Garrett Motion Inc. · NASDAQ:GTX
Garrett Motion — Q4 2025 Earnings Presentation
27 slides from Garrett Motion's earnings presentation, Feb 19, 2026
Slide 1: Q4 and Full Year 2025 Financial Results
FEBRUARY 19, 2026 Q4 AND FULL YEAR 2025 FINANCIAL RESULTS © 2026 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 Strong execution in 2025 Continuing to win in 2026 Net Sales of $891M in Q4, $3,584M for FY 2025 Broadening product portfolio • +6% reported vs. Q4 2024, FY +3% reported vs. 2024 • Expanding hybrid, commercial vehicle and industrial turbo offerings • Light vehicle gasoline gr
Slide 4: Continued success across differentiated technologies
Continued success across differentiated technologies Turbo and Hybrid Technologies Zero Emission Technologies Light Vehicle Turbo Commercial Vehicle Turbo Industrial Turbo 3-in-1 E-Powertrain E-Cooling Compressor Fuel Cell Compressor • Secured new light-vehicle turbo awards in key • Announced roll-o
Slide 5: Breakthrough oil-free centrifugal compressor technology
Breakthrough oil-free centrifugal compressor technology Key benefits: • Superior energy efficiency Rooftop/Unitary HVAC leading to better TCO1 • Ready for today’s & next Comfort Cooling Chillers generation low GWP2 refrigerants • Less noise Large Chillers • Smaller & lighter (e.g., for hyperscale da
Slide 6: Quarterly financial trends: Q4 2024 – Q4 2025
Quarterly financial trends: Q4 2024 – Q4 2025 Reported Net Sales ($M) Adjusted EBIT1 ($M) $878 $913 $902 $891 $844 43% 49% 50% 48% 48% $124 $131 $124 $133 $122 20% 20% 20% 19% 19% 34% 29% 27% 29% 31% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Adj. Europe North As
Slide 7: Net Sales bridge: Q4 and FY 2025
Net Sales bridge: Q4 and FY 2025 ($M) $891 34 • Net Sales up $47M or 6% on a reported $844 10 0 1 basis, 1% at constant currency1 (10) 12 • Growth in global diesel and commercial vehicles verticals • Gasoline decline in Asia due to lower volumes Q4 2024 Gasoline Diesel Commercial Aftermarket Others
Slide 8: Adjusted EBIT bridge: Q4 and FY 2025
Adjusted EBIT1 bridge: Q4 and FY 2025 ($M) • Adjusted EBIT1 of $122M, down $2M | Margin 1 $124 7 (10) $122 of 13.7%, down 100bps net of tariffs (15) 10 4 (3) 5 • Volume growth with unfavorable product mix 14.7% $(9)M operating performance decline 13.7% • One-time headwinds offsetting benefit from ye
Slide 9: 2025 Adjusted EBIT to Adjusted Free Cash Flow bridge
2025 Adjusted EBIT1 to Adjusted Free Cash Flow 1 bridge ($M) 2 (62) • Strong full year Adjusted Free Cash Flow1 conversion of 79% 99 (95) (72) 21 • Lower capital expenditures versus expectation due to timing $510 • Cash taxes and interest in line with $403 expectations • Other includes cross-currenc
Slide 10: Liquidity, Net Debt and Leverage ratio
Liquidity, Net Debt and Leverage ratio ($M) Liquidity and Net Debt2 Q3 2025 Q4 2025 • Term Loan and Unsecured Notes maturing in Unrestricted Cash1 230 177 2032 Undrawn Revolver Credit Facility 630 630 • Net leverage ratio2 at 1.92x Total Liquidity 860 807 • $50M voluntary early Term Loan repayment o
Slide 11: Targeting to return 75% of Adj. FCF to shareholders over time
Targeting to return 75%1 of Adj. FCF2 to shareholders over time Shareholder Returns ($M) Full Year Highlights • Repurchased $72M of common stock in Q4, for a total of $208M in 2025 $570 • ~191 million shares outstanding as of $296 $208 December 31, 2025, down 43% since Jan 2023 $213 • Declared Q1 20
Slide 12: 2026 outlook
2026 outlook Planning Assumptions Net Sales $3.6B to $3.8B • Light vehicle industry down vs. 2025 (-1% to -3%) Net Sales Growth • Average light vehicle BEV penetration of 19% at Constant Currency1 -2% to +2% • Commercial vehicle industry up vs. 2025 (+1% to +2%) Net Income $295M to $335M • RD&E inve
Slide 13: 2026 midpoint outlook Adjusted EBIT bridge
1 2026 midpoint outlook Adjusted EBIT bridge ($M) $545 $510 30 (2) 8 (35) (62) 96 EUR / USD 1.17 (1.13 in 2025) 0 +$32M operating performance improvement year-over-year 14.7% 14.2% Adj EBIT 1 Volume Product Mix Price net of Commodity, Productivity, RD&E FX Adj EBIT 1 2025 inflation Transportation an
Slide 14: 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; investing in Leadership new Turbo technologies, especially for hybrids; expanding into industrial applications Cash Proven performance through business cycles with target of 75% A
Slide 15: Delivering results and advancing the transformation
Delivering results and advancing the transformation Delivered strong 2025 financial performance, with Adjusted EBIT 1 of $510M, 14.2% Adjusted EBIT Margin1 and $403M of Adjusted Free Cash Flow 1 Winning in turbo, including multiple hybrid, REEV and E-boosting applications Strong momentum in Zero Emi
Slide 16: Appendices
APPENDICES
Slide 17: Income Statement
Income Statement ($ in millions) Q4 2025 Q4 2024 FY 2025 FY 2024 Net sales $891 $844 $3,584 $3,475 Cost of goods sold 706 662 2853 2770 Gross profit 185 182 731 705 Selling, general and administrative expenses 65 62 240 240 Other expense, net 1 1 10 6 Interest expense 25 26 108 156 Gain on sale of e
Slide 18: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets December 31, 2025 December 31, 2024 Cash and cash equivalents $177 $125 Restricted cash 2 1 Other 1,140 1,067 Total current assets 1,319 1,193 Property, plant and equipment-net 462 449 Deferred income taxes 210 207 Other 376 427 Total assets $2,367 $2,276
Slide 19: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q4 2025 Q4 2024 FY 2025 FY 2024 Net income $84 $100 $310 $282 Net cash provided by operating activities 99 131 413 408 Net cash used for investing activities (14) ($15) (41) ($14) Net cash used for financing activities (139) (81) (326) ($520) Effect of foreign e
Slide 20: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q4 2025 Q4 2024 FY 2025 FY 2024 Reported sales % change 6% (11%) 3% (11%) Less: Foreign currency translation 5% (1%) 2% (1%) Constant Currency sales % change 1% (10%) 1% (10%) Gasoline Reported sales % change 1% (9%) 6% (13%) Less: Foreign c
Slide 21: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion ($ in millions) Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Net cash provided by operating activities $99 $100 $158 $56 $131 $67 $126 $84 Expenditures for property, plant
Slide 22: Reconciliation of Net Income to Adjusted EBIT, Adjusted EBITDA and Consolidated EBITDA
Reconciliation of Net Income to Adjusted EBIT, Adjusted EBITDA and Consolidated EBITDA1 ($ in millions) Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 LTM Q3 2025 FY 2025 Net income - GAAP $84 $77 $87 $62 $100 $326 $310 Interest expense, net of interest income 24 28 23 29 26 106 104 Tax expense (benefit) 1
Slide 23: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q4 2025 Q3 2025 Q4 2024 Long-term term debt $1,411 $1,460 $1,464 Short-term term debt $7 $7 $7 Bank overdraft $0 $0 $0 Deferred finance costs $21 $23 $22 Gross Debt $1,439 $1,490 $1,493 Cash and cash equivalents $177 $23
Slide 24: Full Year 2026 Outlook Reconciliation of Net Sales Growth
Full Year 2026 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2026 Full Year Low End 2026 Full Year High End Net sales (% change) 1% 5% Foreign currency translation 3% 3% Full Year 2025 outlook Net Sales Growth at Constant Currency (2%) 2% CONFIDENTIAL © 2026 202
Slide 25: Full Year 2026 Outlook Reconciliation of Net Income to Adjusted EBITDA
Full Year 2026 Outlook Reconciliation of Net Income to Adjusted EBIT to Adjusted EBITDA ($ in millions) 2026 Full Year Low End 2026 Full Year High End Net income - GAAP $295 $335 Interest expense, net of interest income 101 101 Tax expense 100 110 Repositioning costs 23 23 Factoring and notes receiv
Slide 26: Full Year 2026 Outlook Reconciliation of Cash Flow to Adjusted Free Cash Flow
Full Year 2026 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2026 Full Year Low End 2026 Full Year High End ($ in millions) Net cash provided by operating activities (GAAP) $407 $502 Expenditures for property, plant and equipment ($90) ($90) Net cash provided by oper
Slide 27: Investors Media
Investors Media Cyril Grandjean Fabrice Spenninck +1 (734) 392-5504 InvestorRelations@garrettmotion.com MediaRelations@garrettmotion.com CONFIDENTIAL © 2026 2025 Garrett Motion Inc.