Garrett Motion Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company, founded in 2018 and based in Rolle, Switzerland, specializes in designing, manufacturing, and selling turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors globally. Its products cater to a wide range of applications, including light vehicles, commercial vehicles, and industrial uses.
In the 10-K report, Garrett Motion's management discussed the company's financial condition and results of operations. The report highlighted the company's ability to navigate through macroeconomic and geopolitical challenges, including a dynamic trade environment, by implementing strategic permanent and variable cost measures and leveraging commodity deflation pass-through. This allowed Garrett Motion to achieve a net income of $310 million and an adjusted EBIT of $510 million for the year.
The report also outlined the company's success in securing additional pre-production contracts for light vehicle and commercial vehicle applications, as well as progress in air and cooling compression technologies. Additionally, it mentioned the repayment of $50 million on the 2025 Dollar Term Facility, cash dividends of $52 million, and the repurchase of $208 million of Common Stock under the share repurchase program.
Garrett Motion's 10-K report provided insights into the trends, uncertainties, and opportunities in the global automotive industry. It anticipated a global increase in battery electric vehicle (BEV) production and steady demand for turbochargers driven by the growing penetration of hybridized powertrains. The report also noted the constraints on BEV adoption due to price disparities compared to internal combustion engine (ICE) vehicles and the slower-than-expected development of charging infrastructure.
The 10-K report included a breakdown of the company's revenue by geographic region and product line for the years ended December 31, 2025, and 2024. It revealed that net sales for 2025 increased by 3% compared to the prior year, with favorable impacts from foreign currency translation and higher demand in gasoline and commercial vehicles, partially offset by weaker aftermarket sales.
Furthermore, the report delved into the cost of goods sold, gross profit, selling, general and administrative expenses, other expenses, interest expenses, non-operating income, tax expenses, and net income for the years ended December 31, 2025, and 2024. It provided a detailed analysis of the factors contributing to changes in these financial metrics, including sales volumes, product mix, price, commodity, transportation, and energy deflation, and foreign exchange rate impacts.
Additionally, the report introduced a transition from Adjusted EBITDA to Adjusted EBIT as a non-GAAP reporting metric, aiming to better reflect the company's core operating performance and align with industry practices. It presented the EBIT and Adjusted EBIT figures for the years ended December 31, 2025, 2024, and 2023, providing a clearer understanding of the company's operational performance.
The market has reacted to these announcements by moving the company's shares -3.83% to a price of $18.48. For the full picture, make sure to review Garrett Motion's 10-K report.
