The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 ...

PLYMOUTH, Mich. and ROLLE, Switzerland, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider today announced its participation in the upcoming investor conference: Bank of America Global Automotive Summit (March 18, 2026) – Craig Balis, Chief Technology Officer and our Investor Relations team will host a company presentation and participate in investor meetings. About Garrett Motion Inc.A differentiated tech ...

Core Viewpoint - Garrett Motion Inc. has secured a significant contract with Cling for the volume production of its innovative oil-free, foil bearing centrifugal compressor, set to begin in 2027, marking a pivotal advancement in electric bus and truck HVAC systems in China [1][3]. Group 1: Company Overview - Garrett Motion Inc. is recognized as a global leader in differentiated turbocharging and electrification technologies, with a 70-year history of innovation in the automotive sector and beyond [8]. - The company operates six R&D centers and 13 manufacturing facilities, employing approximately 8,700 people across more than 20 countries [8]. Group 2: Product Details - The new centrifugal compressor integrates an ultra-high-speed motor exceeding 160,000 RPM and an oil-free foil bearing system, resulting in a product that is up to 50% smaller, 30% lighter, and 10 dB quieter than traditional scroll compressors [6]. - The compressor is designed for seamless integration across various EV platforms, supporting 400V–800V heat pump systems and compatible with low-pressure, low-GWP refrigerants [7]. Group 3: Strategic Collaboration - The partnership with Cling aims to set new benchmarks for efficiency and thermal performance in electric commercial vehicles, enhancing comfort, efficiency, and environmental responsibility [6]. - Cling's vision to lead in integrated HVAC and thermal management solutions aligns with Garrett's technological advancements, driving innovation in the electric vehicle market [6].

Core Insights - Garrett Motion Inc. achieved strong operational performance in 2025, with net sales of $3.58 billion and adjusted EBIT of $510 million, reflecting a 14.2% margin [1][4][11] - The company repaid $50 million of its term loan, repurchased $208 million in common stock, and paid $52 million in dividends, demonstrating a disciplined capital allocation strategy [1][9][10] - The outlook for 2026 anticipates net sales of $3.7 billion, adjusted EBIT of $545 million (14.7% margin), and continued focus on zero-emission technologies and industrial cooling [11][12] Financial Performance - Q4 2025 net sales were $891 million, with adjusted EBIT of $122 million and a margin of 13.7% [5][6] - Full-year adjusted free cash flow was $403 million, with a conversion rate of nearly 80% [8][9] - The company experienced a 6% increase in Q4 net sales compared to the previous year, driven by gasoline demand and a recovery in commercial vehicles [6][7] Business Segments - Garrett Motion secured numerous awards in light vehicle turbo applications, increasing its share of demand in gasoline and diesel markets [1][3] - The company is expanding into zero-emission technologies, including a strategic collaboration with Trane Technologies for oil-free high-speed centrifugal compressors [1][2][3] - Industrial cooling is projected to become a significant growth vector, expected to account for over 5% of revenue by the end of the decade [2][3] Market Trends - The global light vehicle industry is expected to decline by 2%, while commercial vehicle markets are anticipated to recover by 1.5% [11] - The company is positioned to gain market share through its technology-driven approach, particularly in hybrid and electric vehicle applications [31][32] - Garrett Motion's differentiated technologies are central to efficiency and emissions reduction, appealing to customers in both automotive and industrial sectors [1][3][31] Strategic Initiatives - The company aims to leverage its capabilities to develop high-speed, efficient technologies that meet customer needs and generate robust returns for shareholders [13][14] - A $250 million share repurchase program has been authorized for 2026, with a target to distribute approximately 75% of adjusted free cash flow to shareholders [10][11] - The partnership with Trane is expected to provide significant opportunities, with the potential for additional revenue streams beyond the initial collaboration [37][39]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $891 million, with adjusted EBIT of $122 million and a margin of 13.7% [4][13] - For the full year 2025, net sales reached $3.58 billion, with adjusted EBIT of $510 million and a margin of 14.2% [4][5] - Adjusted free cash flow for the year was $403 million, demonstrating disciplined execution [4][17] Business Line Data and Key Metrics Changes - The company secured new light vehicle turbo awards, increasing share in gasoline VNT applications and hybrid platforms [6][8] - Diesel applications for light commercial vehicles and trucks remained resilient, contributing to over 23% of sales [8] - Commercial vehicle sales expanded across regions, while aftermarket sales declined due to lower demand in North America [15][16] Market Data and Key Metrics Changes - Gasoline accounted for over 44% of sales, while diesel represented more than 23% [8] - The company experienced growth in commercial vehicle and diesel segments, but gasoline volumes declined outside of Europe, particularly in Asia [15][16] - The company recovered $10 million and $40 million in tariffs during Q4 and the full year, respectively [15] Company Strategy and Development Direction - The company aims to strengthen its core business while accelerating zero-emission technologies [5][12] - A strategic collaboration with Trane Technologies was announced to integrate next-generation oil-free compressors into commercial HVAC applications [9][22] - The company is targeting to achieve over 5% of revenue from industrial cooling by the end of the decade [11][12] Management's Comments on Operating Environment and Future Outlook - Management anticipates further share of demand gains, margin expansion, and strong free cash flow for 2026 [5][20] - The outlook for 2026 includes net sales of $3.7 billion and adjusted EBIT of $545 million, implying a 14.7% margin [20][21] - The company expects to direct approximately 50% of R&D expenses towards zero-emission technologies and industrial cooling [20] Other Important Information - The company repaid $50 million of its term loan and repurchased $208 million of common stock in 2025 [5][18] - A $250 million share repurchase program was authorized for 2026, with a target distribution of approximately 75% of adjusted free cash flow to shareholders [18][19] Q&A Session Summary Question: Economic opportunity from the Trane partnership - Management indicated that the first application will be delivered in 2026, with a significant ramp-up expected in 2027, but specific numbers for 2027 were not provided [26][28] Question: Comparison of power generation and cooling opportunities - Management noted both markets are growing rapidly, with significant demand for energy and cooling solutions, but did not favor one over the other [40][44] Question: New light vehicle turbo awards and market share - Management confirmed a consistent win rate above 60% in the turbocharger market, indicating an increase in share of demand [46][49] Question: Trane partnership exclusivity and addressable market - Management confirmed that while Trane is a key partner, there will be opportunities to develop relationships with other players in the cooling industry [59][62] Question: Progress on zero-emission products and revenue targets - Management reported accelerated progress on pre-development programs and confirmed that the $1 billion revenue target for 2030 remains intact [63][66]

Garrett Motion (NasdaqGS:GTX) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsCyril Grandjean - VP of Investor Relations and TreasurerOlivier Rabiller - President and CEOSean Deason - SVP and CFOConference Call ParticipantsEric Gregg - AnalystHamed Khorsand - AnalystJake Schell - AnalystJames Mulholland - AnalystNathan Jones - AnalystRyan Brinkman - AnalystOperatorHello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion ...

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $891 million, with adjusted EBIT of $122 million and a margin of 13.7% [4][13] - For the full year 2025, net sales reached $3.58 billion, with adjusted EBIT of $510 million and a margin of 14.2% [4][5] - Adjusted free cash flow for the year was $403 million, demonstrating strong operational performance [4][17] Business Line Data and Key Metrics Changes - The company secured new light vehicle turbo awards, increasing its share of demand in gasoline VNT applications and hybrid electric vehicle platforms [6][7] - Gasoline accounted for over 44% of sales, while diesel remained resilient at more than 23% [7] - Commercial vehicle sales expanded across on-highway and off-highway applications, contributing to overall growth [14][16] Market Data and Key Metrics Changes - In Q4, net sales increased by $47 million year-over-year, reflecting a 6% growth on a reported basis [14] - Growth in commercial vehicle and diesel sales was noted, while gasoline volumes declined outside of Europe, particularly in Asia [14] - The company recovered $10 million in tariffs during Q4 and $40 million for the full year [14] Company Strategy and Development Direction - The company aims to leverage its technology to develop differentiated, high-speed, and efficient technologies, focusing on turbo and zero-emission technologies [22] - A strategic collaboration with Trane Technologies was announced to integrate next-generation oil-free compressors into commercial HVAC applications, indicating a diversification strategy [9][22] - The company anticipates that industrial cooling will become a significant growth vector, expected to scale to more than 5% of revenue by the end of the decade [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform in 2026 and beyond, with expectations for further share of demand gains and margin expansion [22][23] - The outlook for 2026 includes net sales of $3.7 billion and adjusted EBIT of $545 million, implying a 14.7% margin [20][21] - Management highlighted the importance of maintaining a disciplined capital allocation strategy while investing in growth opportunities [5][22] Other Important Information - The company repaid $50 million of its term loan in 2025, reducing its net leverage ratio to approximately 1.9 times [18] - A $250 million share repurchase program was authorized for 2026, with a target to distribute approximately 75% of adjusted free cash flow to shareholders [18][19] Q&A Session Summary Question: Economic opportunity from the Trane partnership - Management indicated that the first application will be delivered in 2026, with a significant ramp-up expected in 2027, but specific numbers for 2027 were not provided [26][28] Question: Comparison of power generation and cooling markets - Management noted that both markets are growing rapidly, with significant demand for energy and cooling solutions, and emphasized the company's competitive position in both areas [40][44] Question: Trane partnership exclusivity and addressable market - Management confirmed that while the partnership with Trane is significant, there will be opportunities to develop relationships with other players in the cooling industry [58][60] Question: Progress on zero-emission products and revenue targets - Management reported accelerated progress on pre-development programs and confirmed that the $1 billion revenue target from zero-emission products remains intact for 2030 [62][64]

FEBRUARY 19, 2026 Q4 AND FULL YEAR 2025 FINANCIAL RESULTS © 2025 Garrett Motion Inc. © 2026 Garrett Motion Inc. Forward Looking Statements This communication and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "str ...

Financial Performance - In 2025, net income increased to $310 million, up from $282 million in 2024, primarily due to lower interest expenses and increased gross profit [216]. - Total net sales for 2025 were $3,584 million, representing a 3.1% increase from $3,475 million in 2024, driven by higher demand in gasoline and commercial vehicles [203][204]. - For the year ended December 31, 2025, net income increased by $28 million to $310 million compared to $282 million in 2024 [226]. - Adjusted EBIT for 2025 was $510 million, an increase of $25 million from $485 million in 2024, driven by higher sales volumes and productivity [227]. - Cash provided by operating activities increased by $5 million to $413 million in 2025, supported by a $28 million increase in net income [245]. Sales and Revenue - Revenue from Europe in 2025 was $1,745 million, accounting for 49% of total revenue, an increase from $1,642 million or 47% in 2024 [201]. - Diesel product sales increased by $10 million or 1% in 2025, while gasoline product sales rose by $87 million or 6% [205][206]. Expenses and Costs - Selling, general and administrative expenses remained flat at $240 million, constituting 6.7% of sales in 2025 [211]. - The effective tax rate increased to 20.9% in 2025 from 17.8% in 2024, primarily due to unrecognized tax benefits in Switzerland and China [215]. - Cash used for investing activities increased by $27 million to $41 million in 2025, primarily due to lower proceeds from the sale of a joint venture [246]. - Cash used for financing activities decreased by $194 million to $326 million in 2025, compared to $520 million in 2024, due to lower debt repayments [247]. Share Repurchase and Capital Expenditures - The company repurchased $208 million of common stock, including 7.5 million shares for $103 million from Oaktree Capital Management [198]. - The company entered into a new $250 million share repurchase program valid from January 1, 2026, until December 31, 2026 [242]. - The company expects capital expenditures to increase in 2026 compared to 2025, primarily for investments in zero emissions technology [250]. Production and Market Trends - Turbocharger production is expected to rise from approximately 49 million units in 2024 to nearly 50 million units in 2025, before declining in subsequent years due to electric vehicle penetration [196]. - The company anticipates steady demand for turbochargers in the short to medium term, driven by hybridized powertrains in response to emissions standards [199]. Financial Instruments and Risks - As of December 31, 2025, the net fair value of financial instruments exposed to currency risk was a $163 million liability, with a potential impact of $225 million from a 10% adverse change in exchange rates [269]. - A 50 basis point change in interest rates would affect interest expense by $3 million for borrowings under the Credit Agreement as of December 31, 2025 [271]. - Approximately 79% of the cost of sales consists of purchased components, with a 10% variation in commodity prices potentially impacting costs by up to $39 million annually [273]. Accounting and Liabilities - Revenue is recognized based on shipping terms, with adjustments for variable considerations such as price concessions [252]. - The company is subject to contingent liabilities from lawsuits and claims, with potential losses assessed and recognized based on legal analysis [253]. - Warranty costs are estimated based on past experience and obligations, with adjustments made as circumstances change [254]. - The company sponsors defined benefit pension plans, with costs and liabilities determined from actuarial valuations influenced by market conditions [255][256].

Garrett Motion Reports Strong 2025 Results and Expansion of Zero-Emission and Industrial Technology Portfolio, Issues 2026 Outlook Fourth Quarter 2025 Financial Highlights Full Year 2025 Financial Highlights Full Year 2025 Business Highlights PLYMOUTH, Mich. and ROLLE, Switzerland, February 19, 2026 – Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a global leader in differentiated turbocharging and electrification technologies for automotive and industrial applications, today announced its ...