Garrett Motion Inc.

Hello, my name is Anthony and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion Second Quarter 2024 Financial Results Conference Call. This call is being recorded and the replay will be available later today. After the company's presentation, there will be a Q&A session. I would now like to hand over the call to Eric Bridge, Garrett's Head of Investor Relations.

Thank you, Anthony. Good day and welcome, everyone. Thank you for attending the Garrett Motion Second Quarter 2024 financial results conference call. Before we begin, I would like to mention that today's presentation and earnings release are available on the IR section of our Garrett Motion website at investors.garrettmotion.com. There you will find links to our SEC filings along with other important information about our company. Turning to slide two, we note that this presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. These statements represent management's current expectation and are subject to various risks and uncertainties that could cause our actual results to differ materially from such expectations. These risks and uncertainties include the factors identified in our filings with the Securities and Exchange Commission. Please review the disclaimer on slide two of our presentation as the content of our call will be governed by this language. Today's presentation also includes certain non-GAAP measures which we use to help describe how we manage and operate our business. We reconcile each of these measures to the most directly comparable GAAP measure in the appendix of our presentation and related press release. Finally, in today's presentation and comments, we may refer to light vehicle diesel and light vehicle gasoline products simply as diesel and gasoline only. With us today are Olivier Revier, Garrett's President and Chief Executive Officer, and Sean Deason, Garrett's Senior Vice President and Chief Financial Officer. I will now hand the call over to Olivier.

Thanks, Eric, and thanks, everyone, for joining Garrett's second quarter 2024 earnings conference call. I will begin today's remark on slide three. Despite a volatile volume environment in the second quarter, I am pleased to report Garrett's very solid performance, driving outstanding operating results. We deliver the strong adjusted EBITDA margin of 16.9%, up 40 basis points sequentially, while navigating continued challenging regional dynamics. We do not expect to see this volatility disappear in both light and commercial vehicle volumes through the remainder of the year, but the performance that we achieve in Q2 illustrates the way we have anticipated this and set up the company for continued performance through the remainder of 2024. Our Q2 performance allowed us to, once again, make significant progress on our capital allocation priorities. Taking benefit of the favorable market conditions, we issued $800 million of senior unsecured notes at favorable interest rates, partially repaying our term loan B, and we also repriced our remaining US dollar term loan B. These actions will generate annual cash interest savings of approximately $15 million. In addition, we used $186 million to repay our euro-denominated term loan B and upsize our revolver capacity. At the same time, we kept on executing our share repurchase program. This quarter, we repurchased $65 million of common stock bringing our total repurchases in the first half of 2024 to 174 million. I wanted to pause on this, and turning to slide four, I want to take the opportunity to recap the significant value we have returned to shareholders since the beginning of last year through our capital allocation priorities. Since the successful conversion of our preferred stock last year, we have reduced our debt by $394 million. At the same time, we have also repurchased $958 million in stock, or 34% of shares outstanding. If you do the math, this translates to a return in excess of $3 per share. As of today, we have used more than half of our share repurchase program that we launched at the beginning of the year, and we will continue to use our strong cash generation to acquire more shares in the second half. All the actions taken are driven towards making Garrett a highly attractive investment with potential for significant additional upside. Turning now to slide five. During the quarter, we continued to build momentum across our entire portfolio, both in our core turbo business and in new zero-emission vehicle technologies. We kept on securing business across our turbo range. In this respect, I would like to highlight the additional turbo program we won for a new large industrial turbo aimed at the fast-growing power generation industry and also for marine applications. This additional win confirms the customer appeal for our technology in this new industrial segment for Garrett. On the zero emission technology side, we also recorded significant progress in the quarter. On the fuel cell compressor front, we secured our first series production contract for our largest fuel cell application to date. which will be used in the commercial vehicle and industrial segments. In fact, we continue to expand the broadest and most mature portfolio of fuel cell compressors in the industry. For e-powertrain, we decided to bring the benefits of our high-speed motor technologies to the commercial vehicle industry in addition to what we have already launched on the light vehicle side. in record time we have not only developed new designs shooting the specific requirements of these vehicles but we've also secured several pre-development awards over the last quarter this is very fast progress and at the same time a great recognition of the benefits we bring in an industry where end consumers are savvy and are willing to pay for the value you bring finally We continue to see momentum for our revolutionary high-power e-cooling centrifugal compressors with two additional pre-development contracts for commercial vehicles, one during the quarter. All of this once again confirms the increasing traction we receive from customers for our differentiated high-speed electrification solutions. I will now turn the call over to Sean to provide more insight on our world financial results and full outlook.