Garrett Motion Reports Second Quarter 2025 Financial Results; Raises Full Year Outlook
Rhea-AI Summary
Garrett Motion (Nasdaq: GTX) reported strong Q2 2025 financial results and raised its full-year outlook. Net sales reached $913 million, up 3% year-over-year, with a net income of $87 million and a 9.5% margin. The company generated $158 million in operating cash flow and $121 million in adjusted free cash flow.
Key achievements include securing over $1 billion in light vehicle turbo program extensions and advancing zero-emission technologies. The company launched its second innovation center in Wuhan and was included in the Russell 2000® index. Garrett declared a $0.06 per share dividend and continued its share repurchase program, buying back $22 million in shares during Q2.
The company raised its FY2025 outlook, now expecting net sales of $3.4-3.6 billion and adjusted EBITDA of $590-650 million.
Positive
- None.
Negative
- Gross profit margin declined to 19.8% from 20.8% year-over-year
- Product mix showed unfavorable changes, impacting profits by $25 million
- Weaker demand reported for replacement parts and diesel products
- Light vehicle industry production expected to decline up to 3% in 2025
News Market Reaction
On the day this news was published, GTX gained 3.39%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.6% during that session. Argus tracked a trough of -2.2% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $86M to the company's valuation, bringing the market cap to $2.64B at that time.
Data tracked by StockTitan Argus on the day of publication.
Second Quarter 2025 Financial Highlights
- Net sales totaled
$913 million , up3% on a reported basis and flat on a constant currency* basis - Net income totaled
$87 million ; Net income margin of9.5% - Adjusted EBIT* totaled
$124 million ; Adjusted EBIT margin* of13.6% - Net cash provided by operating activities totaled
$158 million - Adjusted free cash flow* totaled
$121 million - Raised full-year 2025 outlook to reflect favorable foreign currency impacts
Second Quarter 2025 Business Highlights
- Awarded more than
$1 billion in light vehicle turbo program extensions - Won several awards with local and global OEMs for commercial vehicles and industrial power generation applications
- Achieved new milestones in our E-Powertrain, E-Cooling, and Fuel Cell programs
- Launched second innovation center in Wuhan
PLYMOUTH, Mich. and ROLLE, Switzerland, July 24, 2025 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider, today announced its financial results for the three months ended June 30, 2025. Additionally, the Company's Board of Directors has declared a cash dividend of
"Garrett delivered another strong quarter, outperforming the industry with solid financial results and an Adjusted EBIT margin of
| $ millions (unless otherwise noted) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | ||||
| Net sales | 913 | 890 | 1,791 | 1,805 | ||||
| Cost of goods sold | 732 | 705 | 1,431 | 1,448 | ||||
| Gross profit | 181 | 185 | 360 | 357 | ||||
| Gross profit % | ||||||||
| Selling, general and administrative expenses | 59 | 61 | 118 | 125 | ||||
| Income before taxes | 102 | 87 | 187 | 168 | ||||
| Net income | 87 | 64 | 149 | 130 | ||||
| Net income margin | ||||||||
| Adjusted EBIT* | 124 | 123 | 255 | 244 | ||||
| Adjusted EBIT margin* | ||||||||
| Adjusted EBITDA* | 154 | 150 | 313 | 301 | ||||
| Adjusted EBITDA margin* | ||||||||
| Net cash provided by operating activities | 158 | 126 | 214 | 210 | ||||
| Adjusted free cash flow* | 121 | 62 | 157 | 130 |
* See reconciliations to the nearest GAAP measures below.
Results of Operations
Net sales for the second quarter of 2025 were
Cost of goods sold for the second quarter of 2025 increased to
Gross profit totaled
Selling, general and administrative (“SG&A”) expenses for the second quarter of 2025 decreased to
Other expense in the second quarter of 2025 was
Interest expense in the second quarter of 2025 was
Non-operating income for the second quarter of 2025 was
Tax expense for the second quarter of 2025 was
Net income for the second quarter of 2025 was
Net cash provided by operating activities totaled
Non-GAAP Financial Measures
Adjusted EBIT increased to
Adjusted free cash flow was
Liquidity and Capital Resources
As of June 30, 2025, Garrett had
As of June 30, 2025, total principal amount of debt outstanding was
During the second quarter of 2025, we repurchased
Full Year 2025 Outlook
Garrett revised its outlook for the full year 2025 for certain GAAP and Non-GAAP financial measures.
| Full Year 2025 Outlook | Prior Outlook | |
| Net sales (GAAP) | ||
| Net sales growth at constant currency (Non-GAAP)* | - | - |
| Net income (GAAP) | ||
| Adjusted EBITDA (Non-GAAP)* | ||
| Adjusted EBIT (Non-GAAP)* | ||
| Net cash provided by operating activities (GAAP) | ||
| Adjusted free cash flow (Non-GAAP)* |
* See reconciliations to the nearest GAAP measures below.
Garrett’s full year 2025 outlook, as of July 24, 2025, includes the following expectations:
- 2025 light vehicle industry production down
3% to flat versus 2024; - 2025 commercial vehicle industry, including both on- and off-highway, flat to +
2% versus 2024; - 2025 average light vehicle battery electric vehicle penetration of
16% ; - Price (net of pass-through) and productivity offsetting inflation;
- 2025 Euro/dollar assumption of 1.13 EUR to 1.00 USD;
- RD&E investment at
4.2% of sales in 2025; - Capital expenditures at
2.5% of sales; - Excludes the potential indirect impact of global trade policies and inflation, and assumes full direct tariff recovery.
Conference Call
Garrett will hold a conference call at 8:30 am EDT / 2:30 pm CET on Thursday, July 24, 2025, to discuss its results. To participate on the conference call, please dial +1-877-883-0383 (US) or +1-412-902-6506 (international) and use the passcode 6412693.
The conference call will also be broadcast over the internet and include a slide presentation. To access the webcast and supporting material, please visit the investor relations section of the Garrett Motion website at http://investors.garrettmotion.com. A replay of the conference call will be available by dialing +1-877-344-7529 (US) or +1-412-317-0088 (international) using the access code 1286102. The webcast will also be archived on Garrett’s website.
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 as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar expressions. Forward-looking statements represent our current judgment about possible future activities, events, or developments that we intend, expect, project, believe, or anticipate will or may occur in the future. In making these statement, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future performance, events, or results, and actual performance, events, or results may differ materially from those envisaged by our forward-looking statements due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission, including risks related to the automotive industry, the competitive landscape and our ability to compete, and macroeconomic and geopolitical conditions, among others. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statement, except where we are expressly required to do so by law.
Non-GAAP Financial Measures
This communication includes the following non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”): Constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT margin, Adjusted EBITDA margin and Adjusted free cash flow. We believe these measures are useful to investors and management in understanding our ongoing operations and analysis of ongoing operating trends and are important indicators of operating performance because they exclude the effects of certain non-operating items, therefore making them more closely reflect our operational performance. Our calculation of these non-GAAP measures, including a reconciliation of such measures to the most closely related GAAP measure, are set forth in the Appendix to this presentation. These non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. For additional information regarding our non-GAAP financial measures, see our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission.
About Garrett Motion Inc.
A differentiated technology leader, Garrett Motion has a 70-year history of innovation in the automotive sector (cars, trucks) and beyond (off-highway equipment, marine, power generators). Its expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is expanding its positive impact by developing differentiated technology solutions for Zero Emission Vehicles, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for battery electric vehicles. Garrett has six R&D centers, 13 manufacturing sites and a team of more than 9,000 employees in more than 20 countries. Its mission is to enable the transportation industry to advance motion through unique, differentiated innovations. For more information, please visit www.garrettmotion.com.
| Contacts: | ||
| INVESTOR RELATIONS | MEDIA | |
| Cyril Grandjean | Amanda Jones | |
| +1.734.392.5504 | +41.79.601.0787 | |
| investorrelations@garrettmotion.com | Amanda.Jones@garrettmotion.com |
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in millions, except per share amounts) | ||||||||||||||||
| Net sales | $ | 913 | $ | 890 | $ | 1,791 | $ | 1,805 | ||||||||
| Cost of goods sold | 732 | 705 | 1,431 | 1,448 | ||||||||||||
| 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 of equity investment | — | (27 | ) | — | (27 | ) | ||||||||||
| Non-operating income, net | (6 | ) | (1 | ) | (7 | ) | (6 | ) | ||||||||
| Income before taxes | 102 | 87 | 187 | 168 | ||||||||||||
| Tax expense | 15 | 23 | 38 | 38 | ||||||||||||
| Net income | $ | 87 | $ | 64 | $ | 149 | $ | 130 | ||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.43 | $ | 0.29 | $ | 0.73 | $ | 0.56 | ||||||||
| Diluted | 0.42 | 0.28 | 0.72 | 0.56 | ||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 202,672,945 | 224,321,948 | 203,886,530 | 230,493,039 | ||||||||||||
| Diluted | 205,255,033 | 225,898,814 | 206,433,975 | 232,455,083 | ||||||||||||
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||||
| Net income | $ | 87 | $ | 64 | $ | 149 | $ | 130 | ||||||||
| Foreign exchange translation adjustment | (59 | ) | — | (88 | ) | 18 | ||||||||||
| Defined benefit pension plan adjustment, net of tax | — | 2 | — | 3 | ||||||||||||
| Changes in fair value of effective cash flow hedges, net of tax | 17 | (2 | ) | 19 | 1 | |||||||||||
| Changes in fair value of net investment hedges, net of tax | (128 | ) | 8 | (163 | ) | 27 | ||||||||||
| Total other comprehensive (loss) income, net of tax | (170 | ) | 8 | (232 | ) | 49 | ||||||||||
| Comprehensive (loss) income | $ | (83 | ) | $ | 72 | $ | (83 | ) | $ | 179 | ||||||
CONSOLIDATED INTERIM BALANCE SHEETS
| June 30, 2025 | December 31, 2024 | |||||||
| (Dollars in millions) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 232 | $ | 125 | ||||
| Restricted cash | 1 | 1 | ||||||
| Accounts, notes and other receivables – net | 721 | 687 | ||||||
| Inventories – net | 287 | 286 | ||||||
| Other current assets | 122 | 94 | ||||||
| Total current assets | 1,363 | 1,193 | ||||||
| Investments and long-term receivables | 11 | 10 | ||||||
| Property, plant and equipment – net | 458 | 449 | ||||||
| Goodwill | 193 | 193 | ||||||
| Deferred income taxes | 241 | 207 | ||||||
| Other assets | 137 | 224 | ||||||
| Total assets | $ | 2,403 | $ | 2,276 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,005 | $ | 972 | ||||
| Current maturities of long-term debt | 7 | 7 | ||||||
| Accrued liabilities | 307 | 299 | ||||||
| Total current liabilities | 1,319 | 1,278 | ||||||
| Long-term debt | 1,460 | 1,464 | ||||||
| Deferred income taxes | 56 | 25 | ||||||
| Other liabilities | 380 | 182 | ||||||
| Total liabilities | $ | 3,215 | $ | 2,949 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY (DEFICIT) | ||||||||
| Common Stock, par value | — | — | ||||||
| Additional paid – in capital | 1,226 | 1,213 | ||||||
| Retained deficit | (1,517 | ) | (1,653 | ) | ||||
| Accumulated other comprehensive loss | (159 | ) | 73 | |||||
| Treasury Stock, at cost; 40,677,507 and 34,599,391 shares as of June 30, 2025 and December 31, 2024, respectively | (362 | ) | (306 | ) | ||||
| Total deficit | (812 | ) | (673 | ) | ||||
| Total liabilities and deficit | $ | 2,403 | $ | 2,276 | ||||
| CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | Six Months Ended June 30, | |||||||
| 2025 | 2024 | |||||||
| (Dollars in millions) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 149 | $ | 130 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Deferred income taxes | (3 | ) | 14 | |||||
| Depreciation | 45 | 44 | ||||||
| Amortization of deferred issuance costs | 3 | 33 | ||||||
| Gain on sale of equity investment | — | (27 | ) | |||||
| Foreign exchange (gain) loss | (65 | ) | 13 | |||||
| Stock compensation expense | 13 | 13 | ||||||
| Pension expense | 1 | 1 | ||||||
| Unrealized loss (gain) on derivatives | 81 | 1 | ||||||
| Other | 4 | 3 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts, notes and other receivables | 8 | 50 | ||||||
| Inventories | 20 | (24 | ) | |||||
| Other assets | (7 | ) | 17 | |||||
| Accounts payable | (13 | ) | (33 | ) | ||||
| Accrued liabilities | (44 | ) | (5 | ) | ||||
| Other liabilities | 22 | (20 | ) | |||||
| Net cash provided by operating activities | $ | 214 | $ | 210 | ||||
| Cash flows from investing activities: | ||||||||
| Expenditures for property, plant and equipment | (41 | ) | (49 | ) | ||||
| Proceeds from cross-currency swap contracts | 15 | 21 | ||||||
| Proceeds from sale of equity investment | — | 46 | ||||||
| Net cash used for investing activities | $ | (26 | ) | $ | 18 | |||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of long-term debt, net of deferred financing costs | 68 | 794 | ||||||
| Payments of long-term debt | (73 | ) | (989 | ) | ||||
| Repurchases of Common Stock | (52 | ) | (173 | ) | ||||
| Excise tax on Common Stock repurchase | (3 | ) | — | |||||
| Dividend payments | (25 | ) | — | |||||
| Payments for debt and revolving facility financing costs | (2 | ) | (7 | ) | ||||
| Other | (2 | ) | (9 | ) | ||||
| Net cash used for financing activities | $ | (89 | ) | $ | (384 | ) | ||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 8 | (5 | ) | |||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 107 | (161 | ) | |||||
| Cash, cash equivalents and restricted cash at beginning of the period | 126 | 260 | ||||||
| Cash, cash equivalents and restricted cash at end of the period | $ | 233 | $ | 99 | ||||
| Supplemental cash flow disclosure: | ||||||||
| Income taxes paid (net of refunds) | 37 | 27 | ||||||
| Interest paid | 46 | 42 | ||||||
Reconciliation of Net Income to Adjusted EBIT(1) and Adjusted EBITDA(1)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||||
| Net income | $ | 87 | $ | 64 | $ | 149 | $ | 130 | ||||||||
| Interest expense, net of interest income (2) | 23 | 61 | 52 | 90 | ||||||||||||
| Tax expense | 15 | 23 | 38 | 38 | ||||||||||||
| EBIT | 125 | 148 | 239 | 258 | ||||||||||||
| Repositioning costs | (2 | ) | 1 | 5 | 12 | |||||||||||
| Foreign exchange gain on debt, net of related hedging loss | (1 | ) | (1 | ) | — | (1 | ) | |||||||||
| Factoring and notes receivables discount fees | 1 | 1 | 2 | 2 | ||||||||||||
| Gain on sale of equity investment | — | (27 | ) | — | (27 | ) | ||||||||||
| Other non-operating income (3) | (2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
| Debt refinancing and redemption costs (4) | — | 2 | 6 | 2 | ||||||||||||
| Acquisition and divestiture expenses | 3 | 1 | 6 | 1 | ||||||||||||
| Adjusted EBIT | 124 | 123 | 255 | 244 | ||||||||||||
| Depreciation | 23 | 22 | 45 | 44 | ||||||||||||
| Stock compensation expense (5) | 7 | 5 | 13 | 13 | ||||||||||||
| Adjusted EBITDA | $ | 154 | $ | 150 | $ | 313 | $ | 301 | ||||||||
| Net sales | $ | 913 | $ | 890 | $ | 1,791 | $ | 1,805 | ||||||||
| Net income margin | 9.5 | % | 7.2 | % | 8.3 | % | 7.2 | % | ||||||||
| Adjusted EBIT margin (6) | 13.6 | % | 13.8 | % | 14.2 | % | 13.5 | % | ||||||||
| Adjusted EBITDA margin (7) | 16.9 | % | 16.9 | % | 17.5 | % | 16.7 | % | ||||||||
(1) We evaluate performance on the basis of Adjusted EBIT and Adjusted EBITDA. We define “EBIT” as our net income calculated in accordance with U.S. GAAP, plus the sum of (i) interest expense net of interest income and (ii) tax expense. We define Adjusted EBIT as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging gain/loss, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses, (vi) other non-operating income, (vii) capital structure transformation expenses, (viii) debt refinancing and redemption costs, and (ix) loss on extinguishment of debt, if any. We define Adjusted EBITDA as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging gain/loss, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses, (vi) other non-operating income, (vii) capital structure transformation expenses, (viii) debt refinancing and redemption costs, and (ix) loss on extinguishment of debt, if any, plus (x) depreciation and (xi) stock compensation expense. We believe that Adjusted EBIT and Adjusted EBITDA are important indicators of operating performance and provide useful information for investors because:
- Adjusted EBIT and Adjusted EBITDA exclude the effects of income taxes, as well as the effects of financing activities by eliminating the effects of interest and therefore more closely measure our operational performance;
- certain adjustment items, while periodically affecting our results, may vary significantly from period to period and could therefore have a disproportionate effect in a given period, affecting the comparability of our results; and
- Adjusted EBITDA also excludes the effects of investing activities by eliminating the effects of depreciation.
In addition, our management may use Adjusted EBITDA in setting performance incentive targets to align performance measurement with operational performance.
(2) Reflects interest income of
(3) Reflects the non-service component of net periodic pension income.
(4) Reflects the third-party costs directly attributable to the repricing of our term loan and revolving credit facility.
(5) Stock compensation expense includes only non-cash expenses.
(6) Adjusted EBIT margin represents Adjusted EBIT as a percentage of net sales.
(7) Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.
Reconciliation of Constant Currency Sales % Change(1)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Garrett | ||||||||||||
| Reported sales % change | 3 | % | (12 | )% | (1 | )% | (9 | )% | ||||
| Less: Foreign currency translation | 3 | % | (2 | )% | 0 | % | (1 | )% | ||||
| Constant currency sales % change | — | % | (10 | )% | (1 | )% | (8 | )% | ||||
| Gasoline | ||||||||||||
| Reported sales % change | 6 | % | (17 | )% | 5 | % | (11 | )% | ||||
| Less: Foreign currency translation | 2 | % | (2 | )% | 0 | % | (2 | )% | ||||
| Constant currency sales % change | 4 | % | (15 | )% | 5 | % | (9 | )% | ||||
| Diesel | ||||||||||||
| Reported sales % change | (1 | )% | (15 | )% | (8 | )% | (12 | )% | ||||
| Less: Foreign currency translation | 4 | % | (1 | )% | 0 | % | (1 | )% | ||||
| Constant currency sales % change | (5 | )% | (14 | )% | (8 | )% | (11 | )% | ||||
| Commercial vehicles | ||||||||||||
| Reported sales % change | 6 | % | (4 | )% | 1 | % | (8 | )% | ||||
| Less: Foreign currency translation | 2 | % | (2 | )% | 0 | % | (2 | )% | ||||
| Constant currency sales % change | 4 | % | (2 | )% | 1 | % | (6 | )% | ||||
| Aftermarket | ||||||||||||
| Reported sales % change | (8 | )% | 6 | % | (10 | )% | 4 | % | ||||
| Less: Foreign currency translation | 2 | % | (1 | )% | 0 | % | (1 | )% | ||||
| Constant currency sales % change | (10 | )% | 7 | % | (10 | )% | 5 | % | ||||
| Other Sales | ||||||||||||
| Reported sales % change | 31 | % | (13 | )% | 19 | % | 0 | % | ||||
| Less: Foreign currency translation | 5 | % | (2 | )% | 1 | % | (2 | )% | ||||
| Constant currency sales % change | 26 | % | (11 | )% | 18 | % | 2 | % | ||||
(1) We define constant currency sales growth as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow(1)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Dollars in millions) | ||||||||||||||||
| Net cash provided by operating activities | $ | 158 | $ | 126 | $ | 214 | $ | 210 | ||||||||
| Expenditures for property, plant and equipment | (15 | ) | (17 | ) | (41 | ) | (49 | ) | ||||||||
| Net cash provided by operating activities less expenditures for property, plant and equipment | 143 | 109 | 173 | 161 | ||||||||||||
| Capital structure transformation expenses | — | — | — | 1 | ||||||||||||
| Acquisition and divestiture expenses | 4 | 1 | 5 | 1 | ||||||||||||
| Cash payments for repositioning | 3 | 4 | 6 | 13 | ||||||||||||
| Proceeds from cross currency swap contracts | 11 | 4 | 15 | 8 | ||||||||||||
| Cash payments for debt refinancing costs | — | — | 6 | — | ||||||||||||
| Factoring and P-notes | (40 | ) | (56 | ) | (48 | ) | (54 | ) | ||||||||
| Adjusted free cash flow (1) | $ | 121 | $ | 62 | $ | 157 | $ | 130 | ||||||||
(1) Adjusted free cash flow reflects an additional way of viewing liquidity that management believes is useful to investors in analyzing the Company’s ability to service and repay its debt. The Company defines adjusted free cash flow as cash flow provided from operating activities less capital expenditures and additionally adjusted for other discretionary items including cash flow impacts for capital structure transformation expenses, acquisition and divestiture expenses, debt refinancing costs, and factoring and guaranteed bank notes activity.
Full Year 2025 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency
| 2025 Full Year | ||||||
| Low End | High End | |||||
| Reported net sales (% change) | (2 | )% | 4 | % | ||
| Foreign currency translation | 1 | % | 2 | % | ||
| Full year 2025 Outlook Net sales growth at constant currency | (3 | )% | 2 | % | ||
Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBITDA
| 2025 Full Year | ||||||||
| Low End | High End | |||||||
| (Dollars in millions) | ||||||||
| Net income | $ | 233 | $ | 278 | ||||
| Interest expense, net of interest income * | 123 | 123 | ||||||
| Tax expense | 76 | 91 | ||||||
| Factoring and notes receivables discount fees | 2 | 2 | ||||||
| Acquisition and divestiture expenses | 6 | 6 | ||||||
| Debt refinancing and redemption costs | 6 | 6 | ||||||
| Repositioning costs | 24 | 24 | ||||||
| Full Year 2025 Outlook Adjusted EBIT | $ | 470 | $ | 530 | ||||
| Depreciation | 95 | 95 | ||||||
| Stock compensation expense | 25 | 25 | ||||||
| Full Year 2025 Outlook Adjusted EBITDA | $ | 590 | $ | 650 | ||||
* Excludes the effects of marked-to-market fluctuations from our interest rate swap contracts
Full Year 2025 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
| 2025 Full Year | ||||||||
| Low End | High End | |||||||
| (Dollars in millions) | ||||||||
| Net cash provided by operating activities | $ | 370 | $ | 450 | ||||
| Expenditures for property, plant and equipment | (89 | ) | (89 | ) | ||||
| Net cash provided by operating activities less expenditures for property, plant and equipment | 281 | 361 | ||||||
| Cash payments for repositioning | 25 | 25 | ||||||
| Proceeds from cross currency swap contracts | 12 | 12 | ||||||
| Acquisition and divestiture expenses | 6 | 6 | ||||||
| Cash payments for debt refinancing costs | 6 | 6 | ||||||
| Full Year 2025 Outlook Adjusted free cash flow | $ | 330 | $ | 410 | ||||
FAQ
What were Garrett Motion's (GTX) key financial results for Q2 2025?
How much did Garrett Motion (GTX) raise its 2025 full-year guidance?
What is Garrett Motion's (GTX) dividend and share repurchase status in Q2 2025?
What major business wins did Garrett Motion (GTX) achieve in Q2 2025?
What is Garrett Motion's (GTX) liquidity position as of Q2 2025?
