Third Quarter 2025 Financial Highlights
-- Net sales totaled $902 million, up 9% on a reported basis and 6% on a
constant currency* basis vs prior year
-- Net income totaled $77 million; Net income margin of 8.5%
-- Adjusted EBIT* totaled $133 million; Adjusted EBIT margin* of 14.7%
-- Net cash provided by operating activities totaled $100 million
-- Adjusted free cash flow* totaled $107 million
-- Raised 2025 midpoint outlook reflecting strong performance and improved
second half automotive industry outlook
Third Quarter 2025 Business Highlights
-- Secured several new light vehicle turbo programs, including an additional
award for range extended electric vehicles
-- Multiple commercial vehicle & industrial awards including more than $40
million in lifetime revenue for gensets
-- Growing interest for E-Powertrain with additional proof-of-concept
initiatives with two OEMs
-- E-Cooling testing proving efficiency gains with both mobility and
industrial customers
PLYMOUTH, Mich. and ROLLE, Switzerland, Oct. 23, 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 September 30, 2025. Additionally, the Company's Board of Directors declared a cash dividend of $0.08 per share of common stock, a $0.02 per share increase, payable on December 15, 2025, to shareholders of record as of December 1, 2025. The Company also executed a $50 million voluntary early debt repayment on its Term Loan.
"Garrett delivered another strong quarter in Q3, outperforming the industry, expanding our Adjusted EBIT margin to 14.7% and generating $107 million of adjusted free cash flow," said Olivier Rabiller, President and CEO of Garrett. "This performance enabled $84 million in share repurchases in Q3 and a 33% increase in our quarterly dividend beginning in Q4, reinforcing our disciplined approach to capital allocation and commitment to driving shareholder value. Based on our year-to-date performance and favorable industry conditions, we are once again raising the midpoint for our full-year 2025 outlook."
"We continued to strengthen our global leadership in turbocharging, including plug-in hybrids and range-extended electric vehicles," Mr. Rabiller continued. "Key wins this quarter included major light-vehicle platform awards in the US, India and Brazil, as well as over $40 million in expected lifetime revenue in turbochargers for data center backup power generation applications. Momentum is also building for our zero-emission technologies, with two additional OEMs engaging on our high-speed E-Powertrain and several industrial customers advancing projects using our oil-free E-Cooling compressor. These developments further validate our two-leg strategy of: reinforcing our turbocharging leadership while scaling differentiated high-speed electrification and zero-emission technologies."
$ millions (unless otherwise
noted) Q3 2025 Q3 2024 YTD 2025 YTD 2024
------------------------------- ------- ------- -------- --------
Net sales 902 826 2,693 2,631
-------------------------------- ------- ------- -------- --------
Cost of goods sold 716 660 2,147 2,108
-------------------------------- ------- ------- -------- --------
Gross profit 186 166 546 523
-------------------------------- ------- ------- -------- --------
Gross profit % 20.6% 20.1% 20.3% 19.9%
-------------------------------- ------- ------- -------- --------
Selling, general and
administrative expenses 57 53 175 178
-------------------------------- ------- ------- -------- --------
Income before taxes 102 76 289 244
-------------------------------- ------- ------- -------- --------
Net income 77 52 226 182
-------------------------------- ------- ------- -------- --------
Net income margin 8.5% 6.3% 8.4% 6.9%
Adjusted EBIT* 133 117 388 361
-------------------------------- ------- ------- -------- --------
Adjusted EBIT margin* 14.7% 14.2% 14.4% 13.7%
-------------------------------- ------- ------- -------- --------
Adjusted EBITDA* 164 144 477 445
-------------------------------- ------- ------- -------- --------
Adjusted EBITDA margin* 18.2% 17.4% 17.7% 16.9%
-------------------------------- ------- ------- -------- --------
Net cash provided by operating
activities 100 67 314 277
-------------------------------- ------- ------- -------- --------
Adjusted free cash flow* 107 71 264 201
-------------------------------- ------- ------- -------- --------
* See reconciliations to the nearest GAAP measures below.
Results of Operations
Net sales for the third quarter of 2025 were $902 million, representing an increase of 9% (including a favorable impact of $26 million or 3% due to foreign currency translation) compared with $826 million in the third quarter of 2024. This increase was primarily driven by higher demand in gasoline and diesel partially offset by weaker demand for replacement parts on Aftermarket sales and unfavorable product mix. Recoveries on enacted import tariffs and favorable foreign currency impacts also contributed to increased Net sales.
Cost of goods sold for the third quarter of 2025 increased to $716 million from $660 million in the third quarter of 2024, primarily driven by $61 million from higher sales volumes, $12 million from enacted import tariffs and $11 million from foreign currency impacts. These increases were partially offset by $9 million of favorable product mix, $7 million of commodity, transportation and energy deflation, $6 million of productivity net of labor inflation and $6 million of lower R&D costs.
Gross profit totaled $186 million for the third quarter of 2025 as compared to $166 million in the third quarter of 2024, with a gross profit percentage for the third quarter of 2025 of 20.6% as compared to 20.1% in the third quarter of 2024. The increase in gross profit was primarily driven by $28 million from higher sales volumes, $14 million from foreign currency impacts, $10 million from productivity net of labor inflation, $7 million from commodity, transportation and energy deflation and $6 million of lower R&D costs. These increases were partially offset by $28 million of unfavorable product mix and $17 million of pricing, net of inflation pass-through.
Selling, general and administrative ("SG&A") expenses for the third quarter of 2025 increased to $57 million from $53 million in the third quarter of 2024. The increase was primarily driven by $4 million of unfavorable foreign currency impacts and $2 million of higher bad debt expense. These increases were partially offset by a $3 million reduction in personnel costs driven by sustainable cost measures implemented in the current and prior years.
Other expense in the third quarter of 2025 was $1 million, consistent with the third quarter of 2024.
Interest expense in the third quarter of 2025 was $29 million as compared to $37 million in the third quarter of 2024. This decrease was primarily due to $3 million in lower interest expense resulting from the Amendment and Restatement of our Credit Agreement. Additionally, we did not record any net gains on designated and undesignated interest rate derivatives in the current year, in comparison to net gains of $5 million in the prior year.
Non-operating income for the third quarter of 2025 was $3 million as compared to $1 million in the third quarter of 2024, with the increase primarily driven by higher interest income.
Tax expense for the third quarter of 2025 was $25 million as compared to $24 million in the third quarter of 2024. The consistency in tax expense in light of more earnings in the third quarter of 2025 primarily relates to a decrease in U.S. taxes on international operations and the global mix of earnings.
Net income for the third quarter of 2025 was $77 million as compared to $52 million in the third quarter of 2024. The $25 million increase was primarily due to $20 million of increased gross profit, $8 million of lower interest expense, and a $2 million increase in non-operating income. These were partially offset by $4 million of increased SG&A expense and $1 million of higher tax expense.
Net cash provided by operating activities totaled $100 million in the third quarter of 2025 as compared to $67 million in the third quarter of 2024, representing an increase of $33 million. The increase was primarily driven by $25 million higher net income, $17 million of favorable impacts from working capital changes and $9 million of favorable impacts from changes in other assets and liabilities, partially offset by a decrease of $18 million of non-cash charges.
Non-GAAP Financial Measures
Adjusted EBIT increased to $133 million in the third quarter of 2025 as compared to $117 million in the third quarter of 2024. The increase of $16 million was driven by $28 million of higher sales volumes, $11 million of productivity net of labor inflation and higher stock based compensation, $9 million of foreign currency impact, $7 million of commodity, transportation and energy deflation and $6 million lower R&D costs. These increases were partially offset by $28 million of unfavorable product mix and $17 million of lower pricing net of inflation pass-through.
Adjusted free cash flow was $107 million in the third quarter of 2025 as compared to $71 million in the third quarter of 2024. The increase was primarily driven by $16 million of higher Adjusted EBIT, $10 million of lower capital expenditures, $3 million of favorable impact from working capital changes (net of factoring) and $3 million lower cash taxes paid.
Liquidity and Capital Resources
As of September 30, 2025, Garrett had $860 million in available liquidity, including $230 million in unrestricted cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility. As of December 31, 2024, Garrett had $725 million in available liquidity, including $125 million in unrestricted cash and cash equivalents and $600 million of undrawn commitments under its revolving credit facility.
As of September 30, 2025, total principal amount of debt outstanding was $1,490 million, compared to $1,493 million as of December 31, 2024.
During the third quarter of 2025, we repurchased $84 million of our common stock under our authorized share repurchase program and we had remaining repurchase capacity of $114 million as of September 30, 2025.
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
$3.5 billion to $3.6 $3.4 billion to $3.6
Net sales (GAAP) billion billion
------------------------- ------------------------ -------------------------
Net sales growth at
constant currency
(Non-GAAP)* -1% to +2% -3% to +2%
------------------------- ------------------------ -------------------------
Net income (GAAP) $265 million to $295 $233 million to $278
million million
------------------------- ------------------------ -------------------------
Adjusted EBITDA $610 million to $650 $590 million to $650
(Non-GAAP)* million million
------------------------- ------------------------ -------------------------
Adjusted EBIT $490 million to $530 $470 million to $530
(Non-GAAP)* million million
------------------------- ------------------------ -------------------------
Net cash provided by $380 million to $450 $370 million to $450
operating activities million million
(GAAP)
------------------------- ------------------------ -------------------------
Adjusted free cash flow $350 million to $420 $330 million to $410
(Non-GAAP)* million million
------------------------- ------------------------ -------------------------
* See reconciliations to the nearest GAAP measures below.
Garrett's full year 2025 outlook, as of October 23, 2025, includes the following expectations:
-- 2025 light vehicle industry production flat to up 2% 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;
-- RD&E investment, capital expenditures and Euro/dollar assumptions
unchanged from prior outlook;
-- 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, October 23, 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 7666720.
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 7199792. 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 CO(2) 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 For the Nine Months Ended
September 30, September 30,
---------------------------- ------------------------------
2025 2024 2025 2024
------------- ------------- ------------- ---------------
(Dollars in millions, except per share amounts)
Net sales $ 902 $ 826 $ 2,693 $ 2,631
Cost of goods
sold 716 660 2,147 2,108
----------- ----------- ----------- -----------
Gross profit 186 166 546 523
----------- ----------- ----------- -----------
Selling,
general and
administrative
expenses 57 53 175 178
Other expense,
net 1 1 9 5
Interest
expense 29 37 83 130
Gain on sale of
equity
investment -- -- -- (27)
Non-operating
income, net (3) (1) (10) (7)
Income before
taxes 102 76 289 244
----------- ----------- ----------- -----------
Tax expense 25 24 63 62
----------- ----------- ----------- -----------
Net income $ 77 $ 52 $ 226 $ 182
Earnings per
common share
Basic $ 0.39 $ 0.24 $ 1.12 $ 0.80
Diluted 0.38 0.24 1.10 0.80
Weighted
average common
shares
outstanding
Basic 198,668,143 217,283,749 202,127,953 226,057,803
Diluted 202,194,334 218,403,681 205,130,616 227,649,747
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ------------------------
2025 2024 2025 2024
-------------- --------
(Dollars in millions)
Net income $ 77 $ 52 $ 226 $ 182
Foreign
exchange
translation
adjustment 3 (30) (85) (12)
Defined
benefit
pension plan
adjustment,
net of tax -- 1 -- 4
Changes in
fair value of
effective
cash flow
hedges, net
of tax 5 4 24 5
Changes in
fair value of
net
investment
hedges, net
of tax 5 (31) (158) (4)
---- ---- ------ ------ ----
Total other
comprehensive
income
(loss), net
of tax 13 (56) (219) (7)
---- ---- ------ ------ ----
Comprehensive
income
(loss) $ 90 $ (4) $ 7 $ 175
==== ==== ====== ====== ====
CONSOLIDATED INTERIM BALANCE SHEETS
September 30, December 31,
2025 2024
--------------- ----------------
(Dollars in millions)
ASSETS
Current assets:
Cash and cash equivalents $ 230 $ 125
Restricted cash 2 1
Accounts, notes and other
receivables -- net 719 687
Inventories -- net 320 286
Other current assets 109 94
---------- ---------
Total current assets 1,380 1,193
Investments and long-term receivables 11 10
Property, plant and equipment -- net 452 449
Goodwill 193 193
Deferred income taxes 247 207
Other assets 153 224
---------- ---------
Total assets $ 2,436 $ 2,276
========== =========
LIABILITIES
Current liabilities:
Accounts payable $ 1,022 $ 972
Current maturities of long-term
debt 7 7
Accrued liabilities 330 299
---------- ---------
Total current liabilities 1,359 1,278
Long-term debt 1,460 1,464
Deferred income taxes 54 25
Other liabilities 376 182
Total liabilities $ 3,249 $ 2,949
---------- ---------
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIT)
Common Stock, par value $0.001;
1,000,000,000 and 1,000,000,000 shares
authorized, 242,502,188 and 240,987,329
issued and 195,105,105 and 206,387,938
outstanding as of September 30, 2025
and December 31, 2024, respectively -- --
Additional paid -- in capital 1,232 1,213
Retained deficit (1,452) (1,653)
Accumulated other comprehensive (loss)
income (146) 73
Treasury Stock, at cost; 47,397,083 and
34,599,391 shares as of September 30,
2025 and December 31, 2024,
respectively (447) (306)
---------- ---------
Total deficit (813) (673)
---------- ---------
Total liabilities and deficit $ 2,436 $ 2,276
========== =========
CONSOLIDATED INTERIM STATEMENTS
OF CASH FLOWS Nine Months Ended September 30,
-----------------------------------------
2025 2024
--------------------- ------------------
(Dollars in millions)
Cash flows from operating
activities:
Net income $ 226 $ 182
Adjustments to reconcile net
income to net cash provided by
operating activities
Deferred income taxes (8) 16
Depreciation 70 67
Amortization of deferred
issuance costs 5 35
Gain on sale of equity
investment -- (27)
Foreign exchange gain (66) (10)
Stock compensation expense 19 17
Pension expense 1 1
Unrealized loss on
derivatives 75 39
Other 10 2
Changes in assets and
liabilities:
Accounts, notes and other
receivables 4 110
Inventories (17) (10)
Other assets (14) 2
Accounts payable (2) (154)
Accrued liabilities (10) 8
Other liabilities 21 (1)
--- ----------- --- ----------
Net cash provided by operating
activities $ 314 $ 277
--- ----------- --- ----------
Cash flows from investing
activities:
Expenditures for property, plant
and equipment (51) (69)
Proceeds from cross-currency swap
contracts 21 24
Proceeds from sale of equity
investment 3 46
--- ----------- --- ----------
Net cash (used for) provided by
investing activities $ (27) $ 1
--- ----------- ----------
Cash flows from financing
activities:
Proceeds from issuance of
long-term debt, net of deferred
financing costs 80 794
Payments of long-term debt (87) (991)
Repurchases of Common Stock (136) (226)
Excise tax on Common Stock
repurchase (3) --
Dividend payments (36) --
Payments for debt and revolving
facility financing costs (2) (7)
Other (3) (9)
--- ----------- ----------
Net cash used for financing
activities $ (187) $ (439)
--- ----------- ----------
Effect of foreign exchange rate
changes on cash, cash
equivalents and restricted cash 6 (2)
--- ----------- --- ----------
Net increase (decrease) in cash,
cash equivalents and restricted
cash 106 (163)
Cash, cash equivalents and
restricted cash at beginning of
the period 126 260
--- ----------- --- ----------
Cash, cash equivalents and
restricted cash at end of the
period $ 232 $ 97
=== =========== === ==========
Supplemental cash flow
disclosure:
Income taxes paid (net of
refunds) 50 43
Interest paid 57 49
Reconciliation of Net Income to Adjusted EBIT(1) and Adjusted EBITDA(1)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ----------------------
2025 2024 2025 2024
--------- --------- ---------- ----------
(Dollars in millions)
Net income $ 77 $ 52 $ 226 $ 182
Interest
expense, net
of interest
income(2) 28 37 80 127
Tax expense 25 24 63 62
---- ---- ----- -----
EBIT 130 113 369 371
Repositioning
costs 3 4 8 16
Foreign
exchange gain
on debt, net
of related
hedging loss -- -- -- (1)
Factoring and
notes
receivables
discount
fees -- 1 2 3
Gain on sale
of equity
investment -- -- -- (27)
Other
non-operating
income(3) (1) (1) (4) (4)
Debt
refinancing
and
redemption
costs(4) 1 -- 7 2
Acquisition
and
divestiture
expenses -- -- 6 1
---- ---- ----- -----
Adjusted EBIT 133 117 388 361
Depreciation 25 23 70 67
Stock
compensation
expense(5) 6 4 19 17
---- ---- ----- -----
Adjusted EBITDA $ 164 $ 144 $ 477 $ 445
Net sales $ 902 $ 826 $2,693 $2,631
Net income margin 8.5% 6.3% 8.4% 6.9%
Adjusted EBIT
margin(6) 14.7% 14.2% 14.4% 13.7%
Adjusted EBITDA
margin(7) 18.2% 17.4% 17.7% 16.9%
(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 $1 million and $0 million
for the three months ended September 30, 2025 and
2024, respectively, and $3 million and $3 million
for the nine months ended September 30, 2025 and 2024,
respectively.
(3) Reflects the non-service component of net periodic
pension income.
(4) Reflects third-party costs directly attributable to
the refinancing of our credit facilities and any amendments.
(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 Nine Months Ended
September 30, September 30,
------------------------ -----------------------
2025 2024 2025 2024
------------ -----------
Garrett
---------------------
Reported sales
% change 9% (14)% 2% (11)%
Less: Foreign
currency
translation 3% 0% 1% (1)%
---- --- ------ --- ---- --- ------
Constant
currency sales
% change 6% (14)% 1% (10)%
==== === ====== ==== === ======
Gasoline
---------------------
Reported sales
% change 13% (19)% 7% (14)%
Less: Foreign
currency
translation 3% 0% 0% (1)%
---- --- ------ --- ---- --- ------
Constant
currency sales
% change 10% (19)% 7% (13)%
==== === ====== ==== === ======
Diesel
---------------------
Reported sales
% change 12% (21)% (2)% (15)%
Less: Foreign
currency
translation 5% 1% 2% (1)%
---- --- ------ --- ---- --- ------
Constant
currency sales
% change 7% (22)% (4)% (14)%
==== === ====== ==== ======
Commercial vehicles
---------------------
Reported sales
% change 6% 0% 3% (6)%
Less: Foreign
currency
translation 2% 0% 1% (1)%
---- --- ------ --- ---- --- ------
Constant
currency sales
% change 4% 0% 2% (5)%
==== === ====== === ==== === ======
Aftermarket
---------------------
Reported sales
% change (1)% (1)% (7)% 2%
Less: Foreign
currency
translation 3% 0% 1% (1)%
---- --- ------ --- ---- --- ------
Constant
currency sales
% change (4)% (1)% (8)% 3%
==== ====== ==== ======
Other Sales
---------------------
Reported sales
% change 14% (13)% 18% (5)%
Less: Foreign
currency
translation 4% (1)% 2% (2)%
---- --- ------ ---- --- ------
Constant
currency sales
% change 10% (12)% 16% (3)%
==== === ====== ==== === ======
(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 Nine Months Ended
September 30, September 30,
------------------------- ------------------------
2025 2024 2025 2024
------------- ---------- ------------- ---------
(Dollars in millions)
Net cash
provided by
operating
activities $ 100 $ 67 $ 314 $ 277
Expenditures
for property,
plant and
equipment (10) (20) (51) (69)
----- ----- ----- -----
Net cash
provided by
operating
activities
less
expenditures
for property,
plant and
equipment 90 47 263 208
Capital
structure
transformation
expenses -- -- -- 1
Acquisition and
divestiture
expenses 1 -- 6 1
Cash payments
for
repositioning 4 2 10 15
Proceeds from
cross currency
swap
contracts 6 3 21 11
Cash payments
for debt
refinancing
costs 1 -- 7 --
Factoring and
P-notes 5 19 (43) (35)
----- ----- ----- -----
Adjusted free
cash flow(1) $ 107 $ 71 $ 264 $ 201
===== ===== ===== =====
(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) 1% 4%
Foreign currency translation 2% 2%
------ ---- --- ----
Full year 2025 Outlook Net sales growth at
constant currency (1)% 2%
====== === === ====
Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA
2025 Full Year
--------------------------------
Low End High End
------------------ ------------
(Dollars in millions)
Net income $ 265 $ 295
Interest expense, net of interest income * 104 104
Tax expense 92 102
Other non-operating income (4) (4)
Factoring and notes receivables discount
fees 2 2
Acquisition and divestiture expenses 6 6
Debt refinancing and redemption costs 7 7
Repositioning costs 18 18
---- -------- -----
Full Year 2025 Outlook Adjusted EBIT $ 490 $ 530
==== ======== =====
Depreciation 95 95
Stock compensation expense 25 25
---- -------- -----
Full Year 2025 Outlook Adjusted EBITDA $ 610 $ 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 $ 380 $ 450
Expenditures for property, plant and
equipment (89) (89)
---- -------- -----
Net cash provided by operating activities
less expenditures for property, plant and
equipment 291 361
Cash payments for repositioning 17 17
Proceeds from cross currency swap
contracts 26 26
Acquisition and divestiture expenses 9 9
Cash payments for debt refinancing costs 7 7
---- -------- -----
Full Year 2025 Outlook Adjusted free cash
flow $ 350 $ 420
==== ======== =====
(END) Dow Jones Newswires
October 23, 2025 06:55 ET (10:55 GMT)