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Dec 31, 2025
Garrett Motion Q4 2025 Earnings Report
Garrett Motion reported higher fourth quarter 2025 sales with solid profitability and cash flow generation.
Key Takeaways
Garrett Motion reported Q4 2025 net sales of $891 million, up 6% year-over-year, with net income of $84 million and adjusted EBIT of $122 million. The company delivered strong operating cash flow of $99 million and adjusted free cash flow of $139 million, supported by growth in commercial vehicle and diesel applications.
Q4 net sales increased 6% year-over-year to $891 million, driven by commercial vehicle and diesel demand.
Net income was $84 million with a 9.4% net income margin.
Adjusted EBIT reached $122 million, representing a 13.7% margin.
Adjusted free cash flow totaled $139 million, reflecting solid cash generation.
Forward Guidance
For full year 2026, Garrett expects net sales between $3.6 billion and $3.8 billion, net income of $295 million to $335 million, adjusted EBIT of $520 million to $570 million, operating cash flow of $407 million to $502 million, and adjusted free cash flow of $355 million to $455 million.
Positive Outlook
- Net sales expected between $3.6 billion and $3.8 billion.
- Adjusted EBIT projected at $520 million to $570 million.
- Operating cash flow forecast between $407 million and $502 million.
- Adjusted free cash flow expected between $355 million and $455 million.
- Continued investment in zero emission technologies and industrial applications.
Challenges Ahead
- Light vehicle industry production expected to decline 1% to 3% in 2026.
- Outlook excludes potential impact of new tariffs or trade actions.
- Foreign exchange assumptions may impact reported results.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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