Garrett Motion reported higher third-quarter sales and profit, with growth in commercial-vehicle and industrial markets helping lift margins and cash flow. The automotive and industrial technology supplier also authorized up to $250 million in share repurchases during 2027, declared a quarterly dividend and made an early payment on its term loan.
The company reaffirmed the midpoint of its 2026 full-year outlook, saying it expects continued business momentum to offset unfavorable foreign-exchange effects.
Key details
-
Sales and profit increased: Third-quarter net sales were $930 million, up from $902 million a year earlier. Sales grew 3% on a constant-currency basis. Net income rose to $97 million from $77 million, while net income margin increased to 10.4% from 8.5%.
-
Margins improved: Adjusted EBIT was $152 million, compared with $133 million a year earlier, and its margin rose to 16.3% from 14.7%. Adjusted EBITDA increased to $183 million from $164 million, with a margin of 19.7%, up from 18.2%.
-
Cash generation was stronger: Cash from operating activities totaled $135 million, versus $100 million in the third quarter of 2025. Adjusted free cash flow was $136 million.
-
Year-to-date results were also higher: For the first nine months of 2026, sales reached $2.891 billion, compared with $2.693 billion a year earlier. Net income was $293 million, up from $226 million, and adjusted EBIT rose to $455 million from $388 million.
-
New repurchase authorization: The board approved a program allowing Garrett to buy back up to $250 million of its common stock during calendar 2027. The authorization sets a maximum; it does not mean the company will repurchase the full amount.
-
Dividend declared: Garrett declared a cash dividend of $0.08 per share, payable December 15, 2026, to shareholders of record on December 1.
-
Debt repayment: In October, the company voluntarily repaid $50 million early on its term loan.
-
Business wins and development progress: Garrett said it secured several light-vehicle turbocharger programs serving China’s domestic and export markets, along with commercial-vehicle applications across regions. It also won an industrial electric-cooling compressor production award in Asia. The company said its e-powertrain and electric-cooling compressor programs remain on track to begin production in 2027.
Plain-English implications
The company’s capital-allocation plans include both shareholder returns—a dividend and a 2027 buyback authorization—and debt reduction through the early term-loan payment. The results also show improved profitability and cash generation compared with the year-earlier quarter, while the full-year outlook remains unchanged at its midpoint.