Core Viewpoint - Garrett Motion Inc. has secured a significant contract with Cling for the volume production of its innovative oil-free, foil bearing centrifugal compressor, set to begin in 2027, marking a pivotal advancement in electric bus and truck HVAC systems in China [1][3]. Group 1: Company Overview - Garrett Motion Inc. is recognized as a global leader in differentiated turbocharging and electrification technologies, with a 70-year history of innovation in the automotive sector and beyond [8]. - The company operates six R&D centers and 13 manufacturing facilities, employing approximately 8,700 people across more than 20 countries [8]. Group 2: Product Details - The new centrifugal compressor integrates an ultra-high-speed motor exceeding 160,000 RPM and an oil-free foil bearing system, resulting in a product that is up to 50% smaller, 30% lighter, and 10 dB quieter than traditional scroll compressors [6]. - The compressor is designed for seamless integration across various EV platforms, supporting 400V–800V heat pump systems and compatible with low-pressure, low-GWP refrigerants [7]. Group 3: Strategic Collaboration - The partnership with Cling aims to set new benchmarks for efficiency and thermal performance in electric commercial vehicles, enhancing comfort, efficiency, and environmental responsibility [6]. - Cling's vision to lead in integrated HVAC and thermal management solutions aligns with Garrett's technological advancements, driving innovation in the electric vehicle market [6].

Core Insights - Garrett Motion Inc. achieved strong operational performance in 2025, with net sales of $3.58 billion and adjusted EBIT of $510 million, reflecting a 14.2% margin [1][4][11] - The company repaid $50 million of its term loan, repurchased $208 million in common stock, and paid $52 million in dividends, demonstrating a disciplined capital allocation strategy [1][9][10] - The outlook for 2026 anticipates net sales of $3.7 billion, adjusted EBIT of $545 million (14.7% margin), and continued focus on zero-emission technologies and industrial cooling [11][12] Financial Performance - Q4 2025 net sales were $891 million, with adjusted EBIT of $122 million and a margin of 13.7% [5][6] - Full-year adjusted free cash flow was $403 million, with a conversion rate of nearly 80% [8][9] - The company experienced a 6% increase in Q4 net sales compared to the previous year, driven by gasoline demand and a recovery in commercial vehicles [6][7] Business Segments - Garrett Motion secured numerous awards in light vehicle turbo applications, increasing its share of demand in gasoline and diesel markets [1][3] - The company is expanding into zero-emission technologies, including a strategic collaboration with Trane Technologies for oil-free high-speed centrifugal compressors [1][2][3] - Industrial cooling is projected to become a significant growth vector, expected to account for over 5% of revenue by the end of the decade [2][3] Market Trends - The global light vehicle industry is expected to decline by 2%, while commercial vehicle markets are anticipated to recover by 1.5% [11] - The company is positioned to gain market share through its technology-driven approach, particularly in hybrid and electric vehicle applications [31][32] - Garrett Motion's differentiated technologies are central to efficiency and emissions reduction, appealing to customers in both automotive and industrial sectors [1][3][31] Strategic Initiatives - The company aims to leverage its capabilities to develop high-speed, efficient technologies that meet customer needs and generate robust returns for shareholders [13][14] - A $250 million share repurchase program has been authorized for 2026, with a target to distribute approximately 75% of adjusted free cash flow to shareholders [10][11] - The partnership with Trane is expected to provide significant opportunities, with the potential for additional revenue streams beyond the initial collaboration [37][39]

Garrett Motion (NasdaqGS:GTX) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsCyril Grandjean - VP of Investor Relations and TreasurerOlivier Rabiller - President and CEOSean Deason - SVP and CFOConference Call ParticipantsEric Gregg - AnalystHamed Khorsand - AnalystJake Schell - AnalystJames Mulholland - AnalystNathan Jones - AnalystRyan Brinkman - AnalystOperatorHello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion ...

Garrett Motion (NasdaqGS:GTX) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsCyril Grandjean - VP of Investor Relations and TreasurerOlivier Rabiller - President and CEOSean Deason - SVP and CFOConference Call ParticipantsEric Gregg - AnalystHamed Khorsand - AnalystJake Schell - AnalystJames Mulholland - AnalystNathan Jones - AnalystRyan Brinkman - AnalystOperatorHello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion ...

Garrett Motion (NasdaqGS:GTX) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Speaker7Hello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion fourth quarter and full year 2025 financial results conference call. This call is being recorded, and a replay will be available later today. After the company's presentation, a question and answer session. At this time, I would like to turn the call over to Cyril Grandjean, Garrett's Vice President ...

FEBRUARY 19, 2026 Q4 AND FULL YEAR 2025 FINANCIAL RESULTS © 2025 Garrett Motion Inc. © 2026 Garrett Motion Inc. Forward Looking Statements This communication and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "str ...

Financial Performance - In 2025, net income increased to $310 million, up from $282 million in 2024, primarily due to lower interest expenses and increased gross profit [216]. - Total net sales for 2025 were $3,584 million, representing a 3.1% increase from $3,475 million in 2024, driven by higher demand in gasoline and commercial vehicles [203][204]. - For the year ended December 31, 2025, net income increased by $28 million to $310 million compared to $282 million in 2024 [226]. - Adjusted EBIT for 2025 was $510 million, an increase of $25 million from $485 million in 2024, driven by higher sales volumes and productivity [227]. - Cash provided by operating activities increased by $5 million to $413 million in 2025, supported by a $28 million increase in net income [245]. Sales and Revenue - Revenue from Europe in 2025 was $1,745 million, accounting for 49% of total revenue, an increase from $1,642 million or 47% in 2024 [201]. - Diesel product sales increased by $10 million or 1% in 2025, while gasoline product sales rose by $87 million or 6% [205][206]. Expenses and Costs - Selling, general and administrative expenses remained flat at $240 million, constituting 6.7% of sales in 2025 [211]. - The effective tax rate increased to 20.9% in 2025 from 17.8% in 2024, primarily due to unrecognized tax benefits in Switzerland and China [215]. - Cash used for investing activities increased by $27 million to $41 million in 2025, primarily due to lower proceeds from the sale of a joint venture [246]. - Cash used for financing activities decreased by $194 million to $326 million in 2025, compared to $520 million in 2024, due to lower debt repayments [247]. Share Repurchase and Capital Expenditures - The company repurchased $208 million of common stock, including 7.5 million shares for $103 million from Oaktree Capital Management [198]. - The company entered into a new $250 million share repurchase program valid from January 1, 2026, until December 31, 2026 [242]. - The company expects capital expenditures to increase in 2026 compared to 2025, primarily for investments in zero emissions technology [250]. Production and Market Trends - Turbocharger production is expected to rise from approximately 49 million units in 2024 to nearly 50 million units in 2025, before declining in subsequent years due to electric vehicle penetration [196]. - The company anticipates steady demand for turbochargers in the short to medium term, driven by hybridized powertrains in response to emissions standards [199]. Financial Instruments and Risks - As of December 31, 2025, the net fair value of financial instruments exposed to currency risk was a $163 million liability, with a potential impact of $225 million from a 10% adverse change in exchange rates [269]. - A 50 basis point change in interest rates would affect interest expense by $3 million for borrowings under the Credit Agreement as of December 31, 2025 [271]. - Approximately 79% of the cost of sales consists of purchased components, with a 10% variation in commodity prices potentially impacting costs by up to $39 million annually [273]. Accounting and Liabilities - Revenue is recognized based on shipping terms, with adjustments for variable considerations such as price concessions [252]. - The company is subject to contingent liabilities from lawsuits and claims, with potential losses assessed and recognized based on legal analysis [253]. - Warranty costs are estimated based on past experience and obligations, with adjustments made as circumstances change [254]. - The company sponsors defined benefit pension plans, with costs and liabilities determined from actuarial valuations influenced by market conditions [255][256].

Garrett Motion Reports Strong 2025 Results and Expansion of Zero-Emission and Industrial Technology Portfolio, Issues 2026 Outlook Fourth Quarter 2025 Financial Highlights Full Year 2025 Financial Highlights Full Year 2025 Business Highlights PLYMOUTH, Mich. and ROLLE, Switzerland, February 19, 2026 – Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a global leader in differentiated turbocharging and electrification technologies for automotive and industrial applications, today announced its ...

Fourth Quarter 2025 Financial Highlights Net sales totaled $891 million, up 6% on a reported basis, up 1% at constant currency*Net income totaled $84 million; Net income margin 9.4%Adjusted EBIT* totaled $122 million; Adjusted EBIT margin* 13.7%Net cash provided by operating activities totaled $99 millionAdjusted free cash flow* totaled $139 million Full Year 2025 Financial Highlights Net sales totaled $3,584 million, up 3% on a reported basis, up 1% at constant currency*Net income totaled $310 million; Net ...

Core Insights - Garrett Motion Inc. has announced the first commercial application of its largest MEG turbocharger platform in collaboration with Weichai, aimed at marine propulsion and high-output power generation [1][3] Company Overview - Garrett Motion is a leader in turbocharging and electrification technologies, with a 70-year history of innovation across automotive and industrial sectors [9] - The company has a global presence with six R&D centers, 13 manufacturing facilities, and over 9,000 employees in more than 20 countries [9] Product Launch - The MEG turbocharger platform is designed for large-bore engines, specifically for marine propulsion, high-output power generation, and backup genset systems [2][4] - This platform supports multiple fuel types, including diesel, natural gas, and alternative fuels, enabling customers to meet efficiency and emissions targets [2] Strategic Collaboration - The partnership with Weichai Power is a significant milestone, enhancing Garrett's presence in large-engine segments for marine and industrial applications [3] - Both companies aim to deliver competitive and sustainable marine power systems globally by combining their respective strengths in turbocharging and engine development [3][8] Technological Advancements - The MEG turbo is engineered to provide higher efficiency, long-term reliability, and lower fuel consumption, addressing the growing demand for improved fuel efficiency and compliance with emissions standards [4][6] - The design incorporates optimized aerodynamics, high-temperature materials, and modular architecture for superior performance [4]