否達成品質里程碑與營運里程碑，以便滿足我們在市場上看到的那些需求。

Perfect. That's really helpful. Best of luck going forward.

完美。這真的很有幫助。祝你們接下來一切順利。

Rajat Gupta, JPMorgan.

JPMorgan 的 Rajat Gupta。

Great. Thanks for taking the question. I just wanted to follow up some of the hyperscaler opportunity. You mentioned earlier about our award in the battery space will be substantial. I'm curious like without a rule of thumb, can you free in the range of outcome? What comes first with that kind of an award? Is it the turbine? Is it distorted systems in order I'm just curious like how the sequencing will work and impact just a capacity decision? And I have a quick follow-up.

很好。謝謝讓我提問。我想追問一下超大規模雲端業者（hyperscaler）的機會。你先前提到我們在電池領域拿到的案子（award）會相當可觀。我好奇的是，即使不給一個經驗法則，你能否大概框出可能結果的區間？在那種案子之下，通常會先發生什麼？會是渦輪機嗎？還是某些系統（我只是好奇）在順序上會如何進行，並如何影響產能決策？我還有一個簡短的追問。

Yes, maybe for clarity's sake, the turbine generator, that's a product that we have developed and are supported by Endeavour. We go to market through Endeavour. On the battery side or energy storage side and the power conversion side, we can serve the entire market. With the sequencing, we expect the leadless turbine generator.

是的，為了更清楚說明，渦輪發電機（turbine generator）是我們已開發的產品，並由 Endeavour 支持。我們透過 Endeavour 進入市場。在電池端或儲能端，以及電力轉換端，我們可以服務整個市場。就時程順序而言，我們預期會先由無齒輪（gearless）的渦輪發電機帶頭。

Obviously, we've announced that it's the most developed product and we're launching that with clear customer next year. We do expect to see some battery awards this year, as we've shared in the past. And then I would say the power conversion is a little bit behind that. And that's mainly due to the development is a little behind the energy storage side. So that's why we've shared we'll start to go that toward the end of this year. So hopefully, that's helpful.

顯然，我們已宣布那是目前最成熟的產品，並將在明年與明確的客戶一起推出。如同我們過去分享的，我們確實預期今年會看到一些電池相關的案子。接著我會說，電力轉換（power conversion）會稍微落後一些。主要原因是其開發進度比儲能端稍慢。因此我們才分享說，會在今年底左右開始推進那一塊。希望這樣有幫助。

No, that's helpful. And then just on the 2027 start of production of $300 million. What are the remaining gating factors to that sort of production? It seems like everything so far has been tracking per plan. I'm curious like what are the next final one or two steps before the shipments.

有，這很有幫助。另外關於2027年開始量產、規模為3億美元的部分。要達到那樣的量產，剩下的關鍵門檻（gating factors）是什麼？看起來目前一切都按計畫推進。我好奇在出貨前，最後一到兩個步驟是什麼？

Sure. So we announced a couple of the milestones, which we're really pleased with the progress we've been making to date. There's additional milestones, how are we doing against our qualification testing that show that we meet all the requirements we need to. There's reliability testing. There's the ramp-up of production to make sure we're hitting our quality and cycle time as we expect -- so those are some of the things we're looking at internally to gauge our success and where do we have to adjust.

當然。我們已宣布其中幾個里程碑，對於目前取得的進展我們非常滿意。還有其他里程碑，例如我們在資格認證測試（qualification testing）上的表現如何，以證明我們符合所有必要要求。也有可靠度測試（reliability testing）。還有量產爬坡（ramp-up），以確保我們如預期達到品質與節拍時間（cycle time）——這些都是我們內部用來衡量成功、以及判斷需要在哪裡調整的一些事項。

But this part of the process is well known to BorgWarner. We conduct over I can't even imagine hundreds, let's just say, hundreds of launches a year. So this part of the product development and launch phase, we're very familiar with. So it's just a lot of work and focus on execution and adjusting where you find issues. So really pleased with the progress to date.

但這個流程對 BorgWarner 來說是非常熟悉的。我們每年進行的上市（launch）數量多到我都難以想像，姑且說是數百個。因此在產品開發與上市階段的這一部分，我們非常熟悉。所以就是大量工作、專注於執行，並在發現問題時進行調整。因此對目前的進展非常滿意。

Understood. Great. Thanks for the color and good luck.

了解。很好。謝謝你提供的補充說明，祝順利。

Thank you.

謝謝。

With that, I'd like to thank everyone for their questions today. If you have any additional follow-ups, feel free to reach out to me or my team. With that, Nick can conclude today's call.

那麼，我想感謝大家今天的提問。如果你們還有任何後續問題，歡迎隨時聯絡我或我的團隊。接下來請 Nick 為今天的電話會議作結。

This concludes the BorgWarner 2026 second quarter results conference call. You may now disconnect.

以上為 BorgWarner 2026 年第二季財報電話會議。您現在可以掛線。