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Garrett Motion’s Breakthrough Oil-Free Centrifugal Compressor Enhances High-Efficiency Liquid Cooling Solutions

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(Moderate)
Rhea-AI Sentiment
(Very Positive)
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Garrett Motion (Nasdaq: GTX) and TONFY announced a collaboration to integrate Garrett’s oil-free high-speed centrifugal compressor into TONFY’s liquid cooling units for battery energy storage systems (BESS). Testing showed approximately double the cooling capacity, >10% efficiency improvement, and noise 75 dB(A). The compressor is planned for TONFY’s 80 kW outdoor liquid cooling units with mass production targeted in 2027, and both firms will explore other high-density cooling applications across China and international markets.

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AI-generated analysis. Not financial advice.

Positive

  • Cooling capacity ~2x within comparable footprint
  • >10% efficiency improvement in testing
  • Noise levels below 75 dB(A)
  • Planned integration into 80 kW outdoor BESS units
  • Targeted mass production in 2027 for scale-up

Negative

  • No commercial orders or revenue figures disclosed
  • Mass production timing is a targeted plan, not a firm commitment

News Market Reaction – GTX

-0.57%
1 alert
-0.57% News Effect

On the day this news was published, GTX declined 0.57%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Cooling capacity gain: Approximately 2x Efficiency improvement: >10% Noise level: <75 dB(A) +5 more
8 metrics
Cooling capacity gain Approximately 2x Oil-free centrifugal compressor vs comparable footprint
Efficiency improvement >10% Compressor efficiency improvement in testing
Noise level <75 dB(A) Compressor operating noise for BESS cooling
Unit capacity 80 kW TONFY outdoor containerized liquid cooling units
2025 Net Sales $3.58 billion Reported in 2026 DEF 14A for 2025
2025 Net Income $310 million (8.6% margin) Reported in 2026 DEF 14A for 2025
2025 Adjusted EBIT $510 million (14.2% margin) Reported in 2026 DEF 14A for 2025
Share repurchases $208 million 2025 repurchases plus >40% share-count reduction since 2023

Market Reality Check

Price: $33.29 Vol: Volume 1,717,980 is close...
normal vol
$33.29 Last Close
Volume Volume 1,717,980 is close to the 20-day average of 1,758,325, suggesting typical activity into this collaboration news. normal
Technical Shares trade above the 200-day MA at 16.16 and sit within 2% of the 52-week high of 21.42, reflecting a strong pre-news uptrend.

Peers on Argus

GTX gained 2.29% while key auto-parts peers DAN, GT, PHIN, ATMU and VC all showe...

GTX gained 2.29% while key auto-parts peers DAN, GT, PHIN, ATMU and VC all showed positive moves (up to 2.80%), indicating a supportive sector backdrop alongside this company-specific collaboration.

Historical Context

5 past events · Latest: Apr 10 (Neutral)
Pattern 5 events
Date Event Sentiment Move Catalyst
Apr 10 Earnings call notice Neutral +0.4% Scheduled Q1 2026 results release and conference call details.
Apr 08 Tech portfolio launch Positive +5.2% Unveiled oil-free centrifugal compressor portfolio at China Refrigeration Expo.
Mar 25 Investor day announcement Positive +3.2% Announced 2026 Technology and Investor Day outlining strategy and growth.
Feb 24 Conference participation Positive +5.1% Participation in Bank of America Global Automotive Summit with investor meetings.
Feb 20 E-cooling award Positive -1.9% Won serial production award for E-Cooling compressor in China starting 2027.
Pattern Detected

Recent technology and event-related announcements have more often coincided with positive share reactions, though one favorable e-cooling update saw a contrary move.

Recent Company History

Over the last few months, GTX has highlighted technology, investor engagement, and capital returns. A February release on its E‑Cooling compressor for electric buses and trucks saw a -1.95% move, while later tech showcases and event announcements on Feb 24, Mar 25, and Apr 8 aligned with gains of 5.13%, 3.17%, and 5.19%. The latest BESS cooling collaboration extends this industrial and thermal-management narrative.

Market Pulse Summary

This announcement highlights Garrett’s oil-free centrifugal compressor being designed into TONFY’s 8...
Analysis

This announcement highlights Garrett’s oil-free centrifugal compressor being designed into TONFY’s 80 kW BESS liquid cooling units, with testing showing roughly 2x cooling capacity and >10% efficiency gains at noise below 75 dB(A). It extends a string of compressor-focused updates and collaborations in 2026. In parallel, 2025 results included net sales of $3.58 billion and significant buybacks, so execution in energy-storage cooling and future customer wins remain key metrics to watch.

Key Terms

battery energy storage (bess), centrifugal compressor, thermal management, dB(A)
4 terms
battery energy storage (bess) technical
"next-generation battery energy storage (BESS) liquid cooling systems"
Battery energy storage (BESS) is technology that stores electricity in large batteries so it can be used later. It helps balance supply and demand, ensuring power is available when needed, just like a rechargeable battery keeps your phone ready to use. This makes energy systems more reliable and supports the growth of renewable sources like solar and wind.
centrifugal compressor technical
"Garrett's breakthrough oil-free centrifugal compressor technology, which has demonstrated"
A centrifugal compressor is a rotating machine that speeds up a gas and directs it outward through a narrowing passage to increase its pressure, similar to how a spinning fan pushes air outward and into a confined duct. Investors care because these devices are central to industries like energy, chemicals, and manufacturing: their efficiency, reliability, and maintenance costs directly affect production capacity, operating expenses, and capital spending, which in turn influence revenue and profit forecasts.
thermal management technical
"provider of industrial temperature control and thermal management, today announced"
Thermal management is the set of methods and technologies used to control temperature and move heat away from sensitive parts of a device, system, or facility so it stays within safe, efficient limits. For investors, effective thermal management protects product performance and lifespan, reduces safety and warranty risks, and can lower operating and compliance costs—like a building’s heating and cooling that prevents damage and keeps value intact.
dB(A) technical
"efficiency improvement and noise levels below 75 dB(A). Together, these advantages"
dB(A) is a measure of sound level that adjusts raw decibel readings to match how the human ear perceives loudness, so a noisy factory or piece of equipment is scored more like a person would hear it rather than by raw pressure. Investors care because A-weighted noise figures affect regulatory permits, community complaints, operating restrictions, and potential remediation costs—think of it as a volume knob calibrated to human hearing that can influence project timelines and expenses.

AI-generated analysis. Not financial advice.

Powering TONFY’s next-generation battery energy storage (BESS) liquid cooling systems

PLYMOUTH, Mich. and ROLLE, Switzerland, April 27, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX), a global leader in differentiated turbocharging and electrification technologies, and TONFY, a specialized Chinese provider of industrial temperature control and thermal management, today announced a collaboration project to advance next-generation, high-efficiency liquid cooling solutions for battery energy storage systems (BESS) and broader high-density infrastructure applications.

The collaboration combines TONFY's expertise in energy storage liquid cooling system integration with Garrett's breakthrough oil-free centrifugal compressor technology, which has demonstrated strong performance in testing: approximately double the cooling capacity within a comparable footprint, >10% efficiency improvement and noise levels below 75 dB(A). Together, these advantages deliver the efficiency and reliability required for energy storage systems in demanding outdoor, continuous-duty environments.

Garrett’s oil-free high-speed centrifugal compressor technology is expected to be integrated into TONFY’s 80 kW liquid cooling units for outdoor containerized energy storage systems and other high-reliability applications in both China and overseas markets, with plans for mass production in 2027. The two companies will also explore the technology’s potential in other high-density, energy-efficient cooling applications.

With the growth of BESS, liquid cooling is critical for ensuring high performance and reliability. Garrett’s solutions strengthen TONFY’s liquid cooling platform for energy storage and create a foundation for future collaboration in high-efficiency infrastructure.

“We are proud to collaborate with TONFY to bring Garrett’s oil-free centrifugal compressor technology, proven in demanding automotive applications, to the fast-growing energy storage liquid cooling industry,” said Olivier Rabiller, president and CEO of Garrett Motion. “Together, we will help customers improve efficiency, reduce operating and maintenance costs, and enhance system stability, while accelerating next-generation liquid cooling solutions.”

Chen ZhenGuo, Vice President of TONFY said, “As a specialized player in energy storage thermal management, TONFY is committed to adopting breakthrough technologies that support next-generation energy storage systems. Garrett’s oil-free centrifugal compressor technology enhances the efficiency and reliability of our liquid cooling platform, strengthening our competitiveness in the fast-growing energy storage market and future high-efficiency thermal management applications.”

About TONFY
TONFY is a leading Chinese provider of industrial temperature control and thermal management solutions for new-type energy storage. With expertise in liquid cooling, system integration, and high-reliability thermal management design, its products are widely used in outdoor containerized energy storage systems, commercial and industrial energy storage equipment, and other critical applications requiring high stability and energy efficiency. TONFY delivers efficient, reliable, and scalable thermal management solutions that support the growth of new-type energy storage and next-generation high-efficiency infrastructure.

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:

Global MediaInvestor Relations
Fabrice SpenninckCyril Grandjean
MediaRelations@garrettmotion.com

investorrelations@garrettmotion.com

CHINA Media 
Yang Hu 
yang.hu1@garrettmotion.com 



FAQ

What did Garrett Motion (GTX) announce on April 27, 2026 about BESS cooling?

Garrett announced a collaboration with TONFY to integrate its oil-free centrifugal compressor into liquid cooling for BESS. According to Garrett, testing showed ~double cooling capacity, >10% efficiency gains, and noise under 75 dB(A), with production targeted for 2027.

How will Garrett’s oil-free compressor affect TONFY’s 80 kW liquid cooling units (GTX)?

The compressor is expected to be integrated into TONFY’s 80 kW outdoor units to improve cooling density and efficiency. According to TONFY, the technology delivered roughly 2x cooling capacity in tests and is aimed at mass production in 2027.

What performance improvements did Garrett (GTX) report for the new compressor in tests?

Garrett reported approximately double the cooling capacity, more than 10% efficiency improvement, and noise below 75 dB(A) in testing. According to Garrett, these metrics support continuous-duty outdoor use for energy storage systems.

When will Garrett Motion’s (GTX) compressor enter mass production for TONFY units?

Both companies target mass production in 2027 for integration into TONFY’s outdoor containerized energy storage cooling units. According to the announcement, the 2027 timeline is the plan for scaling manufacturing and wider market deployment.

Does the Garrett–TONFY collaboration (GTX) include international markets beyond China?

Yes. The collaboration targets both China and overseas markets for high-reliability, outdoor BESS cooling solutions. According to the companies, they will also explore additional high-density thermal management applications internationally.