Garrett Motion Inc.

Hello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion fourth quarter and full year 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 question and answer session. At this time, I would like to turn the call over to Cyril Grandjean, Garrett's Vice President, Investor Relations, and Treasurer.

Thank you, Jamie, and good day, everyone. We appreciate you joining us to review Garrett Motion's fourth quarter and full year 2025 results. Our presentation and press release are available on the investor relations section of our website. Today's discussion includes forward-looking statements that involve risks and uncertainty. Please refer to our SEC filings, including our most recent annual report on Form 10-K, for a discussion of factors that could cause our results to differ materially from these forward-looking statements. Today's presentation also includes certain non-GAAP metrics, which we use to help describe how we manage and operate our business. Please read the disclaimers on slide two of our presentation, as the content of our call will be governed by this language. With me today are Olivier Rabillet, President and CEO, and Sean Deason, Senior Vice President and CFO. Olivier will begin with highlights from another year of strong performance and strategic acceleration. Sean will then review our 2025 financial results and 26 outlook. With that, I'll turn it over to Olivier.

Thank you Cyril. Good morning everyone and welcome. 2025 was another fantastic year for Garrett. We delivered strong operational performance in a complex industry environment and, at the same time, advance our strategy, increasing share of demand, growing our portfolio, expanding margin, and securing TORs and partnerships across turbo, zero-emission technologies, and industrial applications. In Q4, net sales were $891 million, and adjusted EBIT was $122 million, with a 13.7% margin. For the full year, net sales reached $3.58 billion and adjusted EBIT was $510 million with a 14.2% margin. Adjusted free cash flow for the year was $403 million, once again demonstrating our disciplined execution and operational rigor. These strong results allowed us to stay firmly on track with our capital allocation firm work returning significant capital to shareholders and strengthening our balance sheet. In 2025, we voluntarily repaid $50 million of our term loan, repurchased $208 million of common stock, and paid $52 million in dividends. As you will see later on, we plan for another year of strong execution for 2026 as we anticipate further share of demand gains margin expansion, and strong flicker flow. Sean will obviously provide additional details on our 2026 outlook later in the presentation, but for now, let me move to slide four. In 2025, we continued to strengthen our core business while accelerating our zero-emission technologies. We secured a significant number of new light vehicle turbo awards, driving our growing share of demand in gasoline VNT applications and increasing our traction in hybrid and range-extended electric vehicle platforms. These wins reinforce how our differentiated technologies remain central to efficiency and emissions reduction for our customers. We also won important awards in diesel applications for light commercial vehicles and trucks, where diesel remains highly valued for its lower emissions, fuel economy, and high torque. And I want to pause on this point for a moment. Back in 2018, light vehicle diesel represented 41% of our revenue and many questioned whether Garrett could sustain its margins through the transition to gasoline. Today, gasoline accounts for over 44% of our sales and Deezer remains resilient at more than 23%. And as just mentioned, we delivered a 14.2 adjusted EBIT margin, once again demonstrating the strength of our business model grounded in technology leadership and operational excellence. Beyond light vehicles, we also secure numerous commercial vehicle awards across on-highway, off-highway, and industrial applications. This momentum was further supported by our first series production awards for our largest turbo frame size, the MEG, as well as the first aftermarket sales for this product line as a retrofit option in the aftermarket space. Moving now to our zero emission and industrial technologies. In addition to the wins and progress we have announced in 2025, we made two announcements in February that are very significant when it comes to that part of our portfolio. First, we announced a series production award for mobility-equalling compressors with a leading Chinese bus and truck HVAC supplier. Second, and even more important, we launched a strategic collaboration with Train Technologies to integrate Garrett's next-generation oil-free high-speed centrifugal compressors into Trane's commercial HVAC applications, from unitary rooftop and modular chillers to large-capacity chillers, bringing the maturity, quality, and scale of the products we have developed in the automotive industry into the industrial world. And extensive testing in Trane's labs confirmed the clear performance benefit versus incumbent solution. Initial units from Trane will be available to select customers already this year with broader series production across applications beginning in 2027. But let me spend a little bit more time on this cooling opportunity on slide number five. We have developed an oil-free, high-speed centrifugal refrigerant compressor for HVAC applications by combining core Garrett technology, high-efficient turbo machinery, our unique oil-free foil bearing, high-speed electric motors, ultra-high-frequency inverters, and model-based control software. And importantly, all of this comes straight from our technologies we have already developed, validated, and industrialized at automotive scale and quality. Our testing has shown that our technology can deliver more than 10% real-world energy savings compared to incumbent solutions. This allows HVAC operator to materially reduce the total cost of ownership and helps limit energy demand in power-intensive environments such as data centers. These benefits are even greater as customers move to ultra-low global warming potential refrigerants. Our equiding compressor portfolio, introduced at the AHR HVAC show in Las Vegas earlier this month, has already attracted strong interest from this industry. The product range spans from 7 to 500 tons, or from 25 to 1,750 kilowatts of cooling capacity, enabling us to serve applications from rooftop and unitary systems, battery energy storage cooling, computer in-room air conditioners, to small and large heaters used in comfort cooling and hyperscale data centers. These offerings leverage several of our key differentiated technologies to address the fast-growing needs of a sector that will progressively shift to ultra-low global warming potential refrigerants. Industrial cooling represents a significant growth vector for Garrett and is expected to scale quickly to more than 5% of our revenue by the end of the decade as programs launch and ramp up. Taken together, these developments show how Garrett is executing, diversifying, and expanding outside of the automotive industry, a deliberate part of our strategy. Cooling is now a tangible vector of growth on top of high speedy powertrain, fuel cell compressors, and alongside our core turbo business. With that, I'll turn over to Sean to discuss our Q4 and full year 2025 financial results in more detail.