Garrett Motion (GTX) Investor Presentation summary

Market leadership and business overview

• Holds global #1 position in turbochargers with over 50% win rate on new business and $3.5B in 2024 revenue.

• Diverse product portfolio includes turbochargers, e-turbos, e-compressors, fuel cell compressors, and e-powertrain solutions.

• Over 1,300 patents issued or pending and 13 R&D centers worldwide.

• More than 30% of sales and higher profitability come from aftermarket, commercial vehicle, and industrial segments.

• Global footprint with manufacturing, R&D, and engineering centers close to customers in key regions.

Technology and innovation

• Expanding turbo portfolio with new wins in marine, power generation, and natural gas applications.

• Strong momentum in electrification: fuel cell compressors, e-powertrain, and e-cooling compressors with multiple production awards and pre-development contracts.

• Proprietary high-speed motors, power electronics, and control software enable best-in-class power density and efficiency.

• Zero emission pipeline leverages unique IP, high-speed motor design, and proven system integration for reduced cost, weight, and material usage.

• Industry-first technologies in high-speed, oil-less compressors and advanced control systems.

Financial performance and strategy

• Maintains strong financial framework: >13% adjusted EBIT margin, <5% R&D, <3% capex, and ~75% adjusted free cash flow conversion on EBIT.

• 2024 adjusted EBIT of $485M (14% margin) and adjusted free cash flow of $358M.

• Net leverage ratio stable at ~2.2x with ample liquidity and no significant debt maturities until 2032.

• Targets at least 75% of adjusted free cash flow to shareholders via dividends and buybacks; $250M buyback authorization for 2025.

• Outperforms peers in FCF yield (16%) and FCF/EBIT conversion (62%) for 2024.