Core Insights - Garrett Motion Inc. reported strong financial results for Q3 2025, with net sales of $902 million, a 9% increase year-over-year, and a net income of $77 million, up from $52 million in Q3 2024 [3][5][14] - The company declared a cash dividend of $0.08 per share, reflecting a $0.02 increase, and executed a $50 million voluntary early debt repayment [3][4] - Garrett's Adjusted EBIT margin expanded to 14.7%, and the company generated $107 million in adjusted free cash flow, enabling significant share repurchases and a dividend increase [4][5][18] Financial Performance - **Net Sales**: Q3 2025 net sales reached $902 million, up from $826 million in Q3 2024, with a constant currency growth of 6% [5][7] - **Net Income**: The net income for Q3 2025 was $77 million, resulting in a net income margin of 8.5%, compared to 6.3% in Q3 2024 [14][17] - **Adjusted EBIT**: Adjusted EBIT for Q3 2025 was $133 million, with an adjusted EBIT margin of 14.7%, an increase from 14.2% in Q3 2024 [17][33] - **Adjusted Free Cash Flow**: Adjusted free cash flow was $107 million, up from $71 million in Q3 2024, driven by higher adjusted EBIT and lower capital expenditures [18][39] Operational Highlights - The company secured several new light vehicle turbo programs, including awards for range-extended electric vehicles, contributing to over $40 million in expected lifetime revenue from turbochargers for data center backup power generation [4][5] - Garrett continues to strengthen its leadership in turbocharging and is advancing its zero-emission technologies, with increased interest from OEMs and industrial customers [4][5] Liquidity and Capital Resources - As of September 30, 2025, Garrett had $860 million in available liquidity, including $230 million in unrestricted cash and $630 million in undrawn commitments under its revolving credit facility [19][20] - The total principal amount of debt outstanding was $1,490 million, with a share repurchase of $84 million executed during Q3 2025 [20][19] Full Year 2025 Outlook - The company revised its full-year 2025 outlook, projecting net sales between $3.5 billion and $3.6 billion, with a net income range of $265 million to $295 million [21][22] - The outlook reflects expectations of flat to 2% growth in light vehicle industry production and commercial vehicle industry production for 2025 [23][22]