Company Overview - Garrett Motion has seen its shares rally to a six-year high, primarily due to better-than-expected earnings, an increased dividend, and a boosted outlook [1][4][5] - The company operates within the automotive sector, focusing on building superchargers to improve fuel efficiency for both OEMs and aftermarket [3] Financial Performance - For Q2, Garrett Motion reported revenue of $92 million, reflecting a 9.2% growth compared to the previous quarter's 2.5% growth [4][5] - Earnings per share (EPS) increased to 38 cents, up from 24 cents year-over-year [5] - The company announced an increased share buyback and hiked its dividend payout, indicating confidence in its financial position [5] Guidance and Market Position - Garrett Motion narrowed its 2025 revenue guidance to $3.5 billion to $3.6 billion, aligning more closely with street estimates [6] - Year-to-date, the company's stock has risen approximately 40%, with a forward price-to-earnings (PE) ratio now closer to 11, up from 6 at the beginning of the year [7][8] Growth Drivers - The company experienced robust gasoline segment sales growth of 10%, contributing to share gains [9] - The EBIT was reported at $133 million, with margins around 14.7% [9] Challenges and Risks - Despite the positive performance, there are concerns regarding continued weakness in the aftermarket business and an unfavorable product mix impacting margin growth potential [9][10] - The company is also facing potential disruption in its core turbocharger business due to the shift towards electric vehicles (EVs) and zero-emission technologies [12][13] Future Outlook - Garrett Motion is diversifying into electric and electrified powertrain systems, with production of electric motors set to begin in 2027 [12][13] - The company recognizes the need for R&D to remain relevant amid the transition towards EVs [13]

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Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $902 million, up 6% at constant currency, reflecting strong performance in light vehicle turbo sales for both gasoline and diesel applications [5][9] - Adjusted EBIT was $133 million, with an adjusted EBIT margin of 14.7%, which includes a 20 basis point dilution from tariff recoveries [5][11] - Adjusted free cash flow for the quarter was $107 million, contributing to a year-to-date total of $264 million [16][18] - The company raised its 2025 outlook midpoint, now expecting net sales of $3.55 billion, net income of $280 million, and adjusted EBIT of $510 million [15] Business Line Data and Key Metrics Changes - Gasoline sales grew by 10% in the quarter, driven by demand gains and new product launches [5][10] - Diesel performance was strong in Europe and North America, although there was continued weakness in aftermarket applications, particularly in North America [10][41] - The company secured over $40 million in awards for commercial vehicles and industrial turbochargers, with expectations for sales exceeding $100 million in 2025 from these products [7][17] Market Data and Key Metrics Changes - The company experienced favorable foreign currency impacts, contributing to the overall sales growth [9][10] - There was a noted recovery in diesel sales year-over-year, particularly in Europe and North America, although the overall trend for diesel remains slowly declining [41] Company Strategy and Development Direction - The strategic priorities focus on developing differentiated, high-speed, and highly efficient technologies to meet customer needs and generate robust returns for shareholders [16] - The company is seeing increased interest in turbochargers for hybrids and range-extended electric vehicles, as well as in zero-emission technologies [6][7] - The company aims to achieve $1 billion in revenue from zero-emission technologies by 2030, with significant contributions expected from e-power trains and eco-link compressors [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive industry's improved forecast for the second half of the year, which has influenced the raised outlook for 2025 [6][15] - The company is monitoring the developments in the penetration of zero-emission technologies closely, with positive signs of customer interest and project wins [33][34] - Management acknowledged cyclical effects impacting the aftermarket and commercial vehicle segments but remains optimistic about future recovery [22][24] Other Important Information - The board approved a 33% increase in the quarterly dividend, raising it to $0.08 per share for Q4 2025 [6][14] - The company repurchased $84 million worth of shares during the quarter, targeting a distribution of 75% of adjusted free cash flow to shareholders over time [14][50] Q&A Session Summary Question: Insights on volume mix and geographic performance - Management clarified that the mix impact is primarily due to the growth in gasoline versus commercial vehicles and ongoing weakness in the aftermarket, particularly in the commercial vehicle off-highway segment [20][21] Question: Details on commercial vehicle market stabilization - Management noted some signs of stabilization in the commercial vehicle market, particularly in China, although the overall outlook remains soft [23][24] Question: Progress on zero-emission technologies and revenue targets - Management discussed three key technologies contributing to the $1 billion revenue target, emphasizing the e-power train and eco-link compressors as significant growth areas [29][30][33] Question: Recovery in diesel sales - Management indicated a year-over-year recovery in diesel sales, particularly in Europe and North America, while acknowledging the overall trend of declining diesel demand [41] Question: Future expectations for stationary power revenue - Management highlighted the growth potential in stationary power applications, with current sales expected to exceed $100 million this year [43][48] Question: Capital allocation strategy moving forward - Management reiterated the commitment to returning capital to shareholders, with variability in share buybacks depending on market conditions [50][59]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $902 million, representing a 6% increase at constant currency and a 9% increase on a reported basis compared to the previous year [5][10] - Adjusted EBIT was $133 million with an adjusted EBIT margin of 14.7%, reflecting a 50 basis point improvement year-over-year [10][12] - Adjusted free cash flow for the quarter was $107 million, contributing to a year-to-date total of $264 million [16][18] - The company raised its 2025 outlook midpoint, now projecting net sales of $3.55 billion and adjusted EBIT of $510 million [15] Business Line Data and Key Metrics Changes - Gasoline sales grew by 10% in Q3, driven by demand gains and new product launches [5][11] - Diesel performance was strong in Europe and North America, although overall diesel trends are slowly declining [36][37] - The aftermarket experienced weakness, particularly in the commercial vehicle off-highway segment [20][21] Market Data and Key Metrics Changes - The company noted strong growth in light vehicle turbo sales, outperforming the industry [5][11] - Demand for stationary power generation products is expected to exceed $100 million in 2025, driven by the expansion of data centers [7][17] - The company secured several awards for zero-emission technologies, indicating strong customer interest [8][31] Company Strategy and Development Direction - The strategic focus remains on developing differentiated, high-speed, and highly efficient technologies to meet customer needs [16] - The company is investing in turbo and zero-emission technologies, with a goal of achieving $1 billion in revenue from zero-emission technologies by 2030 [28][30] - The company aims to return 75% of adjusted free cash flow to shareholders through dividends and share repurchases [14][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive industry's improved forecast for the second half of 2025 [6][15] - The company is optimistic about the growth potential in zero-emission technologies and stationary power applications [8][32] - Management acknowledged cyclical effects impacting the aftermarket and commercial vehicle segments but expects recovery over time [21][22] Other Important Information - The board approved a 33% increase in the quarterly dividend, raising it to $0.08 per share for Q4 2025 [6][14] - The company repurchased $84 million of common stock during the quarter [6][14] - Both Fitch and S&P upgraded the company's ratings, reflecting reduced net leverage and decreased private equity ownership [13] Q&A Session Summary Question: Can you elaborate on the volume mix and its geographic impact? - Management clarified that the mix impact is primarily due to the growth in gasoline versus commercial vehicles and ongoing weakness in the aftermarket, particularly in the commercial vehicle off-highway segment [20][21] Question: What is the outlook for commercial vehicle strength? - Management noted that while the outlook is generally soft, there are signs of stabilization in China, particularly in off-highway applications [23][24] Question: Can you discuss the progress on zero-emission technologies? - Management highlighted three key technologies contributing to the $1 billion revenue goal, with significant potential from e-power trains and eco-link compressors [28][30][31] Question: What is the recovery seen in diesel? - Diesel remains a strong business, particularly in light commercial vehicles, despite a general trend of decline in passenger vehicle diesel applications [36][37] Question: What are the expectations for stationary power revenue? - Management indicated that stationary power applications are growing rapidly, with $100 million expected this year, primarily from gensets for data centers [38][42] Question: What should be expected regarding capital allocation and share repurchases? - Management reaffirmed the commitment to return capital to shareholders, targeting 75% of adjusted free cash flow over time, with variability based on market conditions [44][53]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $902 million, up 6% at constant currency, reflecting outperformance in light vehicle turbo sales for both gasoline and diesel applications [7][14] - Adjusted EBIT was $133 million with an adjusted EBIT margin of 14.7%, which includes a 20 basis point dilution from tariff recoveries [8][17] - Adjusted free cash flow for the quarter was $107 million, contributing to a year-to-date total of $264 million [23] Business Line Data and Key Metrics Changes - Gasoline sales grew by 10% in the quarter, driven by demand gains and new product launches [8][16] - Diesel performance was strong in Europe and North America, although there was continued weakness in aftermarket applications, particularly in North America [16][51] - The company secured over $40 million in awards for commercial vehicles and industrial turbochargers, with expectations for sales exceeding $100 million in 2025 from these products [11] Market Data and Key Metrics Changes - The company experienced favorable foreign currency impacts, contributing to a 9% increase in net sales compared to the prior year [15] - There was a noted recovery of $12 million from tariffs within the quarter, which positively impacted financial results [16] Company Strategy and Development Direction - The company aims to leverage its capabilities to develop differentiated, high-speed, and highly efficient technologies to generate robust returns for shareholders [22] - There is a growing interest in developing turbochargers for hybrids and range-extended electric vehicles, with several awards secured for these technologies [10] - The company is focusing on zero-emission products, with significant progress in developing high-speed e Powertrain and oil-free centrifugal compressors [12][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive industry's improved forecast for the second half of the year, leading to a raised 2025 outlook midpoint [8][21] - The company noted that while diesel is trending down slowly, it remains a strong business, particularly in light commercial vehicle applications [50][51] - Management highlighted the importance of capital allocation, committing to return 75% of adjusted free cash flow to shareholders over time through dividends and share repurchases [20][60] Other Important Information - The Board approved a 33% increase in the quarterly dividend to $0.08 per share for Q4 2025 [9][20] - The company repurchased $84 million worth of shares during the quarter, including shares from its largest shareholder [20] Q&A Session Summary Question: Can you elaborate on the volume mix and its geographic impact? - Management clarified that the mix impact is primarily due to strong growth in gasoline turbos and some weakness in the aftermarket, particularly in commercial vehicle applications [27][28] Question: What is the outlook for commercial vehicle performance? - Management indicated that while the outlook is generally soft, there are signs of stabilization in China, particularly in agricultural and construction equipment [31][32] Question: What is the path to achieving $1 billion in zero-emission technology revenue by 2030? - Management outlined three technologies contributing to this goal, emphasizing the growth potential in e Powertrain and e cooling compressors, with production expected to ramp up starting in 2027 [36][39] Question: Can you discuss the recovery seen in diesel? - Management noted a year-over-year recovery in diesel, particularly in North America, but acknowledged a long-term trend of declining diesel penetration in passenger vehicles [50][51] Question: What are the performance attributes of the e cooling technologies? - Management highlighted the efficiency, low noise, and weight advantages of their e cooling technologies, which leverage high-speed electric motors and airfoil bearing systems [66][68] Question: What should be expected regarding capital allocation moving forward? - Management reiterated their commitment to returning capital to shareholders while remaining flexible based on macroeconomic conditions [71][72]

Core Insights - Garrett Motion reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and up from $0.24 per share a year ago [1] - The company achieved revenues of $902 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.24% and increasing from $826 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +15.15%, following a previous surprise of +13.51% when actual earnings were $0.42 compared to an expected $0.37 [2] - Over the last four quarters, Garrett Motion has consistently surpassed consensus EPS estimates [2] Stock Performance - Garrett Motion shares have increased approximately 38.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.9% [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $879.59 million, and for the current fiscal year, it is $1.39 on revenues of $3.54 billion [8] - The industry outlook is favorable, with the Automotive - Original Equipment sector ranking in the top 32% of Zacks industries, suggesting potential for strong performance [9]

Financial Performance - Net Sales reached $902 million, a 9% increase compared to Q3 2024, or 6% at constant currency[5, 9, 21] - Adjusted EBIT was $133 million with a 14.7% margin, up $16 million from Q3 2024[6, 9, 24] - Adjusted Free Cash Flow was $107 million[7, 16] Business Highlights - Light vehicle gasoline sales grew by 10%, outperforming the industry due to increased market share[9] - The company repurchased $84 million of common stock in Q3, bringing the year-to-date total to $136 million[10] - The Q4 dividend was increased by $0.02 per share to $0.08 per share[10] Outlook and Strategy - The midpoint outlook for 2025 has been raised, with Net Sales projected between $3.5 billion and $3.6 billion[7, 35] - The company is targeting to return 75% of Adjusted Free Cash Flow to shareholders over time[29] - The company expects over $100 million in sales from the industrial portfolio in 2025[41]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Ventyx Biosciences, Inc. (VTYX) increased by 108% to $8.05 - Brera Holdings PLC (SLMT) rose by 49% to $12.50 - Safe & Green Holdings Corp. (SGBX) gained 39% to $3.18 - American Rebel Holdings, Inc. (AREB) up by 26% to $2.71 - Tango Therapeutics, Inc. (TNGX) increased by 18% to $10.25 - Garrett Motion Inc. (GTX) rose by 14% to $14.30 - ETHZilla Corporation (ETHZ) gained 12% to $17.61 - D-Wave Quantum Inc. (QBTS) increased by 11% to $30.40 - IonQ, Inc. (IONQ) rose by 10% to $61.04 - Megan Holdings Limited (MGN) up by 7% to $2.31 [3] Premarket Losers - Splash Beverage Group, Inc. (SBEV) decreased by 21% to $2.06 - Molina Healthcare, Inc. (MOH) down by 18% to $158.44 - SCHMID Group N.V. (SHMD) fell by 18% to $3.18 - Beyond Meat, Inc. (BYND) decreased by 18% to $2.91 - Agencia Comercial Spirits Ltd (AGCC) down by 16% to $5.07 - Super League Enterprise, Inc. (SLE) fell by 13% to $2.25 - Armata Pharmaceuticals, Inc. (ARMP) decreased by 12% to $5.99 - Applied DNA Sciences, Inc. (BNBX) down by 12% to $4.19 - Ribbon Communications Inc. (RBBN) fell by 12% to $3.49 - Tamboran Resources Corporation (TBN) decreased by 11% to $21.81 [4]

Financial Performance - In Q3 2025, Garrett Motion Inc. reported a net income of $77 million and adjusted EBIT of $133 million, driven by sustainable cost initiatives and favorable foreign exchange conditions [113]. - Net sales for the three months ended September 30, 2025, increased by $76 million or 9% compared to the prior period, including a $26 million favorable impact from foreign currency translation [122]. - Gasoline product sales rose by $45 million or 13%, primarily due to new application launches in Europe, China, India, and North America [123]. - Diesel product sales increased by $21 million or 12%, supported by strong light commercial vehicle performance in Europe and sustained demand for pickup trucks in North America [124]. - For the nine months ended September 30, 2025, net sales increased by $62 million or 2%, including a $28 million favorable impact from foreign currency translation [128]. - Net income for the three months ended September 30, 2025, increased by $25 million to $77 million, driven by a $20 million increase in gross profit [154]. - Adjusted EBIT for the three months ended September 30, 2025, increased by $16 million to $133 million, driven by higher sales volumes and productivity [163]. - Adjusted EBIT increased by $27 million year-over-year, driven by $40 million in productivity gains and $22 million from higher sales volumes in gasoline and commercial vehicles [169]. Expenses and Costs - Cost of goods sold for Q3 2025 was $716 million, an increase of 8.5% compared to the prior period, while gross profit margin improved to 20.6% [133]. - Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2025, increased by $4 million to $57 million, representing 6.3% of sales [139]. - For the nine months ended September 30, 2025, SG&A expenses decreased by $3 million to $175 million, primarily due to a $5 million reduction in personnel costs [140]. - Interest expense for the three months ended September 30, 2025, decreased by $8 million to $29 million, attributed to lower interest expense from the Amendment and Restatement of the Credit Agreement [143]. - The company experienced a $60 million impact from unfavorable product mix on gross profit for the nine months ended September 30, 2025 [137]. Shareholder Returns - The company repurchased $84 million of common stock during the quarter, with $114 million remaining under the share repurchase program as of September 30, 2025 [115]. - The Board of Directors declared a cash dividend of $0.06 per share, totaling $11 million paid on September 16, 2025 [116]. - The company declared a cash dividend of $0.08 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025 [174]. - The company repurchased $136 million of Common Stock during the nine months ended September 30, 2025, with $114 million remaining under the share repurchase program [176]. Cash Flow and Financing - Cash provided by operating activities rose by $37 million to $314 million for the nine months ended September 30, 2025, primarily due to a $44 million increase in net income [178]. - Cash used for financing activities decreased significantly to $187 million from $439 million in the prior year, reflecting lower debt repayments and stock repurchases [180]. - As of September 30, 2025, cash and cash equivalents increased to $230 million from $125 million at the end of 2024 [172]. - Cash flow used for investing activities decreased by $28 million to $(27) million for the nine months ended September 30, 2025, compared to the prior year [179]. - The company refinanced its $692 million 2021 Dollar Term Facility with a new 2025 Dollar Term Facility, maturing on January 30, 2032 [172]. Strategic Initiatives - Garrett Motion Inc. deepened strategic collaborations with OEMs for zero-emission technologies, laying the foundation for future business growth [114]. - The company expects to continue investing in manufacturing capacity and new technologies, particularly in zero-emission technologies [175]. - The company revised its non-GAAP reporting metric from Adjusted EBITDA to Adjusted EBIT to better reflect core operating performance [157]. Other Financial Metrics - The effective tax rate for the three months ended September 30, 2025, was 24.5%, down from 31.6% in the prior year [148]. - Non-operating income for the nine months ended September 30, 2025, increased by $3 million to $10 million, primarily due to higher foreign exchange transactional gains [147]. - Other expense, net for the nine months ended September 30, 2025, increased by $4 million to $9 million, mainly due to third-party costs related to the Restatement Agreement [142]. - The net fair value of financial instruments with currency risk was $164 million, with a potential loss or gain of $271 million and $(268) million from a hypothetical 10% change in exchange rates [187]. - The company experienced growth in gasoline volumes from new application launches and program ramp-ups in multiple regions, including Europe and North America [164].

Exhibit 99.1 Garrett Motion Reports Third Quarter 2025 Financial Results, Raises Midpoint Outlook, Increases Dividend, Executes Partial Debt Repayment Third Quarter 2025 Financial Highlights Third Quarter 2025 Business Highlights PLYMOUTH, Mich. and ROLLE, Switzerland, October 23, 2025 – Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider, today announced its financial results for the three months ended September 30, 2025. Additionally, the ...