The Auburn Hills-based manufacturer posted U.S. GAAP net sales of $3.65 billion, a slight 0.3% increase over the same period last year. While organic sales dipped by 1.2%, the company’s disciplined approach to operating costs drove a 100-basis-point improvement in adjusted operating margin, reaching 11.3%. This financial stability, underscored by $492 million in free cash flow for the quarter, bolstered confidence in the firm’s long-term outlook.

To support future growth, BorgWarner secured seven new business awards, including contracts for next-generation Integrated Drive Modules and eTurbo technology for hybrid applications. Looking ahead to the full year, management raised its adjusted earnings guidance to a range of $5.05 to $5.30 per share. These projections account for an expected 3% decline in light vehicle production, with the company planning to increase research and development spending to capture emerging opportunities in industrial and data center markets.