Garrett Motion (GTX) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 totaled $878 million, a decrease of 4% from $915 million in Q1 2024, with a 2% decline on a constant currency basis[3] - Gross profit increased to $179 million in Q1 2025, with a gross profit margin of 20.4%, up from 18.8% in Q1 2024[6] - Adjusted EBIT rose to $131 million in Q1 2025, representing an adjusted EBIT margin of 14.9%, compared to 13.2% in Q1 2024[15] - Net income for Q1 2025 was $62 million, resulting in a net income margin of 7.1%, slightly down from 7.2% in Q1 2024[12] - Adjusted EBITDA for Q1 2025 was $159 million, compared to $151 million in Q1 2024, with an adjusted EBITDA margin of 18.1%[33] - Reported net sales for the full year 2025 are expected to decline between 6% and 0%[39] - Net income for the full year 2025 is projected to be between $209 million and $254 million[40] - Adjusted EBITDA for the full year 2025 is forecasted to range from $545 million to $605 million[40] - Full year 2025 net sales growth at constant currency is expected to range from -3% to 2%[39] Cash Flow and Investments - Adjusted free cash flow decreased to $36 million in Q1 2025, down from $68 million in Q1 2024, primarily due to unfavorable working capital changes[16] - Cash flows from operating activities decreased to $56 million in Q1 2025 from $84 million in Q1 2024[32] - Adjusted free cash flow for the full year 2025 is anticipated to be between $300 million and $390 million[41] - Net cash provided by operating activities is estimated to be between $357 million and $447 million[41] - Expenditures for property, plant, and equipment are projected to be $96 million for the full year 2025[41] Debt and Liquidity - As of March 31, 2025, total principal amount of debt outstanding was $1,494 million, with available liquidity of $760 million[17][18] - Total liabilities increased to $2,975 million as of March 31, 2025, compared to $2,949 million as of December 31, 2024[31] - Interest expense for the full year 2025 is projected to be $117 million[40] Future Outlook - Full-year 2025 net sales outlook is projected between $3.3 billion and $3.5 billion, with net income expected between $209 million and $254 million[20] - The company plans to invest 4.6% of sales in R&D for 2025, focusing more than 50% on zero-emission technologies[22] - Cash payments for repositioning are estimated at $20 million for the full year 2025[41] Other Financial Metrics - The company incurred repositioning costs of $7 million in Q1 2025, compared to $11 million in Q1 2024[33] - Tax expense for the full year 2025 is expected to be between $70 million and $85 million[40] - The company reported a constant currency sales percentage change of -2% for Q1 2025, compared to -5% in Q1 2024[36] - The company announced a cash dividend of $0.06 per share, payable on June 16, 2025[1] - Garrett secured its first major series production award for electric motors, with production expected to start in 2027[3] - Total assets as of March 31, 2025, were $2,275 million, slightly down from $2,276 million as of December 31, 2024[31]