Garrett Motion Inc.

I would like to welcome everyone to the Garrett Motion Fourth Quarter and Full Year 2024 Financial Results Conference Call. This call is being recorded, and a replay will be available later today. After the company's presentation, there will be a Q&A session. I would now like to turn the conference over to Cyril Grandjean, Garrett's Vice President, Investor Relations and Treasurer.

Thank you, Megan. Good day and welcome everyone. Thank you for attending the Garrett Motion Fourth Quarter and Full Year 2024 Financial Results Conference Course. Before we begin, I would like to mention that today's presentation and earnings press release are available on the IR section of Garrett Motion's website at investors.garrettmotion.com. There, you will also find links to our SEC filings along with other important information about the company. We note that this presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. These statements, which can be identified by words such as anticipate, intend, plan, believe, estimate, expect, likely, may, should, will, or similar expressions, represent management's current expectations 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 annual report on Form 10-K and other filings with the Securities and Exchange Commission and includes risks related to the automotive industry, competitive landscape, and macroeconomic and geopolitical conditions, among others. Please review the disclaimers 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 gap 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 by using the terms diesel and gasoline only. With us today are Olivier Rabillet, 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 Ali.

Thanks, Cyril, and thank you, everyone, for joining today's call. As you can see on slide three, Garrett delivered strong results in the fourth quarter thanks to an outstanding operating performance, delivering adjusted EBITDA of $153 million with a margin of 18.1%, an increase of 280 basis points compared to Q4 2023. And we achieved that despite the continuous self-softness that the company experienced thanks to its exposure to light vehicle industry weakness in Europe and in China, as well as the competitive pressure certain OEMs are facing. At the same time, we kept winning new business across all applications, demonstrating the strengths of our technological leadership. But let's get back to operational performance. Our strong operational performance enabled us as well to generate $157 million of adjusted free cash flow in the quarter, allowing us to buy back stock under our share repurchase program, repurchasing a total of $296 million of common stock in 2024. This resulted in a reduction of 13% of our share count at the end of 2024 compared to the end of 2023. Our full-year results continue to demonstrate our ability to flex our variable cost structure and proactively implement permanent cost actions, which allowed us to deliver a 17.2% adjusted EBITDA margin for the full year. When you adjust for foreign exchange and the sales of our unconsolidated joint venture in Australia, we delivered and adjusted EBITDA near the midpoint of our initial 2024 guidance, and thus, despite the softness we experienced. This is quite remarkable. We believe the actions we have taken in 2024 position the company to deliver solid performance in 2025, offsetting, again, the impact of expected weak global industry production. Excluding foreign exchange, we also expect to deliver similar adjusted EBITDA to 2024. We also expect to generate strong adjusted free cash flow and use it to keep on returning value to our shareholders through a combination of share repurchases, regular quarterly dividends. Our Board of Directors has indeed authorized a new $250 million million share repurchase program for 2025, and we expect to pay $50 million in dividends throughout the course of the year, with the first quarterly dividend of 6% per share already paid in January. Let me now move to slide four so that we can share the momentum we experienced with our customers. Looking at full year 2024, we continue to expand our position in turbo, maintaining our strong business win rate of more than 50%. We secured new light vehicle gasoline wins across all geographies, reinforcing our position in the U.S. and growing in China, especially with new Chinese players. These wins covered all powertrain types, including plug-in hybrids and range extenders, for which we see a growing push from carmakers. We also kept on making significant progress in commercial vehicles across the world. More specifically, we are pleased with the progress we have been making in China, winning several natural gas on-the-way applications that will launch as early as 2026. Lastly, We secure new awards for marine and backup power application with our largest turbochargers as we expand our portfolio, and we expect production to start also in 2026. Turning now to slide five. I'm very proud of the significant progress we made in 2024, validating our electrification solution with key customers who recognize the benefits of our differentiated technologies. We indeed continue to win with our extensive fuel cell compressor portfolio, the broadest in the industry with best-in-class efficiency, and we continue to win new projects for fuel cell applications. With our e-powertrain high-speed technologies, we are seeing several passenger and commercial vehicle customers embracing and testing our advanced three-in-one high-speed technology solutions. During the year, we've been moving from prototyping to testing in labs and on vehicles to first production awards, expecting to launch as early as 2027. This validates, again, the benefits of the high-speed differentiated electric powertrain solutions that Garrett has focused on. Leveraging on this significant progress, we expect much more to come in 2025. Finally, Our e-cooling compression technology is generating significant interest for both automotive and non-automotive applications. On the automotive side, it's a very good fit for battery and cabin cooling for commercial vehicles. And for industrial applications, we see significant interest for residential, office buildings, rooftop cooling, as well as cooling solutions for data centers and battery farms. I will now turn it over to Sean to provide more insight into our financial results and our outlook for 2025.