Garrett Motion (GTX) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Garrett Motion delivered strong Q2 2025 results with increased net sales, net income, and adjusted free cash flow, declared a dividend, raised its full-year outlook, and achieved strategic milestones in program extensions and R&D Second Quarter 2025 Overview Garrett Motion reported strong Q2 2025 financial results, outperforming the industry with a 3% increase in net sales and significant growth in net income and adjusted free cash flow. The company also declared a cash dividend of $0.06 per share and raised its full-year 2025 outlook Second Quarter 2025 Financial Highlights | $ millions (unless otherwise noted) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | 913 | 890 | 1,791 | 1,805 | | Gross profit | 181 | 185 | 360 | 357 | | Gross profit % | 19.8% | 20.8% | 20.1% | 19.8% | | Net income | 87 | 64 | 149 | 130 | | Net income margin | 9.5% | 7.2% | 8.3% | 7.2% | | Adjusted EBIT* | 124 | 123 | 255 | 244 | | Adjusted EBIT margin* | 13.6% | 13.8% | 14.2% | 13.5% | | Adjusted EBITDA* | 154 | 150 | 313 | 301 | | Adjusted EBITDA margin* | 16.9% | 16.9% | 17.5% | 16.7% | | Net cash provided by operating activities | 158 | 126 | 214 | 210 | | Adjusted free cash flow* | 121 | 62 | 157 | 130 | - Garrett Motion declared a cash dividend of $0.06 per share of common stock, payable on September 16, 2025[1] - The company raised its full-year 2025 outlook to reflect favorable foreign currency impacts[3] CEO Commentary CEO Olivier Rabiller highlighted strong operational execution, outperforming the industry with a 13.6% Adjusted EBIT margin and generating $121 million in Adjusted free cash flow. Strategic achievements included securing over $1 billion in light vehicle program extensions, advancing zero-emission technologies, and expanding R&D capabilities with a new innovation center in Wuhan - Garrett delivered a strong quarter with an Adjusted EBIT margin of 13.6% and generated $121 million of Adjusted free cash flow[2] - Secured awards for more than $1 billion in light vehicle program extensions and advanced zero-emission technologies (E-Powertrain, E-Cooling, Fuel Cell programs)[2] - Launched a second innovation center in Wuhan to scale R&D capabilities for high-efficiency electrification solutions[2] Financial Performance Analysis (Q2 2025) This section analyzes Garrett Motion's Q2 2025 financial performance, detailing changes in net sales, gross profit, expenses, net income, and cash flow, alongside key non-GAAP metrics Results of Operations The company's Q2 2025 results showed a 3% increase in net sales, primarily due to foreign currency impacts and tariff recoveries. Gross profit decreased slightly due to unfavorable product mix and pricing, while net income significantly improved due to lower interest and tax expenses Net Sales Net sales increased by 3% in Q2 2025, primarily driven by foreign currency impacts and tariff recoveries, despite mixed demand across product categories Net Sales Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $913 million | $890 million | +3% | | Foreign currency impact | $23 million | N/A | +3% | | Constant currency sales change | Flat | N/A | 0% | - Increase driven by foreign currency impacts and recoveries on newly enacted import tariffs[4] - Strong demand for gasoline and commercial vehicle applications was offset by weaker demand for replacement parts on aftermarket sales and diesel products[4] Cost of Goods Sold and Gross Profit Cost of goods sold increased due to foreign currency and tariffs, while gross profit decreased by $4 million and 1.0 percentage point, mainly due to unfavorable product mix and pricing Cost of Goods Sold (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Cost of goods sold | $732 million | $705 million | +$27 million | | Primary drivers of increase | Foreign currency impacts ($16M), import tariffs ($15M), unfavorable product mix ($6M), higher sales volumes ($3M) | N/A | N/A | | Offsets to increase | Productivity net of labor inflation ($8M), commodity/transportation/energy deflation ($4M), lower R&D costs ($1M) | N/A | N/A | Gross Profit Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross profit | $181 million | $185 million | -$4 million | | Gross profit percentage | 19.8% | 20.8% | -1.0 pp | | Primary drivers of decrease | Unfavorable product mix ($25M), pricing net of inflation pass-through ($2M) | N/A | N/A | | Offsets to decrease | Foreign currency impacts ($9M), productivity ($9M), commodity/transportation/energy deflation ($4M), higher sales volumes ($1M), lower R&D costs ($1M) | N/A | N/A | Selling, General and Administrative Expenses Selling, general and administrative expenses decreased by $2 million in Q2 2025, primarily due to lower personnel costs, partially offset by unfavorable foreign exchange impacts SG&A Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | SG&A expenses | $59 million | $61 million | -$2 million | | Primary driver of decrease | Lower personnel costs ($3 million) | N/A | N/A | | Partial offset | Unfavorable foreign exchange impacts ($2 million) | N/A | N/A | Other Expense, Interest Expense, and Non-Operating Income Other expense and interest expense decreased significantly in Q2 2025, while non-operating income increased, primarily due to foreign exchange transactional gains Other Expense (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Other expense | $1 million | $3 million | -$2 million | | Primary driver of decrease | Lower professional fees related to 2032 Senior Notes in prior year | N/A | N/A | Interest Expense (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Interest expense | $25 million | $62 million | -$37 million | | Primary drivers of decrease | $29 million reduction in debt issuance cost amortization, $8 million lower interest expense from change in notional debt | N/A | N/A | Non-Operating Income (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Non-operating income | $6 million | $1 million | +$5 million | | Primary driver of increase | Foreign exchange transactional gains | N/A | N/A | Tax Expense Tax expense decreased by $8 million in Q2 2025, mainly due to a prior-year equity sale and a deferred tax asset revaluation benefit in China, partially offset by increased U.S. taxes Tax Expense (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Tax expense | $15 million | $23 million | -$8 million | | Primary drivers of decrease | One-time sale of equity interest in prior year, one-time benefit from revaluation of deferred tax assets in China | N/A | N/A | | Partial offset | Increase in U.S. taxes on international operations | N/A | N/A | Net Income Net income increased by $23 million in Q2 2025, driven by lower interest and tax expenses, and increased non-operating income, partially offset by decreased gross profit Net Income (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net income | $87 million | $64 million | +$23 million | | Primary drivers of increase | Lower interest expense ($37M), lower tax expense ($8M), lower SG&A expense ($2M), lower other expense ($2M), increase in non-operating income ($5M) | N/A | N/A | | Partial offsets | Decreased gross profit ($4M), prior year gain on sale of equity interest ($27M) | N/A | N/A | Net Cash Provided by Operating Activities Net cash provided by operating activities increased by $32 million in Q2 2025, primarily due to favorable working capital changes and higher net income Net Cash Provided by Operating Activities (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $158 million | $126 million | +$32 million | | Primary drivers of increase | Favorable impacts from working capital changes ($76M), higher net income ($23M) | N/A | N/A | | Partial offsets | Decrease in non-cash charges ($37M), unfavorable impacts from changes in other assets and liabilities ($30M) | N/A | N/A | Non-GAAP Financial Performance (Q2 2025) Garrett Motion reported an increase in Adjusted EBIT and a significant rise in Adjusted free cash flow for Q2 2025, reflecting strong operational performance and effective working capital management Adjusted EBIT Adjusted EBIT increased by $1 million in Q2 2025, driven by foreign currency impacts, productivity, and commodity deflation, partially offset by unfavorable product mix and pricing Adjusted EBIT (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBIT | $124 million | $123 million | +$1 million | | Primary drivers of increase | Foreign currency impacts ($11M), productivity ($11M), commodity/transportation/energy deflation ($4M), higher volumes ($1M) | N/A | N/A | | Partial offsets | Unfavorable product mix ($25M), lower pricing net of inflation pass-through ($2M) | N/A | N/A | Adjusted Free Cash Flow Adjusted free cash flow significantly increased by $59 million in Q2 2025, primarily due to favorable working capital changes, despite higher cash interest and tax payments Adjusted Free Cash Flow (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted free cash flow | $121 million | $62 million | +$59 million | | Primary driver of increase | Favorable impact from working capital changes (net of factoring) ($92M) | N/A | N/A | | Partial offsets | Higher cash interest paid ($24M), higher cash taxes paid ($8M) | N/A | N/A | Liquidity and Capital Resources Garrett Motion maintained strong liquidity as of June 30, 2025, with substantial cash and undrawn credit, stable total debt, and ongoing common stock repurchases Liquidity and Capital Resources As of June 30, 2025, Garrett Motion maintained strong liquidity with $862 million available, including $232 million in cash and $630 million in undrawn credit. Total debt remained stable at $1,491 million, and the company repurchased $22 million of common stock, with $198 million remaining capacity Available Liquidity | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total available liquidity | $862 million | $725 million | | Cash and cash equivalents | $232 million | $125 million | | Undrawn revolving credit facility | $630 million | $600 million | Debt and Share Repurchases | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total principal amount of debt outstanding | $1,491 million | $1,493 million | | Common stock repurchased (Q2 2025) | $22 million | N/A | | Remaining repurchase capacity (June 30, 2025) | $198 million | N/A | Full Year 2025 Outlook Garrett Motion has revised its full-year 2025 financial outlook upwards, driven by favorable foreign currency impacts, and provided key assumptions for industry production and market conditions Revised Financial Outlook Garrett Motion raised its full-year 2025 outlook for several GAAP and Non-GAAP financial measures, primarily due to favorable foreign currency impacts, indicating increased confidence in future performance Full Year 2025 Outlook (Revised vs. Prior) | Metric | Full Year 2025 Outlook | Prior Outlook | | :--- | :--- | :--- | | Net sales (GAAP) | $3.4 billion to $3.6 billion | $3.3 billion to $3.5 billion | | Net sales growth at constant currency (Non-GAAP)* | -3% to +2% | -3% to +2% | | Net income (GAAP) | $233 million to $278 million | $209 million to $254 million | | Adjusted EBITDA (Non-GAAP)* | $590 million to $650 million | $545 million to $605 million | | Adjusted EBIT (Non-GAAP)* | $470 million to $530 million | $427 million to $487 million | | Net cash provided by operating activities (GAAP) | $370 million to $450 million | $357 million to $447 million | | Adjusted free cash flow (Non-GAAP)* | $330 million to $410 million | $300 million to $390 million | Key Outlook Assumptions The full-year 2025 outlook is based on assumptions including flat to slightly down light vehicle production, flat to slightly up commercial vehicle production, 16% BEV penetration, and price/productivity offsetting inflation, with a Euro/dollar assumption of 1.13 EUR to 1.00 USD - 2025 light vehicle industry production expected to be down 3% to flat versus 2024[22] - 2025 commercial vehicle industry production (on- and off-highway) expected to be flat to +2% versus 2024[22] - Assumes 2025 average light vehicle battery electric vehicle penetration of 16%[22] - Price (net of pass-through) and productivity are expected to offset inflation[22] - Euro/dollar assumption of 1.13 EUR to 1.00 USD for 2025[22] Company Information & Disclosures This section provides an overview of Garrett Motion's business, includes standard forward-looking statements, and defines the non-GAAP financial measures used in the report About Garrett Motion Inc. Garrett Motion is a leading automotive technology provider with a 70-year history of innovation in turbocharging, enabling reductions in engine size, fuel consumption, and CO2 emissions. The company is expanding into Zero Emission Vehicle solutions, including fuel cell compressors and electric propulsion systems, supported by six R&D centers and over 9,000 employees globally - Garrett Motion is a differentiated technology leader with a 70-year history in automotive turbocharging, reducing engine size, fuel consumption, and CO2 emissions[26] - Expanding into Zero Emission Vehicle solutions, such as fuel cell compressors for hydrogen vehicles and electric propulsion/thermal management systems for battery electric vehicles[26] - Operates six R&D centers, 13 manufacturing sites, and employs over 9,000 people in more than 20 countries[26] Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, cautioning that actual results may differ materially from projections due to various risks, and the company undertakes no obligation to update these statements - Forward-looking statements represent current judgment about possible future activities, events, or developments, but are not guarantees of future performance[24] - Actual performance, events, or results may differ materially due to various important factors, including risks related to the automotive industry, competitive landscape, and macroeconomic/geopolitical conditions[24] - The company undertakes no obligation to update or revise any forward-looking statements, except where expressly required by law[24] Non-GAAP Financial Measures (Definitions) This section defines the non-GAAP financial measures used in the report, such as Constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, and Adjusted free cash flow, explaining their usefulness to investors and management for understanding operational performance by excluding certain non-operating items - Non-GAAP measures (Constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT margin, Adjusted EBITDA margin, Adjusted free cash flow) are used to understand ongoing operations and operating trends[25] - These measures exclude effects of certain non-operating items to more closely reflect operational performance[25] - Non-GAAP measures may not be comparable to similarly titled measures of other companies and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures[25] Consolidated Interim Financial Statements This section presents Garrett Motion's unaudited consolidated interim financial statements, including statements of operations, comprehensive income, balance sheets, and cash flows for the reported periods Consolidated Interim Statements of Operations The unaudited consolidated interim statement of operations shows net sales of $913 million for Q2 2025 (up from $890 million in Q2 2024) and net income of $87 million (up from $64 million). Basic EPS increased to $0.43 from $0.29 year-over-year CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS | | For the Three Months Ended June 30, | For the Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net sales | $913 | $890 | $1,791 | $1,805 | | Cost of goods sold | 732 | 705 | 1,431 | 1,448 | | Gross profit | 181 | 185 | 360 | 357 | | Selling, general and administrative expenses | 59 | 61 | 118 | 125 | | Other expense, net | 1 | 3 | 8 | 4 | | Interest expense | 25 | 62 | 54 | 93 | | Gain on sale of equity investment | — | (27) | — | (27) | | Non-operating income, net | (6) | (1) | (7) | (6) | | Income before taxes | 102 | 87 | 187 | 168 | | Tax expense | 15 | 23 | 38 | 38 | | Net income | $87 | $64 | $149 | $130 | | Earnings per common share (Basic) | $0.43 | $0.29 | $0.73 | $0.56 | | Earnings per common share (Diluted) | 0.42 | 0.28 | 0.72 | 0.56 | Consolidated Interim Statements of Comprehensive Income The interim statement of comprehensive income reports a comprehensive loss of $(83) million for Q2 2025, a significant change from a comprehensive income of $72 million in Q2 2024, primarily due to a large foreign exchange translation adjustment and changes in fair value of net investment hedges CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income | $87 | $64 | $149 | $130 | | Foreign exchange translation adjustment | (59) | — | (88) | 18 | | Defined benefit pension plan adjustment, net of tax | — | 2 | — | 3 | | Changes in fair value of effective cash flow hedges, net of tax | 17 | (2) | 19 | 1 | | Changes in fair value of net investment hedges, net of tax | (128) | 8 | (163) | 27 | | Total other comprehensive (loss) income, net of tax | (170) | 8 | (232) | 49 | | Comprehensive (loss) income | $(83) | $72 | $(83) | $179 | Consolidated Interim Balance Sheets As of June 30, 2025, total assets increased to $2,403 million from $2,276 million at December 31, 2024, driven by higher cash and receivables. Total liabilities also increased to $3,215 million from $2,949 million, leading to an increased total deficit CONSOLIDATED INTERIM BALANCE SHEETS | ASSETS | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $232 | $125 | | Accounts, notes and other receivables – net | 721 | 687 | | Inventories – net | 287 | 286 | | Total current assets | 1,363 | 1,193 | | Total assets | $2,403 | $2,276 | | LIABILITIES | | | | Accounts payable | $1,005 | $972 | | Total current liabilities | 1,319 | 1,278 | | Long-term debt | 1,460 | 1,464 | | Total liabilities | $3,215 | $2,949 | | Total deficit | $(812) | $(673) | | Total liabilities and deficit | $2,403 | $2,276 | Consolidated Interim Statements of Cash Flows Net cash provided by operating activities for the six months ended June 30, 2025, was $214 million, slightly up from $210 million in the prior year. Net cash used for investing activities was $(26) million, and net cash used for financing activities was $(89) million. Cash and cash equivalents at period end increased to $233 million CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | Cash flows from operating activities: | Six Months Ended June 30, | | :--- | :--- | | | 2025 | 2024 | | Net income | $149 | $130 | | Net cash provided by operating activities | $214 | $210 | | Cash flows from investing activities: | | | | Expenditures for property, plant and equipment | (41) | (49) | | Net cash used for investing activities | $(26) | $18 | | Cash flows from financing activities: | | | | Repurchases of Common Stock | (52) | (173) | | Dividend payments | (25) | — | | Net cash used for financing activities | $(89) | $(384) | | Net increase (decrease) in cash, cash equivalents and restricted cash | 107 | (161) | | Cash, cash equivalents and restricted cash at end of the period | $233 | $99 | Non-GAAP Reconciliations This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including Adjusted EBIT, Adjusted EBITDA, constant currency sales, and Adjusted free cash flow, for both historical periods and the full-year 2025 outlook Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA This section provides a detailed reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024, outlining specific adjustments such as interest expense, tax expense, repositioning costs, and depreciation Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net income | $87 | $64 | $149 | $130 | | Interest expense, net of interest income | 23 | 61 | 52 | 90 | | Tax expense | 15 | 23 | 38 | 38 | | EBIT | 125 | 148 | 239 | 258 | | Repositioning costs | (2) | 1 | 5 | 12 | | Gain on sale of equity investment | — | (27) | — | (27) | | Adjusted EBIT | 124 | 123 | 255 | 244 | | Depreciation | 23 | 22 | 45 | 44 | | Stock compensation expense | 7 | 5 | 13 | 13 | | Adjusted EBITDA | $154 | $150 | $313 | $301 | | Adjusted EBIT margin | 13.6 % | 13.8 % | 14.2 % | 13.5 % | | Adjusted EBITDA margin | 16.9 % | 16.9 % | 17.5 % | 16.7 % | - Adjusted EBIT and Adjusted EBITDA are important indicators of operating performance, excluding the effects of income taxes, financing activities, and certain non-operating items[34] Reconciliation of Constant Currency Sales % Change This section reconciles reported sales percentage change to constant currency sales percentage change for Garrett Motion and its various segments (Gasoline, Diesel, Commercial vehicles, Aftermarket, Other Sales) for the three and six months ended June 30, 2025 and 2024 Reconciliation of Constant Currency Sales % Change (Q2 2025) | Segment | Reported sales % change | Less: Foreign currency translation | Constant currency sales % change | | :--- | :--- | :--- | :--- | | Garrett | 3 % | 3 % | — % | | Gasoline | 6 % | 2 % | 4 % | | Diesel | (1)% | 4 % | (5)% | | Commercial vehicles | 6 % | 2 % | 4 % | | Aftermarket | (8)% | 2 % | (10)% | | Other Sales | 31 % | 5 % | 26 % | - Constant currency sales growth is defined as the year-over-year change in reported sales, excluding the impact from foreign currency translation, useful for understanding ongoing operating trends[35] Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow This section reconciles net cash provided by operating activities to Adjusted free cash flow for the three and six months ended June 30, 2025 and 2024, detailing adjustments for capital expenditures and other discretionary items Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net cash provided by operating activities | $158 | $126 | $214 | $210 | | Expenditures for property, plant and equipment | (15) | (17) | (41) | (49) | | Net cash provided by operating activities less expenditures for property, plant and equipment | 143 | 109 | 173 | 161 | | Capital structure transformation expenses | — | — | — | 1 | | Acquisition and divestiture expenses | 4 | 1 | 5 | 1 | | Cash payments for repositioning | 3 | 4 | 6 | 13 | | Proceeds from cross currency swap contracts | 11 | 4 | 15 | 8 | | Cash payments for debt refinancing costs | — | — | 6 | — | | Factoring and P-notes | (40) | (56) | (48) | (54) | | Adjusted free cash flow | $121 | $62 | $157 | $130 | - Adjusted free cash flow is a liquidity measure useful for analyzing the Company's ability to service and repay debt, defined as cash flow from operating activities less capital expenditures and adjusted for other discretionary items[36] Full Year 2025 Outlook Reconciliations This section provides reconciliations for the full-year 2025 outlook figures, detailing how reported net sales, net income, and net cash provided by operating activities are adjusted to derive constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, and Adjusted Free Cash Flow Full Year 2025 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency | | 2025 Full Year | | :--- | :--- | | | Low End | High End | | Reported net sales (% change) | (2)% | 4 % | | Foreign currency translation | 1 % | 2 % | | Full year 2025 Outlook Net sales growth at constant currency | (3)% | 2 % | Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBITDA | | 2025 Full Year | | :--- | :--- | | | Low End | High End | | Net income | $233 | $278 | | Interest expense, net of interest income * | 123 | 123 | | Tax expense | 76 | 91 | | Factoring and notes receivables discount fees | 2 | 2 | | Acquisition and divestiture expenses | 6 | 6 | | Debt refinancing and redemption costs | 6 | 6 | | Repositioning costs | 24 | 24 | | Full Year 2025 Outlook Adjusted EBIT | $470 | $530 | | Depreciation | 95 | 95 | | Stock compensation expense | 25 | 25 | | Full Year 2025 Outlook Adjusted EBITDA | $590 | $650 | Full Year 2025 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow | | 2025 Full Year | | :--- | :--- | | | Low End | High End | | Net cash provided by operating activities | $370 | $450 | | Expenditures for property, plant and equipment | (89) | (89) | | Net cash provided by operating activities less expenditures for property, plant and equipment | 281 | 361 | | Cash payments for repositioning | 25 | 25 | | Proceeds from cross currency swap contracts | 12 | 12 | | Acquisition and divestiture expenses | 6 | 6 | | Cash payments for debt refinancing costs | 6 | 6 | | Full Year 2025 Outlook Adjusted free cash flow | $330 | $410 |