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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.

* 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.

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED INTERIM BALANCE SHEETS

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

Reconciliation of Constant Currency Sales % Change⁽¹⁾

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

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

Full Year 2025 Outlook Reconciliation of Net Income to Adjusted EBITDA

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