Garrett Motion Inc. · NASDAQ:GTX
Garrett Motion — Q2 2025 Earnings Presentation
25 slides from Garrett Motion's earnings presentation, Jul 24, 2025
Slide 1: Q2 2025 Financial Results
JULY 24, 2025 , Q2 2025 FINANCIAL RESULTS © 2025 Garrett Motion Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This communication and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such
Slide 3: Key Business Highlights
Key Business Highlights Q2 2025 Financial Performance Industry and Business Trends Net Sales of $913M Raising outlook to reflect stronger EUR/USD • +3% reported and flat at constant currency1 vs. Q2 2024, exchange including tariff recoveries • Maintaining industry outlook • Light vehicle gasoline gr
Slide 4: Continued Success Across All Differentiated Technologies
Continued Success Across All Differentiated Technologies Turbo and Hybrid Technologies Zero Emission Technologies Gasoline Turbo Commercial Vehicle Turbo Industrial Turbo 3-in-1 E-Powertrain E-Cooling Compressor Fuel Cell Compressor Successfully winning business across our turbo and Strong interest
Slide 5: Quarterly Financial Trends: Q2 2024 – Q2 2025
Quarterly Financial Trends: Q2 2024 – Q2 2025 Reported Net Sales ($M) Adjusted EBIT1 ($M) $890 $878 $913 $826 $844 49% 43% 49% 50% 46% $123 $124 $131 $124 19% 22% 20% 20% 20% $117 30% 30% 34% 29% 27% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Europe North Asia Ot
Slide 6: Net Sales Bridge: Q2 2025
Net Sales Bridge: Q2 2025 ($M) $913 23 14 (11) 6 $890 (12) 3 Q2 2024 Gasoline Diesel Commercial Aftermarket Others FX Q2 2025 Net Sales Vehicles Net Sales % change1 4% (5)% 4% (10)% 26% 0% % of Reported Q2’25 Net Sales 43% 24% 19% 12% 2% • Q2 2025 Net Sales of $913M, up $23M or 3% on a reported basi
Slide 7: Adjusted EBIT Bridge: Q2 2025
Adjusted EBIT1 Bridge: Q2 2025 ($M) ($M) $123 $124 1 11 (25) 1 11 (2) 4 13.8% 13.6% +$14M operating performance improvement year-over-year Q2 2024 Volume Product Mix Pricing net Commodity, Productivity, R&D FX Q2 2025 Adjusted EBIT1 of Inflation Transportation SG&A - net Adjusted EBIT1 Passthrough a
Slide 8: Q2 2025 Adjusted EBIT to Adjusted Free Cash Flow Bridge
Q2 2025 Adjusted EBIT1 to Adjusted Free Cash Flow1 Bridge ($M) (25) 40 • Strong cash generation from higher 23 (15) (39) volumes and working capital 13 contribution sequentially • Cash taxes, capital expenditures, depreciation, and cash interest in $124 $121 line with expectations • Other includes c
Slide 9: Strong Liquidity and Balanced Capital Allocation Framework
Strong Liquidity and Balanced Capital Allocation Framework ($M) Ample liquidity with no near-term debt maturities Liquidity and Net Debt2 • Term Loan B and Unsecured Notes maturing in 2032 • Net leverage ratio2 stable at 1.99x Q1 2025 Q2 2025 Unrestricted Cash1 130 232 Undrawn Revolver Credit Facili
Slide 10: Raising 2025 Outlook for favorable currency exchange
Raising 2025 Outlook for favorable currency exchange Outlook Prior Outlook Net Sales $3.4B to $3.6B $3.3B to $3.5B Net Sales Growth -3% to +2% -3% to +2% at Constant Currency1 Net Income $233M to $278M $209M to $254M Adjusted EBITDA1 $590M to $650M $545M to $605M Adjusted EBIT1 $470M to $530M $427M
Slide 11: 2025 Adjusted EBIT Midpoint Bridge
2025 Adjusted EBIT1 Midpoint Bridge ($M) 0 $500 $457 $457 43 (38) (2) 24 16 +$38M incremental operating performance 70 bps (20)bps 14.3% 13.6% 13.8% Adj EBIT1 Product Mix Price net of inflation Commodity, Productivity, Adj EBIT1 FX Tariffs Adj EBIT1 Prior Midpoint Passthrough transportation and SG&A
Slide 12: We Remain Focused on Value Creation
We Remain Focused on Value Creation Industry Continue to be #1 Turbo player1 and leader in a technology-driven industry; still investing Leadership in new Turbo technologies especially for hybrids; expanding into industrial applications Cash Proven performance through business cycles with target of
Slide 13: Strong start to 2025, well-positioned to deliver full year outlook
Strong start to 2025, well-positioned to deliver full year outlook Delivered solid financial results in the quarter, with gasoline sales outperforming the industry, and achieving an Adjusted EBIT1 of $124M and Adjusted Free Cash Flow1 of $121M Continued to return capital to our shareholders with $52
Slide 14: Appendices
APPENDICES
Slide 15: Income Statement
Income Statement ($ in millions) Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Net sales $913 $890 $1,791 $1,805 Cost of goods sold 732 705 1431 1448 Gross profit 181 185 360 357 Selling, general and administrative expenses 59 61 118 125 Other expense, net 1 3 8 4 Interest expense 25 62 54 93 Gain on sale
Slide 16: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets June 30, 2025 December 31, 2024 Cash and cash equivalents $232 $125 Restricted cash 1 1 Other 1,130 1,067 Total current assets $1,363 $1,193 Property, plant and equipment-net $458 $449 Deferred income taxes 241 207 Other 341 427 Total assets $2,403 $2,276
Slide 17: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Net income $87 $64 $149 $130 Net cash provided by operating activities 158 126 214 210 Net cash (used for) provided by investing activities (4) 46 (26) 18 Net cash used for financing activities (58) (272) (89) (384) Effect
Slide 18: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Reported sales % change 3% (12%) (1%) (9%) Less: Foreign currency translation 3% (2%) 0% (1%) Constant Currency sales % change (0%) (10%) (1%) (8%) Gasoline Reported sales % change 6% (17%) 5% (11%) Le
Slide 19: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion ($ in millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net cash provided by operating activities $84 $126 $67 $131 $56 $158 Expenditures for property, plant and equipment (32) (17)
Slide 20: Reconciliation of Net Income to Adjusted EBIT, Adjusted EBITDA and Consolidated EBITDA
Reconciliation of Net Income to Adjusted EBIT, Adjusted EBITDA and Consolidated EBITDA1 ($ in millions) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 LTM Q1 2025 LTM Q2 2025 Net income - GAAP $64 $52 $100 $62 $87 $278 $301 Interest expense, net of interest income 61 37 26 29 23 153 115 Tax expense (benefi
Slide 21: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q2 2025 Q1 2025 Q2 2024 Long-term term debt $1,460 $1,462 $1,465 Short-term term debt $7 $7 $7 Bank overdraft $0 $17 $0 Deferred finance costs $24 $25 $25 Gross Debt $1,491 $1,511 $1,497 Cash and cash equivalents $232 $1
Slide 22: Full Year 2025 Outlook Reconciliation of Net Sales Growth
Full Year 2025 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2025 Full Year Low 2025 Full Year High End End Net sales (% change) (2%) 4% Foreign currency translation 1% 2% Full Year 2025 outlook Net Sales Growth at Constant Currency (3%) 2% © 2025 Garrett Motion
Slide 23: Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBITDA
Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBIT to Adjusted EBITDA 2025 Full Year Low 2025 Full Year High ($ in millions) End End Net income $233 $278 Interest expense, net of interest income* 123 123 Tax expense 76 91 Discounting costs on factoring 2 2 Repositioning costs 24 24
Slide 24: Full Year 2025 Outlook Reconciliation of Cash Flow to Adjusted Free Cash Flow
Full Year 2025 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2025 Full Year Low 2025 Full Year High ($ in millions) End End Net cash provided by operating activities $370 $450 Expenditures for property, plant and equipment ($89) ($89) Net cash provided by operating a
Slide 25: Investors Media
Investors Media Cyril Grandjean Amanda Jones +1 (734) 392-5504 +41 (0) 79 601 0787 investorrelations@garrettmotion.com Amanda.Jones@garrettmotion.com © 2025 Garrett Motion Inc.