Garrett Motion Inc.

Hello, my name is Megan and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion Second Quarter 2025 Financial Results Conference Call. This call is being recorded and a replay will be made available later today. After the company's presentation, there will be a Q&A session. I would now like to hand the conference call over to Cyril Grandin, Garrett's Vice President, Investor Relations and Treasurer.

Thank you, Megan. Good day and welcome, everyone. Thank you for attending the Garrett Motion Second Quarter 2025 Financial Results Conference Call. 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, expect, may, should, 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 include risks related to the automotive industry, competitive landscape, and macroeconomic and geopolitical conditions, among others. Please review the disclaimers on slide 2 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 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 Olivier.

Thank you Cyril, and thank you all for joining today's call. I am pleased to report that Garrett delivered another set of very solid financial results in the second quarter, thanks to strong sales performance in a soft environment. Net sales for the first quarter were $913 million, which is flat at constant currency, representing outperformance over the industry in light vehicle turbo sales for both gasoline and diesel applications. In fact, Gasoline turbo cells grew by 4% in the quarter, outperforming the industry. Thanks to the team's effort, we've achieved another quarter of solid operating performance. Adjusted EBIT was $124 million, and our adjusted EBIT margin was 13.6%, including 30 basis points of margin rate dilution from tariffs. We also delivered strong adjusted free cash flow of $121 million for the quarter, placing our first half 2025 conversion at 62% of adjusted EBIT above our stated target. We are also raising our outlook for 2025 to reflect the euro-dollar exchange rate. We will indeed remain alert and ready to take measures to adapt to slowing demand should it become necessary. In addition, we continue to allocate capital in line with our stated framework and our commitment to delivering value to shareholders. During the second quarter, we repurchased $22 million of common stock and paid a $12 million quarterly dividend. Additionally, our board of directors has just declared a third quarter dividend payable on the 16th of September, 2025. Finally, Garrett was included in the Russell 2000 in the June indexed reconstitution, reflecting the positive impact of our capital structure transformation and discipline approach to capital allocation. Let me now move to slide four to share more about Garrett's continued success across our differentiated technologies. I am very happy to share that we were awarded over $1 billion of light vehicle program extensions in Q2, some of which will last until 2034. This achievement increases visibility on future turbo cells and is a testament to the strong demand we continue to see for our differentiated turbo technologies. Moreover, we continue to see growing interest in the development of turbocharger for range-extended electric vehicles. We secured three additional wins to serve this technology in China this quarter. We were also awarded another major e-turbo program in Europe, which highlights our leadership in electric boosting. In addition, We won five awards for on-highway commercial vehicles and two for off-highway tractors with global OEMs. Lastly, the recent field test of our Garrett MEG turbo demonstrated superior performance against the existing turbo solutions for gensets. As a reminder, the MEG turbo line is the new line of products we launched at the end of 2023. to address the needs of big engines for genset and marine application. These products represent the largest turbo we have ever engineered at Garrett, and they serve an industry that is seeing significant growth, mostly driven by data centers backed to power. This quarter, we continue to make significant progress across our differentiated zero-emission products. For our high-speed e-powertrain business, we secured an additional proof-of-concept award with a major European passenger vehicle OEM. In addition, we have seen growing interest from commercial vehicle OEMs for our offering since announcing our award with Hyundai Axle earlier this year. On the e-cooling side, we are happy with the traction we get for industrial non-automotive cooling we have demonstrated our ability to outperform existing compressor technology and exceed targets shared by existing players in that field this is very promising for this venture outside of the automotive space additionally We secured one of our largest awards today for our fuel cell compressor from a leading Asian OEM, which again demonstrates the significant value of our product and our industry-leading portfolio in this area. Given the momentum we are seeing across our zero emission technologies, we have also inaugurated a new state-of-the-art R&D center in Wuhan, China, reinforcing our presence in this fast-moving region. I will now hand it over to Sean to provide more details on our financial results and outlook.