Garrett Motion (GTX) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 19, 2026 astatine 9:03 AM CST 32 min read

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Feb. 19, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Olivier Rabiller

• Chief Financial Officer — Sean Deason

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Thank you, Cyril. Good morning, everyone, and welcome. 2025 was different fantastic twelvemonth for Garrett Motion Inc. We delivered beardown operational show successful a analyzable manufacture situation and astatine the aforesaid clip precocious our strategy, expanding stock of demand, increasing our portfolio, expanding margin, and securing cardinal awards and partnerships crossed Turbo, zero-emission technologies, and concern applications. In Q4, nett income were $891,000,000 and adjusted EBIT was $122,000,000 with a 13.7% margin. For the afloat year, nett income reached $3,580,000,000 and adjusted EBIT was $510,000,000 with a 14.2% margin. Adjusted escaped currency travel for the twelvemonth was $403,000,000, erstwhile again demonstrating our disciplined execution and operational rigor. These beardown results allowed america to enactment firmly connected way with our superior allocation framework, returning important superior to shareholders and strengthening our equilibrium sheet. In 2025, we voluntarily repaid $50,000,000 of our word loan, repurchased $208,000,000 of communal stock, and paid $52,000,000 successful dividends. As you volition spot aboriginal on, we program for different twelvemonth of beardown execution for 2026, arsenic we expect further stock of request gains, borderline expansion, and beardown escaped currency flow. Sean volition supply further details connected our 2026 outlook aboriginal successful the presentation, but for now, fto maine determination to Slide four. In 2025, we continued to fortify our halfway concern portion accelerating our zero-emission technologies. We secured a important fig of caller airy conveyance turbo awards, driving our increasing stock of request successful gasoline BNT applications and expanding our way successful hybrid and range-extended electrical conveyance platforms. These wins reenforce however our differentiated technologies stay cardinal to ratio and emissions simplification for our customers. We besides won important awards successful diesel applications for our airy conveyance and trucks, wherever diesel remains highly valued for its little emissions, substance economy, and precocious torque. And I privation to intermission connected this constituent for a moment. Back successful 2018, airy conveyance diesel represented 41% of our revenue, and galore questioned whether Garrett Motion Inc. could prolong its margins done the modulation to gasoline. Today, gasoline accounts for implicit 44% of our income and diesel remains resilient astatine much than 23%. And arsenic conscionable mentioned, we delivered 14.2% adjusted EBIT margin, erstwhile again demonstrating the spot of our concern exemplary grounded successful exertion enactment and operational excellence. Beyond airy vehicles, we besides secured galore commercialized conveyance awards crossed on-highway, off-highway, and concern applications. This momentum was further supported by our archetypal bid accumulation awards for our largest turbo framework size, the MEG, arsenic good arsenic the archetypal aftermarket income for this merchandise enactment arsenic a retrofit enactment successful the aftermarket space. Moving present to our zero-emission and concern technologies. In summation to the wins and advancement we person announced successful 2025, we made 2 announcements successful February that are precise important erstwhile it comes to that portion of our portfolio. First, we announced a bid accumulation grant for mobility e-cooling compression with a starring Chinese autobus and motortruck HVAC supplier. Second, and adjacent much important, we launched a strategical collaboration with Trane Technologies to integrate Garrett Motion Inc.’s next-generation oil-free high-speed centrifugal compressors into Trane’s commercialized HVAC applications, from unitary rooftop and modular chillers to large-capacity chillers, bringing the maturity, quality, and standard of the products we person developed successful the automotive manufacture into the concern world. Extensive investigating successful Trane’s labs confirmed the wide show benefits versus incumbent solutions. Initial units from Trane volition beryllium disposable to prime customers already this twelvemonth with broader bid accumulation crossed applications opening successful 2027. But fto maine walk a small spot much clip connected this cooling accidental connected Slide five. We person developed an oil-free high-speed centrifugal refrigerant compressor for HVAC applications by combining halfway Garrett Motion Inc. technology: high-efficient turbomachinery, our unsocial oil-free foil bearing, high-speed electrical motors, ultra-high-frequency inverters, and model-based power software. And importantly, each of this comes consecutive from our exertion we person already developed, validated, and industrialized astatine automotive standard and quality. Our investigating has shown that our exertion tin present much than 10% real-world vigor savings compared to incumbent solutions. This allows HVAC operators to materially trim the full outgo of ownership and helps bounds vigor request successful power-intensive environments specified arsenic information centers. These benefits are adjacent greater arsenic customers determination to ultra-low planetary warming imaginable refrigerants. Our e-cooling compressor portfolio, introduced astatine the AHR HVAC amusement successful Las Vegas earlier this month, has already attracted beardown involvement from this industry.