# Garrett Motion Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Garrett Motion Inc.).

## Overview

Garrett Motion Inc. designs and manufactures turbocharging, air and fluid compression, and high-speed electric motor technologies for vehicle and industrial customers. Its products help improve fuel economy, thermal management, and emissions performance in internal combustion, hybrid, hydrogen, and zero-emission applications.

## Products & services

• Turbochargers for gasoline, diesel, natural gas and hydrogen engines
• E-Boosting and E-Turbo solutions for hybrid powertrains
• Fuel cell air compressors and hydrogen compression technologies
• E-Cooling compressors for thermal management
• High-speed electric motor, controls and power electronics technologies

- **Turbocharging systems** (70%) — Mechanical and advanced turbochargers used in light vehicle, commercial vehicle, marine and industrial engines.
- **Aftermarket products** (12%) — Replacement turbo and related parts sold through independent distributors and dealer networks.
- **E-Boosting and E-Powertrain** (10%) — Electric boosting, traction and proof-of-concept electrification technologies for hybrids and zero-emission vehicles.
- **Fuel cell and air compression** (5%) — Air compression and refrigerant compression solutions for fuel cell systems, HVAC and data center cooling.
- **Other industrial technologies** (3%) — Specialty compression and high-speed motor technologies for industrial and mobility applications.

- Turbochargers for gasoline, diesel, natural gas and hydrogen engines
- E-Boosting and E-Turbo solutions for hybrid powertrains
- Fuel cell air compressors and hydrogen compression technologies
- E-Cooling compressors for thermal management
- High-speed electric motor, controls and power electronics technologies

## Customers

Garrett sells primarily to OEMs in the mobility and industrial markets, with a meaningful aftermarket channel served through independent distributors and dealers. Its largest customers include Stellantis, BMW and Ford, and the company also wins programs with OEMs in Europe, Asia and the Americas for turbo and zero-emission applications.

- **Light vehicle OEMs** (primary) — Automakers buy turbochargers and boosting systems for gasoline, diesel and hybrid platforms to meet emissions and efficiency targets.
- **Commercial vehicle and off-highway OEMs** (primary) — Truck, bus, off-highway and industrial OEMs buy turbo and compression products for durability, efficiency and packaging advantages.
- **Aftermarket distributors and dealers** (secondary) — Independent channels buy replacement turbo and related parts for repair and maintenance demand across the installed base.
- **Zero-emission and fuel cell customers** (emerging) — OEMs and system integrators buy fuel cell compressors, E-Cooling and E-Powertrain solutions for electrified applications.

- Passenger vehicle OEMs buying turbo systems for new engine platforms
- Commercial vehicle OEMs needing boosting and efficiency solutions
- Industrial and marine customers using compression technologies
- Independent aftermarket distributors and dealers buying replacement parts
- Fuel cell and electrification customers evaluating E-Turbo and E-Powertrain

## Geography

Garrett's revenue is globally diversified, with Europe the largest region at 49% of 2025 revenue, followed by Asia at 29% and the United States at 19%. The company also has a smaller Other International bucket, and recent wins in Europe, India, Brazil, the U.S. and Asia show that program awards are spread across major automotive and industrial markets.

- **Europe** (49%)
- **Asia** (29%)
- **United States** (19%)
- **Other International** (3%)

- Europe is the largest revenue region and a key source of new program wins
- Asia is a major market, including awards with leading Asian OEMs
- The United States remains a meaningful market for light vehicle and industrial demand
- Other International includes smaller markets and export activity
- Regional mix matters because demand tracks vehicle production, emissions rules and macro conditions

## Strategy

Garrett is focused on extending its turbocharger leadership while expanding into electrification, thermal management and fuel cell compression. Management is also emphasizing cost initiatives, tariff recovery and selective capital spending to support zero-emission technologies and new program wins.

- **Expand turbocharger franchise** (short-term) — Turbochargers remain the core revenue base and a bridge to hybrid powertrains.
- **Scale zero-emission technologies** (medium-term) — Electrification and fuel cell products diversify the business beyond ICE exposure.
- **Increase RD&E in electric compression** (medium-term) — Differentiated technology is harder to replicate and supports future awards.
- **Improve operating efficiency** (short-term) — Cost actions and tariff recovery help offset mix pressure and macro volatility.

- Defend and expand turbocharger leadership across vehicle and industrial markets
- Grow E-Boosting, E-Powertrain and E-Cooling for hybrid and ZEV applications
- Win new OEM programs in Europe, Asia and the Americas
- Invest in RD&E, especially electric compression and power electronics
- Use cost initiatives and tariff recovery to support margins

## Risks

Garrett is exposed to cyclical vehicle production, customer concentration and the pace of technology transition from ICE to hybrid and electric platforms. It also faces competitive pressure, aftermarket demand variability and execution risk in scaling new electrification products while maintaining quality and supply reliability.

- **Customer concentration** [high] — Top ten customers were about 62% of net sales and the largest customer about 12%.
- **Technology transition risk** [high] — The market is shifting toward hybrids, BEVs and zero-emission solutions, requiring ongoing RD&E.
- **Aftermarket demand volatility** [medium] — Aftermarket sales depend on vehicle age, mileage, weather, infrastructure and off-highway end markets.
- **Competitive pressure** [high] — The company competes with large suppliers, OEM captive units and start-ups with flexible capital.
- **Cybersecurity and product software risk** [medium] — Incidents could disrupt systems, expose data or create third-party claims tied to embedded software.

- Heavy dependence on a few OEMs creates concentration risk
- ICE and turbo demand can weaken if vehicle production slows
- Electrification programs may take longer to commercialize than expected
- Aftermarket demand is cyclical and tied to dealer and end-user activity
- Cybersecurity or product software issues could disrupt operations or trigger claims

## Accounting

Revenue is recognized at shipment when control transfers under shipping terms, but variable consideration such as price concessions and annual price adjustments requires estimation. Investors should also watch quarterly mix swings, tariff recoveries and foreign exchange effects, which can move reported margins even when unit demand is stable.

- **Revenue recognition and variable consideration** — Can shift revenue timing and create true-ups when estimates change.
- **Foreign exchange and tariff recovery** — Can materially affect gross margin and operating income by quarter.
- **Seasonality and product mix** — Affects comparability of quarterly revenue and profitability.
- **Critical estimates and impairment** — Could lead to impairment charges if market adoption or volumes weaken.

- Revenue is point-in-time at shipment, not over time
- Variable consideration estimates affect reported sales and margin
- Foreign exchange and commodity pass-through can change period results
- Quarterly mix shifts between turbo, aftermarket and zero-emission products matter
- Capitalized investments and impairment judgments may affect future earnings

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*Last updated: 2026-04-28T20:11:01.330876+00:00*