Garrett Motion Inc.

https://www.garrettmotion.com

Garrett Motion Inc. is a global technology leader specializing in the engineering, development, and manufacturing of turbochargers and advanced boosting technologies. Headquartered in Rolle, Switzerland, the company's core mission is to deliver differentiated solutions that enhance energy efficiency and reduce emissions across various applications, driving progress in the automotive and industrial sectors.

The company's product portfolio includes highly engineered turbochargers for gasoline, diesel, natural gas, and hydrogen internal combustion engines, as well as advanced E-Powertrain, E-Cooling compressors, and hydrogen fuel cell systems that support electrification and zero-emission technologies. Garrett Motion serves original equipment manufacturers (OEMs) in light and commercial vehicle markets, and maintains a significant presence in the aftermarket and motorsports segments.

Led by President and CEO Olivier Rabiller, Garrett Motion reported strong financial results for Q1 2026, with increased net sales and adjusted EBIT, leading to a raised full-year outlook. Recent innovations include breakthrough oil-free centrifugal compressors for high-efficiency liquid cooling solutions in battery energy storage systems and commercial HVAC. The company also received a 2025 Gold Medal from EcoVadis, recognizing its commitment to responsible business practices.

Latest updates

Garrett Motion Raises 2026 Outlook on Share Gains, Electrification Momentum

Event summary

  • Garrett Motion reported Q1 2026 net sales of $985 million, up 12% year-over-year, driven by passenger vehicle demand and commercial vehicle/industrial performance.
  • The company’s adjusted EBIT margin expanded to 15.3%, and generated $49 million in adjusted free cash flow.
  • Garrett raised its full-year 2026 outlook, now projecting net sales between $3.6 billion and $3.9 billion.
  • New business awards were secured in light vehicle turbo programs, range extended electric vehicles, and commercial vehicle diesel applications.

The big picture

Garrett Motion's strong Q1 performance and raised outlook signal a successful transition towards electrification and industrial applications. The company is capitalizing on demand gains in key segments, but faces headwinds from potential declines in traditional automotive markets and ongoing cost pressures. The ability to maintain margin expansion while navigating these dynamics will be critical for long-term value creation.

What we're watching

Industry Dynamics
The sustainability of Garrett’s growth will depend on the continued strength of both light vehicle and commercial vehicle markets, particularly given the projected 1% to 3% decline in light vehicle production.
Electrification Strategy
The company's success in securing E-Powertrain awards and industrial cooling applications will be crucial for offsetting potential declines in traditional turbocharger demand as EV adoption continues.
Margin Pressure
While margins have improved, the impact of cost pressures, including labor inflation and repositioning costs, will need to be carefully managed to sustain profitability.

Garrett Motion Partners with TONFY to Expand into Energy Storage Cooling

Event summary

  • Garrett Motion and TONFY are collaborating to integrate Garrett’s oil-free centrifugal compressor technology into TONFY’s liquid cooling units for battery energy storage systems (BESS).
  • Garrett’s compressor offers approximately double the cooling capacity within a comparable footprint, >10% efficiency improvement, and noise levels below 75 dB(A).
  • The initial integration will focus on 80 kW liquid cooling units for outdoor containerized energy storage systems, with mass production planned for 2027.
  • TONFY is a Chinese provider specializing in industrial temperature control and thermal management for new-type energy storage.
  • Garrett Motion is a global leader in turbocharging and electrification technologies with six R&D centers and 13 manufacturing facilities.

The big picture

The partnership reflects the growing demand for advanced thermal management solutions in the BESS market, driven by the increasing adoption of renewable energy and electric vehicles. Garrett’s move into energy storage represents a diversification beyond its traditional automotive focus, leveraging its expertise in high-speed compressors. TONFY’s specialization in energy storage thermal management provides Garrett with a direct entry point into a high-growth market.

What we're watching

Market Adoption
The success of this collaboration hinges on TONFY’s ability to effectively integrate Garrett’s technology and secure market share within the rapidly expanding BESS sector, particularly in China.
Competitive Landscape
How Garrett’s oil-free compressor technology will differentiate itself from existing cooling solutions in the BESS market, and whether TONFY can maintain a competitive edge against other thermal management providers, will be key indicators of success.
Expansion Scope
The exploration of Garrett’s technology in other high-density, energy-efficient cooling applications beyond BESS will determine the long-term strategic value of this partnership.

Garrett Motion Enters Industrial Cooling Market with Oil-Free Compressor Portfolio

Event summary

  • Garrett Motion is launching a portfolio of oil-free centrifugal compressors ranging from 7 to 500 tons (25 to 1,750 kWc) at China Refrigeration Expo 2026.
  • A new 1,250 kWc compressor for data centers and industrial cooling is being publicly debuted.
  • Garrett is targeting China's rapidly expanding data center, BESS, and industrial refrigeration sectors.
  • Garrett is partnering with Cling to launch an oil-free cooling compressor for electric trucks and buses in 2027.

The big picture

Garrett Motion is strategically diversifying beyond its automotive turbocharging roots into the rapidly growing industrial cooling market, driven by the expansion of data centers and battery energy storage systems. This move leverages their expertise in high-speed turbomachinery and foil bearings, positioning them to capitalize on the increasing demand for energy-efficient and environmentally friendly cooling solutions in China and globally. The expansion represents a significant shift for Garrett, which has historically focused on internal combustion engine technologies.

What we're watching

Market Adoption
The success of Garrett’s entry into the industrial cooling market hinges on OEM adoption and integration of the new compressor portfolio, particularly given the established presence of traditional scroll and screw designs.
Competitive Landscape
How Garrett’s energy savings claims (over 10%) will hold up against competitors’ offerings and evolving refrigerant regulations will be a key indicator of long-term market share.
Partnership Dynamics
The 2027 launch with Cling for electric truck and bus applications will reveal the depth and effectiveness of the partnership, and its potential to expand Garrett’s reach in the mobility sector.

Garrett Motion to Detail Strategic Shift at Investor Day

Event summary

  • Garrett Motion will host a Technology and Investor Day in New York City on May 20, 2026.
  • The event will focus on the company’s strategic evolution, including its Turbo, Zero-Emission Vehicle, and Industrial technology portfolios.
  • Garrett’s leadership team will present the company’s long-term growth trajectory and financial priorities.
  • Presentations will begin at 9:00 AM ET, followed by a technology demonstration and interactive exhibition.

The big picture

Garrett Motion's Investor Day signals a deliberate effort to communicate a revised strategic direction, likely in response to shifting automotive industry trends towards electrification and alternative powertrains. The company's focus on zero-emission vehicle technologies represents a significant pivot from its traditional turbocharging expertise. This event provides a crucial opportunity to assess the feasibility of Garrett's transition and its ability to capture a meaningful share of the evolving automotive technology market.

What we're watching

Market Adoption
The success of Garrett’s Zero-Emission Vehicle technology portfolio hinges on the broader adoption rate of hydrogen fuel cell vehicles, which remains uncertain and dependent on infrastructure development.
Financial Discipline
Whether Garrett can maintain its stated financial priorities while investing in new technologies will be a key indicator of management’s ability to balance growth and profitability.
Competitive Landscape
The pace at which Garrett can innovate and differentiate its offerings within the increasingly competitive automotive technology space will determine its long-term market share and pricing power.

Garrett Motion to Present at Bank of America Automotive Summit

Event summary

  • Garrett Motion Inc. will participate in the Bank of America Global Automotive Summit on March 18, 2026.
  • Chief Technology Officer Craig Balis will present and participate in investor meetings.
  • The presentation will be delivered by the CTO and the Investor Relations team.
  • Garrett Motion has six R&D centers, 13 manufacturing facilities, and approximately 8,700 employees.

The big picture

Garrett Motion's participation in the Bank of America summit underscores the company's efforts to pivot its technology portfolio beyond traditional turbocharging towards electric vehicle components. This strategic shift is crucial given the accelerating transition to EVs and the potential decline in demand for internal combustion engine technologies. The summit provides a key venue for Garrett to communicate this strategy and secure investor confidence amidst a changing automotive landscape.

What we're watching

Technology Adoption
The summit presentation will reveal the extent to which Garrett’s fuel cell compressor technology is gaining traction within the hydrogen vehicle market, and whether it can offset declining turbocharger demand.
Financial Performance
Investor scrutiny will likely focus on whether Garrett can maintain profitability given the ongoing shift towards electric vehicle powertrains and the associated R&D investment required.
Competitive Landscape
The presentation's discussion of thermal management systems will indicate how Garrett intends to compete against larger players in the broader EV component supply chain.

Garrett Motion Secures Major EV Compressor Deal with Cling in China

Event summary

  • Garrett Motion has won its first serial award for its oil-free centrifugal compressor in the mobility sector from Chinese company Cling.
  • The compressor will be integrated into Cling’s next-generation electric bus and truck HVAC systems, with production expected to begin in 2027.
  • The new compressor is 50% smaller, 30% lighter, and 10 dB quieter than traditional scroll compressors.
  • Garrett has been operating in China since 1994 and has two manufacturing facilities and two innovation centers in the country.

The big picture

This deal represents a significant validation of Garrett Motion’s strategy to focus on electrification technologies and expand its presence in the rapidly growing Chinese EV market. The partnership with Cling, a leading commercial vehicle HVAC provider, positions Garrett to capitalize on the increasing demand for efficient and sustainable thermal management solutions in electric buses and trucks, a segment experiencing substantial growth due to government mandates and consumer preferences.

What we're watching

Market Adoption
The success of this partnership hinges on Cling’s ability to rapidly integrate and scale the compressor across its electric bus and truck fleet, which will be a key indicator of broader market acceptance.
Competitive Landscape
How Garrett’s oil-free design and performance characteristics will fare against competing thermal management solutions from established HVAC suppliers in the Chinese EV market remains to be seen.
Geographic Expansion
Whether Garrett can leverage this China-based success to secure similar deals with other EV manufacturers in other global markets will be a crucial factor in its long-term growth.

Garrett Motion Posts Strong 2025, Eyes Electrification Growth Amidst Macro Uncertainty

Event summary

  • Garrett Motion reported $891 million in net sales for Q4 2025, a 6% increase year-over-year, and $3,584 million for the full year 2025, up 3%.
  • The company secured awards for E-powertrain and E-cooling technologies, with production slated to begin in 2027.
  • Garrett repurchased $208 million of common shares in 2025, reducing share count by 8%, and authorized a new $250 million repurchase program.
  • The company projects net sales between $3.6 and $3.8 billion for 2026, with a constant currency growth rate of -2% to +2%.

The big picture

Garrett Motion's results highlight the ongoing shift in the automotive and industrial sectors towards electrification and alternative power sources. While the company has made progress in securing new contracts for its E-powertrain and E-cooling technologies, the projected slowdown in light vehicle production and macroeconomic uncertainty pose challenges. The share repurchase program signals a degree of confidence in the company's financial position, but also suggests limited immediate M&A opportunities.

What we're watching

Execution Risk
The ability to convert the growing pipeline of awards into actual revenue will be critical, particularly given the projected macroeconomic headwinds and potential for delayed production starts.
Margin Pressure
While margins improved in 2025, the outlook suggests potential pressure in 2026 due to foreign exchange fluctuations and pricing dynamics, requiring careful cost management.
EV Transition
The pace at which Garrett’s electrification technologies are adopted and integrated into vehicle production will determine its long-term growth trajectory, given the projected increase in battery electric vehicle penetration.

Garrett Motion Expands into Large-Engine Turbocharging with Weichai Partnership

Event summary

  • Garrett Motion and Weichai Power are collaborating on the first commercial application of Garrett’s MEG turbocharger platform for large-bore engines.
  • The MEG platform is designed for marine propulsion, power generation, and backup genset systems, supporting diesel, natural gas, and alternative fuels.
  • Garrett and Weichai have a partnership dating back to 1998, initially focused on on-highway and off-highway applications.
  • Garrett established a presence in China in 1994 and operates two manufacturing facilities and two innovation centers there.

The big picture

This collaboration represents Garrett Motion’s strategic push into higher-power applications, addressing a growing need for fuel efficiency and emissions reduction in the marine and industrial sectors. The partnership with Weichai, a major Chinese engine manufacturer, provides Garrett with a significant foothold in a key market and leverages existing relationships spanning over two decades. The move underscores the increasing importance of turbocharging technology in meeting stricter environmental regulations and the shift towards alternative fuels in heavy-duty applications.

What we're watching

Market Adoption
The success of the MEG platform hinges on its adoption rate within the marine and power generation sectors, which are facing increasing pressure to reduce emissions and improve efficiency.
Fuel Transition
Garrett’s ability to support multiple fuel types will be critical as the marine and industrial sectors transition towards alternative fuels, potentially impacting demand for different turbocharger configurations.
China Exposure
The partnership’s reliance on Weichai Power’s distribution network in China exposes Garrett to geopolitical and regulatory risks specific to the Chinese market.

Garrett Motion Diversifies with Oil-Free Compressor Tech, Targets $1 Billion Revenue Stream

Event summary

  • Garrett Motion is introducing oil-free centrifugal compressor technology for HVAC systems, showcased at AHR Expo 2026 in Las Vegas (Feb 2-4).
  • The company plans to offer a compressor portfolio covering cooling demands from 7 to 500 Tons (25 to 1,750 kWc).
  • CEO Olivier Rabiller stated the technology aims to generate $1 billion in revenue outside of the automotive turbocharging business by 2030.
  • Trials with HVAC system integrators have demonstrated energy savings of over 10% compared to existing solutions.
  • Customer testing samples are available now, with production slated to begin in late 2026.

The big picture

Garrett Motion, historically reliant on the automotive turbocharging market, is actively pursuing diversification to mitigate cyclical risks and unlock new revenue streams. This move into HVAC compressors represents a strategic pivot leveraging existing technology expertise, but the success hinges on effectively penetrating a new market and overcoming established competitors. The $1 billion revenue target signals an ambitious growth plan, but also introduces significant execution risk.

What we're watching

Execution Risk
Scaling production and achieving the stated $1 billion revenue target by 2030 will require successful integration of this new technology and significant market penetration, which is not guaranteed.
Competitive Landscape
The HVAC compressor market is competitive, and Garrett’s claims of superiority over scroll, screw, and magnetic bearing solutions will need to be validated by broader industry adoption and customer feedback.
Refrigerant Transition
The ability to support next-generation, low-GWP refrigerants is a key selling point; regulatory shifts and the availability of these refrigerants could significantly impact the adoption rate of Garrett’s compressors.

Garrett Motion Secures Ferrari Turbo Partnership Through 2026 F1 Regulation Shift

Event summary

  • Garrett Motion has renewed its technical partnership with Scuderia Ferrari HP, extending a collaboration that began in 2014.
  • The renewed agreement covers the development and supply of turbo systems for Ferrari’s Formula 1 power unit starting in the 2026 FIA regulation cycle.
  • The 2026 Formula 1 season will feature a simpler hybrid architecture with increased electric contribution.
  • Garrett’s upcoming turbo system will focus on aerodynamic and thermal engineering for responsiveness and power density.

The big picture

This partnership renewal underscores Garrett Motion’s strategic focus on high-performance propulsion technologies, leveraging Formula 1 as a proving ground for innovations applicable to broader automotive markets. The move to a simpler hybrid architecture in F1 represents a significant technical challenge, and Garrett’s continued involvement signals confidence in its ability to adapt and innovate. The partnership, spanning over a decade, highlights the value of long-term collaborations in a rapidly evolving technological landscape.

What we're watching

Regulatory Impact
The shift to a simpler hybrid architecture in 2026 will significantly impact Garrett’s design requirements and potentially create opportunities for competitors with alternative propulsion solutions.
Execution Risk
Garrett’s ability to deliver a turbo system meeting Ferrari’s performance targets within the new 2026 regulations will be critical to maintaining the partnership and demonstrating technological leadership.
Competitive Landscape
The success of Garrett’s next-generation turbo system could influence its position in the broader automotive industry, particularly as electrification continues to reshape powertrain technologies.
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