Garrett Motion Inc
NASDAQ:GTX
Garrett Motion Inc
Garrett Motion Inc. finds its roots deep within the annals of automotive history, dating back to its association with Honeywell's transportation systems division. Operating in a niche that demands precision and relentless innovation, Garrett has steadily evolved into a leader in the field of turbocharger technology. At the core of its operations, Garrett engineering fuels vehicles with power and efficiency. The company's products, primarily turbochargers and electric-boosting technologies, are embedded in the heart of engines. These components enhance performance by forcing extra air into combustion chambers—delivering more power from smaller engines and significantly improving fuel efficiency.
Garrett's revenue streams flow from direct sales to automotive manufacturers and a robust aftermarket segment. Original Equipment Manufacturers (OEMs) are pivotal partners, as automakers increasingly focus on reducing emissions while maintaining performance standards. As regulations tighten and demand shifts toward cleaner and more efficient solutions, Garrett's technologies serve as critical enablers of this transformation. By catering to both established manufacturers and emerging electric vehicle platforms, Garrett positions itself as an indispensable cog in the future of mobility, thriving in a landscape that rewards innovation and adaptability. This dual-focus strategy allows the company not only to ride the currents of conventional automotive strides but also to anchor itself firmly in the evolving electric frontier.
Garrett Motion Inc. finds its roots deep within the annals of automotive history, dating back to its association with Honeywell's transportation systems division. Operating in a niche that demands precision and relentless innovation, Garrett has steadily evolved into a leader in the field of turbocharger technology. At the core of its operations, Garrett engineering fuels vehicles with power and efficiency. The company's products, primarily turbochargers and electric-boosting technologies, are embedded in the heart of engines. These components enhance performance by forcing extra air into combustion chambers—delivering more power from smaller engines and significantly improving fuel efficiency.
Garrett's revenue streams flow from direct sales to automotive manufacturers and a robust aftermarket segment. Original Equipment Manufacturers (OEMs) are pivotal partners, as automakers increasingly focus on reducing emissions while maintaining performance standards. As regulations tighten and demand shifts toward cleaner and more efficient solutions, Garrett's technologies serve as critical enablers of this transformation. By catering to both established manufacturers and emerging electric vehicle platforms, Garrett positions itself as an indispensable cog in the future of mobility, thriving in a landscape that rewards innovation and adaptability. This dual-focus strategy allows the company not only to ride the currents of conventional automotive strides but also to anchor itself firmly in the evolving electric frontier.
Strong FY25 Results: Garrett delivered full-year 2025 net sales of $3.58 billion and adjusted EBIT of $510 million with a 14.2% margin, in line with guidance.
Q4 Performance: Q4 net sales reached $891 million, adjusted EBIT was $122 million at a 13.7% margin; free cash flow was strong at $139 million.
Capital Returns: In 2025, repaid $50 million of term loan, repurchased $208 million in stock, and paid $52 million in dividends; announced new $250 million repurchase program for 2026.
Strategic Expansion: Secured major awards in turbo, zero-emission, and industrial segments, including a new partnership with Trane for oil-free, high-speed compressors for HVAC.
2026 Guidance Up: Projecting 2026 net sales of $3.7 billion, net income of $315 million, and adjusted EBIT of $545 million with a 14.7% margin, despite a forecasted 2% decline in light vehicle industry volumes.
Growth in Industrial Cooling: Industrial cooling expected to exceed 5% of total revenue by decade’s end; initial Trane units to launch in 2026 with main ramp in 2027.
Market Share Gains: Company continues to win more than 50% of new business turbo awards, driving market share gains even as the overall vehicle market softens.
