Q1 2025 Garrett Motion Inc Earnings Call Transcript
Key Points
- Garrett Motion Inc (GTX) achieved an adjusted EBIT margin of 14.9%, up 170 basis points compared to Q1 2024, driven by cost actions implemented in 2024.
- The company reported strong growth in gasoline turbo sales, with a 6% increase in the quarter, particularly benefiting from new launches and ramp-ups in North America.
- Garrett Motion Inc (GTX) secured three new wins in China and North America for turbocharged range-extended electric vehicles and plug-in hybrids.
- The company reached a significant milestone by securing its first series production award for high-speed E-motor and inverter technology with Hyundai.
- Garrett Motion Inc (GTX) maintained a strong liquidity position with $760 million, including a refinanced term loan with better pricing and extended maturity.
- Net sales decreased by $37 million year-over-year, down 4% on a reported basis and 2% on a constant currency basis, primarily due to diesel softness and lower industry production in Europe.
- The company experienced lower demand for commercial vehicles and aftermarket applications.
- Foreign exchange fluctuations resulted in a $21 million or 2% sales decline.
- There is uncertainty around the impact of new and future tariffs on the global economy, which could adversely affect the demand for turbos.
- Adjusted free cash flow was sequentially lower, reflecting timing issues with certain working capital elements.
Hello, my name is Dhawan and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion first-quarter 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 Q&A session. I would now like to hand the call over to Cyril Grandjean, Garrett's head of investor relations.
Thank you, Dhawan. Good day and welcome everyone. Thank you for attending the Garrett Motion first 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's Motion 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 US federal securities laws. These statements, which can
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