Garrett Motion Delivers Strong 2024 Financial Performance, Issues 2025 Outlook

Financial Performance - Garrett Motion Inc. reported strong financial performance in 2024, with an adjusted EBITDA margin expansion of 90 basis points year-over-year to 17.2% and generated $358 million in adjusted free cash flow [4][6] - Net sales for Q4 2024 were$844 million, down 11% from Q4 2023, primarily due to lower diesel production volumes in Europe and soft gasoline demand in China and North America [6][7] - The company achieved a net income of $100 million in Q4 2024, compared to$52 million in Q4 2023, driven by lower interest and tax expenses [14][6] Cost and Profitability - Cost of goods sold for Q4 2024 was $662 million, down from$756 million in Q4 2023, attributed to lower sales volumes and higher productivity [8][9] - Gross profit for Q4 2024 was $182 million, with a gross profit percentage of 21.6$62 million in Q4 2024 from $69 million in Q4 2023, due to lower professional services and legal fees [10] Shareholder Returns and Capital Allocation - In 2024, Garrett repurchased$296 million of common shares, equivalent to a 13% reduction in share count, and initiated a $50 million annual dividend [5][20] - A new$250 million share repurchase program was authorized for 2025, reflecting the company's commitment to returning value to shareholders [21] Liquidity and Debt Management - As of December 31, 2024, Garrett had $725 million in available liquidity, including$125 million in cash and cash equivalents [18] - Total principal amount of debt outstanding decreased to $1,493 million from$1,696 million as of December 31, 2023, due to early debt repayments [19] 2025 Outlook - For 2025, Garrett expects net sales between $3.3 billion and$3.5 billion, with a constant currency sales growth forecast of -3% to +2% [24][25] - The company anticipates adjusted EBITDA for 2025 to be in the range of $545 million to$605 million [49][50]