Garrett Motion (GTX) 49th Annual Automotive Symposium summary

Financial overview and capital allocation

• Trades at $17/share with a $3.3B equity cap, $1.2B net debt, and $4.5B enterprise value.

• Maintains 14%+ adjusted EBIT margins and 18% adjusted EBITDA margins, with strong free cash flow.

• Free cash flow guidance for the year is $385M, over a 10% yield on equity cap.

• R&D spend capped at 5% of sales, currently in the low 4% range, with a balanced approach to investment in core and new tech.

• Aggressive share buybacks driven by strong cash flow and belief in undervaluation.

Core business and market position

• Leading player in turbochargers, with high barriers to entry due to aerospace-derived technology.

• Turbo penetration is highest in Europe (70%+), driven by stringent emissions standards; U.S. at ~50%.

• Commercial and industrial segments, though 31% of sales, contribute a larger share of profit and are less cyclical.

• Winning over 50% of new business awards annually, expanding market share as industry consolidates.

• Broadest turbo portfolio, including new products for marine and industrial applications.

Advanced technologies and electrification

• Four technology pillars: high-speed rotating machines, air/gas compression, high-speed motors, and power electronics.

• Fuel cell compressors and e-cooling compressors leverage in-house IP and are ready for scale.

• E-cooling compressors offer double the performance in half the space, with applications in automotive, commercial vehicles, and HVAC.

• E-powertrain technology enables higher power density with less material, reducing reliance on rare earths.

• $1B electric product revenue target for 2030 remains, with potential upside as new opportunities emerge.