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.
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