Garrett Motion Inc. Q4 FY2025 earnings call

• 2025 was a fantastic year with strong operational performance, advanced strategy, increasing share of demand, growing portfolio, expanding margin. • Secured new light vehicle turbo awards, important diesel awards, commercial vehicle awards. • Announced series production awards for mobility equaling compressors and strategic collaboration with Trane for industrial HVAC applications. • 2025 financial results: Q4 net sales $891M, adjusted EBIT $122M 13.7% margin; full year net sales $3.58B, adjusted EBIT $510M 14.2% margin, adjusted free cash flow $403M. • 2026 outlook: Midpoint net sales $3.7B, adjusted EBIT $545M 14.7% margin, net cash provided by operating activities $455M, adjusted free cash flow $405M. • Strategic priorities: Identify and deliver on customer needs with differentiated technologies, generate robust returns for shareholders.

In Q4, net sales were $891 million and adjusted EBIT was $122 million with a 13.7% margin. For full year 2025, net sales reached $3.58 billion and adjusted EBIT was $510 million with a 14.2% margin. Adjusted free cash flow for the year was $403 million. In 2025, gasoline accounts for over 44% of sales, diesel remains resilient at more than 23%. Zero Emission and Industrial Technologies: Secured series production awards and strategic collaboration with Trane, with industrial cooling expected to scale quickly to more than 5% of revenue by end of decade.

• 2026 midpoint outlook: Net sales $3.7 billion, net income $315 million, adjusted EBIT $545 million (14.7% margin), net cash provided by operating activities $455 million, adjusted free cash flow $405 million. • Capital expenditures and RD&E expenses expected to be 2.5% and 4.2% of sales respectively, ~50% of RD&E directed towards zero-emission technologies and industrial cooling. • Plan for another year of strong execution with further share of demand gains, margin expansion and strong free cash flow.

Q: Questions on Trane partnership economic opportunity, margin, growth comparison, SG&A cost savings, Trane exclusivity, zero emission progress; A: Answers regarding Trane partnership timing, margin being accretive, growth of different segments, SG&A cost savings efforts, Trane partnership not exclusive long term, zero emission progress on predevelopment and production plans