Garrett Motion Boosts 2026 Outlook on Strong Q2 Performance
Event summary
- Garrett Motion reported $976 million in Q2 2026 net sales, up 5% on a constant currency basis.
- Net income totaled $101 million with a net income margin of 10.3%.
- Adjusted EBIT margin expanded to 15.6%, driven by disciplined execution across the business.
- Secured multiple turbo wins, including a large light vehicle program in North America and several commercial vehicle applications in China and India.
- Increased 2026 full-year outlook for net sales, net income, adjusted EBIT, and adjusted free cash flow.
The big picture
Garrett Motion's strong Q2 performance highlights the power of its differentiated technology portfolio, particularly in turbochargers and industrial applications. The company's ability to secure multiple wins across passenger vehicles, commercial vehicles, and industrial sectors underscores its strategic positioning in a competitive market. As the automotive industry shifts towards electrification, Garrett Motion's focus on e-powertrain development will be crucial for long-term growth.
What we're watching
- Market Expansion
- How Garrett Motion's wins in North America, China, and India will affect its market share and revenue growth.
- Profitability Improvement
- Whether the company can sustain its adjusted EBIT margin expansion amid commodity inflation and foreign currency impacts.
- Execution Risk
- The pace at which Garrett Motion advances its e-compressor and e-powertrain offerings to meet future market demands.
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