Garrett Motion Reports Strong Third Quarter 2026 Results and Announces $250 Million Share Repurchase Program for 2027

Garrett repurchased $57 million of shares during the quarter, with $78 million remaining under its current authorization.

Rhea-AI Summary

Garrett Motion (Nasdaq: GTX) reported third-quarter net sales of $930 million and approved a new share repurchase program for 2027. Sales rose 3% from a year earlier, while net income increased to $97 million from $77 million and diluted earnings per share rose to $0.51 from $0.38. Operating cash flow increased to $135 million from $100 million.

The new authorization permits up to $250 million of buybacks starting January 1, 2027. Garrett also declared a $0.08-per-share dividend payable December 15, 2026, and completed a $50 million voluntary term-loan repayment in October. Garrett reaffirmed its full-year outlook midpoints while narrowing the ranges, including sales of $3.75 billion to $3.85 billion and net income of $337 million to $352 million. New turbo and industrial compressor awards accompanied plans to start E-Powertrain and E-Cooling compressor production in 2027.

34 points · 0 major

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0 major · 10 points

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Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.New 2027 buyback authorization permits up to $250 million of repurchases starting January 1, 2027. 6% of market cap
• Moderate pointQ3 net sales rose 3% to $930 million from $902 million a year earlier.
• Moderate pointQ3 net income increased to $97 million from $77 million; margin reached 10.4% versus 8.5%.
• Moderate pointQ3 diluted earnings per share increased to $0.51 from $0.38 a year earlier.
• Moderate pointQ3 gross profit rose to $206 million from $186 million; margin increased to 22.2% from 20.6%.
• Moderate pointQ3 operating cash flow increased to $135 million from $100 million a year earlier.
• Moderate pointQ3 adjusted free cash flow increased to $136 million from $107 million a year earlier.
• Moderate pointQ3 adjusted operating earnings, or EBIT, increased to $152 million from $133 million; margin reached 16.3% versus 14.7%.
• Moderate pointQ3 adjusted EBITDA increased to $183 million from $164 million; margin reached 19.7% versus 18.2%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Garrett reaffirmed its 2026 outlook midpoints while narrowing its forecast ranges.

24 minor points

• Minor pointOctober voluntary early term-loan repayment totaled $50 million.
• Minor pointDebt principal declined to $1,384 million at September 30, 2026, from $1,439 million at December 31, 2025.
• Minor pointAvailable liquidity increased to $841 million at September 30, 2026, from $807 million at December 31, 2025.
• Minor pointQ3 completed share repurchases totaled $57 million, with $78 million of authorization remaining at September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 sales outlook is $3.75 billion to $3.85 billion, versus $3.7 billion to $3.9 billion previously.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 constant-currency sales growth outlook is +2% to +6%, versus +1% to +7% previously.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 net income outlook is $337 million to $352 million, versus $330 million to $360 million previously.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBIT outlook is $570 million to $590 million, versus $560 million to $600 million previously.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 operating cash flow outlook is $460 million to $500 million, versus $435 million to $525 million previously.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted free cash flow outlook is $410 million to $450 million, versus $385 million to $475 million previously.
• Minor pointNew turbo program wins included light vehicles for China domestic and export markets.
• Minor pointNew commercial vehicle applications secured across all regions cover on- and off-highway uses.
• Minor pointIndustrial E-Cooling compressor secured a production award in Asia.
• Minor point. Forward-looking: it has not happened yet and may not happen.Garrett expects E-Powertrain and E-Cooling compressor production to start in 2027.
• Minor pointNine-month sales increased to $2,891 million from $2,693 million in 2025.
• Minor pointNine-month net income increased to $293 million from $226 million; margin reached 10.1% versus 8.4%.
• Minor pointNine-month diluted earnings per share increased to $1.53 from $1.10 in 2025.
• Minor pointNine-month gross profit increased to $614 million from $546 million; margin reached 21.2% versus 20.3%.
• Minor pointNine-month adjusted EBIT increased to $455 million from $388 million; margin reached 15.7% versus 14.4%.
• Minor pointNine-month adjusted EBITDA increased to $549 million from $477 million; margin reached 19.0% versus 17.7%.
• Minor pointNine-month operating cash flow increased to $378 million from $314 million in 2025.
• Minor pointNine-month adjusted free cash flow increased to $307 million from $264 million in 2025.
• Minor pointQ3 interest expense declined to $27 million from $29 million a year earlier.
• Minor pointQ3 tax expense declined to $22 million from $25 million a year earlier.

Negative

• Minor pointQ3 gasoline sales declined, primarily reflecting softer demand in China.
• Minor pointCommodity, transportation and energy inflation reduced Q3 adjusted EBIT by $18 million.
• Minor pointLower sales volume reduced Q3 adjusted EBIT by $8 million.
• Minor pointUnfavorable foreign currency movements reduced Q3 adjusted EBIT by $7 million.
• Minor pointHigher research, development and engineering costs reduced Q3 adjusted EBIT by $6 million.

5 minor points

• Minor pointQ3 selling, general and administrative expenses increased to $58 million from $57 million.
• Minor pointQ3 non-operating results shifted to $1 million expense from $3 million income a year earlier.
• Minor pointUnfavorable working capital changes reduced the year-over-year Q3 operating cash flow improvement by $8 million.
• Minor pointHigher capital expenditures reduced the year-over-year Q3 adjusted free cash flow improvement by $5 million.
• Minor pointNine-month tax expense increased to $70 million from $63 million in 2025.

News Explained

The new plan requires no minimum repurchase, so its $250 million authorization does not establish how much stock Garrett will buy.

During the third quarter, Garrett repurchased $57 million of common stock under its existing program, with $78 million of capacity remaining as of September 30, 2026.

The new program authorizes up to $250 million in repurchases, requires no minimum purchase, and may be suspended or terminated at any time.

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Market move: GTX +3.49% vs previous close. Q3 2026 earnings report

$22.42 – $23.49 Day Range

$4.31B Mkt Cap at Last Price

On Oct 29, the day this news came out, the latest delayed price for GTX is 3.49% above the previous close. The latest delayed price is $23.11. Relative volume is exceptionally heavy at 29.7x the average.

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Key Figures

Net sales: $930 million Constant-currency sales growth: 3% Net income: $97 million (vs. $77 million) +5 more

Net sales

$930 million

Q3 2026

Constant-currency sales growth

3%

Q3 2026 vs. prior year

Net income

$97 million (vs. $77 million)

Q3 2026 vs. Q3 2025

Adjusted EBIT

$152 million (vs. $133 million)

Q3 2026 vs. Q3 2025

Adjusted free cash flow

$136 million (vs. $107 million)

Q3 2026 vs. Q3 2025

Share repurchase authorization

Up to $250 million

New program for calendar year 2027

Cash dividend

$0.08 per share

Declared; payable December 15, 2026

Voluntary early debt repayment

$50 million

Term Loan repayment in October

Historical Context

1 past event · Latest: Jul 29

1 event

1. Jul 29

   Q2 earnings

   24h Move

   -3.8%

   Q2 sales and earnings increased; outlook raised across sales, income, EBIT and cash flow.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

constant currency, term loan, revolving credit facility, non-gaap

4 terms

constant currency financial

"up 3% on a constant currency* basis vs prior year"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

term loan financial

"executed a $50 million voluntary early debt repayment on its Term Loan"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

revolving credit facility financial

"$630 million of undrawn commitments under its revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

non-gaap financial

"Adjusted EBIT (Non-GAAP)*"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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Third Quarter 2026 Financial Highlights

• Net sales totaled $930 million, up 3% on a constant currency* basis vs prior year, driven by strong performance in commercial vehicle and industrial
• Net income totaled $97 million; net income margin of 10.4%
• Adjusted EBIT* totaled $152 million; adjusted EBIT margin* of 16.3%
• Net cash provided by operating activities totaled $135 million
• Adjusted free cash flow* totaled $136 million
• Reaffirming 2026 full-year mid-point outlook
  
  

Third Quarter 2026 Business Highlights

• Continued growth in industrial above previous expectations
• Secured multiple turbo wins, including several light vehicle programs for both China domestic and export
• Secured several on- and off-highway commercial vehicle applications across all regions
• Secured a production award for industrial E-Cooling compressor in Asia
• E-Powertrain and E-Cooling compressor on track for start of production in 2027
  
  

PLYMOUTH, Mich. and ROLLE, Switzerland, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) (“Garrett” or the “Company”), a leading automotive and industrial technology provider, today announced its financial results for the three months ended September 30, 2026. Additionally, the Company’s Board of Directors approved a new share repurchase program for calendar year 2027, authorizing the Company to repurchase up to $250 million of common stock, and declared a cash dividend of $0.08 per share of common stock, payable on December 15, 2026, to shareholders of record as of December 1, 2026. The Company also executed a $50 million voluntary early debt repayment on its Term Loan in October.

“Our third quarter results reflect the strength of Garrett’s differentiated portfolio, disciplined execution and ability to grow ahead of the industry. We continued to secure new business in turbo, support growing demand for industrial applications and advance our zero emission technologies, while delivering strong profitability and cash flow. With this continued momentum we reaffirm our 2026 mid-point outlook, offsetting unfavorable foreign exchange, and remain focused on delivering long-term value for our shareholders,” said Olivier Rabiller, President and CEO of Garrett.

$ millions (unless otherwise noted)		Q3 2026		Q3 2025		YTD 2026		YTD 2025
Net sales		930		902		2,891		2,693
Cost of goods sold		724		716		2,277		2,147
Gross profit		206		186		614		546
Gross profit %		22.2%		20.6%		21.2%		20.3%
Selling, general and administrative expenses		58		57		179		175
Income before taxes		119		102		363		289
Net income		97		77		293		226
Net income margin		10.4%		8.5%		10.1%		8.4%
Adjusted EBIT*		152		133		455		388
Adjusted EBIT margin*		16.3%		14.7%		15.7%		14.4%
Adjusted EBITDA*		183		164		549		477
Adjusted EBITDA margin*		19.7%		18.2%		19.0%		17.7%
Net cash provided by operating activities		135		100		378		314
Adjusted free cash flow*		136		107		307		264

^{* See reconciliations to the nearest GAAP measures below.}

Results of Operations

Net sales for the third quarter of 2026 were $930 million, representing an increase of 3% (including an unfavorable impact of $3 million or 0.3% due to foreign currency translation) compared with $902 million in the third quarter of 2025. Gasoline decrease was primarily driven by demand softness in China, partially offset by program ramp-ups in Europe, Japan, Korea and India. Diesel increase was primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, North and South America and India. Commercial vehicle and industrial increases were primarily driven by strong demand in North America and China for industrial and off-highway applications combined with higher on-highway demand in Japan, Korea and India. Aftermarket increase was primarily driven by higher demand for replacement parts in North America off-highway and industrial and stronger demand for passenger vehicles replacement parts in Europe.

Cost of goods sold for the third quarter of 2026 increased to $724 million from $716 million in the third quarter of 2025, primarily driven by $39 million related to product mix, $18 million of commodity, transportation and energy inflation, $6 million of higher RD&E costs and $5 million of foreign currency impact. This increase was partially offset by $24 million of higher productivity net of labor inflation and repositioning costs, $19 million of lower import tariffs and $17 million from lower sales volumes.

Gross profit totaled $206 million for the third quarter of 2026 as compared to $186 million in the third quarter of 2025, with a gross profit percentage for the third quarter of 2026 of 22.2% as compared to 20.6% in the third quarter of 2025. This increase in gross profit was driven by $21 million of favorable product mix, $20 million of higher productivity net of labor inflation and repositioning costs, $18 million of price net of inflation pass-through and $1 million of import tariffs. These increases were partially offset by $18 million of commodity, transportation and energy inflation, $8 million from lower sales volumes, $8 million of foreign currency impact and $6 million of higher RD&E costs.

Selling, general and administrative (“SG&A”) expenses for the third quarter of 2026 increased to $58 million from $57 million in the third quarter of 2025. This increase was driven by $3 million of higher personnel costs, partially offset by $2 million of lower professional services and patent costs.

Other expense in the third quarter of 2026 was consistent with the third quarter of 2025.

Interest expense in the third quarter of 2026 was $27 million as compared to $29 million in the third quarter of 2025. This decrease was primarily due to lower interest expense due to a different notional amount of debt outstanding during the period.

Non-operating expense (income) for the third quarter of 2026 was expense of $1 million as compared to income of $3 million in the third quarter of 2025, with the change in non-operating expense driven by the finalization of a tax indemnification obligation.

Tax expense for the third quarter of 2026 was $22 million as compared to $25 million in the third quarter of 2025, primarily because of a decrease in U.S. taxes on international operations during 2026, the global mix of earnings from year-to-year, a one-time benefit related to the revaluation of deferred tax assets in China during 2025, and deductions related to employee share-based compensation during 2026.

Net income for the third quarter of 2026 was $97 million as compared to $77 million in the third quarter of 2025 primarily driven by $20 million of increased gross profit, $3 million of lower tax expense, and $2 million of lower interest expense, partially offset by $4 million of higher non-operating expense (income) and $1 million of higher SG&A expense.

Net cash provided by operating activities totaled $135 million in the third quarter of 2026 as compared to $100 million in the third quarter of 2025, representing an increase of $35 million. The increase was primarily driven by $28 million of higher net income net of non-cash charges and $15 million of favorable impacts from changes in other assets and liabilities, partially offset by $8 million from unfavorable working capital changes.

Non-GAAP Financial Measures

Adjusted EBIT increased to $152 million in the third quarter of 2026 as compared to $133 million in the third quarter of 2025. The increase of $19 million was driven by $21 million of favorable product mix impact, $19 million pricing net of inflation pass-through and $18 million higher productivity, SG&A net. This increase was partially offset by $18 million commodity, transportation and energy inflation, $8 million of lower sales volume, $7 million of unfavorable foreign currency impact and $6 million higher RD&E costs.

Adjusted free cash flow was $136 million in the third quarter of 2026 as compared to $107 million in the third quarter of 2025. The increase was primarily driven by $19 million higher Adjusted EBIT, $8 million lower cash taxes, $5 million lower cash interest and $3 million favorable impact from working capital (net of factoring), partially offset by $5 million higher capital expenditures.

Liquidity and Capital Resources

As of September 30, 2026, Garrett had $841 million in available liquidity, including $211 million in unrestricted cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility. As of December 31, 2025, Garrett had $807 million in available liquidity, including $177 million in unrestricted cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility.

As of September 30, 2026, total principal amount of debt outstanding was $1,384 million, compared to $1,439 million as of December 31, 2025.

During the third quarter of 2026, we repurchased $57 million of our common stock under our authorized share repurchase program and we had remaining repurchase capacity of $78 million as of September 30, 2026.

Full Year 2026 Outlook

Garrett is providing the following outlook for the full year 2026 for certain GAAP and non-GAAP financial measures.

	Full Year 2026 Outlook	Prior Outlook
Net sales (GAAP)	$3.75 billion to $3.85 billion	$3.7 billion to $3.9 billion
Net sales growth at constant currency (Non-GAAP)*	+2% to +6%	+1% to +7%
Net income (GAAP)	$337 million to $352 million	$330 million to $360 million
Adjusted EBIT (Non-GAAP)*	$570 million to $590 million	$560 million to $600 million
Net cash provided by operating activities (GAAP)	$460 million to $500 million	$435 million to $525 million
Adjusted free cash flow (Non-GAAP)*	$410 million to $450 million	$385 million to $475 million

^{* See reconciliations to the nearest GAAP measures below.}

Garrett’s full year 2026 outlook, as of October 29, 2026, includes the following expectations:

• 2026 light vehicle industry production down 2% to 4% from 2025;
• 2026 commercial vehicle industry, including both on- and off-highway, up 1% to 2% from 2025;
• 2026 average light vehicle battery electric vehicle penetration of ~19%;
• 2026 Euro/USD exchange rate of 1.15 USD, USD/CNY of 6.8;
• RD&E investment at ~4.2% of sales;
• Capital expenditures at ~2.4% of sales
  
  

Conference Call

Garrett will hold a conference call at 8:30 am EDT / 1:30 pm CET on Thursday, October 29, 2026, 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 8665679.

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 +1-855-669-9658 (US) or +1-412-317-0088 (international) using the access code 1056488. The webcast will also be archived on Garrett’s website.

2027 Share Repurchase Program

The new share repurchase program will commence on January 1, 2027, following the scheduled expiration of Garrett’s current share repurchase program on December 31, 2026.

The new share repurchase plan authorizes management to repurchase shares at such time and prices as it determines are beneficial to the Company and its shareholders. Any repurchases of shares will be made through open market purchases, block trades, or in privately negotiated transactions in accordance with applicable rules and regulations. Under the share repurchase plan, there is no minimum number of shares that the Company is required to repurchase, and the Company may suspend or terminate the repurchase plan at any time.

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 statements, 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 statements, 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 below. 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 well-recognized expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is committed to advancing turbo applications while leveraging its unique technology solutions, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for automotive and industrial applications. Garrett has six R&D centers, 13 manufacturing facilities and a team of more than 8,700 employees in more than 20 countries. For more information, please visit www.garrettmotion.com.

Contacts:

INVESTOR RELATIONS

Cyril Grandjean

+1.734.392.5504

investorrelations@garrettmotion.com

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS 

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			2026				2025				2026				2025
		(Dollars in millions, except per share amounts)
Net sales		$	930			$	902			$	2,891			$	2,693
Cost of goods sold			724				716				2,277				2,147
Gross profit			206				186				614				546
Selling, general and administrative expenses			58				57				179				175
Other expense, net			1				1				3				9
Interest expense			27				29				78				83
Non-operating expense (income)			1				(3	)			(9	)			(10	)
Income before taxes			119				102				363				289
Tax expense			22				25				70				63
Net income		$	97			$	77			$	293			$	226
Earnings per common share
Basic		$	0.52			$	0.39			$	1.56			$	1.12
Diluted			0.51				0.38				1.53				1.10
Weighted average common shares outstanding
Basic			185,269,660				198,668,143				187,242,180				202,127,953
Diluted			189,054,351				202,194,334				191,281,264				205,130,616

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(Dollars in millions)
Net income		$	97			$	77			$	293			$	226
Foreign exchange translation adjustment			8				3				46				(85	)
Changes in fair value of effective cash flow hedges, net of tax			11				5				24				24
Changes in fair value of net investment hedges, net of tax			8				5				41				(158	)
Total other comprehensive income (loss), net of tax			27				13				111				(219	)
Comprehensive income		$	124			$	90			$	404			$	7

CONSOLIDATED INTERIM BALANCE SHEETS 

		September 30, 2026				December 31, 2025
		(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents		$	211			$	177
Restricted cash			2				2
Accounts, notes and other receivables – net			801				703
Inventories – net			386				339
Other current assets			128				98
Total current assets			1,528				1,319
Investments and long-term receivables			8				11
Property, plant and equipment – net			422				462
Goodwill			193				193
Deferred income taxes			200				210
Other assets			181				172
Total assets		$	2,532			$	2,367
LIABILITIES
Current liabilities:
Accounts payable		$	1,107			$	1,061
Current maturities of long-term debt			7				7
Accrued liabilities			356				295
Total current liabilities			1,470				1,363
Long-term debt			1,359				1,411
Deferred income taxes			37				32
Other liabilities			284				363
Total liabilities		$	3,150			$	3,169
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIT)
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 245,583,176 and 242,549,685 issued and 185,360,730 and 190,556,297 outstanding as of September 30, 2026 and December 31, 2025, respectively			—				—
Additional paid–in capital			1,261				1,240
Retained deficit			(1,138	)			(1,384	)
Accumulated other comprehensive (loss) income			(27	)			(138	)
Treasury Stock, at cost; 60,222,446 and 51,993,388 shares as of September 30, 2026 and December 31, 2025, respectively			(714	)			(520	)
Total deficit			(618	)			(802	)
Total liabilities and deficit		$	2,532			$	2,367

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

		Nine Months Ended September 30,
			2026				2025
		(Dollars in millions)
Cash flows from operating activities:
Net income		$	293			$	226
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			73				70
Stock compensation expense			21				19
Other			5				17
Changes in assets and liabilities:
Accounts, notes and other receivables			(103	)			4
Inventories			(60	)			(17	)
Other assets			18				(14	)
Accounts payable			74				(2	)
Accrued liabilities			64				(10	)
Other liabilities			(7	)			21
Net cash provided by operating activities		$	378			$	314
Cash flows from investing activities:
Expenditures for property, plant and equipment			(61	)			(51	)
Proceeds from cross-currency swap contracts			11				21
Proceeds from sale of equity investment			4				3
Net cash used for investing activities		$	(46	)		$	(27	)
Cash flows from financing activities:
Repurchases of Common Stock			(172	)			(136	)
Payments of long-term debt			(111	)			(87	)
Proceeds from issuance of long-term debt, net of deferred financing costs			56				80
Dividend payments			(46	)			(36	)
Withholdings on shares issued under stock plan			(21	)			(4	)
Other			(2	)			(4	)
Net cash used for financing activities		$	(296	)		$	(187	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash			(2	)			6
Net (decrease) increase in cash, cash equivalents and restricted cash			34				106
Cash, cash equivalents and restricted cash at beginning of the period			179				126
Cash, cash equivalents and restricted cash at end of the period		$	213			$	232
Supplemental cash flow disclosure:
Income taxes paid (net of refunds)			39				50
Interest paid			56				57
Supplemental disclosure of non-cash investing activities:
Change in accrued capital expenditures			(21	)			(14	)

Reconciliation of Net Income to Adjusted EBIT⁽¹⁾ and Adjusted EBITDA⁽¹⁾

		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(Dollars in millions)
Net income		$	97			$	77			$	293			$	226
Interest expense, net of interest income (2)			26				28				77				80
Tax expense			22				25				70				63
EBIT			145				130				440				369
Repositioning costs			4				3				17				8
Factoring and notes receivables discount fees			1				—				3				2
Other non-operating expense (income) (3)			2				(1	)			(6	)			(4	)
Debt refinancing and redemption costs (4)			—				1				1				7
Acquisition and divestiture expenses			—				—				—				6
Adjusted EBIT			152				133				455				388
Depreciation			24				25				73				70
Stock compensation expense (5)			7				6				21				19
Adjusted EBITDA		$	183			$	164			$	549			$	477
Net sales		$	930			$	902			$	2,891			$	2,693
Net income margin			10.4	%			8.5	%			10.1	%			8.4	%
Adjusted EBIT margin (6)			16.3	%			14.7	%			15.7	%			14.4	%
Adjusted EBITDA margin (7)			19.7	%			18.2	%			19.0	%			17.7	%

(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, and (vii) debt refinancing and redemption costs, 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, and (vii) debt refinancing and redemption costs, if any, plus (viii) depreciation and (ix) 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;
	•	certain adjustment items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects 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 EBIT and Adjusted EBITDA in setting performance incentive targets to align performance measurement with operational performance.
(2)	Reflects interest income of $1 million for each of the three months ended September 30, 2026 and 2025, and $1 million and $3 million for the nine months ended September 30, 2026 and 2025, respectively.
(3)	Reflects the non-service component of net periodic pension income and, for the three and nine months ended September 30, 2026, includes $4 million payable to the Company’s former parent pursuant to an indemnity agreement established in connection with the Company’s spin-off. For the nine months ended September 30, 2026, the amount also includes a $5 million gain related to the resolution of certain environmental liabilities not directly related to the Company’s operations.
(4)	Reflects third-party costs directly attributable to the refinancing of our credit facilities and any amendments thereto.
(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 September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Garrett
Reported sales % change		3	%		9	%		7	%		2	%
Less: Foreign currency translation		0	%		3	%		2	%		1	%
Constant currency sales % change		3	%		6	%		5	%		1	%
Gasoline
Reported sales % change		(5	)%		13	%		3	%		7	%
Less: Foreign currency translation		0	%		3	%		3	%		0	%
Constant currency sales % change		(5	)%		10	%		0	%		7	%
Diesel
Reported sales % change		5	%		12	%		8	%		(2	)%
Less: Foreign currency translation		(1	)%		5	%		3	%		2	%
Constant currency sales % change		6	%		7	%		5	%		(4	)%
Commercial Vehicle / Industrial
Reported sales % change		23	%		6	%		17	%		3	%
Less: Foreign currency translation		0	%		2	%		1	%		1	%
Constant currency sales % change		23	%		4	%		16	%		2	%
Aftermarket
Reported sales % change		5	%		(1	)%		9	%		(7	)%
Less: Foreign currency translation		(1	)%		3	%		2	%		1	%
Constant currency sales % change		6	%		(4	)%		7	%		(8	)%
Other Sales
Reported sales % change		(38	)%		14	%		(11	)%		18	%
Less: Foreign currency translation		(1	)%		4	%		2	%		2	%
Constant currency sales % change		(37	)%		10	%		(13	)%		16	%

(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 September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(Dollars in millions)
Net cash provided by operating activities		$	135			$	100			$	378			$	314
Expenditures for property, plant and equipment			(15	)			(10	)			(61	)			(51	)
Net cash provided by operating activities less expenditures for property, plant and equipment			120				90				317				263
Acquisition and divestiture expenses			—				1				—				6
Cash payments for repositioning			3				4				15				10
Proceeds from cross-currency swap contracts			3				6				11				21
Cash payments for debt refinancing costs			—				1				1				7
Factoring and P-notes			10				5				(37	)			(43	)
Adjusted free cash flow (1)		$	136			$	107			$	307			$	264

(1)

Adjusted free cash flow reflects an additional way of viewing liquidity that we believe is useful to investors and management 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 2026 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency 

		2026 Full Year
		Low End			High End
Reported net sales (% change)		5	%		7	%
Foreign currency translation		3	%		1	%
Full year 2026 Outlook Net sales growth at constant currency		2	%		6	%

Full Year 2026 Outlook Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA

		2026 Full Year
		Low End				High End
		(Dollars in millions)
Net income		$	337			$	352
Interest expense, net of interest income *			100				100
Tax expense			110				115
Other non-operating income			(6	)			(6	)
Factoring and notes receivables discount fees			3				3
Debt refinancing and redemption costs			1				1
Repositioning costs			25				25
Full Year 2026 Outlook Adjusted EBIT		$	570			$	590
Depreciation			98				98
Stock compensation expense			28				28
Full Year 2026 Outlook Adjusted EBITDA		$	696			$	716
* Excludes the effects of marked-to-market fluctuations from our interest rate swap contracts

Full Year 2026 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

		2026 Full Year
		Low End				High End
		(Dollars in millions)
Net cash provided by operating activities		$	460			$	500
Expenditures for property, plant and equipment			(90	)			(90	)
Net cash provided by operating activities less expenditures for property, plant and equipment			370				410
Cash payments for repositioning			25				25
Proceeds from cross-currency swap contracts			14				14
Cash payments for debt refinancing costs			1				1
Full Year 2026 Outlook Adjusted free cash flow		$	410			$	450

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How large is Garrett Motion's 2027 share buyback program, and when does it begin?

Garrett Motion authorized repurchases of up to $250 million of common stock for calendar year 2027, beginning January 1, 2027. The current repurchase program is scheduled to expire December 31, 2026.

What were Garrett Motion's third-quarter 2026 earnings?

Garrett Motion reported $97 million in net income and diluted earnings per share of $0.51 for the quarter ended September 30, 2026. These compared with $77 million and $0.38, respectively, a year earlier. Quarterly sales were $930 million versus $902 million.

What assumptions underpin Garrett Motion's 2026 outlook?

Garrett expects 2026 light vehicle industry production to fall 2% to 4% from 2025 and commercial vehicle industry production to rise 1% to 2%. Its outlook also assumes approximately 19% light vehicle battery electric vehicle penetration, a Euro/USD rate of 1.15 USD and USD/CNY of 6.8.

How much does Garrett Motion expect to invest in development and capital expenditures in 2026?

Garrett expects research, development and engineering investment of approximately 4.2% of sales and capital expenditures of approximately 2.4% of sales in 2026.

When must shareholders own Garrett Motion stock to receive the December 2026 dividend?

The $0.08-per-share cash dividend is payable December 15, 2026, to shareholders of record as of December 1, 2026.