BorgWarner Inc. (NYSE:BWA) Q2 2024 Earnings Conference Call July 31, 2024 9:30 AM ET

Company Participants

Patrick Nolan - Vice President of Investor Relations
Frédéric Lissalde - President & Chief Executive Officer
Craig Aaron - Chief Financial Officer

Conference Call Participants

John Murphy - Bank of America
Colin Langan - Wells Fargo
Chris McNally - Evercore
Joe Spak - UBS
Dan Levy - Barclays
Mark Delaney - Goldman Sachs
Adam Jonas - Morgan Stanley
James Picariello - BNP Paribas

Operator

Good morning, everyone. My name is Beau, and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [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.

Patrick Nolan

Thank you, Beau. 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 Investor Relations homepage.

Before we begin, I need to 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.

During today's presentation, we'll highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performed and for comparison purposes with prior periods. When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A and other non-comparable items. When you hear us say adjusted, that means excluding non-comparable items. When you hear us say organic, that means excluding the impact of FX and net M&A.

We will 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 change in our sales. Our all-in incremental margin includes our planned investment in R&D any impact from net inflationary items and other cost items. We will also refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure.

Please note that we've posted today's earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.