Garrett Motion Inc.

Hello, my name is Dhawan and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion First Quarter 2025 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 hand the call over to Cyril Grandchamp, Garrett's Head of Investor Relations.

Thank you, Dovan. Good day, and welcome, everyone. Thank you for attending the Garrett Motion First Quarter 2025 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's Motion 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, expect, may, should, or similar expressions, represents 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 include risks related to the automotive industry, competitive landscapes, 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 GAAP measure in the appendix of our presentation and related press 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-owned. With us today are Olivier Ravier, 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, Cyril, and thank you, everyone, for joining today's call. I am pleased to report that Garrett delivers the first quarter through continued outstanding operating performance in a soft industry environment. Net sales for the first quarter were $878 million, slightly down year over year, yet outperforming the industry in light vehicle turbo sales for both gasoline and diesel application, with gasoline growing 6% in the quarter. Thanks to Tim's effort, we achieved outstanding operating performance. Adjusted EBIT was $131 million, and our adjusted EBIT margin was 14.9%, up 170 basis points compared to Q1 2024. This strong margin performance was primarily driven by the sustainable fixed and variable cost actions implemented in 2024, of which we are now seeing the benefits. Our adjusted free cash flow of $36 million was in line with expectations for the quarter. Our 2025 outlook remains unchanged. We are closely monitoring the situation arising from tariffs for imports into the U.S. So far, we have not noticed any material impact on the demand forecast and have been able to implement pass-through with our customers. we are staying alert and are ready to take further measures to record our costs and adapt to slowing demand. In fact, Garrett has a well-balanced sales split across geographies with only 20% of its sales in North America and a region-for-region manufacturing approach. Finally, we continue to allocate capital consistent with our stated framework, In the first quarter, we repurchased $30 million of common stock and paid a $12 million quarterly dividend. Additionally, our board of directors had just declared our second quarterly dividend payable on June 16, 2025. Let me now move to slide 4 to share more about Garrett's continued success across our differentiated technologies. Our industry-leading and differentiated technologies were on display at the Shanghai Auto Show last week, where we showcased our ability to innovate and bring new differentiated turbo and hybrid offerings to our customers across all regions and verticals. We see increasing demand for turbocharged range extended electric vehicles and plug-in hybrids, and we secured three new wins in China and North America In addition, we continue to win new on-highway commercial vehicle programs in Europe and China and launch natural gas applications for heavy trucks, demonstrating our capabilities to support alternative fuels with our turbo technologies. Our commitment to innovation has led to other notable accomplishments this quarter. as we were awarded multiple new awards for our large industrial turbos by local industry leaders in Asia. We have now doubled our presence in this segment, mainly due to the growth of data center infrastructure. Simultaneously, we are also making great progress with our zero emission solutions, which are gaining a substantial momentum. Today, I'm very proud to share that we've reached a significant milestone in the development of our e-powertrain high-speed technologies, securing our first series production award from Hyundai, a leading axle supplier, to integrate Garrett's high-speed e-motor and inverter technology into their axle and transmission platforms for heavy-duty commercial vehicles, with production targeted for 2027. This achievement demonstrates the substantial potential of our solutions and validates our position, especially in China, where battery electric penetration in commercial vehicles tops the rest of the world. In addition, our high-power, lightweight, centrifugal cooling compressor has continued to receive positive testing feedback and increased customer interest, setting the stage for business adoption not only for vehicles, but also for industrial applications. I will now hand it over to Sean to provide more details on our financial results and outlook.