Garrett Motion reported higher third-quarter sales and profit, with growth in commercial-vehicle and industrial businesses helping offset unfavorable foreign-exchange effects. The automotive and industrial technology supplier also authorized up to $250 million in share repurchases for 2027, declared a quarterly dividend and made an early payment on its term loan.
Third-quarter results
- Net sales were $930 million, up from $902 million a year earlier. The company said sales rose 3% on a constant-currency basis.
- Net income increased to $97 million from $77 million, while net margin widened to 10.4% from 8.5%.
- Adjusted EBIT was $152 million, up from $133 million, and its margin expanded to 16.3% from 14.7%. Adjusted EBITDA rose to $183 million from $164 million.
- Gross profit increased to $206 million from $186 million, with gross margin rising to 22.2% from 20.6%.
- Cash generated from operating activities was $135 million, compared with $100 million a year earlier. Adjusted free cash flow was $136 million.
- For the first nine months of 2026, sales totaled $2.89 billion, compared with $2.69 billion in the same period of 2025. Net income rose to $293 million from $226 million, and adjusted EBIT increased to $455 million from $388 million.
- Garrett reaffirmed the midpoint of its 2026 full-year outlook. The announcement did not provide the outlook’s numerical targets.
Capital allocation and business updates
- The board authorized Garrett to repurchase up to $250 million of common stock during calendar 2027. The authorization sets a maximum amount; it does not require the company to buy shares.
- Garrett declared a $0.08-per-share cash dividend, payable December 15, 2026, to shareholders of record on December 1.
- In October, the company made a $50 million voluntary early repayment on its term loan.
- Garrett said industrial business growth continued above its previous expectations. It also reported new turbocharger awards for light-vehicle programs in China, including domestic and export programs, and commercial-vehicle applications across regions.
- The company secured an Asian production award for an industrial E-Cooling compressor. Its E-Powertrain and E-Cooling compressor programs remain on track to begin production in 2027.
The announced buyback authorization and dividend set out planned shareholder-return measures, while the early loan repayment reduces outstanding term-loan debt.