Garrett Motion Inc.

First Quarter 2025 Financial Highlights

Net sales totaled $878 million, down 4% on a reported basis and down 2% on a constant currency* basis Net incometotaled $62 million; Net income margin of 7.1% Adjusted EBIT* totaled $131 million; Adjusted EBIT margin* of 14.9% Net cash provided by operating activities totaled $56 million Adjusted free cash flow* totaled $36 million Reiterating full-year outlook

First Quarter 2025 Business Highlights

Continue to win across all turbo, plug-in hybrids and range extended electric vehicle applications  Secured new wins in Asia and Europe for commercial vehicles and industrial power generation applications  Won first major series production award for electric motors with industry-leading supplier, production expected to start in 2027

PLYMOUTH, Mich. and ROLLE, Switzerland, May 01, 2025 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider, today announced its financial results for the three months ended March 31, 2025. Additionally, the Company's Board of Directors has declared a cash dividend of $0.06 per share of common stock, payable on June 16, 2025, to shareholders of record as of June 2, 2025.

"Garrett started the year with strong first quarter results in a pressured industry environment," said Garrett President and CEO, Olivier Rabiller. "We drove outstanding operating performance and saw the positive impact from structural cost savings actions that we deployed in 2024. We also continued to return capital to shareholders through $30 million of common share repurchases and our first quarterly dividend of $12 million."

"We strengthened our global leadership in turbocharging, winning new business with both established and new automakers - particularly in plug-in hybrid and range extended electric platforms. With our zero-emission technologies, we achieved a significant milestone with our first major series production award for our high-speed electric traction motor and matched inverter that will be integrated in a fully electric axle for On Highway Heavy Duty truck applications."

$ millions (unless otherwise noted)  Q1 2025  Q1 2024 Net sales  878  915 Cost of goods sold  699  743 Gross profit  179  172 Gross profit %  20.4%  18.8% Selling, general and administrative expenses  59  64 Income before taxes  85  81 Net income  62  66 Net income margin  7.1%  7.2% Adjusted EBIT*  131  121 Adjusted EBIT margin*  14.9%  13.2% Adjusted EBITDA*  159  151 Adjusted EBITDA margin*  18.1%  16.5% Net cash provided by operating activities  56  84 Adjusted free cash flow*  36  68

* See reconciliations to the nearest GAAP measures below.

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Results of Operations

Net sales for the first quarter of 2025 were $878 million, representing a decrease of 4% (including an unfavorable impact of $21 million or 2% due to foreign currency translation) compared with $915 million in the first quarter of 2024. This decrease was driven by a decline in diesel sales from lower industry production mainly in Europe, and lower aftermarket sales due to softness in North America, partially offset by new application launches and program ramp-ups in gasoline in North America.

Cost of goods sold for the first quarter of 2025 decreased to $699 million from $743 million in the first quarter of 2024, primarily driven by $15 million of lower sales volumes, $16 million of productivity net of labor inflation, $9 million of commodity, transportation and energy deflation and $14 million from foreign currency impacts. These decreases were partially offset by $6 million of unfavorable product mix and $4 million from the impact of enacted import tariffs.

Gross profit totaled $179 million for the first quarter of 2025 as compared to $172 million in the first quarter of 2024, with a gross profit percentage for the first quarter of 2024 of 20.4% as compared to 18.8% in the first quarter of 2024. The increase in gross profit was primarily driven by $16 million of productivity net of labor inflation, $9 million of commodity, transportation and energy deflation, and $4 million from higher pricing net of inflation pass-through. These increases were partially offset by $7 million of lower sales volumes, $7 million of unfavorable product mix and $8 million from foreign currency impacts. There was no impact to gross profit from enacted import tariffs as we managed to fully pass through the costs of the tariffs.

Selling, general and administrative (“SG&A”) expenses for the first quarter of 2025 decreased to $59 million from $64 million in the first quarter of 2024. The decrease was mainly driven by lower stock-based compensation, lower personnel related costs and favorable foreign exchange impacts.

Other expense in the first quarter of 2025 was $7 million as compared to $1 million in the first quarter of 2024. The increase was primarily driven by debt financing costs related to the refinancing of our term loan and revolving credit facility.

Interest expense in the first quarter of 2025 was $29 million as compared to $31 million in the first quarter of 2024. The decrease was primarily driven by $10 million of lower interest expense due to a different notional amount of debt outstanding during the period and $1 million of lower debt issuance cost amortization. In addition, we recorded $6 million of gains on our interest derivatives in the current year, in comparison to $8 million of gains in the prior year. We also recognized $6 million of marked-to-market remeasurement losses during the quarter on our undesignated interest rate swap contracts, in comparison to no marked-to-market remeasurement losses in the prior year.

Non-operating income for the first quarter of 2025 was $1 million of income as compared to $5 million in the first quarter of 2024, with the decrease primarily driven by lower equity income due to the sale of an equity interest in an unconsolidated joint venture and a decrease in foreign exchange transactional gains.

Tax expense for the first quarter of 2025 was $23 million as compared to $15 million in the first quarter of 2024, mainly driven by higher U.S. taxes on international operations and reversal of tax reserves in 2024.

Net income for the first quarter of 2025 was $62 million as compared to $66 million in the first quarter of 2024. The $4 million decrease was primarily due to $8 million higher tax expense, $6 million of higher other expense and $4 million lower non-operating income. These decreases were partially offset by $7 million of higher gross profit and $5 million of lower SG&A expense.

Net cash provided by operating activities totaled $56 million in the first quarter of 2025 as compared to $84 million in the first quarter of 2024, representing a decrease of $28 million. This decrease was primarily due to $54 million of unfavorable impacts from working capital changes and $4 million of lower net income, partially offset by an increase of $21 million in non-cash charges and $9 million of favorable impacts from changes in other assets and liabilities.

Non-GAAP Financial Measures

Adjusted EBIT increased to $131 million in the first quarter of 2025 as compared to $121 million in the first quarter of 2024. The increase was mainly due to strong operational performance through productivity net of labor inflation, lower stock-based compensation, commodity, transportation and energy deflation, and pricing net of inflation pass-through. These increases were partially offset by lower volumes as discussed above, unfavorable product mix as well as unfavorable foreign exchange impact.

Adjusted free cash flow was $36 million in the first quarter of 2025 as compared to $68 million in the first quarter of 2024. The decrease was primarily driven by $64 million of unfavorable impact from working capital changes (net of factoring) and $2 million of higher cash paid for taxes. These decreases were partially offset by $20 million of lower cash interest paid and $6 million of lower capital expenditures.

Liquidity and Capital Resources

As of March 31, 2025, Garrett had $760 million in available liquidity, including $130 million in cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility. As of December 31, 2024, Garrett had $725 million in available liquidity, including $125 million in cash and cash equivalents and $600 million of undrawn commitments under its revolving credit facility.

As of March 31, 2025, total principal amount of debt outstanding was $1,494 million, compared to $1,493 million as of December 31, 2024.

During the first quarter of 2025, we repurchased $30 million of our common stock under our authorized share repurchase program and we had remaining repurchase capacity of $220 million as of March 31, 2025.

Full Year 2025 Outlook

Garrett reiterates its outlook for the full year 2025 for certain GAAP and Non-GAAP financial measures.

Full Year 2025 Outlook Net sales (GAAP) $3.3 billion to $3.5 billion Net sales growth at constant currency (Non-GAAP)* -3% to +2% Net income (GAAP) $209 million to $254 million Adjusted EBITDA (Non-GAAP)* $545 million to $605 million Adjusted EBIT (Non-GAAP)* $427 million to $487 million Net cash provided by operating activities (GAAP) $357 million to $447 million Adjusted free cash flow (Non-GAAP)* $300 million to $390 million

* See reconciliations to the nearest GAAP measures below.

Garrett’s full year 2025 outlook, as of May 1, 2025, includes the following expectations:

2025 light vehicle industry production down 3% to flat versus 2024; 2025 commercial vehicle industry, including both on- and off-highway, flat to +2% versus 2024; 2025 average light vehicle battery electric vehicle penetration of 16%; Price (net of pass-through) and productivity offsetting inflation; 2025 Euro/dollar assumption of 1.05 EUR to 1.00 USD; RD&E investment at 4.6% of sales in 2025, with more than 50% on zero-emission technologies; Capital expenditures at 2.8% of sales, with more than 25% on zero-emission technologies; Excludes the potential impact of global trade policies and inflation, and assumes direct tariff pass-through.

Conference Call

Garrett will hold a conference call at 8:30 am EDT / 2:30 pm CET on Thursday, May 1, 2025, to discuss its results. To participate on the conference call, please dial +1-877-883-0383 (US) or +1-412-902-6506 (international) and use the passcode 2829687.

The conference call will also be broadcast over the internet and include a slide presentation. To access the webcast and supporting material, please visit the investor relations section of the Garrett Motion website at http://investors.garrettmotion.com. A replay of the conference call will be available by dialing +1-877-344-7529 (US) or +1-412-317-0088 (international) using the access code 5071316. The webcast will also be archived on Garrett’s website.

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,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar expressions. Forward-looking statements represent our current judgment about possible future activities, events, or developments that we intend, expect, project, believe, or anticipate will or may occur in the future. In making these statement, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future performance, events, or results, and actual performance, events, or results may differ materially from those envisaged by our forward-looking statements due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission, including risks related to the automotive industry, the competitive landscape and our ability to compete, and macroeconomic and geopolitical conditions, among others. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statement, except where we are expressly required to do so by law.

Non-GAAP Financial Measures

This communication includes the following non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”): Constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT margin, Adjusted EBITDA margin and Adjusted free cash flow. We believe these measures are useful to investors and management in understanding our ongoing operations and analysis of ongoing operating trends and are important indicators of operating performance because they exclude the effects of certain non-operating items, therefore making them more closely reflect our operational performance. Our calculation of these non-GAAP measures, including a reconciliation of such measures to the most closely related GAAP measure, are set forth in the Appendix to this presentation. These non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. For additional information regarding our non-GAAP financial measures, see our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission.​

About Garrett Motion Inc.

A differentiated technology leader, Garrett Motion has a 70-year history of innovation in the automotive sector (cars, trucks) and beyond (off-highway equipment, marine, power generators). Its expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is expanding its positive impact by developing differentiated technology solutions for Zero Emission Vehicles, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for battery electric vehicles. Garrett has five R&D centers, 13 manufacturing sites and a team of more than 9,000 employees in more than 20 countries. Its mission is to enable the transportation industry to advance motion through unique, differentiated innovations. For more information, please visit www.garrettmotion.com.

Contacts:  INVESTOR RELATIONS MEDIA Cyril Grandjean Amanda Jones +1.734.392.5504 +41.79.601.0787 [email protected] [email protected]

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

For the Three Months Ended
March 31, 2025    2024  (Dollars in millions, except per share amounts) Net sales $ 878   $ 915  Cost of goods sold  699    743  Gross profit  179    172  Selling, general and administrative expenses  59    64  Other expense, net  7    1  Interest expense  29    31  Non-operating income, net  (1 )   (5 ) Income before taxes  85    81  Tax expense  23    15  Net income $ 62   $ 66   Earnings per common share  Basic $ 0.30   $ 0.28  Diluted  0.30    0.28   Weighted average common shares outstanding  Basic  205,113,600    236,664,129  Diluted  207,571,011    238,991,886

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended
March 31, 2025    2024 (Dollars in millions) Net income $ 62   $ 66 Foreign exchange translation adjustment  (29 )   18 Defined benefit pension plan adjustment, net of tax  —    1 Changes in fair value of effective cash flow hedges, net of tax  2    3 Changes in fair value of net investment hedges, net of tax  (35 )   19 Total other comprehensive (loss) income, net of tax  (62 )   41 Comprehensive income $ —   $ 107

CONSOLIDATED INTERIM BALANCE SHEETS

March 31,
2025  December 31,
2024 (Dollars in millions) ASSETS  Current assets:  Cash and cash equivalents $ 130   $ 125  Restricted cash  1    1  Accounts, notes and other receivables – net  752    687  Inventories – net  265    286  Other current assets  100    94  Total current assets  1,248    1,193  Investments and long-term receivables  11    10  Property, plant and equipment – net  444    449  Goodwill  193    193  Deferred income taxes  202    207  Other assets  177    224  Total assets $ 2,275   $ 2,276  LIABILITIES  Current liabilities:  Accounts payable $ 935   $ 972  Current maturities of long-term debt  7    7  Accrued liabilities  327    299  Total current liabilities  1,269    1,278  Long-term debt  1,462    1,464  Deferred income taxes  30    25  Other liabilities  214    182  Total liabilities $ 2,975   $ 2,949  COMMITMENTS AND CONTINGENCIES  EQUITY (DEFICIT)  Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 242,028,536 and 240,987,329 issued and 203,929,236 and 206,387,938 outstanding as of March 31, 2025 and December 31, 2024, respectively  —    —  Additional paid – in capital  1,219    1,213  Retained deficit  (1,591 )   (1,653 ) Accumulated other comprehensive loss  11    73  Treasury Stock, at cost; 38,099,300 and 34,599,391 shares as of March 31, 2025 and December 31, 2024, respectively  (339 )   (306 ) Total deficit  (700 )   (673 ) Total liabilities and deficit $ 2,275   $ 2,276

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2025    2024  (Dollars in millions) Cash flows from operating activities:  Net income $ 62   $ 66  Adjustments to reconcile net income to net cash provided by operating activities  Deferred income taxes  6    5  Depreciation  22    22  Amortization of deferred issuance costs  2    3  Foreign exchange (gain) loss  (19 )   7  Stock compensation expense  6    8  Unrealized loss (gain) on derivatives  35    (17 ) Other  2    5  Changes in assets and liabilities:  Accounts, notes and other receivables  (56 )   6  Inventories  25    (17 ) Other assets  (3 )   (4 ) Accounts payable  (34 )   —  Accrued liabilities  (3 )   4  Other liabilities  11    (4 ) Net cash provided by operating activities $ 56   $ 84  Cash flows from investing activities:  Expenditures for property, plant and equipment  (26 )   (32 ) Proceeds from cross-currency swap contracts  4    4  Net cash used for investing activities $ (22 )  $ (28 ) Cash flows from financing activities:  Proceeds from issuance of long-term debt, net of deferred financing costs  68    —  Bank overdrafts  17    —  Payments of long-term debt  (71 )   (2 ) Repurchases of Common Stock  (30 )   (107 ) Dividend payments  (12 )   —  Payments for debt and revolving facility financing costs  (1 )   —  Other  (2 )   (3 ) Net cash used for financing activities $ (31 )  $ (112 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash  2    (7 ) Net increase (decrease) in cash, cash equivalents and restricted cash  5    (63 ) Cash, cash equivalents and restricted cash at beginning of the period  126    260  Cash, cash equivalents and restricted cash at end of the period $ 131   $ 197  Supplemental cash flow disclosure:  Income taxes paid (net of refunds)  12    10  Interest paid  7    27

Reconciliation of Net Income to Adjusted EBIT(1) and Adjusted EBITDA(1)

Three Months Ended
March 31, 2025    2024  (Dollars in millions) Net income  $ 62   $ 66  Interest expense, net of interest income(2)   29    29  Tax expense   23    15  EBIT   114    110  Repositioning costs   7    11  Foreign exchange gain on debt, net of related hedging loss   1    —  Factoring and notes receivables discount fees   1    1  Other non-operating income(3)   (1 )   (1 ) Debt refinancing and redemption costs(4)   6    —  Acquisition and divestiture expenses   3    —  Adjusted EBIT   131    121  Depreciation   22    22  Stock compensation expense(5)   6    8  Adjusted EBITDA  $ 159   $ 151   Net sales  $ 878   $ 915   Net income margin   7.1 %   7.2 % Adjusted EBIT margin(6)   14.9 %   13.2 % Adjusted EBITDA margin(7)   18.1 %   16.5 %

(1)    We evaluate performance on the basis of Adjusted EBIT and Adjusted EBITDA. We define “EBIT” as our net income calculated in accordance with U.S. GAAP, plus the sum of (i) interest expense net of interest income and (ii) tax expense. We define Adjusted EBIT as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging gain/loss, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses, (vi) other non-operating income, (vii) capital structure transformation expenses, (viii) debt refinancing and redemption costs, and (ix) loss on extinguishment of debt, if any. We define Adjusted EBITDA as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging gain/loss, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses,(vi) other non-operating income, (vii) capital structure transformation expenses, (viii) debt refinancing and redemption costs, and (ix) loss on extinguishment of debt, if any, plus (x) depreciation and (xi) stock compensation expense. We believe that Adjusted EBIT and Adjusted EBITDA are important indicators of operating performance and provide useful information for investors because:

Adjusted EBIT and Adjusted EBITDA exclude the effects of income taxes, as well as the effects of financing activities by eliminating the effects of interest and therefore more closely measure our operational performance; certain adjustment items, while periodically affecting our results, may vary significantly from period to period and could therefore have a disproportionate effect in a given period, affecting the comparability of our results; and Adjusted EBITDA also excludes the effects of investing activities by eliminating the effects of depreciation.

In addition, our management may use Adjusted EBITDA in setting performance incentive targets to align performance measurement with operational performance.

(2)    Reflects interest income of $0 million and $2 million for the three months ended March 31, 2025 and 2024, respectively.

(3)    Reflects the non-service component of net periodic pension income.

(4)    Reflects the third-party costs directly attributable to the repricing of our term loan and revolving credit facility.

(5)    Stock compensation expense includes only non-cash expenses.

(6)    Adjusted EBIT margin represents Adjusted EBIT as a percentage of net sales.

(7)    Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.

Reconciliation of Constant Currency Sales % Change(1)

Three Months Ended
March 31, 2025   2024  Garrett  Reported sales % change (4)%  (6)% Less: Foreign currency translation (2)%  (1)% Constant currency sales % change (2)%  (5)%  Gasoline  Reported sales % change 4 %  (4)% Less: Foreign currency translation (2)%  (2)% Constant currency sales % change 6 %  (2)%  Diesel  Reported sales % change (14)%  (8)% Less: Foreign currency translation (3)%  0 % Constant currency sales % change (11)%  (8)%  Commercial vehicles  Reported sales % change (4)%  (12)% Less: Foreign currency translation (2)%  (1)% Constant currency sales % change (2)%  (11)%  Aftermarket  Reported sales % change (13)%  2 % Less: Foreign currency translation (3)%  0 % Constant currency sales % change (10)%  2 %  Other Sales  Reported sales % change 8 %  8 % Less: Foreign currency translation (3)%  (1)% Constant currency sales % change 11 %  9 %

(1)    We define constant currency sales growth as the year-over-year change in reported sales relative to the comparable period, excluding the impact on sales from foreign currency translation. We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow(1)

Three Months Ended
March 31, 2025   2024  (Dollars in millions) Net cash provided by operating activities $ 56  $ 84  Expenditures for property, plant and equipment  (26 )  (32 ) Net cash provided by operating activities less expenditures for property, plant and equipment  30   52  Capital structure transformation expenses  —   1  Acquisition and divestiture expenses  1   —  Cash payments for repositioning  3   9  Proceeds from cross currency swap contracts  4   4  Cash payments for debt refinancing costs  6   —  Factoring and P-notes  (8 )  2  Adjusted free cash flow(1) $ 36  $ 68

(1)    Adjusted free cash flow reflects an additional way of viewing liquidity that management believes is useful to investors in analyzing the Company’s ability to service and repay its debt. The Company defines adjusted free cash flow as cash flow provided from operating activities less capital expenditures and additionally adjusted for other discretionary items including cash flow impacts for capital structure transformation expenses, acquisition and divestiture expenses, debt refinancing costs, and factoring and guaranteed bank notes activity.

Full Year 2025 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency

2025 Full Year Low End  High End Reported net sales (% change)  (6)%  0 % Foreign currency translation  (3)%  (2)% Full year 2025 Outlook Net sales growth at constant currency  (3)%  2 %

Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBITDA

2025 Full Year Low End  High End (Dollars in millions) Net income  $ 209  $ 254 Interest expense, net of interest income *   117   117 Tax expense   70   85 Factoring and notes receivables discount fees   1   1 Acquisition and divestiture expenses   3   3 Debt refinancing and redemption costs   6   6 Repositioning costs   21   21 Full Year 2025 Outlook Adjusted EBIT  $ 427  $ 487 Depreciation   93   93 Stock compensation expense   25   25 Full Year 2025 Outlook Adjusted EBITDA  $ 545  $ 605  *  Excludes the effects of marked-to-market fluctuations from our interest rate swap contracts

Full Year 2025 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

2025 Full Year Low End  High End (Dollars in millions) Net cash provided by operating activities  $ 357   $ 447  Expenditures for property, plant and equipment   (96 )   (96 ) Net cash provided by operating activities less expenditures for property, plant and equipment   261    351  Cash payments for repositioning   20    20  Proceeds from cross currency swap contracts   12    12  Acquisition and divestiture expenses   1    1  Cash payments for debt refinancing costs   6    6  Full Year 2025 Outlook Adjusted free cash flow  $ 300   $ 390

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