Garrett Motion Inc. (Nasdaq: GTX) reported solid full-year 2025 results with net sales reaching $3,584 million, up 3% year-over-year, driven by continued global demand for turbocharging solutions and early momentum in zero-emission technologies. The company posted net income of $310 million, achieved adjusted EBIT of $510 million, and generated $403 million in adjusted free cash flow. In the fourth quarter, sales hit $891 million, surpassing expectations with a 6% reported increase. Looking to 2026, Garrett anticipates net sales between $3.6 billion and $3.8 billion, reflecting stable performance amid modest industry headwinds, while advancing its portfolio in electrification, E-Powertrain, E-Cooling, and industrial applications. The company also declared a quarterly dividend and authorized a new $250 million share repurchase program.
Garrett Motion Reports Strong 2025 Results and Expansion of Zero-Emission and Industrial Technology Portfolio, Issues 2026 Outlook
Garrett Motion Inc., a leader in differentiated turbocharging and electrification technologies, showcased resilience and strategic progress in its latest financial update. The company’s core turbocharger business remained a reliable growth engine, securing additional program wins across light vehicle and commercial segments worldwide despite fluctuating production volumes in key markets.
In 2025, net sales totaled $3,584 million, marking a 3% increase on a reported basis and 1% at constant currency compared to the prior year. This growth came against a backdrop of stabilizing automotive demand and Garrett’s ability to capture share through advanced boosting solutions that enhance fuel efficiency and reduce emissions in internal combustion and hybrid powertrains.
Profitability metrics reflected disciplined execution. Net income for the year stood at $310 million, equating to an 8.6% net margin. Adjusted EBIT reached $510 million, while adjusted EBITDA came in at $636 million, underscoring improved operational leverage and cost management. Free cash flow generation remained healthy, with adjusted free cash flow at $403 million, supporting both reinvestment in emerging technologies and shareholder returns.
The fourth quarter provided a strong finish. Net sales climbed to $891 million, up 6% reported and 1% at constant currency. Net income was $84 million, yielding a 9.4% margin, with adjusted EBIT of $122 million. These figures beat consensus expectations on both top and bottom lines, highlighting the company’s ability to navigate supply chain dynamics and currency fluctuations effectively.
A key highlight of the year was the acceleration in zero-emission and adjacent technologies. Garrett expanded its portfolio beyond traditional turbocharging by securing first production wins for E-Powertrain systems and E-Cooling compressors. These high-speed electric solutions target battery electric vehicles, plug-in hybrids, range-extended vehicles, and emerging applications like data center cooling. The company is leveraging its expertise in high-speed rotating machines to address thermal management and propulsion needs in electrified architectures, positioning it for long-term growth as the industry shifts toward lower-carbon mobility.
Industrial applications also gained traction, with innovations such as oil-free centrifugal compressors for HVAC systems and expansions into marine and genset engines. Recent collaborations and product launches, including breakthrough compressor technologies showcased at industry events, demonstrate Garrett’s push into non-automotive sectors where energy efficiency and reliability are paramount.
Capital allocation remained shareholder-friendly. During 2025, the company repurchased $208 million in shares, reducing outstanding shares by approximately 8% at an average price of $12.30. The board declared a quarterly cash dividend of $0.08 per share, payable in March 2026, and authorized a new $250 million share repurchase program for the full year 2026, signaling confidence in the balance sheet and ongoing cash generation.
For 2026, Garrett issued guidance reflecting cautious optimism. Net sales are projected in the range of $3.6 billion to $3.8 billion, implying -2% to +2% growth at constant currency. This outlook incorporates assumptions of a 1-3% decline in global light vehicle production, stable currency environments, and continued investment in zero-emission initiatives.
Key financial targets include:
Net income: $295 million to $335 million
Adjusted EBIT: $520 million to $570 million
Net cash from operations: $407 million to $502 million
Adjusted free cash flow: $355 million to $455 million
Management emphasized that the guidance accounts for ongoing turbo strength offset by softer industry volumes, with upside potential from new zero-emission awards and industrial diversification. The company plans to provide further details on its strategy at an Investor Day scheduled for May 20, 2026.
Overall, Garrett’s 2025 performance illustrates a balanced approach: defending and growing its dominant position in turbo technologies while prudently building capabilities in electrification and industrial markets. This dual-track strategy supports margin resilience and positions the company to capitalize on evolving powertrain trends.
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