Fourth Quarter 2025 Financial Highlights
-- Net sales totaled $891 million, up 6% on a reported basis, up 1% at
constant currency*
-- Net income totaled $84 million; Net income margin 9.4%
-- Adjusted EBIT* totaled $122 million; Adjusted EBIT margin* 13.7%
-- Net cash provided by operating activities totaled $99 million
-- Adjusted free cash flow* totaled $139 million
Full Year 2025 Financial Highlights
-- Net sales totaled $3,584 million, up 3% on a reported basis, up 1% at
constant currency*
-- Net income totaled $310 million; Net income margin 8.6%
-- Adjusted EBIT* totaled $510 million; Adjusted EBIT margin* 14.2%
-- Net cash provided by operating activities totaled $413 million
-- Adjusted free cash flow* totaled $403 million
-- Repurchased $208 million of common shares; 8% share reduction
year-over-year
Full Year 2025 Business Highlights
-- Continuing to win in turbo across all geographies, including with new
players and across all hybrid types
-- Secured multiple commercial vehicle & industrial awards including several
for power generation and marine
-- Won first high-speed E-powertrain award on electrified trucks for start
of production in 2027
-- Announced first E-cooling compressor award for mobility customer with
start of production in 2027
-- Introduced our portfolio of industrial HVAC compressors with breakthrough
oil-free high-speed centrifugal technology
PLYMOUTH, Mich. and ROLLE, Switzerland, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a global leader in differentiated turbocharging and electrification technologies for automotive and industrial applications, today announced its financial results for the three and twelve months ended December 31, 2025. Additionally, the Company's Board of Directors declared a cash dividend of $0.08 per share of common stock, payable on March 16, 2026, to shareholders of record as of March 2, 2026.
"In 2025, we delivered solid growth, stronger margins and healthy free cash flow while expanding our product offerings. Our turbo business continued to win globally, and we accelerated in zero emission technologies, securing our first production wins for our E--Powertrain and E--Cooling technologies. At the same time, we made significant progress in further broadening our portfolio in industrial applications for power generation and industrial cooling.
With a disciplined capital allocation framework and a flexible balance sheet, we enter 2026 focused on maintaining flawless execution and converting our growing pipeline into new awards. We look forward to sharing more at our 2026 Investor Day, planned for May 20, 2026, with more details to follow." said Olivier Rabiller, President and CEO of Garrett.
$ millions (unless Full Year Full Year
otherwise noted) Q4 2025 Q4 2024 2025 2024
--------------------- --------- --------- ----------- -----------
Net sales 891 844 3,584 3,475
---------------------- ----- ----- ------- -------
Cost of goods sold 706 662 2,853 2,770
---------------------- ----- ----- ------- -------
Gross profit 185 182 731 705
---------------------- ----- ----- ------- -------
Gross profit margin 20.8% 21.6% 20.4% 20.3%
---------------------- ----- ----- ------- -------
Selling, general and
administrative
expenses 65 62 240 240
---------------------- ----- ----- ------- -------
Income before taxes 103 99 392 343
---------------------- ----- ----- ------- -------
Net income 84 100 310 282
---------------------- ----- ----- ------- -------
Net income margin 9.4% 11.8% 8.6% 8.1%
Adjusted EBIT* 122 124 510 485
---------------------- ----- ----- ------- -------
Adjusted EBIT margin* 13.7% 14.7% 14.2% 14.0%
---------------------- ----- ----- ------- -------
Adjusted EBITDA* 159 153 636 598
---------------------- ----- ----- ------- -------
Adjusted EBITDA
margin* 17.8% 18.1% 17.7% 17.2%
---------------------- ----- ----- ------- -------
Net cash provided by
operating activities 99 131 413 408
---------------------- ----- ----- ------- -------
Adjusted free cash
flow* 139 157 403 358
---------------------- ----- ----- ------- -------
* See reconciliations to the nearest GAAP measure in Appendix
Results of Operations
Net sales for the fourth quarter of 2025 were $891 million, representing an increase of 6% (including a favorable impact of $34 million or 4% due to foreign currency translation) compared with $844 million in the fourth quarter of 2024. This increase was primarily related to favorable foreign currency impacts, and higher demand for commercial vehicle and diesel applications, partially offset by weaker gasoline demand. Net sales also include $10 million of recoveries on import tariffs.
Cost of goods sold for the fourth quarter of 2025 was $706 million compared with $662 million in the fourth quarter of 2024, primarily driven by $21 million of foreign currency impacts, $13 million from higher sales volumes, $11 million from unfavorable mix and $10 million of import tariffs. These increases were partially offset by $5 million of lower RD&E costs, $4 million of commodity, transportation and energy deflation and $2 million of higher productivity net of labor inflation and repositioning costs.
Gross profit totaled $185 million for the fourth quarter of 2025 as compared to $182 million in the fourth quarter of 2024, with a gross profit margin for the fourth quarter of 2025 of 20.8% as compared to 21.6% in the fourth quarter of 2024. This increase in gross profit was driven by $15 million of favorable impacts from foreign currency, $7 million from higher sales volumes, $5 million of lower RD&E costs and $4 million of commodity, transportation and energy deflation. These benefits were partially offset by $15 million of price (net of inflation) pass-through, $10 million from unfavorable product mix and $3 million of lower productivity net of labor inflation and repositioning costs.
Selling, general and administrative ("SG&A") expenses for the fourth quarter of 2025 increased to $65 million from $62 million in the fourth quarter of 2024. The increase was driven by $3 million of unfavorable impacts from foreign currency and $4 million of higher bad debt expense, partially offset by $4 million of lower personnel costs and $1 million of lower outsourced activities.
Interest expense in the fourth quarter of 2025 was $25 million as compared to $26 million in the fourth quarter of 2024. The decrease was primarily driven by $3 million of lower interest expense resulting from the Amendment and Restatement of our Credit Agreement. Additionally, we recorded net gains of $3 million on our 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 fourth quarter of 2025 was $9 million as compared to $6 million in the fourth quarter of 2024, mainly driven by higher foreign exchange transactional gains, higher interest income and an increase in the non-service components of net periodic pension benefits.
Tax expense for the fourth quarter of 2025 was expense of $19 million as compared to a benefit of $1 million in the fourth quarter of 2024, mainly driven by the release of reserves due to statute of limitation expirations and release of valuation allowance related to deferred tax assets in Brazil (net of U.S. branch taxes), partially offset by a change in the Company's assertion of undistributed foreign earnings in China.
Net income for the fourth quarter of 2025 was $84 million as compared to $100 million in the fourth quarter of 2024 primarily due to $20 million of higher tax expense and $3 million of higher SG&A expense partially offset by $3 million of higher gross profit, $3 million of higher non-operating income and $1 million of lower interest expense.
Net cash provided by operating activities totaled $99 million in the fourth quarter of 2025 as compared to $131 million in the fourth quarter of 2024, primarily due to $16 million of lower net income, $33 million of unfavorable impacts from working capital changes and $25 million of unfavorable impacts from change in other assets and liabilities, partially offset by $42 million of increased non-cash charges.
Non-GAAP Financial Measures
Adjusted EBIT decreased to $122 million in the fourth quarter of 2025 as compared to $124 million in the fourth quarter of 2024. The decrease of $2 million was driven by $15 million of pricing (net of inflation) pass-through, $10 million from unfavorable mix and $3 million of lower productivity net of higher stock based compensation. These decreases were partially offset by $10 million of foreign currency impact, $7 million of higher sales volumes, $5 million of lower RD&E costs and $4 million of commodity, transportation and energy deflation.
(MORE TO FOLLOW) Dow Jones Newswires
February 19, 2026 06:55 ET (11:55 GMT)