Garrett Motion (GTX) investor relations material

Executive summary

• Q3 2025 net sales reached $902 million, up 9% year-over-year (6% constant currency), driven by strong gasoline and diesel demand, operational execution, and favorable FX impacts.

• Net income rose to $77 million (8.5% margin), a 48% increase year-over-year, reflecting improved gross profit, cost initiatives, and lower interest expense.

• Adjusted EBIT reached $133 million (14.7% margin), up $16 million year-over-year, with adjusted free cash flow at $107 million.

• Raised 2025 outlook midpoint due to improved industry forecast and strong performance.

• Announced a 33% increase in quarterly dividend to $0.08 per share for Q4 and executed $84 million in share repurchases in Q3.

Financial highlights

• Gross profit for Q3 2025 was $186 million (20.6% margin), up from $166 million (20.1%) in Q3 2024.

• Adjusted EBITDA margin improved to 18.2% in Q3 2025.

• Net cash from operating activities was $100 million, up $33 million year-over-year.

• Interest expense declined to $29 million in Q3 2025 from $37 million in Q3 2024, reflecting refinancing benefits.

• Net income for Q3 2025 was $77 million, with year-to-date net income at $226 million.

Outlook and guidance

• 2025 outlook midpoint raised: net sales expected between $3.5–$3.6 billion, adjusted EBIT $490–$530 million, net income $265–$295 million, adjusted free cash flow $350–$420 million.

• Assumes light vehicle production flat to up 2% and commercial vehicle industry flat to +2% versus 2024.

• Outlook reflects improved industry forecast, full direct tariff recovery, and excludes potential indirect impacts from global trade policies and inflation.

• Price and productivity expected to drive further margin improvement.

• Management expects continued growth in zero-emission technologies and ongoing cost discipline.