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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________________________________________
FORM 10-Q
________________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File Number: 001-38636
________________________________________________
Garrett Motion Inc.
(Exact Name of Registrant as Specified in its Charter)
________________________________________________
Delaware82-4873189
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
47548 Halyard Drive, Plymouth, MI 48170
and
La Pièce 16, 1180 Rolle, Switzerland
(Address of principal executive offices) (Zip Code)

+1 734 392 5500
and
+41 21 695 30 00
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareGTXThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No
As of July 18, 2025, the registrant had 201,575,459 shares of Common Stock, $0.001 par value per share, outstanding.



Table of Contents
  Page
 
 
 
 
 
 
1


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions, except per share amounts)
Net sales (Note 3)
$913 $890 $1,791 $1,805 
Cost of goods sold732 705 1,431 1,448 
Gross profit181 185 360 357 
Selling, general and administrative expenses59 61 118 125 
Other expense, net 1 3 8 4 
Interest expense25 62 54 93 
Gain on sale of equity investment (Note 22)
 (27) (27)
Non-operating income, net(6)(1)(7)(6)
Income before taxes102 87 187 168 
Tax expense (Note 5)
15 23 38 38 
Net income$87 $64 $149 $130 
 Earnings per common share
Basic$0.43 $0.29 $0.73 $0.56 
Diluted0.42 0.28 0.72 0.56 
Weighted average common shares outstanding
Basic202,672,945 224,321,948 203,886,530 230,493,039 
Diluted205,255,033 225,898,814 206,433,975 232,455,083 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
2


GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025202420252024
 (Dollars in millions)
Net income$87 $64 $149 $130 
Foreign exchange translation adjustment(59) (88)18 
Defined benefit pension plan adjustment, net of tax 2  3 
Changes in fair value of effective cash flow hedges, net of tax (Note 16)
17 (2)19 1 
Changes in fair value of net investment hedges, net of tax (Note 16)
(128)8 (163)27 
Total other comprehensive (loss) income, net of tax(170)8 (232)49 
Comprehensive (loss) income$(83)$72 $(83)$179 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
3



GARRETT MOTION INC.
CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited)
 June 30,
2025
December 31,
2024
 (Dollars in millions)
ASSETS  
Current assets:  
Cash and cash equivalents$232 $125 
Restricted cash1 1 
Accounts, notes and other receivables – net (Note 6)
721 687 
Inventories – net (Note 8)
287 286 
Other current assets122 94 
Total current assets1,363 1,193 
Investments and long-term receivables11 10 
Property, plant and equipment – net458 449 
Goodwill193 193 
Deferred income taxes241 207 
Other assets (Note 9)
137 224 
Total assets$2,403 $2,276 
LIABILITIES
Current liabilities:
Accounts payable$1,005 $972 
Current maturities of long-term debt (Note 14)
7 7 
Accrued liabilities (Note 11)
307 299 
Total current liabilities1,319 1,278 
Long-term debt (Note 14)
1,460 1,464 
Deferred income taxes56 25 
Other liabilities (Note 12)
380 182 
Total liabilities$3,215 $2,949 
COMMITMENTS AND CONTINGENCIES (Note 19)
EQUITY (DEFICIT)
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 242,405,426 and 240,987,329 issued and 201,727,919 and 206,387,938 outstanding as of June 30, 2025 and December 31, 2024, respectively
  
Additional paid–in capital1,226 1,213 
Retained deficit
(1,517)(1,653)
Accumulated other comprehensive (loss) income (Note 17)
(159)73 
Treasury Stock, at cost; 40,677,507 and 34,599,391 shares as of June 30, 2025 and December 31, 2024, respectively (Note 15)
(362)(306)
Total deficit(812)(673)
Total liabilities and deficit$2,403 $2,276 
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
4



GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
 
  Six Months Ended June 30,
20252024
 (Dollars in millions)
Cash flows from operating activities:  
Net income
$149 $130 
Adjustments to reconcile net income to net cash provided by operating activities
Deferred income taxes(3)14 
Depreciation45 44 
Amortization of deferred issuance costs3 33 
Gain on sale of equity investment (27)
Foreign exchange (gain) loss(65)13 
Stock compensation expense13 13 
Pension expense
1 1 
Unrealized loss on derivatives81 1 
Other4 3 
Changes in assets and liabilities:
Accounts, notes and other receivables8 50 
Inventories20 (24)
Other assets(7)17 
Accounts payable(13)(33)
Accrued liabilities(44)(5)
Other liabilities22 (20)
Net cash provided by operating activities
$214 $210 
Cash flows from investing activities:
Expenditures for property, plant and equipment(41)(49)
Proceeds from cross-currency swap contracts
1521 
Proceeds from sale of equity investment46 
Net cash (used for) provided by investing activities
$(26)$18 
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of debt financing costs68 794 
Payments of long-term debt(73)(989)
Repurchases of Common Stock(52)(173)
Excise tax on Common Stock repurchase(3) 
Dividend payments(25) 
Payments for debt and revolving facility financing costs(2)(7)
Other(2)(9)
Net cash used for financing activities
$(89)$(384)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash8 (5)
Net increase (decrease) in cash, cash equivalents and restricted cash
107 (161)
Cash, cash equivalents and restricted cash at beginning of the period126 260 
Cash, cash equivalents and restricted cash at end of the period$233 $99 
Supplemental cash flow disclosure:
Income taxes paid (net of refunds)$37 $27 
Interest paid46 42 
    
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement
5



GARRETT MOTION INC.
CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT)
(Unaudited)
Common StockTreasury StockAdditional
Paid-in
Capital
Retained
Deficit
Accumulated Other
Comprehensive Income / (Loss)
Total
Deficit
Shares (1)
AmountSharesAmount
(in millions)
Balance at December 31, 2024
241 $ 35 $(306)$1,213 $(1,653)$73 $(673)
Net income— — — — — 62 — 62 
Share repurchases— — 3 (30)— — — (30)
Shares issued under stock plan, net of shares withheld for employee taxes1 — — (3)— — — (3)
Other comprehensive loss, net of tax— — — — — — (62)(62)
Stock-based compensation— — — — 6 — — 6 
Balance at March 31, 2025
242 $ 38 $(339)$1,219 $(1,591)$11 $(700)
Net income— — — — — 87 — 87 
Share repurchases— — 3 (22)— — — (22)
Shares issued under stock plan, net of shares withheld for employee taxes— — — (1)— — — (1)
Other comprehensive loss, net of tax— — — — — — (170)(170)
Dividends— — — — — (13)— (13)
Stock-based compensation— — — — 7 — — 7 
Balance at June 30, 2025
242 $ 41 $(362)$1,226 $(1,517)$(159)$(812)
Common StockTreasury StockAdditional
Paid-in
Capital
Retained
Deficit
Accumulated Other
Comprehensive (Loss) / Income
Total
Deficit
Shares (1)
AmountSharesAmount
 (in millions)
Balance at December 31, 2023
238 $  $ $1,190 $(1,922)$(3)$(735)
Net income— — — — — 66 — 66 
Share repurchases— — 12 (109)— — — (109)
Excise tax on share repurchases— — — (1)— — — (1)
Shares issued under stock plan, net of shares withheld for employee taxes2 — 1 (5)— — — (5)
Other comprehensive income, net of tax— — — — — — 41 41 
Stock-based compensation— — — — 8 — — 8 
Balance at March 31, 2024
240 $ 13 $(115)$1,198 $(1,856)$38 $(735)
Net income— — — — — 64 — 64 
Share repurchases— — 7 (65)— — — (65)
Excise tax on share repurchases— — — (1)— — — (1)
Shares issued under stock plan, net of shares withheld for employee taxes1 — — (1)— — — (1)
Other comprehensive income, net of tax— — — — — — 8 8 
Stock-based compensation— — — — 5 — — 5 
Balance at June 30, 2024
241 $ 20 $(182)$1,203 $(1,792)$46 $(725)
1) Common shares issued less treasury shares equals common shares outstanding
The Notes to the Consolidated Interim Financial Statements are an integral part of this statement.
6



GARRETT MOTION INC.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions, except per share amounts)
Note 1. Background and Basis of Presentation
Background
Garrett Motion Inc. (the “Company” or “Garrett”) is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency. We design, manufacture, and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers (“OEMs”) and distributors within the mobility and industrial space. We have significant expertise in delivering products at scale for internal combustion engines using gasoline, diesel, natural gas, and hydrogen, as well as for zero-emission technologies using hydrogen fuel cell systems, both for mobility and industrial use. As our customers continue to progress on electrification, we are applying our technological pillars to develop highly engineered E-Powertrain and E-Cooling compressor products to support their ambition. These products are key enablers for fuel economy, energy efficiency, thermal management, and compliance with emissions standards and overall greenhouse gas and other emission reduction targets.
Basis of Presentation
The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2024 included in our Annual Report on Form 10-K, as filed with the SEC on February 20, 2025 (our “2024 Form 10-K”). The results of operations for the three and six months ended June 30, 2025 and cash flows for the six months ended June 30, 2025 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts.
We evaluate segment reporting in accordance with ASC 280, Segment Reporting. We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies.
The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.

Note 2. Summary of Significant Accounting Policies
The accounting policies of the Company are set forth in Note 3 to the Consolidated Financial Statements for the year ended December 31, 2024 included in our 2024 Form 10-K.
7



Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update increase the transparency around income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted the new guidance prospectively as of January 1, 2025.
Accounting Standards Issued But Not Yet Adopted
In March 2024, the SEC adopted a final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize climate-related disclosures. The rule will require companies to disclose material Scope 1 and Scope 2 greenhouse gas emissions; climate-related risks, governance, and oversight; and the financial effects of severe weather events and other natural conditions. These disclosures are required to be phased in starting with annual reporting periods beginning in 2025; however, this rule has been stayed pending the outcome of legal challenges, and on March 27, 2025, the SEC withdrew its legal defense of the rule. The Company is currently evaluating the guidance to determine the impact of adoption on its disclosures in the event that the stay is lifted.
In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure of specified information about certain costs and expenses. The guidance is effective for fiscal years beginning after December 15, 2026 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures.
There are no other recently issued, but not yet adopted, accounting pronouncements that are expected to have a material impact on the Company's Consolidated Interim Financial Statements and related disclosures.
Note 3. Revenue Recognition and Contracts with Customers
Disaggregated Revenue
Net sales by region (determined based on country of shipment) and channel is included in Note 21, Segments and Concentrations.
Contract Balances
The following table summarizes our contract assets and liabilities balances:
 20252024
 (Dollars in millions)
Contract assets—January 1$40 $38 
Contract assets—June 30
51 51 
Change in contract assets—Increase/(Decrease)$11 $13 
Contract liabilities—January 1$(8)$(11)
Contract liabilities—June 30
(15)(14)
Change in contract liabilities—Decrease/(Increase)$(7)$(3)

Note 4. Research, Development and Engineering
Garrett conducts research, development, and engineering (“RD&E”) activities, which consist primarily of the development of new products and product applications. RD&E costs are charged to expense as incurred unless the Company has a contractual guarantee for reimbursement from the customer. Customer reimbursements are netted against gross RD&E expenditures as they are considered a recovery of cost. Such costs are included in Cost of goods sold as follows:
8



Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Research and development costs$47 $46 $90 $89 
Engineering-related expenses, net of customer (reimbursements) (1)
(2)(5)(5)(4)
$45 $41 $85 $85 
(1)    Engineering-related expenses include customer reimbursements of $13 million and $16 million for the three months ended June 30, 2025 and 2024, respectively, and $25 million and $24 million for the six months ended June 30, 2025 and 2024, respectively.
Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. As of June 30, 2025 and December 31, 2024, $40 million and $29 million, respectively, of such contractually reimbursable costs were capitalized. These amounts are recorded within Other current assets in the Consolidated Interim Balance Sheet.

Note 5. Income Taxes
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Tax expense$15 $23 $38 $38 
Effective tax rate14.7 %26.4 %20.3 %22.6 %

The effective tax rates for the three months ended June 30, 2025 and 2024 were 14.7% and 26.4%, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024 were 20.3% and 22.6%, respectively.

The change in the effective tax rate for the three months ended June 30, 2025 compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations.

The change in the effective tax rate for the six months ended June 30, 2025 compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations and additional tax reserve positions in the current year.

The effective tax rate for the three months ended June 30, 2025 was lower than the U.S. federal statutory rate of 21% as a result of a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by U.S. taxes on international operations.

The effective tax rate for the six months ended June 30, 2025 was lower than the U.S. federal statutory rate of 21% as a result of a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by U.S. taxes on international operations and additional tax reserve positions.

Note 6. Accounts, Notes and Other Receivables—Net

June 30,
2025
December 31,
2024
(Dollars in millions)
Trade receivables
$606 $521 
9



Notes receivable
67 96 
Other receivables
53 74 
726 691 
Less—Allowance for expected credit losses
(5)(4)
$721 $687 
Trade receivables include $51 million and $40 million of unbilled customer contract asset balances as of June 30, 2025 and December 31, 2024, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. See Note 3, Revenue Recognition and Contracts with Customers.
Notes receivable is related to guaranteed bank notes without recourse that the Company receives in settlement of accounts receivables, primarily in the Asia Pacific region. See Note 7, Factoring and Notes Receivable.
Other receivables includes VAT receivables of $41 million and $50 million as of June 30, 2025 and December 31, 2024, respectively.

Note 7. Factoring and Notes Receivable
The Company enters into arrangements with financial institutions to sell eligible trade receivables. The receivables are sold without recourse and the Company accounts for these arrangements as true sales. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Bank notes sold to third-party financial institutions without recourse are likewise accounted for as true sales.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Eligible receivables sold without recourse$190$240$342$402
Guaranteed bank notes sold without recourse80529652
The expenses related to the sale of trade receivables and guaranteed bank notes are recognized within Other expense, net in the Consolidated Interim Statements of Operations, and were $1 million for the three months ended June 30, 2025 and 2024, respectively, and $2 million for the six months ended June 30, 2025 and 2024, respectively.
June 30,
2025
December 31,
2024
(Dollars in millions)
Receivables sold but not yet collected by the bank from the customer$4 $6 
Guaranteed bank notes sold but not yet collected by the bank from the customer43  
As of June 30, 2025 and December 31, 2024, the Company had no guaranteed bank notes pledged as collateral.

Note 8. Inventories—Net
June 30,
2025
December 31,
2024
(Dollars in millions)
Raw materials$231 $230 
Work in process22 18 
Finished products78 79 
 331 327 
Less—Reserves(44)(41)
$287 $286 
10




Note 9. Other Assets
June 30,
2025
December 31,
2024
(Dollars in millions)
Advanced discounts to customers, non-current$25 $29 
Operating right-of-use assets (Note 13)
54 52 
Income tax receivable21 21 
Pension and other employee related26 23 
Derivatives designated as net investment hedges (Note 16)
2 70 
Designated and undesignated derivatives (Note 16)
 20 
Other9 9 
$137 $224 

Note 10. Supplier Financing
The Company has supplier financing arrangements with two third-party financial institutions under which certain suppliers may factor their receivables from Garrett. The Company also enters into arrangements with banking institutions to issue bankers acceptance drafts in settlement of accounts payables, primarily in the Asia Pacific region. The bankers acceptance drafts, or guaranteed bank notes, have a contractual maturity of six months or less, and may be held by suppliers until maturity, transferred to their suppliers, or discounted with financial institutions in exchange for cash. The supplier financing obligations and guaranteed bank notes outstanding are recorded within Accounts payable in our Consolidated Interim Balance Sheet.
June 30,
2025
December 31,
2024
(Dollars in millions)
Supplier financing obligations outstanding with financial institutions$76 $64 
Guaranteed bank notes outstanding154 141 
Note 11. Accrued Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Customer pricing reserve$85 $77 
Compensation, benefit and other employee related70 74 
Repositioning11 12 
Product warranties and performance guarantees - short-term (Note 19)
15 15 
Income and other taxes29 32 
Customer advances and deferred income (1)
24 16 
Accrued interest13 14 
Short-term lease liability (Note 13)
13 11 
Accrued freight11 9 
Dividends declared 12 
Designated and undesignated derivatives (Note 16)
22 8 
Environmental reserve5 6 
Other (primarily operating expenses)
9 13 
 307 299 
11



(1)Customer advances and deferred income include $15 million and $8 million of contract liabilities as of June 30, 2025 and December 31, 2024, respectively. See Note 3, Revenue Recognition and Contracts with Customers.
The Company accrues repositioning costs related to projects to optimize its product costs and right-size our organizational structure. Expenses related to the repositioning accruals are included in Cost of goods sold and Selling, general and administrative expenses in our Consolidated Interim Statements of Operations.
The following tables summarize the activity in our repositioning accrual:
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2024
$12 $ $12 
Charges5  5 
Usage—cash(6) (6)
Balance at June 30, 2025
$11 $ $11 
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2023
$9 $ $9 
Charges12  12 
Usage—cash(12) (12)
Balance at June 30, 2024
$9 $ $9 

Note 12. Other Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Income taxes$90 $79 
Designated and undesignated derivatives (Note 16)
189 3 
Pension and other employee related18 18 
Long-term lease liability (Note 13)
43 42 
Advanced discounts from suppliers2 2 
Product warranties and performance guarantees – long-term (Note 19)
8 8 
Environmental remediation – long term11 10 
Long-term accounts payable3 5 
Asset retirement obligation8 8 
Other8 7 
380 182 

Note 13. Leases
We have operating leases that primarily consist of real estate, machinery, and equipment. As of June 30, 2025, the Company does not have any material finance leases. Our leases have remaining lease terms of up to 13 years, some of which include options to extend the leases for up to two years, and some of which include options to terminate the leases within the year.
12



The components of lease expense are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Operating lease cost$5$4$9$7
Short-term lease cost11
Total lease cost$6$4$10$7
Supplemental cash flow information related to operating leases is as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases
$4 $3 $8 $6 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases2 3 4 9 
Supplemental balance sheet information related to operating leases is as follows:
June 30,
2025
December 31,
2024
(Dollars in millions)
Other assets$54 $52 
Accrued liabilities13 11 
Other liabilities43 42 
 June 30,
2025
December 31, 2024
Weighted-average remaining lease term (in years)6.646.89
Weighted-average discount rate6.53 %6.71 %

Maturities of operating lease liabilities as of June 30, 2025 were as follows:
(Dollars in millions)
2025$9 
202614 
202712 
20288 
20295 
Thereafter18 
Total lease payments66 
Less imputed interest(10)
$56 

13



Note 14. Long-Term Debt and Credit Agreements
Senior Notes
On May 21, 2024, Garrett Motion Holdings Inc. and Garrett LX I S.à.r.l. (the "Issuers"), wholly owned subsidiaries of the Company, completed an offering of $800 million in aggregate principal amount of 7.75% Senior Unsecured Notes due 2032 (the "2032 Senior Notes"). The 2032 Senior Notes mature on May 31, 2032. The Company incurred $12 million of debt issuance costs, which have been capitalized and will be amortized on a straight-line basis.
The 2032 Senior Notes are guaranteed by the Company and each of the Company's wholly owned subsidiaries that guarantee obligations under the Credit Agreement (as defined below), subject to certain exceptions. The proceeds from the sale of the 2032 Senior Notes, together with cash on hand, were used to repay approximately $800 million of term loan indebtedness and to pay related fees and expenses. The 2032 Senior Notes bear interest at a rate of 7.75% per annum. Interest on the 2032 Senior Notes is payable semi-annually in arrears on May 31 and November 30 of each year, commencing on November 30, 2024.
The 2032 Senior Notes indenture contains certain covenants that limit the ability of the Company and its restricted subsidiaries to incur certain additional debt, incur certain liens securing debt, pay certain dividends or make other restricted payments, make certain investments, make certain asset sales, and enter into certain transactions with affiliates. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the 2032 Senior Notes indenture. Additionally, the indenture contains certain change of control provisions that, under certain conditions, would require the Company to make an offer to repurchase all of the outstanding 2032 Senior Notes at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest. The indenture also contains customary events of default.
Credit Facilities
On January 30, 2025, the Company entered into that certain Restatement Agreement (the "Restatement Agreement"), which amends and restates that certain Credit Agreement, dated as of April 30, 2021 (as amended from time to time, the "Existing Credit Agreement" and as amended and restated by the Restatement Agreement, the "Credit Agreement"), by and among the Company, Garrett Motion Holdings Inc., Garrett Motion Sàrl and Garrett LX I S.à.r.l., as borrowers (the "Borrowers"), the lenders and issuing banks part thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent. Under the Restatement Agreement, the Company refinanced in full its $692 million U.S. Dollar term loan facility (the "2021 Dollar Term Facility") under the Existing Credit Agreement with a new $692 million term loan (the "2025 Dollar Term Facility") in an aggregate principal amount of $692 million. The 2025 Dollar Term Facility will mature on January 30, 2032, and bear interest at a rate equal to, at the Company's option, the Adjusted Term SOFR Rate (as defined in the Restatement Agreement) plus 2.25% per annum in the case of Term Benchmark Loans (as defined in the Restatement Agreement) and the Alternate Base Rate (as defined in the Restatement Agreement) plus 1.25% per annum in the case of ABR Loans (as defined in the Restatement Agreement).
Also on January 30, 2025, pursuant to the Restatement Agreement, the Company replaced its existing $600 million revolving commitments under the Existing Credit Agreement with new revolving commitments under the Credit Agreement in an aggregate principal amount of $630 million (the "New Revolving Facility" and, together with the New Term Loans, the "Credit Facilities"). The maturity date of the New Revolving Facility is January 30, 2030. The New Revolving Facility, when drawn, will bear interest at a rate equal to the applicable benchmark plus an applicable margin that varies based on the Company's leverage ratio. The applicable margin for revolving borrowings ranges from 2.25% to 1.75% per annum in the case of Term Benchmark Loans and 1.25% to 0.75% per annum in the case of ABR Loans. In addition to paying interest on outstanding borrowings under the New Revolving Facility, the Company must also pay a quarterly commitment fee based on the average daily unused portion of the New Revolving Facility during such quarter, which is determined by its leverage ratio and ranges from 0.25% to 0.50% per annum.
The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The Credit Agreement also contains certain customary events of default. The New Revolving Facility is subject to a financial covenant requiring the maintenance of a consolidated total leverage ratio of not greater than 4.7 to 1.00 as of the end of each fiscal quarter if, on the last day of any such fiscal quarter, the aggregate amount of loans and letters of credit (excluding backstopped or cash collateralized letters of credit and other letters of credit with an aggregate face amount not exceeding $30 million) outstanding under the New Revolving Facility exceeds 35% of the aggregate commitments in effect thereunder on such date. The Credit Facilities are secured on a first-priority basis by: (1) a perfected security interest in the equity interests of each direct material subsidiary of each guarantor under the Credit Facilities and (ii) perfected security interests in, and mortgages on, substantially all tangible and intangible personal property and material real property of each
14



of the guarantors under the Credit Facilities, subject, in each case, to certain exceptions and limitations, including the agreed guaranty and security principles.
As of June 30, 2025, the Company was in compliance with all covenants under the 2032 Senior Notes indenture and Credit Agreement.
The principal outstanding and carrying amounts of our long-term debt as of June 30, 2025 and December 31, 2024 are as follows:
 Due Interest Rate June 30,
2025
December 31,
2024
2021 Dollar Term Facility4/30/2028
SOFR plus 275 bps
$ $692 
2025 Dollar Term Facility1/30/2032
SOFR plus 225 bps
690  
2032 Senior Notes 5/31/20327.75%800 800 
Other1 1 
Total principal outstanding1,491 1,493 
Less: unamortized deferred financing costs(24)(22)
Less: current portion of long-term debt(7)(7)
Total long-term debt$1,460 $1,464 
Separate from the Revolving Facility, the Company has a bilateral letter of credit facility with outstanding letters of credit in the amount of $8 million at June 30, 2025 and December 31, 2024, respectively. The letters of credit typically support customs arrangements and other obligations at our local affiliates.
Minimum scheduled principal repayments of long-term debt as of June 30, 2025 are as follow:
June 30,
2025
(Dollars in millions)
2025$3 
20267 
20277 
20289 
20297 
Thereafter1,458 
Total debt payments$1,491 

Note 15. Equity
Common Stock
On December 5, 2024, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on January 31, 2025, to shareholders of record as of January 15, 2025. The total amount of dividends paid on January 31, 2025 amounted to $12 million.
On May 1, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on June 16, 2025, to shareholders of record as of June 2, 2025. The total amount of dividends paid on June 16, 2025 amounted to $13 million.
Treasury Stock
Treasury stock represents shares of the Company's Common Stock that have been issued and subsequently repurchased by the Company or withheld to satisfy withholding tax obligations in connection with the vesting of equity awards, and that have not been retired or cancelled. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of Equity (Deficit) on the Consolidated Interim Balance Sheet. The Company
15



accounts for the reissuance of treasury stock using the average cost method. The Company did not reissue or retire any shares of treasury stock during the three and six months ended June 30, 2025.
Share Repurchase Program
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid January 1, 2025 until December 31, 2025. The Company may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. During the six months ended June 30, 2025, the Company repurchased $52 million of Common Stock, and had $198 million remaining under the share repurchase program as of that date. The repurchased shares are held as treasury stock.

Note 16. Financial Instruments and Fair Value Measures
Our credit, market, and foreign currency risk management policies are described in Note 19, Financial Instruments and Fair Value Measures, to the Consolidated Financial Statements for the year ended December 31, 2024 included in our 2024 Form 10-K. As of June 30, 2025 and December 31, 2024, we had contracts with aggregate gross notional amounts of $973 million and $928 million, respectively, to hedge foreign currencies, principally the U.S. Dollar, Swiss Franc, British Pound, Euro, Chinese Yuan, Japanese Yen, Mexican Peso, New Romanian Leu, Czech Koruna, Australian Dollar, and Korean Won.
Fair Value of Financial Instruments
The FASB’s accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:
Fair Value
Notional AmountsAssetsLiabilities
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
Designated instruments:
Designated forward currency exchange contracts$520 $331 $15 $4 (a)$13 $6 (c)
Designated cross-currency swaps2,040 1,515 2 82 (b)173  (d)
Designated interest-rate swaps675    16  (d)
Total designated instruments3,235 1,846 17 86 202 6 
Undesignated instruments:
Undesignated interest rate swaps 470  9 (b) 3 (d)
Undesignated forward currency exchange contracts453 597 1 9 (a)9 2 (c)
Total undesignated instruments453 1,067 1 18 9 5 
Total designated and undesignated instruments$3,688 $2,913 $18 $104 $211 $11 
(a) Recorded within Other current assets
(b) Recorded within Other assets
(c) Recorded within Accrued liabilities
(d) Recorded within Other liabilities

16



Cash Flow Hedges
During 2023, the Company entered into float-to-fixed interest rate swap contracts with an aggregate notional amount of $200 million and maturities in July 2024 and October 2024. The Company also entered into a float-to-fixed cross-currency swap contract comprised of an amortizing swap with an aggregate notional amount of €280 million ($300 million) and notional exchanges in June 2026, June 2027, and June 2028. The interest rate swap and cross-currency swap contracts were early settled in the second quarter of 2024, resulting in net gains of $18 million recorded to Interest expense and a $4 million loss recorded to Non-operating expense in the Consolidated Interim Statement of Operations.
During 2025, the Company entered into float-to-fixed interest rate swap contracts with an aggregate notional amount of $675 million and maturities in January 2027, January 2028, January 2029, January 2030 and January 2031. Changes in the fair value of the interest rate swap contracts are recorded in Accumulated Other Comprehensive Income ("AOCI") and will be reclassified to Interest expense in the Consolidated Interim Statement of Operations upon maturity.
The Company also has outstanding forward currency exchange contracts with maturities up to 18 months and an aggregate notional amount of $520 million and $331 million as of June 30, 2025 and December 31, 2024, respectively. These forward currency exchange contracts have been designated as cash flow hedges to mitigate foreign currency exposures primarily on our inventory purchases and manufacturing costs. The gains and losses on the forward currency exchange contracts are recorded in AOCI and reclassified to Cost of goods sold in the Consolidated Interim Statement of Operations when the underlying transactions are recognized in earnings.
In order to mitigate foreign currency risk on its 2032 Senior Notes, the Company entered into fixed-to-fixed cross-currency swap contracts with an aggregate notional amount of €507 million ($550 million) and notional exchanges occurring in May 2027, May 2028, May 2029, and May 2030. Changes in the fair value of the cross-currency swap contracts are recognized in AOCI and reclassified to Non-operating (income) expense in the Consolidated Interim Statement of Operations, based upon changes in the spot rate remeasurement of the underlying debt. The net interest settlements on the cross-currency swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations.
All of the Company's cash flow hedges are assessed as highly effective.
Net Investment Hedges
The Company has designated cross-currency swaps with aggregate notional amounts of €1,381 million ($1,490 million) and €858 million ($965 million) as of June 30, 2025 and December 31, 2024, respectively, as net investment hedges of its Euro-denominated operations. Changes in the fair value of the net investment hedges are recorded in AOCI until the net investment is liquidated or sold. The fair values of the net investment hedges were a net liability of $123 million and a net asset of $70 million as of June 30, 2025 and December 31, 2024, respectively. No ineffectiveness has been recorded on the net investment hedges.
Non-Designated Derivatives
As of December 31, 2024, the Company had outstanding float-to-fixed interest rate swap contracts with an aggregate notional amount of €450 million ($470 million) and maturities of April 2025, April 2026, April 2027, and April 2028. Changes in the fair value of the undesignated interest rate swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations. These interest rate swap contracts were early settled in 2025.
The Company also has outstanding forward currency exchange contracts with maturities generally up to 3 months and an aggregate notional amount of $453 million and $597 million as of June 30, 2025 and December 31, 2024, respectively. Changes in the fair value of the forward currency exchange contracts are recorded in Non-operating (income) expense in the Consolidated Interim Statements of Operations.
Effect of Derivatives on the Statements of Operations and Statements of Comprehensive Income (Loss)
The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges and net investment hedges had on OCI, AOCI and earnings:
17



Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Cash flow hedges
  Gain (loss) reclassified from AOCI to
   income:
     Cost of goods sold$ $(2)$ $(4)
     Interest expense (1)
(4)1 (4)(1)
     Non-operating income (2)
45 (6)64 (13)
  Gain (loss) recognized in other comprehensive
   income (loss)
(8)(3)(8)2 
Net investment hedges
  Gain (loss) recognized in other comprehensive
   income (loss)
(134)10 (178)33 
(1) Includes a settlement loss of $3 million for the three and six months ended June 30, 2024, respectively.
(2) Includes a settlement loss of $4 million for the three and six months ended June 30, 2024, respectively.
The following table summarizes the pretax gain (loss) that changes in the fair values of derivatives not designated as hedging instruments had on earnings:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Contract TypeLocation(Dollars in millions)
Interest rate swaps
Interest expense (1)
$ $5 $ $13 
Forward currency exchange contractsNon-operating income(20)4 (26)13 

(1) Includes settlement gain of $21 million and interest income of $8 million, partially offset by marked-to-market remeasurement losses of $24 million, for the three months ended June 30, 2024. Includes settlement gain of $21 million and interest income of $16 million, partially offset by marked-to-market remeasurement losses of $24 million, for the six months ended June 30, 2024.

Fair Value Measurement
The foreign currency exchange, interest rate swap and cross-currency swap contracts are valued using market observable inputs. As such, these derivative instruments are classified within Level 2. The assumptions used in measuring the fair value of the cross-currency swap are considered Level 2 inputs, which are based upon market-observable interest rate curves, cross-currency basis curves, credit default swap curves, and foreign exchange rates.
The carrying value of Cash, cash equivalents, and restricted cash, Account receivables and Notes and Other receivables contained in the Consolidated Interim Balance Sheet approximates fair value.
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
June 30, 2025
December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
(Dollars in millions)
Term Loan Facilities
$676 $693 $680 $693 
  2032 Senior Notes790 833 790 810 
The Company determined the fair value of its Term Loan Facilities and related current maturities utilizing transactions in the listed markets for similar liabilities. As such, the fair value of the Term Loan Facilities and related
18



current maturities is considered Level 2. The fair value of the 2032 Senior Notes was determined using quoted prices from exchange traded markets and is classified as a Level 1 measurement.

Note 17. Accumulated Other Comprehensive Income
The changes in AOCI by component are set forth below:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
   Balance at beginning of period$(56)$(39)$(27)$(57)
   Other comprehensive (loss) income before
     reclassifications
(59)5 (88)23 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
    
   Amounts reclassified from AOCI (5) (5)
   Balance at end of period(115)(39)(115)(39)
Pension Adjustments
   Balance at beginning of period(15)(19)(15)(20)
   Other comprehensive income (loss) before
    reclassifications
 2  3 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
    
   Balance at end of period(15)(17)(15)(17)
Changes in Fair Value of Effective Cash Flow Hedges
   Balance at beginning of period(8)1 (10)(2)
   Other comprehensive (loss) income before
     reclassifications
29 8 46 24 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
24 (2)26 (6)
   Amounts reclassified from AOCI(41)(7)(60)(18)
   Income taxes associated with reclassifications from AOCI5 (1)7 1 
   Balance at end of period9 (1)9 (1)
Changes in Fair Value of Net Investment Hedges
   Balance at beginning of period90 95 125 76 
   Other comprehensive (loss) income before
     reclassifications
(133)10 (177)33 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
5 (2)14 (6)
   Balance at end of period(38)103 (38)103 
Accumulated other comprehensive (loss) income, end of
  period
$(159)$46 $(159)$46 



19



Reclassifications from AOCI to income were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
Reclassification adjustments recognized in income (1)
$ $(5)$ $(5)
     Amounts reclassified from AOCI (5) (5)
Changes in Fair Value of Effective Cash Flow Hedges
Reclassification forward currency exchange contracts to
  Cost of goods sold
$ $(2)$ $(4)
Reclassification cross-currency swaps to Interest expense4 1 4 (1)
Reclassification cross-currency swaps to Non-operating
  (income) expense
(45)(6)(64)(13)
Tax effect on reclassification to income5 (1)7 1 
      Amounts reclassified from AOCI, net(36)(8)(53)(17)
Total reclassifications for the period$(36)$(13)$(53)$(22)
(1) Cumulative translation losses reclassified to Net income related to the sale of an equity interest in an unconsolidated joint venture. See Note 22 for discussion.
Note 18. Earnings Per Share
Basic earnings per share ("EPS") is computed using the weighted-average number of common shares outstanding during the period.
Diluted earnings per share is calculated based on the weighted-average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method.
The details of the EPS calculations for the three and six months ended June 30, 2025 and 2024 are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions except per share)
Basic earnings per share:
Net income$87 $64 $149 $130 
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
EPS – Basic$0.43 $0.29 $0.73 $0.56 
Diluted earnings per share:
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
Dilutive effect of unvested RSUs and other contingently issuable shares
2,582,088 1,576,866 2,547,445 1,962,044 
Weighted average common shares outstanding – Diluted205,255,033 225,898,814 206,433,975 232,455,083 
EPS – Diluted$0.42 $0.28 $0.72 $0.56 

20



Note 19. Commitments and Contingencies
We are involved in various lawsuits, claims, and proceedings incident to the operation of our businesses, including those pertaining to product liability, product safety, environmental, health and safety, intellectual property, employment, commercial and contractual matters and various other matters. We regularly assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses based on a careful analysis of each matter. We identify below the individual proceedings where we believe a material loss is reasonably possible or probable, and we accrue for matters when we believe that losses are probable and the amount of the potential loss is reasonably estimable. It is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of any potential loss. Accordingly, while we believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our financial position, results of operations or cash flows.
Brazilian Tax Matter
In September 2020, the Brazilian tax authorities issued an infraction notice against Garrett Motion Industria Automotiva Brasil Ltda, challenging the use of certain tax credits between January 2017 and February 2020. The estimated total amount of the loss contingency arising from this matter as of June 30, 2025 was $25 million, including penalties and interest. The Company believes, based on management’s assessment and the advice of external legal counsel, that it has meritorious arguments in connection with the infraction notice and any liability for the infraction notice is currently not probable. Accordingly, no accrual is required at this time.
Warranties and Guarantees
In the normal course of business, we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale to the customer. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. Product warranties and product performance guarantees are included in Accrued liabilities and Other liabilities. The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees.
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Warranty and product performance guarantees at beginning of period$22 $26 $23 $27 
Accruals for warranties/guarantees issued during the period
4 2 6 5 
Settlement of warranty/guarantee claims
(5)(3)(8)(6)
Foreign currency translation2  2 (1)
Warranty and product performance guarantees at end of period
$23 $25 $23 $25 
Other Commitments and Contingencies
We are subject to other lawsuits, investigations, and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employment and employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurring and reasonably estimable. We regularly assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts.

Note 20. Pension Benefits
We sponsor several funded U.S. and non-U.S. defined benefit pension plans. Significant plans outside the U.S. are in Switzerland and Ireland. Other pension plans outside the U.S. are not material to the Company, either individually or in the aggregate.
21



Our general funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. We are not required to make any contributions to our U.S. pension plan in 2025. We expect to make contributions of cash and/or marketable securities of approximately $5 million to our non-U.S. pension plans to satisfy regulatory funding standards in 2025, of which $2 million has been contributed as of June 30, 2025.
Net periodic benefit costs for our significant defined benefit plans include the following components:
Three Months Ended June 30,Six Months Ended June 30,
U.S. Plans Non-U.S. Plan U.S. Plans Non-U.S. Plan
20252024202520242025202420252024
(Dollars in millions)
Service cost$ $ $2 $2 $ $ $4 $3 
Interest cost2 2 1 1 4 4 2 3 
Expected return on plan assets(2)(2)(2)(2)(4)(4)(4)(4)
Amortization of prior service (credit)      (1)(1)
Total$ $ $1 $1 $ $ $1 $1 
For both our U.S. and non-U.S. defined benefit pension plans, we estimate the service and interest cost components of net periodic benefit (income) cost by utilizing a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows. This approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates.

Note 21. Segments and Concentrations

The Company has identified our CODM as the Chief Executive Officer. The CODM reviews consolidated net income when assessing the Company's performance, allocating resources, and establishing management's compensation. In addition to consolidated net income, the CODM receives discrete information for net sales by product and by geographical location. Consolidated net income is used to monitor budget versus actual results.
The accounting policies of our operating segment are the same as those described in the Company's summary of significant accounting policies.
The Company derives revenues from customers through sales of air and fluid compression and high-speed electric motor technologies for OEMs and distributors within the mobility and industrial space. In addition to consolidated net income, the CODM regularly reviews sales by region and product line.
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
United States$178 $174 $354 $352 
Europe
     United Kingdom92 80 177 164 
     Rest of Europe369 354 709 739 
Asia
     China151 161 304 319 
     Rest of Asia99 102 203 196 
Other International24 19 44 35 
$913 $890 $1,791 $1,805 
22



Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Diesel$217 $220 $425 $461 
Gas398 375 801 763 
Commercial Vehicle170 161 325 322 
Aftermarket111 121 209 233 
Other17 13 31 26 
$913 $890 $1,791 $1,805 
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Net sales$913 $890 $1,791 $1,805 
Less:
   Material costs513 517 1,014 1,054 
   Variable manufacturing costs (1)
123 95 221 191 
   Fixed manufacturing costs (2)
51 52 110 118 
   Research, development and engineering
    costs
45 41 85 85 
   Selling, general and administrative costs59 61 118 125 
   Interest expense25 62 54 93 
   Income tax expense15 23 38 38 
   Other segment items (3)
(5)(25)2 (29)
Consolidated net income$87 $64 $149 $130 
(1) Variable manufacturing costs include freight, duties, direct and indirect labor costs, repairs and maintenance, repositioning costs and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, utilities and other fixed costs.
(3) Other segment items consist of gain on sale of equity interest in unconsolidated joint venture, non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).
The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company had capital expenditures of $15 million and $17 million for the three months ended June 30, 2025 and 2024, respectively, and $41 million and $49 million for the six months ended June 30, 2025 and 2024, respectively.

Note 22. Acquisitions and Divestitures

On April 3, 2024, the Company divested its equity interest in an unconsolidated joint venture for approximately $58 million, subject to customary debt and working capital adjustments. We received cash consideration on the divestiture date of $46 million, with an additional $7 million to be received in equal installments due twelve months and thirty-six months from the divestiture date. A pre-tax gain of $27 million was recognized related to this divestiture, including $5 million of cumulative translation losses reclassified from AOCI to Net income. Transaction fees of $1 million were incurred in connection with the divestiture and are included in Selling, general, and administrative expenses in our Consolidated Interim Statement of Operations.

Note 23. Subsequent Events
23





On July 4, 2025, the United States enacted H.R. 1, comprehensive legislation that introduced changes to federal tax law, among other things. The Company is currently evaluating the implications of the new tax law and the impact on its Consolidated Interim Financial Statements.

On July 24, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on September 16, 2025, to shareholders of record as of September 2, 2025.

24



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations, which we refer to as our “MD&A,” should be read in conjunction with our Consolidated Interim Financial Statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q as well as the audited annual Consolidated Financial Statements for the year ended December 31, 2024, included in our 2024 Form 10-K. Some of the information contained in this MD&A or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve various risks and uncertainties. Please refer to the "Special Note Regarding Forward-Looking Statements" below.
The following MD&A is intended to help you understand the results of operations and financial condition of Garrett Motion Inc. for the three and six months ended June 30, 2025.
Executive Summary
During the second quarter of 2025, we continued to navigate macro-economical challenges. Increased demand in light vehicle gasoline, primarily driven by new program launches in Europe, North America and India, was offset by declines in light vehicle volumes, particularly in Europe, and decreased demand for replacement parts in North America. Our sustainable cost measures implemented in the prior year, along with our effective recoveries on enacted import tariffs and a favorable foreign exchange environment, enabled us to achieve Net income of $87 million and Adjusted EBIT of $124 million for the quarter.

We continue to have success across our differentiated technologies by winning business across our turbo and zero emission technologies offerings. We have secured ongoing business through the extension of light vehicle programs, and won a significant E-Turbo program in Europe. We have been awarded serial production for our Fuel cell compressor by a leading Asian OEM. Additionally, we received positive testing feedback on the application of our E-Cooling Compressor, laying the foundation for future business growth.
For the three months ended June 30, 2025, we repurchased $22 million of Common Stock under our share repurchase program. As of June 30, 2025, we had $198 million of the authorized amount remaining under our share repurchase program.
On May 1, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on June 16, 2025, to shareholders of record as of June 2, 2025. The total amount of dividends paid on June 16, 2025 amounted to $13 million.
Disaggregated Revenue
The following tables show our revenues by geographic region and product line for the three and six months ended June 30, 2025 and 2024, respectively.
By Region
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
United States
$178 20%$174 19%$354 20%$352 19%
Europe
461 50%434 49%886 49%903 50%
Asia
250 27%263 30%507 28%515 29%
Other
24 3%19 2%44 3%35 2%
Total
$913 $890 $1,791 $1,805 

25



By Product Line
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Diesel$217 24%$220 25%$425 24%$461 26%
Gas398 43%375 42%801 45%763 42%
Commercial Vehicle170 19%161 18%325 18%322 18%
Aftermarket111 12%121 14%209 11%233 13%
Other17 2%13 1%31 2%26 1%
Total$913 $890 $1,791 $1,805 

Results of Operations for the Three and Six Months Ended June 30, 2025
Net Sales
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025202420252024
 (Dollars in millions)
Net sales$913 $890 $1,791 $1,805 
% change compared with prior period2.6 %(0.8)%
Q2 2025 Sales Walk v2.jpg
For the three months ended June 30, 2025, net sales compared to the prior period increased by $23 million or 3% (including a favorable impact of $23 million or 3% due to foreign currency translation primarily driven by higher Euro-to-U.S. dollar exchange rates). This increase was driven by foreign currency impacts and recoveries on newly enacted import tariffs. Strong demand for gasoline and commercial vehicle applications was more than offset by weaker demand for replacement parts on aftermarket sales and diesel products.
Gasoline product sales increased by $23 million or 6% (including a favorable impact of $9 million or 2% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe, North America and India.
Diesel product sales decreased by $3 million or 1% (including a favorable impact of $8 million or 4% due to foreign currency translation), primarily driven by passenger vehicles in Europe transitioning to gasoline hybrids, partially offset by sustained demand for pickup trucks in North and South America.
Commercial vehicle sales increased by $9 million or 6% (including a favorable impact of $3 million or 2% due to foreign currency translation), primarily driven by recovering demand in off-highway across Europe, North America and China as well as the launch of a new on-highway program in Europe.
Aftermarket sales decreased by $10 million or 8% (including a favorable impact of $2 million or 2% due to foreign currency translation), primarily due to softer demand for off-highway replacement parts in North America. The decrease was partially offset by stronger demand for replacement parts through the independent aftermarket channels in Europe, China, South America and India.
26



YTD Q2 2025 Sales Walk v2.jpg
For the six months ended June 30, 2025, net sales compared to the prior period decreased by $14 million or 1% (including a favorable impact of $2 million or 0% due to foreign currency translation, primarily driven by fluctuations in global exchange rates). This decrease was mainly driven by soft demand in diesel and replacement parts on aftermarket sales, partially offset by higher demand for gasoline and commercial vehicle applications, recoveries on newly enacted import tariffs, and favorable foreign exchange impacts. Net sales further decreased due to price, net of inflation pass-through driven by commodity deflation.
Gasoline product sales increased by $38 million or 5% (including an unfavorable impact of $1 million or 0% due to foreign currency translation) driven by new application launches and program ramp-ups in Europe, North America and India.
Diesel product sales decreased by $36 million or 8% (including a favorable impact of $2 million or 0% due to foreign currency translation), primarily driven by passenger vehicles in Europe pursuing transition to gasoline hybrids, partially offset by sustained demand for pickup trucks in North and South America.
Commercial vehicle sales increased by $3 million or 1% (including a favorable impact of $1 million or 0% due to foreign currency translation), primarily driven by recovering demand in off-highway across Europe, North America and China as well as the launch of a new on-highway program in Europe.
Aftermarket sales decreased by $24 million or 10% (with no impact from foreign currency translation), primarily due to softer demand for off-highway replacement parts in North America.
Cost of Goods Sold and Gross Profit
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025202420252024
 (Dollars in millions)
Cost of goods sold$732 $705 $1,431 $1,448 
% change compared with prior period3.8 %(1.2)%
Gross profit percentage19.8 %20.8 %20.1 %19.8 %
Cost of Goods SoldGross Profit
 (Dollars in millions)
Cost of Goods Sold / Gross Profit for the three months ended June 30, 2024
$705 $185 
Increase/(decrease) due to:
Volume
Product mix(25)
Price, net of inflation pass-through— (2)
Commodity, transportation & energy inflation(4)
Productivity, net(8)
Enacted import tariffs15 (1)
Research & development(1)
Foreign exchange rate impacts16 
Cost of Goods Sold / Gross Profit for the three months ended June 30, 2025
$732 $181 
27



For the three months ended June 30, 2025, cost of goods sold increased by $27 million, primarily driven by $16 million from foreign currency impacts, $15 million from the impact of newly enacted import tariffs, $6 million due to unfavorable product mix and $3 million of higher sales volumes. These increases were partially offset by $8 million of productivity net of labor inflation, $4 million of commodity, transportation and energy deflation, and $1 million of lower R&D costs.
For the three months ended June 30, 2025, gross profit decreased by $4 million, primarily driven by $25 million of unfavorable product mix, and $2 million of pricing, net of inflation pass-through. These decreases were partially offset by $9 million from foreign currency impacts, $9 million of productivity, net of labor inflation, $4 million of commodity, transportation and energy deflation, $1 million from higher sales volumes, and $1 million of lower R&D costs. We also saw a $1 million impact to gross profit from newly enacted import tariffs due to the timing of negotiated recoveries.
Cost of Goods SoldGross Profit
 (Dollars in millions)
Cost of Goods Sold / Gross Profit for the six months ended June 30, 2024
$1,448 $357 
Increase/(decrease) due to:
Volume(12)(6)
Product mix12 (32)
Price, net of inflation pass-through— 
Commodity, transportation & energy inflation(13)13 
Productivity, net(24)25 
Enacted import tariffs19 (1)
Research & development(1)
Foreign exchange rate impacts
Cost of Goods Sold / Gross Profit for the six months ended June 30, 2025
$1,431 $360 
For the six months ended June 30, 2025, cost of goods sold decreased by $17 million, primarily driven by $24 million of productivity net of labor inflation, $13 million of commodity, transportation and energy deflation, $12 million of lower sales volumes and $1 million of lower R&D costs. These decreases were partially offset by $19 million of higher cost of goods sold due to the impact of newly enacted import tariffs, $12 million from unfavorable product mix and $2 million of foreign currency impact.
For the six months ended June 30, 2025, gross profit increased by $3 million, primarily driven by $25 million of productivity, net of labor inflation, $13 million of commodity, transportation and energy deflation, $2 million of pricing, net of inflation pass-through, $1 million of lower R&D costs and $1 million of foreign currency impact. These increases were partially offset by $32 million from unfavorable product mix and $6 million of lower sales volumes. We also saw a $1 million impact to gross profit from newly enacted import tariffs due to the timing of negotiated recoveries.
Selling, General and Administrative Expenses
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025 202420252024
 (Dollars in millions)
Selling, general and administrative expense$59 $61 $118 $125 
% of sales6.5 %6.9 %6.6 %6.9 %
Selling, general and administrative (“SG&A”) expenses for the three months ended June 30, 2025, decreased by $2 million compared with the prior period, primarily driven by $3 million lower personnel costs partially offset by $2 million of unfavorable foreign currency impact.
SG&A expenses for the six months ended June 30, 2025, decreased by $7 million compared with the prior period, primarily driven by $4 million lower personnel costs and $2 million of lower legal fees.
Other Expense, Net
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Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Other expense, net$$$$
Other expense, net for the three months ended June 30, 2025 decreased by $2 million compared to the prior period, primarily due to professional fees incurred in the prior year associated with our 2032 Senior Notes.
Other expense, net for the six months ended June 30, 2025 increased by $4 million compared to the prior period, primarily driven by $6 million in professional fees related to our Restatement Agreement partially offset by $2 million of professional fees associated with our 2032 Senior Notes in the prior year.
Interest Expense
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025 202420252024
 (Dollars in millions)
Interest expense$25 $62 $54 $93 

For the three months ended June 30, 2025, interest expense decreased by $37 million compared to the prior period. This decrease was primarily due to a $29 million reduction in debt issuance cost amortization, driven by accelerated amortization in the prior year, and $8 million in lower interest expense resulting from a change in the notional amount of debt outstanding during the period. Additionally, we recorded net gains of $4 million on designated and undesignated interest rate derivatives, consistent with the prior year's net gains of $4 million.

For the six months ended June 30, 2025, interest expense decreased by $39 million compared to the prior period. This decrease was primarily due to a $30 million reduction in debt issuance cost amortization, driven by accelerated amortization in the prior year, and $18 million of lower interest expense resulting from a change in the notional amount of debt outstanding during the period. In addition, we recorded net gains of $4 million on our designated and undesignated interest derivatives in the current year, in comparison to net gains of $14 million in the prior year.

Non-Operating Income, Net
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025202420252024
 (Dollars in millions)
Non-operating income, net$(6)$(1)$(7)$(6)
For the three months ended June 30, 2025, we had non-operating income of $6 million versus $1 million in the prior period. The increase in non-operating income was primarily driven by foreign exchange transactional gains.
For the six months ended June 30, 2025, we had non-operating income of $7 million versus $6 million in the prior period. The increase in non-operating income was primarily driven by $2 million in foreign exchange transactional gains and $1 million of lower other non-operating expense, partially offset by lower equity income of $2 million due to the prior year sale of an equity interest in an unconsolidated joint venture.
Tax Expense
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025 202420252024
 (Dollars in millions)
Tax expense$15 $23 $38 $38 
Effective tax rate14.7 %26.4 %20.3 %22.6 %
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The effective tax rates for the three months ended June 30, 2025 and 2024 were 14.7% and 26.4%, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024 were 20.3% and 22.6%, respectively.
The change in the effective tax rate for the three months ended June 30, 2025, compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations.

The change in the effective tax rate for the six months ended June 30, 2025, compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations and additional tax reserve positions in the current year.

The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries we operate in continue to announce changes in their tax laws and regulations based on the Pillar Two framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. For 2025, Pillar Two is not expected to have a material impact to our effective tax rate.

On July 4, 2025, the United States enacted H.R. 1, comprehensive legislation that introduced changes to federal tax law, among other things. We are currently evaluating the implications of the new tax law and its impact on our Consolidated Interim Financial Statements. Further enactment of legislation by jurisdictions in which we do business could also have an impact on our future effective tax rate, tax liabilities, and cash tax.

The effective tax rate can vary from quarter to quarter due to changes in the Company’s global mix of earnings, the resolution of income tax audits, changes in tax laws (including updated guidance on U.S. tax reform), deductions related to employee share-based payments, internal restructurings, and pension mark-to-market adjustments.
Net Income
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025 202420252024
 (Dollars in millions)
Net income$87 $64 $149 $130 
Net income margin9.5 %7.2 %8.3 %7.2 %
Net income for the three months ended June 30, 2025, increased by $23 million compared with the prior period, primarily due to $37 million of lower interest expense, $8 million of lower tax expense, $2 million of lower SG&A expense, $2 million of lower other expense, net, and a $5 million increase in non-operating income. These were partially offset by $4 million of decreased gross profit and the prior year gain of $27 million on the sale of an equity interest in an unconsolidated joint venture.
Net income for the six months ended June 30, 2025, increased by $19 million compared with the prior period, primarily due to $39 million of lower interest expense, $7 million of lower SG&A expense, $3 million of higher gross margin and a $1 million increase in non-operating income. These were partially offset by $4 million of higher other expense, net and the prior year gain of $27 million on the sale of an equity interest in an unconsolidated joint venture.

Non-GAAP Measures
It is management’s intent to provide non-GAAP financial information to supplement the understanding of our business operations and performance, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the most directly comparable GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to other similarly titled measures used by other companies. Additionally, the non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, an analysis of the Company’s operating results as reported under GAAP.
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EBIT and Adjusted EBIT
In 2025, we revised our non-GAAP reporting metric, transitioning from Adjusted EBITDA to Adjusted EBIT. This change is intended to better reflect our core operating performance and align with industry practices. We believe this change will provide investors with a clearer understanding of our ongoing operational performance.
We define “EBIT” as our net income calculated in accordance with U.S. GAAP, plus the sum of (i) interest expense net of interest income and (ii) tax expense. We define “Adjusted EBIT” as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging (gains) losses, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses, (vi) other non-operating income, (vii) capital structure transformation expenses, (viii) debt refinancing and redemption costs, and (ix) loss on extinguishment of debt, if any. We believe that EBIT and Adjusted EBIT are important indicators of operating performance and provide useful information for investors because:
EBIT and Adjusted EBIT exclude the effects of income taxes, as well as the effects of financing activities by eliminating the effects of interest and therefore more closely measure our operational performance; and
certain adjustment items, while periodically affecting our results, may vary significantly from period to period and could therefore have a disproportionate effect in a given period, affecting the comparability of our results.
The following table reconciles Net income under GAAP to Adjusted EBIT:
 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2025 202420252024
 (Dollars in millions)
Net income $87 $64 $149 $130 
Interest expense, net of interest income (1)
23 61 52 90 
Tax expense15 23 38 38 
EBIT125 148 239 258 
Repositioning costs (2)
(2)12 
Foreign exchange gain on debt, net of related hedging loss(1)(1)— (1)
Factoring and notes receivables discount fees
Gain on sale of equity investment
— (27)— (27)
Other non-operating income (3)
(2)(2)(3)(3)
Debt refinancing and redemption costs (4)
— 
Acquisition and divestiture expenses
Adjusted EBIT$124 $123 $255 $244 
(1)Reflects interest income of $2 million and $1 million for the three months ended June 30, 2025 and 2024, respectively, and $2 million and $3 million for the six months ended June 30, 2025 and 2024, respectively.
(2)Repositioning costs includes severance costs related to restructuring projects to improve future productivity.
(3)Reflects the non-service component of net periodic pension income.
(4)Reflects the third-party costs directly attributable to the refinancing of our term loan and revolving credit facility.

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Adjusted EBIT for the Three Months Ended June 30, 2025

Q2 2025 EBIT Walk.jpg
For the three months ended June 30, 2025, net income increased by $23 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2025.
Adjusted EBIT increased by $1 million compared to the prior period, driven by $11 million of foreign currency impacts, $11 million of productivity, $4 million of commodity, transportation and energy deflation, and $1 million of higher volumes. These increases were partially offset by $25 million of unfavorable product mix and $2 million of lower pricing net of inflation pass-through.
During the three months ended June 30, 2025, diesel volume declined, driven by lower industry production in Europe and Aftermarket softness in off-highway applications in North America. These volume decreases were partially offset by favorable demand in gasoline due to new application launches and program ramp-ups in Europe, North America, and India.
The increased productivity from our ability to flex our variable cost structure while driving sustained fixed cost productivity was partially offset by year-over-year labor inflation.
Gains in foreign currency from translational, transactional, and hedging effects in the three months ended June 30, 2025, primarily driven by a higher Euro-to-U.S. dollar versus the prior period, accounted for a $11 million increase in Adjusted EBIT.
Adjusted EBIT for the Six Months Ended June 30, 2025

YTD Q2 2025 EBIT Walk.jpg
For the six months ended June 30, 2025, net income increased by $19 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2025.
Adjusted EBIT increased by $11 million compared to the prior year, mainly from $29 million of operational productivity, net of labor inflation and repositioning costs, $13 million of commodity, transportation, and energy deflation, $4 million of favorable foreign exchange impacts and $2 million price net of inflation pass through. These increases were partially offset by $32 million unfavorable product mix and $6 million of lower sales volume from diesel and aftermarket products.
During the six months ended June 30, 2025, diesel volume declined, driven by impact of lower industry production mainly in Europe and Aftermarket Off-highway applications in North America. These volume decreases were partially
32



offset by favorable demand in gasoline driven by new application launches and program ramp-ups in Europe, North America and India.
The increased productivity from our ability to flex our variable cost structure while driving sustained fixed cost productivity was partially offset by year-over-year labor inflation.

Liquidity and Capital Resources
Overview
June 30,
2025
December 31,
2024
 (Dollars in millions)
Cash and cash equivalents$232 $125 
Restricted cash
Revolving Facility - available borrowing capacity630 600 
Revolving Facility - borrowings or letters of credit outstanding— — 
Term Loan Facilities - principal outstanding690 692 
Senior Notes - principal outstanding800 800 
Bilateral letter of credit facility - utilized capacity
On January 30, 2025, the Company entered into the Restatement Agreement, which amends and restates the Existing Credit Agreement, under which the Company refinanced in full its $692 million 2021 Dollar Term Facility with a new 2025 Dollar Term Facility in an aggregate principal amount of $692 million. The 2025 Dollar Term Facility will mature on January 30, 2032, and bear interest at a spread equal to, at the Company's option, the Adjusted Term SOFR Rate plus 2.25% per annum in the case of Term Benchmark Loans and the Alternate Base Rate plus 1.25% per annum in the case of ABR Loans. The Company also replaced its existing $600 million revolving facility under the Existing Credit Agreement with the New Revolving Facility under the Credit Agreement in an aggregate principal amount of $630 million. The maturity date of the New Revolving Facility is January 30, 2030.
We employ several means to manage our liquidity, and our sources of financing include cash flows from operations, cash and cash equivalents on hand, the 2032 Senior Notes, and our Credit Agreement, including our 2025 Dollar Term Facility and our New Revolving Facility. We expect to continue investing in our facilities as we expand our manufacturing capacity for new product launches and invest in new technologies and strategic growth opportunities, in particular in connection with our zero-emission technologies. We believe the combination of expected cash flows, the term loan borrowings, the 2032 Senior Notes, and the New Revolving Facility being committed until 2030, will provide us with adequate liquidity to support the Company's operations.
Share Repurchase Program
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid from January 1, 2025, until December 31, 2025. During the six months ended June 30, 2025, the Company repurchased $52 million of Common Stock, with $198 million remaining under the share repurchase program as of that date. The Company may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. The Company is not obligated to purchase any shares under the share repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. For more information, see Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
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Cash Flow Summary for the Six Months Ended June 30, 2025
 
 
Six Months Ended
June 30,
 2025 2024
 (Dollars in millions)
Cash provided by (used for):   
Operating activities$214 $210 
Investing activities(26)18
Financing activities(89)(384)
Effect of exchange rate changes on cash and restricted cash8(5)
Net increase (decrease) in cash, cash equivalents and restricted cash
$107 $(161)
Cash provided by operating activities increased by $4 million for the six months ended June 30, 2025, versus the prior year. The increase was primarily driven by $22 million of favorable impacts from working capital changes and $19 million of higher net income, partially offset by a decrease of $16 million of non-cash charges, as well as $21 million of unfavorable impacts from changes in other assets and liabilities.
Cash flow used for investing activities decreased by $44 million for the six months ended June 30, 2025, compared to the same period in the prior year. The decrease was primarily driven by $46 million in proceeds from the sale of our unconsolidated joint venture realized in the prior year, along with $6 million in reduced proceeds from the cross currency swap. These impacts were partially offset by $8 million in lower capital expenditures on property, plant and equipment.
Cash used for financing activities was $89 million for the six months ended June 30, 2025, compared with $384 million in the prior year. During the six months ended June 30, 2025, we made debt repayments of $73 million, payments of $52 million for the repurchase of Common Stock under our share repurchase program and payments of $25 million for dividends on our Common Stock. These payments were partially offset by proceeds of $68 million from the Credit Facilities.
In comparison, cash used for financing activities was $384 million for the six months ended June 30, 2024 primarily driven by aggregate debt repayments of $989 million on our term loan facilities. We also made payments of $173 million for Common Stock repurchases, $7 million for debt issuance costs and $9 million for other financing activities. These payments were partially offset by proceeds of $794 million, net of deferred financing costs, from the issuance of our 2032 Senior Notes.

Off-Balance Sheet Arrangements
We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Critical Accounting Policies
The preparation of our Consolidated Interim Financial Statements in accordance with GAAP is based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. Actual results could differ from our estimates and assumptions, and any such differences could be material to our financial statements. Our critical accounting policies are summarized in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2024 Form 10-K.
Recent Accounting Pronouncements
See Note 2, Summary of Significant Accounting Policies of the Notes to the Consolidated Interim Financial Statements for further discussion of recent accounting pronouncements.
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Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q and the other reports filed by us with the SEC from time to time, as well as statements incorporated by reference herein and related comments by our management, contain forward-looking statements within the meaning of the U.S. federal securities laws. All statements other than statements of historical fact, including without limitation statements regarding our future results of operations and financial position, expectations regarding the growth of the turbocharger and electric vehicle markets and other industry trends, the sufficiency of our cash and cash equivalents, anticipated sources and uses of cash, anticipated investments in our business, our business strategy, pending litigation, anticipated interest expense, and the plans and objectives of management for future operations and capital expenditures are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of these terms or other similar expressions. In making these forward-looking statements, we rely on our current expectations and projections about possible future events and financial trends that we believe may affect our business, financial condition and results of operations. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among other things, risks related to the following: (1) the ongoing evolution of the automotive industry; (2) the highly competitive markets in which we operate; (3) our reliance on sales to major customers; (4) changing industry and economic conditions; (5) the unique aspects of our aftermarket business; (6) pricing pressures from our original equipment manufacturer customers; (7) the foreign markets in which we operate; (8) climate change and increased scrutiny from customers, investors, regulators and other stakeholders; (9) recruitment, development, and retention of qualified personnel; (10) program launch difficulties; (11) volatility in the cost of raw materials, components, energy, transportation, and other inputs; (12) supply shortages or supplier distress leading to a disruption of our operations; (13) realization of sales from awarded business; (14) economic, political, regulatory, foreign exchange and other risks of our international operations; (15) geopolitical conditions, catastrophic events and pandemics; (16) joint venture partnerships, joint development projects and other strategic opportunities; (17) intellectual property rights; (18) work stoppages or other disruptions at our facilities; (19) realization of productivity and efficiency improvements and repositioning projects; (20) warranty claims, product recalls, field actions or product liability actions; (21) litigation, government proceedings and other contingencies and uncertainties; (22) environmental matters and liabilities; (23) third-party licensing arrangements; (24) information technology and data privacy considerations, including cybersecurity and other security concerns; (25) our substantial indebtedness and restrictive covenants related to such indebtedness; (26) tax considerations; (27) our ability to raise capital; (28) our pension funding obligations; (29) concentration of ownership of our equity securities; or (30) payment of dividends and share repurchases. For a further discussion of these and other risks, refer to Part I, Item 1A. "Risk Factors" of our 2024 Form 10-K.
You should read this Quarterly Report and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from those envisioned by these forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise.


Item 3. Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2025, the net fair value of all financial instruments with exposure to currency risk was $177 million. The potential loss or gain in fair value for such financial instruments from a hypothetical 10% adverse or favorable change in quoted currency exchange rates would be $288 million and $(265) million, respectively, as of June 30, 2025, exchange rates. The model assumes a parallel shift in currency exchange rates; however, currency exchange rates rarely move in the same direction. The assumption that currency exchange rates change in a parallel fashion may overstate the impact of changing currency exchange rates on assets and liabilities denominated in currencies other than the U.S. dollar.
There have been no other material changes to the Company’s quantitative and qualitative disclosures about interest rate or commodity price risks as disclosed in Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risks, in our 2024 Form 10-K.

35



Item 4. Controls and Procedures
In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act. Based on management’s evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025.
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


36



PART II—OTHER INFORMATION
Item 1. Legal Proceedings
We are involved in various lawsuits, claims, and proceedings incident to the operation of our businesses, including those pertaining to product liability, product safety, environmental, safety and health, intellectual property, employment, commercial and contractual matters, and various other matters. Although the outcome of any such lawsuit, claim or proceeding cannot be predicted with certainty and some may be disposed of unfavorably to us, we do not currently believe that such lawsuits, claims, or proceedings will have a material adverse effect on our financial position, results of operations or cash flows. We accrue for potential liabilities in a manner consistent with accounting principles generally accepted in the United States. Accordingly, we accrue for a liability when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable.
For additional information regarding our legal proceedings, see the discussion under Note 19, Commitments and Contingencies of the Notes to the Consolidated Interim Financial Statements, which is incorporated by reference into this Part II, Item 1.

Item 1A. Risk Factors
There have been no material changes to the risks described under "Risk Factors” in our 2024 Form 10-K. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed under “Risk Factors” in our 2024 Form 10-K. These factors could materially adversely affect our business, financial condition, or results of operations, and could cause our actual results to differ materially from our historical results or the results contemplated by any forward-looking statements contained in this report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid from January 1, 2025, until December 31, 2025. The Company may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The following table summarizes our share repurchase activity for the three months ended June 30, 2025, and additional information regarding our share repurchase program:
Period
Total Number of Common Shares Purchased (1)
Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plan or ProgramApproximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program
April 1, 2025 – April 30, 20251,465,679 8.47 1,465,679 $207,749,711 
May 1, 2025 – May 31, 202549,907 9.95 49,907 207,253,171 
June 1, 2025 – June 30, 2025875,714 10.22 875,714 198,305,673 
Total2,391,300 $9.14 2,391,300 $198,305,673 
(1) Excludes shares withheld to satisfy tax withholding obligations in connection with the vesting of equity awards.
Other than the repurchases reflected in the table above, there were no purchases of equity securities by the issuer or affiliated purchasers during the quarter ended June 30, 2025.

Item 3. Defaults Upon Senior Securities
Not applicable.


37



Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information

Trading Agreements
During the three months ended June 30, 2025, no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading agreement" or "non-Rule 10b5-1 trading agreement," as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits
    Incorporated by Reference  
Exhibit
Number
 Description Form File No. Exhibit 
Filing
Date
 
Filed/ Furnished
Herewith
3.110-Q001-386363.107/25/2024
3.210-Q001-386363.207/25/2024
31.1          *
31.2          *
32.1**
32.2**
101
The following financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL) includes: (i) the Consolidated Interim Statements of Operations, (ii) the Consolidated Interim Statements of Comprehensive Income, (iii) the Consolidated Interim Balance Sheets, (iv) the Consolidated Interim Statements of Cash Flows, (v) the Consolidated Interim Statements of Equity (Deficit) and (vi) Notes to the Consolidated Interim Financial Statements
*
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*
*Filed herewith.
** Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Garrett Motion Inc.
Date: July 24, 2025
By:/s/ Olivier Rabiller
Olivier Rabiller
President and Chief Executive Officer
Date: July 24, 2025
By:/s/ Sean Deason
Sean Deason
Senior Vice President and Chief Financial Officer
39


Exhibit 31.1
CERTIFICATION
I, Olivier Rabiller, certify that:
1.    I have reviewed this Quarterly Report on Form 10-Q of Garrett Motion Inc.;
2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 24, 2025
By:/s/ Olivier Rabiller
Olivier Rabiller
President and Chief Executive Officer
(principal executive officer)
                                                                                                                                                                                                                                                


Exhibit 31.2
CERTIFICATION
I, Sean Deason, certify that:
1.    I have reviewed this Quarterly Report on Form 10-Q of Garrett Motion Inc.;
2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 24, 2025
By:
/s/ Sean Deason
Sean Deason
Senior Vice President and Chief Financial Officer
(principal financial officer)


Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Garrett Motion Inc. (the “Company”) for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 (1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 (2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date: July 24, 2025
 By:
/s/ Olivier Rabiller
   Olivier Rabiller
   
President and Chief Executive Officer
(principal executive officer)


Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Garrett Motion Inc. (the “Company”) for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 (1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 (2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 24, 2025
 By:
/s/ Sean Deason
   Sean Deason
   
Senior Vice President and Chief Financial Officer
(principal financial officer)


v3.25.2
Cover - shares
6 Months Ended
Jun. 30, 2025
Jul. 18, 2025
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Entity File Number 001-38636  
Entity Registrant Name Garrett Motion Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 82-4873189  
Entity Address, Address Line One La Pièce 16  
Entity Address, City or Town Rolle  
Entity Address, Postal Zip Code 1180  
Entity Address, Country CH  
City Area Code 1 734  
Local Phone Number 392 5500  
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol GTX  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   201,575,459
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001735707  
Current Fiscal Year End Date --12-31  
Other Address    
Document Information [Line Items]    
Entity Address, Address Line One 47548 Halyard Drive  
Entity Address, City or Town Plymouth  
Entity Address, Postal Zip Code 48170  
Entity Address, State or Province MI  
City Area Code 41  
Local Phone Number 21 695 30 00  

v3.25.2
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Statement [Abstract]        
Net sales (Note 3) $ 913 $ 890 $ 1,791 $ 1,805
Cost of goods sold 732 705 1,431 1,448
Gross profit 181 185 360 357
Selling, general and administrative expenses 59 61 118 125
Other expense, net 1 3 8 4
Interest expense 25 62 54 93
Gain on sale of equity investment 0 (27) 0 (27)
Non-operating income, net (6) (1) (7) (6)
Income before taxes 102 87 187 168
Tax expense (Note 5) 15 23 38 38
Net income $ 87 $ 64 $ 149 $ 130
Earnings per common share        
Earnings per common share, basic (in USD per share) $ 0.43 $ 0.29 $ 0.73 $ 0.56
Earnings per common share, diluted (in USD per share) $ 0.42 $ 0.28 $ 0.72 $ 0.56
Weighted average common shares outstanding        
Weighted average common shares outstanding, basic (in shares) 202,672,945 224,321,948 203,886,530 230,493,039
Weighted average common shares outstanding, diluted (in shares) 205,255,033 225,898,814 206,433,975 232,455,083

v3.25.2
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net income $ 87 $ 64 $ 149 $ 130
Foreign exchange translation adjustment (59) 0 (88) 18
Defined benefit pension plan adjustment, net of tax 0 2 0 3
Changes in fair value of effective cash flow hedges, net of tax (Note 16) 17 (2) 19 1
Changes in fair value of net investment hedges, net of tax (Note 16) (128) 8 (163) 27
Total other comprehensive (loss) income, net of tax (170) 8 (232) 49
Comprehensive (loss) income $ (83) $ 72 $ (83) $ 179

v3.25.2
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 232 $ 125
Restricted cash 1 1
Accounts, notes and other receivables – net (Note 6) 721 687
Inventories – net (Note 8) 287 286
Other current assets 122 94
Total current assets 1,363 1,193
Investments and long-term receivables 11 10
Property, plant and equipment – net 458 449
Goodwill 193 193
Deferred income taxes 241 207
Other assets (Note 9) 137 224
Total assets 2,403 2,276
Current liabilities:    
Accounts payable 1,005 972
Current maturities of long-term debt (Note 14) 7 7
Accrued liabilities (Note 11) 307 299
Total current liabilities 1,319 1,278
Long-term debt (Note 14) 1,460 1,464
Deferred income taxes 56 25
Other liabilities (Note 12) 380 182
Total liabilities 3,215 2,949
COMMITMENTS AND CONTINGENCIES (Note 19)
EQUITY (DEFICIT)    
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000 shares authorized, 242,405,426 and 240,987,329 issued and 201,727,919 and 206,387,938 outstanding as of June 30, 2025 and December 31, 2024, respectively 0 0
Additional paid–in capital 1,226 1,213
Retained deficit (1,517) (1,653)
Accumulated other comprehensive (loss) income (Note 17) (159) 73
Treasury Stock, at cost; $40,677,507 and 34,599,391 shares as of June 30, 2025 and December 31, 2024, respectively (Note 15) (362) (306)
Total deficit (812) (673)
Total liabilities and deficit $ 2,403 $ 2,276

v3.25.2
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares
Jun. 30, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares, issued (in shares) 242,405,426 240,987,329
Common stock, shares, outstanding (in shares) 201,727,919 206,387,938
Treasury stock, common (in shares) 40,677,507 34,599,391

v3.25.2
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash flows from operating activities:    
Net income $ 149 $ 130
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes (3) 14
Depreciation 45 44
Amortization of deferred issuance costs 3 33
Gain on sale of equity investment 0 (27)
Foreign exchange (gain) loss (65) 13
Stock compensation expense 13 13
Pension expense 1 1
Unrealized loss on derivatives 81 1
Other 4 3
Changes in assets and liabilities:    
Accounts, notes and other receivables 8 50
Inventories 20 (24)
Other assets (7) 17
Accounts payable (13) (33)
Accrued liabilities (44) (5)
Other liabilities 22 (20)
Net cash provided by operating activities 214 210
Cash flows from investing activities:    
Expenditures for property, plant and equipment (41) (49)
Proceeds from cross-currency swap contracts 15 21
Proceeds from sale of equity investment 0 46
Net cash (used for) provided by investing activities (26) 18
Cash flows from financing activities:    
Proceeds from issuance of long-term debt, net of debt financing costs 68 794
Payments of long-term debt (73) (989)
Repurchases of Common Stock (52) (173)
Excise tax on Common Stock repurchase (3) 0
Dividend payments (25) 0
Payments for debt and revolving facility financing costs (2) (7)
Other (2) (9)
Net cash used for financing activities (89) (384)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 8 (5)
Net increase (decrease) in cash, cash equivalents and restricted cash 107 (161)
Cash, cash equivalents and restricted cash at beginning of the period 126 260
Cash, cash equivalents and restricted cash at end of the period 233 99
Supplemental cash flow disclosure:    
Income taxes paid (net of refunds) 37 27
Interest paid $ 46 $ 42

v3.25.2
CONSOLIDATED INTERIM STATEMENTS OF EQUITY (DEFICIT) (UNAUDITED) - USD ($)
$ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Deficit
Accumulated Other Comprehensive Income / (Loss)
Beginning balance (in shares) at Dec. 31, 2023 [1]   238,000,000        
Beginning balance at Dec. 31, 2023 $ (735) $ 0 $ 0 $ 1,190 $ (1,922) $ (3)
Beginning balance (in shares) at Dec. 31, 2023     0      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 66       66  
Stock repurchased (in shares)     12,000,000      
Share repurchases (109)   $ (109)      
Excise tax on share repurchases (1)   $ (1)      
Shares issued under stock plan, net of shares withheld for employee taxes (in shares)   2,000,000 [1] 1,000,000      
Shares issued under stock plan, net of shares withheld for employee taxes (5)   $ (5)      
Other comprehensive income/(loss), net of tax 41         41
Stock-based compensation 8     8    
Ending balance (in shares) at Mar. 31, 2024 [1]   240,000,000        
Ending balance at Mar. 31, 2024 (735) $ 0 $ (115) 1,198 (1,856) 38
Ending balance (in shares) at Mar. 31, 2024     13,000,000      
Beginning balance (in shares) at Dec. 31, 2023 [1]   238,000,000        
Beginning balance at Dec. 31, 2023 (735) $ 0 $ 0 1,190 (1,922) (3)
Beginning balance (in shares) at Dec. 31, 2023     0      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 130          
Other comprehensive income/(loss), net of tax 49          
Ending balance (in shares) at Jun. 30, 2024 [1]   241,000,000        
Ending balance at Jun. 30, 2024 (725) $ 0 $ (182) 1,203 (1,792) 46
Ending balance (in shares) at Jun. 30, 2024     20,000,000      
Beginning balance (in shares) at Mar. 31, 2024 [1]   240,000,000        
Beginning balance at Mar. 31, 2024 (735) $ 0 $ (115) 1,198 (1,856) 38
Beginning balance (in shares) at Mar. 31, 2024     13,000,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 64       64  
Stock repurchased (in shares)     7,000,000      
Share repurchases (65)   $ (65)      
Excise tax on share repurchases (1)   (1)      
Shares issued under stock plan, net of shares withheld for employee taxes (in shares) [1]   1,000,000        
Shares issued under stock plan, net of shares withheld for employee taxes (1)   (1)      
Other comprehensive income/(loss), net of tax 8         8
Stock-based compensation 5     5    
Ending balance (in shares) at Jun. 30, 2024 [1]   241,000,000        
Ending balance at Jun. 30, 2024 (725) $ 0 $ (182) 1,203 (1,792) 46
Ending balance (in shares) at Jun. 30, 2024     20,000,000      
Beginning balance (in shares) at Dec. 31, 2024 [1]   241,000,000        
Beginning balance at Dec. 31, 2024 $ (673) $ 0 $ (306) 1,213 (1,653) 73
Beginning balance (in shares) at Dec. 31, 2024 34,599,391   35,000,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 62       62  
Stock repurchased (in shares)     3,000,000      
Share repurchases (30)   $ (30)      
Shares issued under stock plan, net of shares withheld for employee taxes (in shares) [1]   1,000,000        
Shares issued under stock plan, net of shares withheld for employee taxes (3)   (3)      
Other comprehensive income/(loss), net of tax (62)         (62)
Stock-based compensation 6     6    
Ending balance (in shares) at Mar. 31, 2025 [1]   242,000,000        
Ending balance at Mar. 31, 2025 (700) $ 0 $ (339) 1,219 (1,591) 11
Ending balance (in shares) at Mar. 31, 2025     38,000,000      
Beginning balance (in shares) at Dec. 31, 2024 [1]   241,000,000        
Beginning balance at Dec. 31, 2024 $ (673) $ 0 $ (306) 1,213 (1,653) 73
Beginning balance (in shares) at Dec. 31, 2024 34,599,391   35,000,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 149          
Share repurchases (52)          
Other comprehensive income/(loss), net of tax (232)          
Ending balance (in shares) at Jun. 30, 2025 [1]   242,000,000        
Ending balance at Jun. 30, 2025 $ (812) $ 0 $ (362) 1,226 (1,517) (159)
Ending balance (in shares) at Jun. 30, 2025 40,677,507   41,000,000      
Beginning balance (in shares) at Mar. 31, 2025 [1]   242,000,000        
Beginning balance at Mar. 31, 2025 $ (700) $ 0 $ (339) 1,219 (1,591) 11
Beginning balance (in shares) at Mar. 31, 2025     38,000,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 87       87  
Stock repurchased (in shares)     3,000,000      
Share repurchases (22)   $ (22)      
Shares issued under stock plan, net of shares withheld for employee taxes (1)   (1)      
Other comprehensive income/(loss), net of tax (170)         (170)
Dividends (13)       (13)  
Stock-based compensation 7     7    
Ending balance (in shares) at Jun. 30, 2025 [1]   242,000,000        
Ending balance at Jun. 30, 2025 $ (812) $ 0 $ (362) $ 1,226 $ (1,517) $ (159)
Ending balance (in shares) at Jun. 30, 2025 40,677,507   41,000,000      
[1] Common shares issued less treasury shares equals common shares outstanding

v3.25.2
Background and Basis of Presentation
6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation
Note 1. Background and Basis of Presentation
Background
Garrett Motion Inc. (the “Company” or “Garrett”) is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency. We design, manufacture, and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers (“OEMs”) and distributors within the mobility and industrial space. We have significant expertise in delivering products at scale for internal combustion engines using gasoline, diesel, natural gas, and hydrogen, as well as for zero-emission technologies using hydrogen fuel cell systems, both for mobility and industrial use. As our customers continue to progress on electrification, we are applying our technological pillars to develop highly engineered E-Powertrain and E-Cooling compressor products to support their ambition. These products are key enablers for fuel economy, energy efficiency, thermal management, and compliance with emissions standards and overall greenhouse gas and other emission reduction targets.
Basis of Presentation
The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2024 included in our Annual Report on Form 10-K, as filed with the SEC on February 20, 2025 (our “2024 Form 10-K”). The results of operations for the three and six months ended June 30, 2025 and cash flows for the six months ended June 30, 2025 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts.
We evaluate segment reporting in accordance with ASC 280, Segment Reporting. We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies.
The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.

v3.25.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 2. Summary of Significant Accounting Policies
The accounting policies of the Company are set forth in Note 3 to the Consolidated Financial Statements for the year ended December 31, 2024 included in our 2024 Form 10-K.
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update increase the transparency around income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted the new guidance prospectively as of January 1, 2025.
Accounting Standards Issued But Not Yet Adopted
In March 2024, the SEC adopted a final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize climate-related disclosures. The rule will require companies to disclose material Scope 1 and Scope 2 greenhouse gas emissions; climate-related risks, governance, and oversight; and the financial effects of severe weather events and other natural conditions. These disclosures are required to be phased in starting with annual reporting periods beginning in 2025; however, this rule has been stayed pending the outcome of legal challenges, and on March 27, 2025, the SEC withdrew its legal defense of the rule. The Company is currently evaluating the guidance to determine the impact of adoption on its disclosures in the event that the stay is lifted.
In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure of specified information about certain costs and expenses. The guidance is effective for fiscal years beginning after December 15, 2026 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures.
There are no other recently issued, but not yet adopted, accounting pronouncements that are expected to have a material impact on the Company's Consolidated Interim Financial Statements and related disclosures.

v3.25.2
Revenue Recognition and Contracts with Customers
6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Contracts with Customers
Note 3. Revenue Recognition and Contracts with Customers
Disaggregated Revenue
Net sales by region (determined based on country of shipment) and channel is included in Note 21, Segments and Concentrations.
Contract Balances
The following table summarizes our contract assets and liabilities balances:
 20252024
 (Dollars in millions)
Contract assets—January 1$40 $38 
Contract assets—June 30
51 51 
Change in contract assets—Increase/(Decrease)$11 $13 
Contract liabilities—January 1$(8)$(11)
Contract liabilities—June 30
(15)(14)
Change in contract liabilities—Decrease/(Increase)$(7)$(3)

v3.25.2
Research, Development and Engineering
6 Months Ended
Jun. 30, 2025
Research and Development [Abstract]  
Research, Development and Engineering
Note 4. Research, Development and Engineering
Garrett conducts research, development, and engineering (“RD&E”) activities, which consist primarily of the development of new products and product applications. RD&E costs are charged to expense as incurred unless the Company has a contractual guarantee for reimbursement from the customer. Customer reimbursements are netted against gross RD&E expenditures as they are considered a recovery of cost. Such costs are included in Cost of goods sold as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Research and development costs$47 $46 $90 $89 
Engineering-related expenses, net of customer (reimbursements) (1)
(2)(5)(5)(4)
$45 $41 $85 $85 
(1)    Engineering-related expenses include customer reimbursements of $13 million and $16 million for the three months ended June 30, 2025 and 2024, respectively, and $25 million and $24 million for the six months ended June 30, 2025 and 2024, respectively.
Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a contractual guarantee for reimbursement, are met. As of June 30, 2025 and December 31, 2024, $40 million and $29 million, respectively, of such contractually reimbursable costs were capitalized. These amounts are recorded within Other current assets in the Consolidated Interim Balance Sheet.

v3.25.2
Income Taxes
6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 5. Income Taxes
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Tax expense$15 $23 $38 $38 
Effective tax rate14.7 %26.4 %20.3 %22.6 %

The effective tax rates for the three months ended June 30, 2025 and 2024 were 14.7% and 26.4%, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024 were 20.3% and 22.6%, respectively.

The change in the effective tax rate for the three months ended June 30, 2025 compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations.

The change in the effective tax rate for the six months ended June 30, 2025 compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations and additional tax reserve positions in the current year.

The effective tax rate for the three months ended June 30, 2025 was lower than the U.S. federal statutory rate of 21% as a result of a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by U.S. taxes on international operations.

The effective tax rate for the six months ended June 30, 2025 was lower than the U.S. federal statutory rate of 21% as a result of a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by U.S. taxes on international operations and additional tax reserve positions.

v3.25.2
Accounts, Notes and Other Receivables-Net
6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Accounts, Notes and Other Receivables-Net
Note 6. Accounts, Notes and Other Receivables—Net

June 30,
2025
December 31,
2024
(Dollars in millions)
Trade receivables
$606 $521 
Notes receivable
67 96 
Other receivables
53 74 
726 691 
Less—Allowance for expected credit losses
(5)(4)
$721 $687 
Trade receivables include $51 million and $40 million of unbilled customer contract asset balances as of June 30, 2025 and December 31, 2024, respectively. These amounts are billed in accordance with the terms of customer contracts to which they relate. See Note 3, Revenue Recognition and Contracts with Customers.
Notes receivable is related to guaranteed bank notes without recourse that the Company receives in settlement of accounts receivables, primarily in the Asia Pacific region. See Note 7, Factoring and Notes Receivable.
Other receivables includes VAT receivables of $41 million and $50 million as of June 30, 2025 and December 31, 2024, respectively.

v3.25.2
Factoring and Notes Receivable
6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Factoring and Notes Receivable
Note 7. Factoring and Notes Receivable
The Company enters into arrangements with financial institutions to sell eligible trade receivables. The receivables are sold without recourse and the Company accounts for these arrangements as true sales. The Company also receives guaranteed bank notes without recourse, in settlement of accounts receivables, primarily in the Asia Pacific region. The Company can hold the bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Bank notes sold to third-party financial institutions without recourse are likewise accounted for as true sales.
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Eligible receivables sold without recourse$190$240$342$402
Guaranteed bank notes sold without recourse80529652
The expenses related to the sale of trade receivables and guaranteed bank notes are recognized within Other expense, net in the Consolidated Interim Statements of Operations, and were $1 million for the three months ended June 30, 2025 and 2024, respectively, and $2 million for the six months ended June 30, 2025 and 2024, respectively.
June 30,
2025
December 31,
2024
(Dollars in millions)
Receivables sold but not yet collected by the bank from the customer$$
Guaranteed bank notes sold but not yet collected by the bank from the customer43 — 
As of June 30, 2025 and December 31, 2024, the Company had no guaranteed bank notes pledged as collateral.

v3.25.2
Inventories-Net
6 Months Ended
Jun. 30, 2025
Inventory Disclosure [Abstract]  
Inventories-Net
Note 8. Inventories—Net
June 30,
2025
December 31,
2024
(Dollars in millions)
Raw materials$231 $230 
Work in process22 18 
Finished products78 79 
 331 327 
Less—Reserves(44)(41)
$287 $286 

v3.25.2
Other Assets
6 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
Note 9. Other Assets
June 30,
2025
December 31,
2024
(Dollars in millions)
Advanced discounts to customers, non-current$25 $29 
Operating right-of-use assets (Note 13)
54 52 
Income tax receivable21 21 
Pension and other employee related26 23 
Derivatives designated as net investment hedges (Note 16)
70 
Designated and undesignated derivatives (Note 16)
— 20 
Other
$137 $224 

v3.25.2
Supplier Financing
6 Months Ended
Jun. 30, 2025
Payables and Accruals [Abstract]  
Supplier Financing
Note 10. Supplier Financing
The Company has supplier financing arrangements with two third-party financial institutions under which certain suppliers may factor their receivables from Garrett. The Company also enters into arrangements with banking institutions to issue bankers acceptance drafts in settlement of accounts payables, primarily in the Asia Pacific region. The bankers acceptance drafts, or guaranteed bank notes, have a contractual maturity of six months or less, and may be held by suppliers until maturity, transferred to their suppliers, or discounted with financial institutions in exchange for cash. The supplier financing obligations and guaranteed bank notes outstanding are recorded within Accounts payable in our Consolidated Interim Balance Sheet.
June 30,
2025
December 31,
2024
(Dollars in millions)
Supplier financing obligations outstanding with financial institutions$76 $64 
Guaranteed bank notes outstanding154 141 

v3.25.2
Accrued Liabilities
6 Months Ended
Jun. 30, 2025
Accrued Liabilities, Current [Abstract]  
Accrued Liabilities
Note 11. Accrued Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Customer pricing reserve$85 $77 
Compensation, benefit and other employee related70 74 
Repositioning11 12 
Product warranties and performance guarantees - short-term (Note 19)
15 15 
Income and other taxes29 32 
Customer advances and deferred income (1)
24 16 
Accrued interest13 14 
Short-term lease liability (Note 13)
13 11 
Accrued freight11 
Dividends declared— 12 
Designated and undesignated derivatives (Note 16)
22 
Environmental reserve
Other (primarily operating expenses)
13 
 307 299 
(1)Customer advances and deferred income include $15 million and $8 million of contract liabilities as of June 30, 2025 and December 31, 2024, respectively. See Note 3, Revenue Recognition and Contracts with Customers.
The Company accrues repositioning costs related to projects to optimize its product costs and right-size our organizational structure. Expenses related to the repositioning accruals are included in Cost of goods sold and Selling, general and administrative expenses in our Consolidated Interim Statements of Operations.
The following tables summarize the activity in our repositioning accrual:
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2024
$12 $— $12 
Charges— 
Usage—cash(6)— (6)
Balance at June 30, 2025
$11 $— $11 
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2023
$$— $
Charges12 — 12 
Usage—cash(12)— (12)
Balance at June 30, 2024
$$— $

v3.25.2
Other Liabilities
6 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Other Liabilities
Note 12. Other Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Income taxes$90 $79 
Designated and undesignated derivatives (Note 16)
189 
Pension and other employee related18 18 
Long-term lease liability (Note 13)
43 42 
Advanced discounts from suppliers
Product warranties and performance guarantees – long-term (Note 19)
Environmental remediation – long term11 10 
Long-term accounts payable
Asset retirement obligation
Other
380 182 

v3.25.2
Leases
6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases
Note 13. Leases
We have operating leases that primarily consist of real estate, machinery, and equipment. As of June 30, 2025, the Company does not have any material finance leases. Our leases have remaining lease terms of up to 13 years, some of which include options to extend the leases for up to two years, and some of which include options to terminate the leases within the year.
The components of lease expense are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Operating lease cost$5$4$9$7
Short-term lease cost11
Total lease cost$6$4$10$7
Supplemental cash flow information related to operating leases is as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases
$$$$
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
Supplemental balance sheet information related to operating leases is as follows:
June 30,
2025
December 31,
2024
(Dollars in millions)
Other assets$54 $52 
Accrued liabilities13 11 
Other liabilities43 42 
 June 30,
2025
December 31, 2024
Weighted-average remaining lease term (in years)6.646.89
Weighted-average discount rate6.53 %6.71 %

Maturities of operating lease liabilities as of June 30, 2025 were as follows:
(Dollars in millions)
2025$
202614 
202712 
2028
2029
Thereafter18 
Total lease payments66 
Less imputed interest(10)
$56 

v3.25.2
Long-term Debt and Credit Agreements
6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Long-term Debt and Credit Agreements
Note 14. Long-Term Debt and Credit Agreements
Senior Notes
On May 21, 2024, Garrett Motion Holdings Inc. and Garrett LX I S.à.r.l. (the "Issuers"), wholly owned subsidiaries of the Company, completed an offering of $800 million in aggregate principal amount of 7.75% Senior Unsecured Notes due 2032 (the "2032 Senior Notes"). The 2032 Senior Notes mature on May 31, 2032. The Company incurred $12 million of debt issuance costs, which have been capitalized and will be amortized on a straight-line basis.
The 2032 Senior Notes are guaranteed by the Company and each of the Company's wholly owned subsidiaries that guarantee obligations under the Credit Agreement (as defined below), subject to certain exceptions. The proceeds from the sale of the 2032 Senior Notes, together with cash on hand, were used to repay approximately $800 million of term loan indebtedness and to pay related fees and expenses. The 2032 Senior Notes bear interest at a rate of 7.75% per annum. Interest on the 2032 Senior Notes is payable semi-annually in arrears on May 31 and November 30 of each year, commencing on November 30, 2024.
The 2032 Senior Notes indenture contains certain covenants that limit the ability of the Company and its restricted subsidiaries to incur certain additional debt, incur certain liens securing debt, pay certain dividends or make other restricted payments, make certain investments, make certain asset sales, and enter into certain transactions with affiliates. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the 2032 Senior Notes indenture. Additionally, the indenture contains certain change of control provisions that, under certain conditions, would require the Company to make an offer to repurchase all of the outstanding 2032 Senior Notes at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest. The indenture also contains customary events of default.
Credit Facilities
On January 30, 2025, the Company entered into that certain Restatement Agreement (the "Restatement Agreement"), which amends and restates that certain Credit Agreement, dated as of April 30, 2021 (as amended from time to time, the "Existing Credit Agreement" and as amended and restated by the Restatement Agreement, the "Credit Agreement"), by and among the Company, Garrett Motion Holdings Inc., Garrett Motion Sàrl and Garrett LX I S.à.r.l., as borrowers (the "Borrowers"), the lenders and issuing banks part thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent. Under the Restatement Agreement, the Company refinanced in full its $692 million U.S. Dollar term loan facility (the "2021 Dollar Term Facility") under the Existing Credit Agreement with a new $692 million term loan (the "2025 Dollar Term Facility") in an aggregate principal amount of $692 million. The 2025 Dollar Term Facility will mature on January 30, 2032, and bear interest at a rate equal to, at the Company's option, the Adjusted Term SOFR Rate (as defined in the Restatement Agreement) plus 2.25% per annum in the case of Term Benchmark Loans (as defined in the Restatement Agreement) and the Alternate Base Rate (as defined in the Restatement Agreement) plus 1.25% per annum in the case of ABR Loans (as defined in the Restatement Agreement).
Also on January 30, 2025, pursuant to the Restatement Agreement, the Company replaced its existing $600 million revolving commitments under the Existing Credit Agreement with new revolving commitments under the Credit Agreement in an aggregate principal amount of $630 million (the "New Revolving Facility" and, together with the New Term Loans, the "Credit Facilities"). The maturity date of the New Revolving Facility is January 30, 2030. The New Revolving Facility, when drawn, will bear interest at a rate equal to the applicable benchmark plus an applicable margin that varies based on the Company's leverage ratio. The applicable margin for revolving borrowings ranges from 2.25% to 1.75% per annum in the case of Term Benchmark Loans and 1.25% to 0.75% per annum in the case of ABR Loans. In addition to paying interest on outstanding borrowings under the New Revolving Facility, the Company must also pay a quarterly commitment fee based on the average daily unused portion of the New Revolving Facility during such quarter, which is determined by its leverage ratio and ranges from 0.25% to 0.50% per annum.
The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The Credit Agreement also contains certain customary events of default. The New Revolving Facility is subject to a financial covenant requiring the maintenance of a consolidated total leverage ratio of not greater than 4.7 to 1.00 as of the end of each fiscal quarter if, on the last day of any such fiscal quarter, the aggregate amount of loans and letters of credit (excluding backstopped or cash collateralized letters of credit and other letters of credit with an aggregate face amount not exceeding $30 million) outstanding under the New Revolving Facility exceeds 35% of the aggregate commitments in effect thereunder on such date. The Credit Facilities are secured on a first-priority basis by: (1) a perfected security interest in the equity interests of each direct material subsidiary of each guarantor under the Credit Facilities and (ii) perfected security interests in, and mortgages on, substantially all tangible and intangible personal property and material real property of each
of the guarantors under the Credit Facilities, subject, in each case, to certain exceptions and limitations, including the agreed guaranty and security principles.
As of June 30, 2025, the Company was in compliance with all covenants under the 2032 Senior Notes indenture and Credit Agreement.
The principal outstanding and carrying amounts of our long-term debt as of June 30, 2025 and December 31, 2024 are as follows:
 Due Interest Rate June 30,
2025
December 31,
2024
2021 Dollar Term Facility4/30/2028
SOFR plus 275 bps
$— $692 
2025 Dollar Term Facility1/30/2032
SOFR plus 225 bps
690 — 
2032 Senior Notes 5/31/20327.75%800 800 
Other
Total principal outstanding1,491 1,493 
Less: unamortized deferred financing costs(24)(22)
Less: current portion of long-term debt(7)(7)
Total long-term debt$1,460 $1,464 
Separate from the Revolving Facility, the Company has a bilateral letter of credit facility with outstanding letters of credit in the amount of $8 million at June 30, 2025 and December 31, 2024, respectively. The letters of credit typically support customs arrangements and other obligations at our local affiliates.
Minimum scheduled principal repayments of long-term debt as of June 30, 2025 are as follow:
June 30,
2025
(Dollars in millions)
2025$
2026
2027
2028
2029
Thereafter1,458 
Total debt payments$1,491 

v3.25.2
Equity
6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Equity
Note 15. Equity
Common Stock
On December 5, 2024, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on January 31, 2025, to shareholders of record as of January 15, 2025. The total amount of dividends paid on January 31, 2025 amounted to $12 million.
On May 1, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on June 16, 2025, to shareholders of record as of June 2, 2025. The total amount of dividends paid on June 16, 2025 amounted to $13 million.
Treasury Stock
Treasury stock represents shares of the Company's Common Stock that have been issued and subsequently repurchased by the Company or withheld to satisfy withholding tax obligations in connection with the vesting of equity awards, and that have not been retired or cancelled. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of Equity (Deficit) on the Consolidated Interim Balance Sheet. The Company
accounts for the reissuance of treasury stock using the average cost method. The Company did not reissue or retire any shares of treasury stock during the three and six months ended June 30, 2025.
Share Repurchase Program
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid January 1, 2025 until December 31, 2025. The Company may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. During the six months ended June 30, 2025, the Company repurchased $52 million of Common Stock, and had $198 million remaining under the share repurchase program as of that date. The repurchased shares are held as treasury stock.

v3.25.2
Financial Instruments and Fair Value Measures
6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments and Fair Value Measures
Note 16. Financial Instruments and Fair Value Measures
Our credit, market, and foreign currency risk management policies are described in Note 19, Financial Instruments and Fair Value Measures, to the Consolidated Financial Statements for the year ended December 31, 2024 included in our 2024 Form 10-K. As of June 30, 2025 and December 31, 2024, we had contracts with aggregate gross notional amounts of $973 million and $928 million, respectively, to hedge foreign currencies, principally the U.S. Dollar, Swiss Franc, British Pound, Euro, Chinese Yuan, Japanese Yen, Mexican Peso, New Romanian Leu, Czech Koruna, Australian Dollar, and Korean Won.
Fair Value of Financial Instruments
The FASB’s accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:
Fair Value
Notional AmountsAssetsLiabilities
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
Designated instruments:
Designated forward currency exchange contracts$520 $331 $15 $(a)$13 $(c)
Designated cross-currency swaps2,040 1,515 82 (b)173 — (d)
Designated interest-rate swaps675 — — — 16 — (d)
Total designated instruments3,235 1,846 17 86 202 
Undesignated instruments:
Undesignated interest rate swaps— 470 — (b)— (d)
Undesignated forward currency exchange contracts453 597 (a)(c)
Total undesignated instruments453 1,067 18 
Total designated and undesignated instruments$3,688 $2,913 $18 $104 $211 $11 
(a) Recorded within Other current assets
(b) Recorded within Other assets
(c) Recorded within Accrued liabilities
(d) Recorded within Other liabilities
Cash Flow Hedges
During 2023, the Company entered into float-to-fixed interest rate swap contracts with an aggregate notional amount of $200 million and maturities in July 2024 and October 2024. The Company also entered into a float-to-fixed cross-currency swap contract comprised of an amortizing swap with an aggregate notional amount of €280 million ($300 million) and notional exchanges in June 2026, June 2027, and June 2028. The interest rate swap and cross-currency swap contracts were early settled in the second quarter of 2024, resulting in net gains of $18 million recorded to Interest expense and a $4 million loss recorded to Non-operating expense in the Consolidated Interim Statement of Operations.
During 2025, the Company entered into float-to-fixed interest rate swap contracts with an aggregate notional amount of $675 million and maturities in January 2027, January 2028, January 2029, January 2030 and January 2031. Changes in the fair value of the interest rate swap contracts are recorded in Accumulated Other Comprehensive Income ("AOCI") and will be reclassified to Interest expense in the Consolidated Interim Statement of Operations upon maturity.
The Company also has outstanding forward currency exchange contracts with maturities up to 18 months and an aggregate notional amount of $520 million and $331 million as of June 30, 2025 and December 31, 2024, respectively. These forward currency exchange contracts have been designated as cash flow hedges to mitigate foreign currency exposures primarily on our inventory purchases and manufacturing costs. The gains and losses on the forward currency exchange contracts are recorded in AOCI and reclassified to Cost of goods sold in the Consolidated Interim Statement of Operations when the underlying transactions are recognized in earnings.
In order to mitigate foreign currency risk on its 2032 Senior Notes, the Company entered into fixed-to-fixed cross-currency swap contracts with an aggregate notional amount of €507 million ($550 million) and notional exchanges occurring in May 2027, May 2028, May 2029, and May 2030. Changes in the fair value of the cross-currency swap contracts are recognized in AOCI and reclassified to Non-operating (income) expense in the Consolidated Interim Statement of Operations, based upon changes in the spot rate remeasurement of the underlying debt. The net interest settlements on the cross-currency swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations.
All of the Company's cash flow hedges are assessed as highly effective.
Net Investment Hedges
The Company has designated cross-currency swaps with aggregate notional amounts of €1,381 million ($1,490 million) and €858 million ($965 million) as of June 30, 2025 and December 31, 2024, respectively, as net investment hedges of its Euro-denominated operations. Changes in the fair value of the net investment hedges are recorded in AOCI until the net investment is liquidated or sold. The fair values of the net investment hedges were a net liability of $123 million and a net asset of $70 million as of June 30, 2025 and December 31, 2024, respectively. No ineffectiveness has been recorded on the net investment hedges.
Non-Designated Derivatives
As of December 31, 2024, the Company had outstanding float-to-fixed interest rate swap contracts with an aggregate notional amount of €450 million ($470 million) and maturities of April 2025, April 2026, April 2027, and April 2028. Changes in the fair value of the undesignated interest rate swap contracts are recorded in Interest expense in the Consolidated Interim Statements of Operations. These interest rate swap contracts were early settled in 2025.
The Company also has outstanding forward currency exchange contracts with maturities generally up to 3 months and an aggregate notional amount of $453 million and $597 million as of June 30, 2025 and December 31, 2024, respectively. Changes in the fair value of the forward currency exchange contracts are recorded in Non-operating (income) expense in the Consolidated Interim Statements of Operations.
Effect of Derivatives on the Statements of Operations and Statements of Comprehensive Income (Loss)
The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges and net investment hedges had on OCI, AOCI and earnings:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Cash flow hedges
  Gain (loss) reclassified from AOCI to
   income:
     Cost of goods sold$— $(2)$— $(4)
     Interest expense (1)
(4)(4)(1)
     Non-operating income (2)
45 (6)64 (13)
  Gain (loss) recognized in other comprehensive
   income (loss)
(8)(3)(8)
Net investment hedges
  Gain (loss) recognized in other comprehensive
   income (loss)
(134)10 (178)33 
(1) Includes a settlement loss of $3 million for the three and six months ended June 30, 2024, respectively.
(2) Includes a settlement loss of $4 million for the three and six months ended June 30, 2024, respectively.
The following table summarizes the pretax gain (loss) that changes in the fair values of derivatives not designated as hedging instruments had on earnings:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Contract TypeLocation(Dollars in millions)
Interest rate swaps
Interest expense (1)
$— $$— $13 
Forward currency exchange contractsNon-operating income(20)(26)13 

(1) Includes settlement gain of $21 million and interest income of $8 million, partially offset by marked-to-market remeasurement losses of $24 million, for the three months ended June 30, 2024. Includes settlement gain of $21 million and interest income of $16 million, partially offset by marked-to-market remeasurement losses of $24 million, for the six months ended June 30, 2024.

Fair Value Measurement
The foreign currency exchange, interest rate swap and cross-currency swap contracts are valued using market observable inputs. As such, these derivative instruments are classified within Level 2. The assumptions used in measuring the fair value of the cross-currency swap are considered Level 2 inputs, which are based upon market-observable interest rate curves, cross-currency basis curves, credit default swap curves, and foreign exchange rates.
The carrying value of Cash, cash equivalents, and restricted cash, Account receivables and Notes and Other receivables contained in the Consolidated Interim Balance Sheet approximates fair value.
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
June 30, 2025
December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
(Dollars in millions)
Term Loan Facilities
$676 $693 $680 $693 
  2032 Senior Notes790 833 790 810 
The Company determined the fair value of its Term Loan Facilities and related current maturities utilizing transactions in the listed markets for similar liabilities. As such, the fair value of the Term Loan Facilities and related
current maturities is considered Level 2. The fair value of the 2032 Senior Notes was determined using quoted prices from exchange traded markets and is classified as a Level 1 measurement.

v3.25.2
Accumulated Other Comprehensive Income
6 Months Ended
Jun. 30, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income
Note 17. Accumulated Other Comprehensive Income
The changes in AOCI by component are set forth below:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
   Balance at beginning of period$(56)$(39)$(27)$(57)
   Other comprehensive (loss) income before
     reclassifications
(59)(88)23 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
— — — — 
   Amounts reclassified from AOCI— (5)— (5)
   Balance at end of period(115)(39)(115)(39)
Pension Adjustments
   Balance at beginning of period(15)(19)(15)(20)
   Other comprehensive income (loss) before
    reclassifications
— — 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
— — — — 
   Balance at end of period(15)(17)(15)(17)
Changes in Fair Value of Effective Cash Flow Hedges
   Balance at beginning of period(8)(10)(2)
   Other comprehensive (loss) income before
     reclassifications
29 46 24 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
24 (2)26 (6)
   Amounts reclassified from AOCI(41)(7)(60)(18)
   Income taxes associated with reclassifications from AOCI(1)
   Balance at end of period(1)(1)
Changes in Fair Value of Net Investment Hedges
   Balance at beginning of period90 95 125 76 
   Other comprehensive (loss) income before
     reclassifications
(133)10 (177)33 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
(2)14 (6)
   Balance at end of period(38)103 (38)103 
Accumulated other comprehensive (loss) income, end of
  period
$(159)$46 $(159)$46 
Reclassifications from AOCI to income were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
Reclassification adjustments recognized in income (1)
$— $(5)$— $(5)
     Amounts reclassified from AOCI— (5)— (5)
Changes in Fair Value of Effective Cash Flow Hedges
Reclassification forward currency exchange contracts to
  Cost of goods sold
$— $(2)$— $(4)
Reclassification cross-currency swaps to Interest expense(1)
Reclassification cross-currency swaps to Non-operating
  (income) expense
(45)(6)(64)(13)
Tax effect on reclassification to income(1)
      Amounts reclassified from AOCI, net(36)(8)(53)(17)
Total reclassifications for the period$(36)$(13)$(53)$(22)
(1) Cumulative translation losses reclassified to Net income related to the sale of an equity interest in an unconsolidated joint venture. See Note 22 for discussion.

v3.25.2
Earnings Per Share
6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share
Note 18. Earnings Per Share
Basic earnings per share ("EPS") is computed using the weighted-average number of common shares outstanding during the period.
Diluted earnings per share is calculated based on the weighted-average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method.
The details of the EPS calculations for the three and six months ended June 30, 2025 and 2024 are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions except per share)
Basic earnings per share:
Net income$87 $64 $149 $130 
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
EPS – Basic$0.43 $0.29 $0.73 $0.56 
Diluted earnings per share:
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
Dilutive effect of unvested RSUs and other contingently issuable shares
2,582,088 1,576,866 2,547,445 1,962,044 
Weighted average common shares outstanding – Diluted205,255,033 225,898,814 206,433,975 232,455,083 
EPS – Diluted$0.42 $0.28 $0.72 $0.56 

v3.25.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 19. Commitments and Contingencies
We are involved in various lawsuits, claims, and proceedings incident to the operation of our businesses, including those pertaining to product liability, product safety, environmental, health and safety, intellectual property, employment, commercial and contractual matters and various other matters. We regularly assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses based on a careful analysis of each matter. We identify below the individual proceedings where we believe a material loss is reasonably possible or probable, and we accrue for matters when we believe that losses are probable and the amount of the potential loss is reasonably estimable. It is inherently difficult to determine whether a loss is probable or reasonably possible or to estimate the size or range of any potential loss. Accordingly, while we believe that appropriate accruals have been established for losses that are probable and can be reasonably estimated, it is possible that adverse outcomes from such proceedings could exceed the amounts accrued by an amount that could be material to our financial position, results of operations or cash flows.
Brazilian Tax Matter
In September 2020, the Brazilian tax authorities issued an infraction notice against Garrett Motion Industria Automotiva Brasil Ltda, challenging the use of certain tax credits between January 2017 and February 2020. The estimated total amount of the loss contingency arising from this matter as of June 30, 2025 was $25 million, including penalties and interest. The Company believes, based on management’s assessment and the advice of external legal counsel, that it has meritorious arguments in connection with the infraction notice and any liability for the infraction notice is currently not probable. Accordingly, no accrual is required at this time.
Warranties and Guarantees
In the normal course of business, we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale to the customer. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. Product warranties and product performance guarantees are included in Accrued liabilities and Other liabilities. The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees.
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Warranty and product performance guarantees at beginning of period$22 $26 $23 $27 
Accruals for warranties/guarantees issued during the period
Settlement of warranty/guarantee claims
(5)(3)(8)(6)
Foreign currency translation— (1)
Warranty and product performance guarantees at end of period
$23 $25 $23 $25 
Other Commitments and Contingencies
We are subject to other lawsuits, investigations, and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employment and employee benefit plans, intellectual property, and environmental, health and safety matters. We recognize a liability for any contingency that is probable of occurring and reasonably estimable. We regularly assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts.

v3.25.2
Pension Benefits
6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Pension Benefits
Note 20. Pension Benefits
We sponsor several funded U.S. and non-U.S. defined benefit pension plans. Significant plans outside the U.S. are in Switzerland and Ireland. Other pension plans outside the U.S. are not material to the Company, either individually or in the aggregate.
Our general funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. We are not required to make any contributions to our U.S. pension plan in 2025. We expect to make contributions of cash and/or marketable securities of approximately $5 million to our non-U.S. pension plans to satisfy regulatory funding standards in 2025, of which $2 million has been contributed as of June 30, 2025.
Net periodic benefit costs for our significant defined benefit plans include the following components:
Three Months Ended June 30,Six Months Ended June 30,
U.S. Plans Non-U.S. Plan U.S. Plans Non-U.S. Plan
20252024202520242025202420252024
(Dollars in millions)
Service cost$— $— $$$— $— $$
Interest cost
Expected return on plan assets(2)(2)(2)(2)(4)(4)(4)(4)
Amortization of prior service (credit)— — — — — — (1)(1)
Total$— $— $$$— $— $$
For both our U.S. and non-U.S. defined benefit pension plans, we estimate the service and interest cost components of net periodic benefit (income) cost by utilizing a full yield curve approach in the estimation of these cost components by applying the specific spot rates along the yield curve used in the determination of the pension benefit obligation to their underlying projected cash flows. This approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and their corresponding spot rates.

v3.25.2
Segments and Concentrations
6 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
Segments and Concentrations
Note 21. Segments and Concentrations

The Company has identified our CODM as the Chief Executive Officer. The CODM reviews consolidated net income when assessing the Company's performance, allocating resources, and establishing management's compensation. In addition to consolidated net income, the CODM receives discrete information for net sales by product and by geographical location. Consolidated net income is used to monitor budget versus actual results.
The accounting policies of our operating segment are the same as those described in the Company's summary of significant accounting policies.
The Company derives revenues from customers through sales of air and fluid compression and high-speed electric motor technologies for OEMs and distributors within the mobility and industrial space. In addition to consolidated net income, the CODM regularly reviews sales by region and product line.
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
United States$178 $174 $354 $352 
Europe
     United Kingdom92 80 177 164 
     Rest of Europe369 354 709 739 
Asia
     China151 161 304 319 
     Rest of Asia99 102 203 196 
Other International24 19 44 35 
$913 $890 $1,791 $1,805 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Diesel$217 $220 $425 $461 
Gas398 375 801 763 
Commercial Vehicle170 161 325 322 
Aftermarket111 121 209 233 
Other17 13 31 26 
$913 $890 $1,791 $1,805 
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Net sales$913 $890 $1,791 $1,805 
Less:
   Material costs513 517 1,014 1,054 
   Variable manufacturing costs (1)
123 95 221 191 
   Fixed manufacturing costs (2)
51 52 110 118 
   Research, development and engineering
    costs
45 41 85 85 
   Selling, general and administrative costs59 61 118 125 
   Interest expense25 62 54 93 
   Income tax expense15 23 38 38 
   Other segment items (3)
(5)(25)(29)
Consolidated net income$87 $64 $149 $130 
(1) Variable manufacturing costs include freight, duties, direct and indirect labor costs, repairs and maintenance, repositioning costs and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, utilities and other fixed costs.
(3) Other segment items consist of gain on sale of equity interest in unconsolidated joint venture, non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).
The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company had capital expenditures of $15 million and $17 million for the three months ended June 30, 2025 and 2024, respectively, and $41 million and $49 million for the six months ended June 30, 2025 and 2024, respectively.

v3.25.2
Acquisitions and Divestitures
6 Months Ended
Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Acquisitions and Divestitures
Note 22. Acquisitions and Divestitures

On April 3, 2024, the Company divested its equity interest in an unconsolidated joint venture for approximately $58 million, subject to customary debt and working capital adjustments. We received cash consideration on the divestiture date of $46 million, with an additional $7 million to be received in equal installments due twelve months and thirty-six months from the divestiture date. A pre-tax gain of $27 million was recognized related to this divestiture, including $5 million of cumulative translation losses reclassified from AOCI to Net income. Transaction fees of $1 million were incurred in connection with the divestiture and are included in Selling, general, and administrative expenses in our Consolidated Interim Statement of Operations.

v3.25.2
Subsequent Events
6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events
Note 23. Subsequent Events
On July 4, 2025, the United States enacted H.R. 1, comprehensive legislation that introduced changes to federal tax law, among other things. The Company is currently evaluating the implications of the new tax law and the impact on its Consolidated Interim Financial Statements.

On July 24, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on September 16, 2025, to shareholders of record as of September 2, 2025.

v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure            
Net income $ 87 $ 62 $ 64 $ 66 $ 149 $ 130

v3.25.2
Insider Trading Arrangements
3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false

v3.25.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements. The unaudited Consolidated Interim Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and accompanying notes for the year ended December 31, 2024 included in our Annual Report on Form 10-K, as filed with the SEC on February 20, 2025 (our “2024 Form 10-K”). The results of operations for the three and six months ended June 30, 2025 and cash flows for the six months ended June 30, 2025 should not necessarily be taken as indicative of the entire year. All amounts presented are in millions, except per share amounts.
We evaluate segment reporting in accordance with ASC 280, Segment Reporting. We concluded that Garrett operates in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products across channels and geographies.
The preparation of the financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates on assumptions that it believes to be reasonable under the circumstances. Actual results could differ from the original estimates, requiring adjustments to these balances in future periods.
New Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update increase the transparency around income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted the new guidance prospectively as of January 1, 2025.
Accounting Standards Issued But Not Yet Adopted
In March 2024, the SEC adopted a final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize climate-related disclosures. The rule will require companies to disclose material Scope 1 and Scope 2 greenhouse gas emissions; climate-related risks, governance, and oversight; and the financial effects of severe weather events and other natural conditions. These disclosures are required to be phased in starting with annual reporting periods beginning in 2025; however, this rule has been stayed pending the outcome of legal challenges, and on March 27, 2025, the SEC withdrew its legal defense of the rule. The Company is currently evaluating the guidance to determine the impact of adoption on its disclosures in the event that the stay is lifted.
In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require disclosure of specified information about certain costs and expenses. The guidance is effective for fiscal years beginning after December 15, 2026 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the guidance to determine the impact on its disclosures.
There are no other recently issued, but not yet adopted, accounting pronouncements that are expected to have a material impact on the Company's Consolidated Interim Financial Statements and related disclosures.

v3.25.2
Revenue Recognition and Contracts with Customers (Tables)
6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Contract Assets and Liabilities
The following table summarizes our contract assets and liabilities balances:
 20252024
 (Dollars in millions)
Contract assets—January 1$40 $38 
Contract assets—June 30
51 51 
Change in contract assets—Increase/(Decrease)$11 $13 
Contract liabilities—January 1$(8)$(11)
Contract liabilities—June 30
(15)(14)
Change in contract liabilities—Decrease/(Increase)$(7)$(3)

v3.25.2
Research, Development and Engineering (Tables)
6 Months Ended
Jun. 30, 2025
Research and Development [Abstract]  
Summary of Research, Development & Engineering Activities Such costs are included in Cost of goods sold as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Research and development costs$47 $46 $90 $89 
Engineering-related expenses, net of customer (reimbursements) (1)
(2)(5)(5)(4)
$45 $41 $85 $85 
(1)    Engineering-related expenses include customer reimbursements of $13 million and $16 million for the three months ended June 30, 2025 and 2024, respectively, and $25 million and $24 million for the six months ended June 30, 2025 and 2024, respectively.

v3.25.2
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Tax Expense (Benefit) and Effective Tax Rate
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Tax expense$15 $23 $38 $38 
Effective tax rate14.7 %26.4 %20.3 %22.6 %

v3.25.2
Accounts, Notes and Other Receivables-Net (Tables)
6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Accounts, Notes and Other Receivables Net
June 30,
2025
December 31,
2024
(Dollars in millions)
Trade receivables
$606 $521 
Notes receivable
67 96 
Other receivables
53 74 
726 691 
Less—Allowance for expected credit losses
(5)(4)
$721 $687 

v3.25.2
Factoring and Notes Receivable (Tables)
6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Disclosure of Detailed Information about Trade Receivables and Guaranteed Bank Notes
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Eligible receivables sold without recourse$190$240$342$402
Guaranteed bank notes sold without recourse80529652
June 30,
2025
December 31,
2024
(Dollars in millions)
Receivables sold but not yet collected by the bank from the customer$$
Guaranteed bank notes sold but not yet collected by the bank from the customer43 — 

v3.25.2
Inventories-Net (Tables)
6 Months Ended
Jun. 30, 2025
Inventory Disclosure [Abstract]  
Summary of Inventories
June 30,
2025
December 31,
2024
(Dollars in millions)
Raw materials$231 $230 
Work in process22 18 
Finished products78 79 
 331 327 
Less—Reserves(44)(41)
$287 $286 

v3.25.2
Other Assets (Tables)
6 Months Ended
Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
June 30,
2025
December 31,
2024
(Dollars in millions)
Advanced discounts to customers, non-current$25 $29 
Operating right-of-use assets (Note 13)
54 52 
Income tax receivable21 21 
Pension and other employee related26 23 
Derivatives designated as net investment hedges (Note 16)
70 
Designated and undesignated derivatives (Note 16)
— 20 
Other
$137 $224 

v3.25.2
Supplier Financing (Tables)
6 Months Ended
Jun. 30, 2025
Payables and Accruals [Abstract]  
Supplier Finance Program The supplier financing obligations and guaranteed bank notes outstanding are recorded within Accounts payable in our Consolidated Interim Balance Sheet.
June 30,
2025
December 31,
2024
(Dollars in millions)
Supplier financing obligations outstanding with financial institutions$76 $64 
Guaranteed bank notes outstanding154 141 

v3.25.2
Accrued Liabilities (Tables)
6 Months Ended
Jun. 30, 2025
Accrued Liabilities, Current [Abstract]  
Summary of Accrued Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Customer pricing reserve$85 $77 
Compensation, benefit and other employee related70 74 
Repositioning11 12 
Product warranties and performance guarantees - short-term (Note 19)
15 15 
Income and other taxes29 32 
Customer advances and deferred income (1)
24 16 
Accrued interest13 14 
Short-term lease liability (Note 13)
13 11 
Accrued freight11 
Dividends declared— 12 
Designated and undesignated derivatives (Note 16)
22 
Environmental reserve
Other (primarily operating expenses)
13 
 307 299 
(1)Customer advances and deferred income include $15 million and $8 million of contract liabilities as of June 30, 2025 and December 31, 2024, respectively. See Note 3, Revenue Recognition and Contracts with Customers.
Summary of Expenses Related to the Repositioning Accruals
The following tables summarize the activity in our repositioning accrual:
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2024
$12 $— $12 
Charges— 
Usage—cash(6)— (6)
Balance at June 30, 2025
$11 $— $11 
Severance Costs
Other Costs
Total
(Dollars in millions)
Balance at December 31, 2023
$$— $
Charges12 — 12 
Usage—cash(12)— (12)
Balance at June 30, 2024
$$— $

v3.25.2
Other Liabilities (Tables)
6 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Liabilities
June 30,
2025
December 31,
2024
(Dollars in millions)
Income taxes$90 $79 
Designated and undesignated derivatives (Note 16)
189 
Pension and other employee related18 18 
Long-term lease liability (Note 13)
43 42 
Advanced discounts from suppliers
Product warranties and performance guarantees – long-term (Note 19)
Environmental remediation – long term11 10 
Long-term accounts payable
Asset retirement obligation
Other
380 182 

v3.25.2
Leases (Tables)
6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Summary of Components of Lease Expense
The components of lease expense are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Operating lease cost$5$4$9$7
Short-term lease cost11
Total lease cost$6$4$10$7
Summary of Supplemental Cash Flow Information Related to Operating Leases
Supplemental cash flow information related to operating leases is as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases
$$$$
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
Summary of Supplemental Balance Sheet Information Related to Operating Leases
Supplemental balance sheet information related to operating leases is as follows:
June 30,
2025
December 31,
2024
(Dollars in millions)
Other assets$54 $52 
Accrued liabilities13 11 
Other liabilities43 42 
 June 30,
2025
December 31, 2024
Weighted-average remaining lease term (in years)6.646.89
Weighted-average discount rate6.53 %6.71 %
Schedule of Maturities of Operating Lease Liabilities
Maturities of operating lease liabilities as of June 30, 2025 were as follows:
(Dollars in millions)
2025$
202614 
202712 
2028
2029
Thereafter18 
Total lease payments66 
Less imputed interest(10)
$56 

v3.25.2
Long-term Debt and Credit Agreements (Tables)
6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of principal outstanding and carrying amount of long term debt
The principal outstanding and carrying amounts of our long-term debt as of June 30, 2025 and December 31, 2024 are as follows:
 Due Interest Rate June 30,
2025
December 31,
2024
2021 Dollar Term Facility4/30/2028
SOFR plus 275 bps
$— $692 
2025 Dollar Term Facility1/30/2032
SOFR plus 225 bps
690 — 
2032 Senior Notes 5/31/20327.75%800 800 
Other
Total principal outstanding1,491 1,493 
Less: unamortized deferred financing costs(24)(22)
Less: current portion of long-term debt(7)(7)
Total long-term debt$1,460 $1,464 
Schedule of Principal Repayments Of Credit Facilities
Minimum scheduled principal repayments of long-term debt as of June 30, 2025 are as follow:
June 30,
2025
(Dollars in millions)
2025$
2026
2027
2028
2029
Thereafter1,458 
Total debt payments$1,491 

v3.25.2
Financial Instruments and Fair Value Measures (Tables)
6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:
Fair Value
Notional AmountsAssetsLiabilities
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
June 30,
2025
December 31, 2024
Designated instruments:
Designated forward currency exchange contracts$520 $331 $15 $(a)$13 $(c)
Designated cross-currency swaps2,040 1,515 82 (b)173 — (d)
Designated interest-rate swaps675 — — — 16 — (d)
Total designated instruments3,235 1,846 17 86 202 
Undesignated instruments:
Undesignated interest rate swaps— 470 — (b)— (d)
Undesignated forward currency exchange contracts453 597 (a)(c)
Total undesignated instruments453 1,067 18 
Total designated and undesignated instruments$3,688 $2,913 $18 $104 $211 $11 
(a) Recorded within Other current assets
(b) Recorded within Other assets
(c) Recorded within Accrued liabilities
(d) Recorded within Other liabilities
Summary of Financial Assets and Liabilities Not Carried at Fair Value
The following table sets forth the Company’s financial assets and liabilities that were not carried at fair value:
June 30, 2025
December 31, 2024
Carrying ValueFair ValueCarrying ValueFair Value
(Dollars in millions)
Term Loan Facilities
$676 $693 $680 $693 
  2032 Senior Notes790 833 790 810 
Effect of Derivatives on the Income Statement
The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges and net investment hedges had on OCI, AOCI and earnings:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Cash flow hedges
  Gain (loss) reclassified from AOCI to
   income:
     Cost of goods sold$— $(2)$— $(4)
     Interest expense (1)
(4)(4)(1)
     Non-operating income (2)
45 (6)64 (13)
  Gain (loss) recognized in other comprehensive
   income (loss)
(8)(3)(8)
Net investment hedges
  Gain (loss) recognized in other comprehensive
   income (loss)
(134)10 (178)33 
(1) Includes a settlement loss of $3 million for the three and six months ended June 30, 2024, respectively.
(2) Includes a settlement loss of $4 million for the three and six months ended June 30, 2024, respectively.
Derivatives Not Designated as Hedging Instruments The following table summarizes the pretax gain (loss) that changes in the fair values of derivatives not designated as hedging instruments had on earnings:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Contract TypeLocation(Dollars in millions)
Interest rate swaps
Interest expense (1)
$— $$— $13 
Forward currency exchange contractsNon-operating income(20)(26)13 

(1) Includes settlement gain of $21 million and interest income of $8 million, partially offset by marked-to-market remeasurement losses of $24 million, for the three months ended June 30, 2024. Includes settlement gain of $21 million and interest income of $16 million, partially offset by marked-to-market remeasurement losses of $24 million, for the six months ended June 30, 2024.

v3.25.2
Accumulated Other Comprehensive Income (Tables)
6 Months Ended
Jun. 30, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component
The changes in AOCI by component are set forth below:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
   Balance at beginning of period$(56)$(39)$(27)$(57)
   Other comprehensive (loss) income before
     reclassifications
(59)(88)23 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
— — — — 
   Amounts reclassified from AOCI— (5)— (5)
   Balance at end of period(115)(39)(115)(39)
Pension Adjustments
   Balance at beginning of period(15)(19)(15)(20)
   Other comprehensive income (loss) before
    reclassifications
— — 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
— — — — 
   Balance at end of period(15)(17)(15)(17)
Changes in Fair Value of Effective Cash Flow Hedges
   Balance at beginning of period(8)(10)(2)
   Other comprehensive (loss) income before
     reclassifications
29 46 24 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
24 (2)26 (6)
   Amounts reclassified from AOCI(41)(7)(60)(18)
   Income taxes associated with reclassifications from AOCI(1)
   Balance at end of period(1)(1)
Changes in Fair Value of Net Investment Hedges
   Balance at beginning of period90 95 125 76 
   Other comprehensive (loss) income before
     reclassifications
(133)10 (177)33 
   Income tax benefit (expense) associated with
    comprehensive income (loss) before reclassifications
(2)14 (6)
   Balance at end of period(38)103 (38)103 
Accumulated other comprehensive (loss) income, end of
  period
$(159)$46 $(159)$46 
Reclassification out of Accumulated Other Comprehensive Income
Reclassifications from AOCI to income were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Foreign Exchange Translation Adjustment
Reclassification adjustments recognized in income (1)
$— $(5)$— $(5)
     Amounts reclassified from AOCI— (5)— (5)
Changes in Fair Value of Effective Cash Flow Hedges
Reclassification forward currency exchange contracts to
  Cost of goods sold
$— $(2)$— $(4)
Reclassification cross-currency swaps to Interest expense(1)
Reclassification cross-currency swaps to Non-operating
  (income) expense
(45)(6)(64)(13)
Tax effect on reclassification to income(1)
      Amounts reclassified from AOCI, net(36)(8)(53)(17)
Total reclassifications for the period$(36)$(13)$(53)$(22)
(1) Cumulative translation losses reclassified to Net income related to the sale of an equity interest in an unconsolidated joint venture. See Note 22 for discussion.

v3.25.2
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
The details of the EPS calculations for the three and six months ended June 30, 2025 and 2024 are as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions except per share)
Basic earnings per share:
Net income$87 $64 $149 $130 
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
EPS – Basic$0.43 $0.29 $0.73 $0.56 
Diluted earnings per share:
Weighted average common shares outstanding – Basic202,672,945 224,321,948 203,886,530 230,493,039 
Dilutive effect of unvested RSUs and other contingently issuable shares
2,582,088 1,576,866 2,547,445 1,962,044 
Weighted average common shares outstanding – Diluted205,255,033 225,898,814 206,433,975 232,455,083 
EPS – Diluted$0.42 $0.28 $0.72 $0.56 

v3.25.2
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Summary Information Concerning our Recorded Obligations for Product Warranties and Product Performance Guarantees The following table summarizes information concerning our recorded obligations for product warranties and product performance guarantees.
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(Dollars in millions)
Warranty and product performance guarantees at beginning of period$22 $26 $23 $27 
Accruals for warranties/guarantees issued during the period
Settlement of warranty/guarantee claims
(5)(3)(8)(6)
Foreign currency translation— (1)
Warranty and product performance guarantees at end of period
$23 $25 $23 $25 

v3.25.2
Pension Benefits (Tables)
6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Summary of Net Periodic Benefit Cost
Net periodic benefit costs for our significant defined benefit plans include the following components:
Three Months Ended June 30,Six Months Ended June 30,
U.S. Plans Non-U.S. Plan U.S. Plans Non-U.S. Plan
20252024202520242025202420252024
(Dollars in millions)
Service cost$— $— $$$— $— $$
Interest cost
Expected return on plan assets(2)(2)(2)(2)(4)(4)(4)(4)
Amortization of prior service (credit)— — — — — — (1)(1)
Total$— $— $$$— $— $$

v3.25.2
Segments and Concentrations (Tables)
6 Months Ended
Jun. 30, 2025
Risks and Uncertainties [Abstract]  
Summary of Net Sales by Region
Sales concentration - Net sales by region (determined based on country of shipment) and product line are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
United States$178 $174 $354 $352 
Europe
     United Kingdom92 80 177 164 
     Rest of Europe369 354 709 739 
Asia
     China151 161 304 319 
     Rest of Asia99 102 203 196 
Other International24 19 44 35 
$913 $890 $1,791 $1,805 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Diesel$217 $220 $425 $461 
Gas398 375 801 763 
Commercial Vehicle170 161 325 322 
Aftermarket111 121 209 233 
Other17 13 31 26 
$913 $890 $1,791 $1,805 
Schedule of Segment Reporting Information, by Segment
The table below provides segment information about the Company:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(Dollars in millions)
Net sales$913 $890 $1,791 $1,805 
Less:
   Material costs513 517 1,014 1,054 
   Variable manufacturing costs (1)
123 95 221 191 
   Fixed manufacturing costs (2)
51 52 110 118 
   Research, development and engineering
    costs
45 41 85 85 
   Selling, general and administrative costs59 61 118 125 
   Interest expense25 62 54 93 
   Income tax expense15 23 38 38 
   Other segment items (3)
(5)(25)(29)
Consolidated net income$87 $64 $149 $130 
(1) Variable manufacturing costs include freight, duties, direct and indirect labor costs, repairs and maintenance, repositioning costs and variable overhead costs.
(2) Fixed manufacturing costs include depreciation and amortization, rent, overhead labor costs, utilities and other fixed costs.
(3) Other segment items consist of gain on sale of equity interest in unconsolidated joint venture, non-service components of net periodic pension expense, interest income, equity income and other non-operating income items (if any).

v3.25.2
Background and Basis of Presentation (Details)
6 Months Ended
Jun. 30, 2025
Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 1
Number of reportable segments 1

v3.25.2
Revenue Recognition and Contracts with Customers - Summary of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Change in Contract with Customer, Asset [Abstract]    
Contract assets—January 1 $ 40 $ 38
Change in contract assets—Increase/(Decrease) 11 13
Contract assets—June 30 51 51
Change in Contract with Customer, Liability [Abstract]    
Contract liabilities—January 1 (8) (11)
Change in contract liabilities—Decrease/(Increase) (7) (3)
Contract liabilities—June 30 $ (15) $ (14)

v3.25.2
Research, Development and Engineering - Summary of Research, Development & Engineering Activities (Details) - Cost of goods sold - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Research And Development Arrangement Contract To Perform For Others [Line Items]        
Research, development & engineering expense, total $ 45 $ 41 $ 85 $ 85
Research and development costs        
Research And Development Arrangement Contract To Perform For Others [Line Items]        
Research, development & engineering expense, total 47 46 90 89
Engineering-related expenses, net of customer (reimbursements)        
Research And Development Arrangement Contract To Perform For Others [Line Items]        
Research, development & engineering expense, total (2) (5) (5) (4)
Customer reimbursement $ 13 $ 16 $ 25 $ 24

v3.25.2
Research, Development and Engineering - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Research and Development [Abstract]    
Preproduction costs related to long-term supply arrangements, costs capitalized $ 40 $ 29

v3.25.2
Income Taxes - Tax Expense (Benefit) and Effective Tax Rate (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]        
Tax expense $ 15 $ 23 $ 38 $ 38
Effective tax rate 14.70% 26.40% 20.30% 22.60%

v3.25.2
Income Taxes - Additional Information (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]        
Effective tax rate 14.70% 26.40% 20.30% 22.60%

v3.25.2
Accounts, Notes and Other Receivables-Net - Schedule of Accounts, Notes and Other Receivables-Net (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Receivables [Abstract]    
Trade receivables $ 606 $ 521
Notes receivable 67 96
Other receivables 53 74
Accounts, notes and other receivables, gross 726 691
Less—Allowance for expected credit losses (5) (4)
Accounts, notes and other receivables, net $ 721 $ 687

v3.25.2
Accounts, Notes and Other Receivables-Net - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Receivables [Abstract]    
Unbilled balances $ 51 $ 40
Value added tax (VAT) receivable $ 41 $ 50

v3.25.2
Factoring and Notes Receivable - Disclosure of Detailed Information about Trade Receivables (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Receivables [Abstract]        
Eligible receivables sold without recourse $ 190 $ 240 $ 342 $ 402
Guaranteed bank notes sold without recourse $ 80 $ 52 $ 96 $ 52

v3.25.2
Factoring and Notes Receivable - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Factoring and notes receivables discount fees $ 1 $ 1 $ 2 $ 2  
Asset pledged as collateral          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Bank notes receivable $ 0   $ 0   $ 0

v3.25.2
Factoring and Notes Receivable - Disclosure of Detailed Information about Guaranteed Bank Notes (Details) - USD ($)
$ in Millions
3 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Receivables [Abstract]    
Receivables sold but not yet collected by the bank from the customer $ 4 $ 6
Guaranteed bank notes sold but not yet collected by the bank from the customer $ 43 $ 0

v3.25.2
Inventories-Net (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 231 $ 230
Work in process 22 18
Finished products 78 79
Inventories, gross 331 327
Less—Reserves (44) (41)
Inventories, net $ 287 $ 286

v3.25.2
Other Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Advanced discounts to customers, non-current $ 25 $ 29
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Total other assets Total other assets
Operating right-of-use assets (Note 13) $ 54 $ 52
Income tax receivable 21 21
Pension and other employee related 26 23
Derivatives designated as net investment hedges (Note 16) 2 70
Designated and undesignated derivatives (Note 16) 0 20
Other 9 9
Total other assets $ 137 $ 224

v3.25.2
Supplier Financing - Additional Information (Details)
6 Months Ended
Jun. 30, 2025
institution
Supply Commitment [Line Items]  
Number of third party financial institutions 2
Guaranteed bank notes outstanding  
Supply Commitment [Line Items]  
Supplier finance program, payment timing, period 6 months

v3.25.2
Supplier Financing - Supplier Finance Program (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Supplier financing obligations outstanding with financial institutions    
Supply Commitment [Line Items]    
Supplier finance program, obligation $ 76 $ 64
Guaranteed bank notes outstanding    
Supply Commitment [Line Items]    
Supplier finance program, obligation $ 154 $ 141

v3.25.2
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Accrued Liabilities, Current [Abstract]    
Customer pricing reserve $ 85 $ 77
Compensation, benefit and other employee related 70 74
Repositioning 11 12
Product warranties and performance guarantees - short-term (Note 19) 15 15
Income and other taxes 29 32
Customer advances and deferred income 24 16
Accrued interest $ 13 $ 14
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Short-term lease liability (Note 13) $ 13 $ 11
Accrued freight 11 9
Dividends declared 0 12
Designated and undesignated derivatives (Note 16) 22 8
Environmental reserve 5 6
Other (primarily operating expenses) 9 13
Accrued liabilities 307 299
Contract liabilities $ 15 $ 8

v3.25.2
Accrued Liabilities - Summary of Expenses Related to the Repositioning Accruals (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Restructuring Reserve [Roll Forward]    
Balance at beginning of period $ 12 $ 9
Charges 5 12
Usage—cash (6) (12)
Balance at end of period 11 9
Severance Costs    
Restructuring Reserve [Roll Forward]    
Balance at beginning of period 12 9
Charges 5 12
Usage—cash (6) (12)
Balance at end of period 11 9
Other Costs    
Restructuring Reserve [Roll Forward]    
Balance at beginning of period 0 0
Charges 0 0
Usage—cash 0 0
Balance at end of period $ 0 $ 0

v3.25.2
Other Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]    
Income taxes $ 90 $ 79
Designated and undesignated derivatives (Note 16) 189 3
Pension and other employee related $ 18 $ 18
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Total other liabilities Total other liabilities
Long-term lease liability (Note 13) $ 43 $ 42
Advanced discounts from suppliers 2 2
Product warranties and performance guarantees – long-term (Note 19) 8 8
Environmental remediation – long term 11 10
Long-term accounts payable 3 5
Asset retirement obligation 8 8
Other 8 7
Total other liabilities $ 380 $ 182

v3.25.2
Leases - Additional Information (Details) - Maximum
6 Months Ended
Jun. 30, 2025
Lessee Lease Description [Line Items]  
Operating lease, remaining lease terms 13 years
Operating lease, options to extend, years 2 years

v3.25.2
Leases - Summary of Components of Lease Expense (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Leases [Abstract]        
Operating lease cost $ 5 $ 4 $ 9 $ 7
Short-term lease cost 1 0 1 0
Total lease cost $ 6 $ 4 $ 10 $ 7

v3.25.2
Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash outflows from operating leases $ 4 $ 3 $ 8 $ 6
Right-of-use assets obtained in exchange for lease obligations:        
Operating leases $ 2 $ 3 $ 4 $ 9

v3.25.2
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets (Note 9) Other assets (Note 9)
Other assets $ 54 $ 52
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities (Note 11) Accrued liabilities (Note 11)
Accrued liabilities $ 13 $ 11
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other liabilities (Note 12) Other liabilities (Note 12)
Other liabilities $ 43 $ 42
Weighted-average remaining lease term (in years) 6 years 7 months 20 days 6 years 10 months 20 days
Weighted-average discount rate 6.53% 6.71%

v3.25.2
Leases - Schedule of Maturities of Operating Lease Liabilities (Details)
$ in Millions
Jun. 30, 2025
USD ($)
Leases [Abstract]  
2025 $ 9
2026 14
2027 12
2028 8
2029 5
Thereafter 18
Total lease payments 66
Less imputed interest (10)
Operating lease, liabilities $ 56

v3.25.2
Long-term Debt and Credit Agreements - Additional Information (Details)
€ in Millions, $ in Millions
6 Months Ended
May 21, 2024
EUR (€)
Jun. 30, 2025
USD ($)
Jan. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
May 21, 2024
USD ($)
Debt Instrument [Line Items]          
Debt issuance costs, gross   $ 24   $ 22  
Total debt payments   1,491   1,493  
Letter of Credit          
Debt Instrument [Line Items]          
Line of credit   $ 8   8  
2032 Senior Notes | Unsecured Debt          
Debt Instrument [Line Items]          
Debt instrument face amount | € € 800        
Long term debt, interest rate 7.75% 7.75%     7.75%
Debt issuance costs, gross         $ 12
Repurchase price of aggregate principal amount (in percentage) 101.00%        
Total debt payments   $ 800   800  
2021 Dollar Term Facility | Term Loan Facilities          
Debt Instrument [Line Items]          
Total debt payments   $ 0 $ 692 692  
Basis spread on variable rate   2.75%      
2025 Dollar Term Facility | Term Loan Facilities          
Debt Instrument [Line Items]          
Debt instrument face amount     692    
Total debt payments   $ 690   $ 0  
Line of credit, maximum borrowing capacity     692    
Basis spread on variable rate   2.25%      
2025 Dollar Term Facility | Term Loan Facilities | Component 1          
Debt Instrument [Line Items]          
Basis spread on variable rate   2.25%      
2025 Dollar Term Facility | Term Loan Facilities | Component 2          
Debt Instrument [Line Items]          
Basis spread on variable rate   1.25%      
Credit Agreement | Secured debt          
Debt Instrument [Line Items]          
Repayments of lines of credit | € € 800        
Credit Agreement | Secured debt | Revolving Credit Facility          
Debt Instrument [Line Items]          
Line of credit, maximum borrowing capacity     600    
New Revolving Facility | Line of Credit | Revolving Credit Facility          
Debt Instrument [Line Items]          
Debt instrument face amount   $ 30      
Line of credit, maximum borrowing capacity     $ 630    
Aggregate commitment percentage   35.00%      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Maximum          
Debt Instrument [Line Items]          
Unused commitment fee percentage   0.50%      
Consolidated total leverage ratio   1.00      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Minimum          
Debt Instrument [Line Items]          
Unused commitment fee percentage   0.25%      
Consolidated total leverage ratio   4.7      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Component 1 | Maximum          
Debt Instrument [Line Items]          
Basis spread on variable rate   2.25%      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Component 1 | Minimum          
Debt Instrument [Line Items]          
Basis spread on variable rate   1.75%      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Component 2 | Maximum          
Debt Instrument [Line Items]          
Basis spread on variable rate   1.25%      
New Revolving Facility | Line of Credit | Revolving Credit Facility | Component 2 | Minimum          
Debt Instrument [Line Items]          
Basis spread on variable rate   0.75%      

v3.25.2
Long-term Debt and Credit Agreements - Schedule of Principal Outstanding And Carrying Amount of Long term Debt (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2025
Jan. 30, 2025
Dec. 31, 2024
May 21, 2024
Debt Instrument [Line Items]        
Total debt payments $ 1,491   $ 1,493  
Less: unamortized deferred financing costs (24)   (22)  
Less: current portion of long-term debt (7)   (7)  
Total long-term debt $ 1,460   1,464  
Unsecured Debt | 2032 Senior Notes        
Debt Instrument [Line Items]        
Long term debt, interest rate 7.75%     7.75%
Total debt payments $ 800   800  
Less: unamortized deferred financing costs       $ (12)
Other        
Debt Instrument [Line Items]        
Total debt payments $ 1   1  
Term Loan Facilities | 2021 Dollar Term Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.75%      
Total debt payments $ 0 $ 692 692  
Term Loan Facilities | 2025 Dollar Term Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate 2.25%      
Total debt payments $ 690   $ 0  

v3.25.2
Long-term Debt and Credit Agreements - Schedule of maturities of long-term debt (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2025 $ 3  
2026 7  
2027 7  
2028 9  
2029 7  
Thereafter 1,458  
Total debt payments $ 1,491 $ 1,493

v3.25.2
Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 16, 2025
Jan. 31, 2025
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Dec. 04, 2024
Equity [Abstract]                  
Common stock, dividends, per share, declared (in US dollar per share)     $ 0.06   $ 0.06        
Payments of ordinary dividends, common stock $ 13 $ 12              
Stock repurchase program, authorized amount                 $ 250
Stock repurchases     $ 22 $ 30   $ 65 $ 109 $ 52  
Stock repurchase program, remaining authorized repurchase amount     $ 198         $ 198  

v3.25.2
Financial Instruments and Fair Value Measures - Additional Information (Details)
€ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount $ 973,000,000   $ 973,000,000   $ 928,000,000      
Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 3,688,000,000   3,688,000,000   2,913,000,000      
Designated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 3,235,000,000   3,235,000,000   1,846,000,000      
Undesignated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 453,000,000   453,000,000   1,067,000,000      
Interest rate swaps | Designated as hedging                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount | €       € 675       € 200
Interest rate swaps | Designated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 675,000,000   675,000,000   0      
Interest rate swaps | Undesignated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 0   0   470,000,000 € 450    
Cross-currency interest rate swaps                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Fair value of derivative assets, net (123,000,000)   (123,000,000)   70,000,000      
Ineffectiveness on net investment hedges     0          
Cross-currency interest rate swaps | Net Investment Hedging                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 1,490,000,000   1,490,000,000 1,381 965,000,000 € 858    
Cross-currency interest rate swaps | 2032 Senior Notes | Cash Flow Hedging | Unsecured Debt                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 550,000,000   550,000,000 € 507        
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount             $ 300,000,000 € 280
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt | Interest expense                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Gain (loss) on derivative instruments, net, pretax   $ (18,000,000)            
Cross-currency interest rate swaps | 2023 Dollar Term Facility | Credit Agreement, USD tranche | Cash Flow Hedging | Secured debt | Non-operating income                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Gain (loss) on derivative instruments, net, pretax   $ 4,000,000            
Cross-currency interest rate swaps | Designated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 2,040,000,000   2,040,000,000   1,515,000,000      
Forward currency exchange contracts | Designated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount 520,000,000   $ 520,000,000   331,000,000      
Maximum remaining maturity of foreign currency derivatives     18 months          
Forward currency exchange contracts | Undesignated as hedging | Level 2 | Fair value measurements recurring                
Derivative Instruments And Hedging Activities Disclosures [Line Items]                
Derivative, aggregate gross notional amount $ 453,000,000   $ 453,000,000   $ 597,000,000      
Maximum remaining maturity of foreign currency derivatives 3 months              

v3.25.2
Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details)
€ in Millions, $ in Millions
Jun. 30, 2025
USD ($)
Jun. 30, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Dec. 31, 2023
EUR (€)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts $ 973   $ 928    
Designated as hedging | Interest rate swaps          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts | €   € 675     € 200
Fair value measurements recurring | Level 2          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 3,688   2,913    
Fair value, assets 18   104    
Fair value, liabilities 211   11    
Fair value measurements recurring | Level 2 | Designated as hedging          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 3,235   1,846    
Fair value, assets 17   86    
Fair value, liabilities 202   6    
Fair value measurements recurring | Level 2 | Designated as hedging | Forward currency exchange contracts          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 520   331    
Fair value, assets 15   4    
Fair value, liabilities 13   6    
Fair value measurements recurring | Level 2 | Designated as hedging | Cross-currency interest rate swaps          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 2,040   1,515    
Fair value, assets 2   82    
Fair value, liabilities 173   0    
Fair value measurements recurring | Level 2 | Designated as hedging | Interest rate swaps          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 675   0    
Fair value, assets 0   0    
Fair value, liabilities 16   0    
Fair value measurements recurring | Level 2 | Undesignated as hedging          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 453   1,067    
Fair value, assets 1   18    
Fair value, liabilities 9   5    
Fair value measurements recurring | Level 2 | Undesignated as hedging | Forward currency exchange contracts          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 453   597    
Fair value, assets 1   9    
Fair value, liabilities 9   2    
Fair value measurements recurring | Level 2 | Undesignated as hedging | Interest rate swaps          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]          
Notional Amounts 0   470 € 450  
Fair value, assets 0   9    
Fair value, liabilities $ 0   $ 3    

v3.25.2
Financial Instruments and Fair Value Measures - Effect of derivatives on Income Statement (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Cash flow hedges        
Gain (loss) recognized in other comprehensive income (loss) $ (8) $ (3) $ (8) $ 2
Net investment hedges        
Gain (loss) recognized in other comprehensive income (loss) (134) 10 (178) 33
Cost of goods sold        
Cash flow hedges        
Gain (loss) reclassified from AOCI to income: 0 (2) 0 (4)
Interest expense        
Cash flow hedges        
Gain (loss) reclassified from AOCI to income: (4) 1 (4) (1)
Net investment hedges        
Loss on derivative instruments   3   3
Non-operating income        
Cash flow hedges        
Gain (loss) reclassified from AOCI to income: $ 45 (6) $ 64 (13)
Net investment hedges        
Loss on derivative instruments   $ 4   $ 4

v3.25.2
Financial Instruments and Fair Value Measures - Derivatives not designated (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Derivative Instruments And Hedging Activities Disclosures [Line Items]        
Marked to market remeasurement loss     $ (81) $ (1)
Interest rate swaps | Undesignated as hedging | Interest expense        
Derivative Instruments And Hedging Activities Disclosures [Line Items]        
Pretax gain (loss) that FV changes had on earnings $ 0 $ 5 0 13
Settlement gain   21   21
Interest income   8   16
Marked to market remeasurement loss   24   24
Forward currency exchange contracts | Undesignated as hedging | Non-operating income        
Derivative Instruments And Hedging Activities Disclosures [Line Items]        
Pretax gain (loss) that FV changes had on earnings $ (20) $ 4 $ (26) $ 13

v3.25.2
Financial Instruments and Fair Value Measures - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) - USD ($)
$ in Millions
Jun. 30, 2025
Dec. 31, 2024
Carrying Value | Secured debt | Credit Agreement, USD tranche | Term Loan Facilities    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Term Loan Facilities $ 676 $ 680
Carrying Value | Unsecured Debt | 2032 Senior Notes    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Term Loan Facilities 790 790
Level 2 | Fair Value | Secured debt | Credit Agreement, USD tranche | Term Loan Facilities    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Term Loan Facilities 693 693
Level 2 | Fair Value | Unsecured Debt | 2032 Senior Notes    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Term Loan Facilities $ 833 $ 810

v3.25.2
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance $ (700) $ (735) $ (673) $ (735)
Ending balance (812) (725) (812) (725)
Foreign Exchange Translation Adjustment        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (56) (39) (27) (57)
Other comprehensive (loss) income before reclassifications (59) 5 (88) 23
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications 0 0 0 0
Amounts reclassified from AOCI, net of tax 0 (5) 0 (5)
Ending balance (115) (39) (115) (39)
Pension Adjustments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (15) (19) (15) (20)
Other comprehensive (loss) income before reclassifications 0 2 0 3
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications 0 0 0 0
Ending balance (15) (17) (15) (17)
Changes in Fair Value of Effective Cash Flow Hedges        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (8) 1 (10) (2)
Other comprehensive (loss) income before reclassifications 29 8 46 24
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications 24 (2) 26 (6)
Amounts reclassified from AOCI (41) (7) (60) (18)
Income taxes associated with reclassifications from AOCI 5 (1) 7 1
Ending balance 9 (1) 9 (1)
Changes in Fair Value of Net Investment Hedges        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance 90 95 125 76
Other comprehensive (loss) income before reclassifications (133) 10 (177) 33
Income tax benefit (expense) associated with comprehensive income (loss) before reclassifications 5 (2) 14 (6)
Ending balance (38) 103 (38) 103
Accumulated Other Comprehensive Income / (Loss)        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance 11 38 73 (3)
Ending balance $ (159) $ 46 $ (159) $ 46

v3.25.2
Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Defined Benefit Plan Disclosure [Line Items]            
Reclassification adjustments recognized in income $ 0   $ (27)   $ 0 $ (27)
Reclassification forward currency exchange contracts to Cost of goods sold 732   705   1,431 1,448
Reclassification cross-currency swaps to Interest expense 25   62   54 93
Reclassification cross-currency swaps to Non-operating (income) expense (6)   (1)   (7) (6)
Tax effect on reclassification to income 15   23   38 38
Amounts reclassified from AOCI, net (87) $ (62) (64) $ (66) (149) (130)
Reclassification out of Accumulated Other Comprehensive Income            
Defined Benefit Plan Disclosure [Line Items]            
Reclassification adjustments recognized in income           (5)
Amounts reclassified from AOCI, net (36)   (13)   (53) (22)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Translation Adjustment            
Defined Benefit Plan Disclosure [Line Items]            
Reclassification adjustments recognized in income 0   (5)   0 (5)
Amounts reclassified from AOCI, net 0   (5)   0 (5)
Reclassification out of Accumulated Other Comprehensive Income | Changes in Fair Value of Effective Cash Flow Hedges            
Defined Benefit Plan Disclosure [Line Items]            
Reclassification forward currency exchange contracts to Cost of goods sold 0   (2)   0 (4)
Reclassification cross-currency swaps to Interest expense 4   1   4 (1)
Reclassification cross-currency swaps to Non-operating (income) expense (45)   (6)   (64) (13)
Tax effect on reclassification to income 5   (1)   7 1
Amounts reclassified from AOCI, net $ (36)   $ (8)   $ (53) $ (17)

v3.25.2
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Basic earnings per share:            
Net income $ 87 $ 62 $ 64 $ 66 $ 149 $ 130
Weighted average common shares outstanding - Basic (in shares) 202,672,945   224,321,948   203,886,530 230,493,039
EPS – Basic (in USD per share) $ 0.43   $ 0.29   $ 0.73 $ 0.56
Diluted earnings per share:            
Weighted average common shares outstanding - Basic (in shares) 202,672,945   224,321,948   203,886,530 230,493,039
Dilutive effect of unvested RSUs and other contingently issuable shares (in shares) 2,582,088   1,576,866   2,547,445 1,962,044
Weighted average common shares outstanding - Diluted (in shares) 205,255,033   225,898,814   206,433,975 232,455,083
EPS – Diluted (in USD per share) $ 0.42   $ 0.28   $ 0.72 $ 0.56

v3.25.2
Commitments and Contingencies - Additional Information (Details)
$ in Millions
Jun. 30, 2025
USD ($)
Brazilian Tax Authorities  
Loss Contingencies [Line Items]  
Estimated amount of contingency including penalties and interest $ 25

v3.25.2
Commitments and Contingencies - Summary Information Concerning our Recorded Obligations for Product Warranties and Product Performance Guarantees (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Movement in Standard Product Warranty Accrual [Roll Forward]        
Balance at beginning of year $ 22 $ 26 $ 23 $ 27
Accruals for warranties/guarantees issued during the period 4 2 6 5
Settlement of warranty/guarantee claims (5) (3) (8) (6)
Foreign currency translation 2 0 2 (1)
Balance at end of year $ 23 $ 25 $ 23 $ 25

v3.25.2
Pension Benefits - Additional Information (Details) - Pension benefits - Foreign Plan
$ in Millions
6 Months Ended
Jun. 30, 2025
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Expected pension contribution in the next fiscal year $ 5
Pension contribution (less than) $ 2

v3.25.2
Pension Benefits - Summary of Net Periodic Benefit Cost (Details) - Pension benefits - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
U.S. Plans        
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 2 2 4 4
Expected return on plan assets (2) (2) (4) (4)
Amortization of prior service (credit) 0 0 0 0
Total 0 0 0 0
Foreign Plan        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 2 2 4 3
Interest cost 1 1 2 3
Expected return on plan assets (2) (2) (4) (4)
Amortization of prior service (credit) 0 0 (1) (1)
Total $ 1 $ 1 $ 1 $ 1

v3.25.2
Segments and Concentrations - Summary of Net Sales by Region and Channel (Details) - Sales concentration - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Concentration Risk [Line Items]        
Net sales $ 913 $ 890 $ 1,791 $ 1,805
Diesel        
Concentration Risk [Line Items]        
Net sales 217 220 425 461
Gas        
Concentration Risk [Line Items]        
Net sales 398 375 801 763
Commercial Vehicle        
Concentration Risk [Line Items]        
Net sales 170 161 325 322
Aftermarket        
Concentration Risk [Line Items]        
Net sales 111 121 209 233
Other        
Concentration Risk [Line Items]        
Net sales 17 13 31 26
United States        
Concentration Risk [Line Items]        
Net sales 178 174 354 352
United Kingdom        
Concentration Risk [Line Items]        
Net sales 92 80 177 164
Rest of Europe        
Concentration Risk [Line Items]        
Net sales 369 354 709 739
China        
Concentration Risk [Line Items]        
Net sales 151 161 304 319
Rest of Asia        
Concentration Risk [Line Items]        
Net sales 99 102 203 196
Other International        
Concentration Risk [Line Items]        
Net sales $ 24 $ 19 $ 44 $ 35

v3.25.2
Segments and Concentrations - Segment information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Risks and Uncertainties [Abstract]            
Net sales $ 913   $ 890   $ 1,791 $ 1,805
Material costs 513   517   1,014 1,054
Variable manufacturing costs 123   95   221 191
Fixed manufacturing costs 51   52   110 118
Research, development and engineering costs 45   41   85 85
Selling, general and administrative costs 59   61   118 125
Interest expense 25   62   54 93
Tax expense 15   23   38 38
Other segment items (5)   (25)   2 (29)
Net income $ 87 $ 62 $ 64 $ 66 $ 149 $ 130

v3.25.2
Segments and Concentrations - Additional information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Risks and Uncertainties [Abstract]        
Expenditures for property, plant and equipment $ 15 $ 17 $ 41 $ 49

v3.25.2
Acquisitions and Divestitures (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended 24 Months Ended
Apr. 03, 2024
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Apr. 03, 2027
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Equity method investment, amount sold $ 58          
Proceeds from sale of equity investment $ 46     $ 0 $ 46  
Deferred payments, sale of equity method investments, first payment term 12 months          
Deferred payments, sale of equity method investments, second payment term 36 months          
Gain on sale of equity investment   $ 0 $ 27 $ 0 27  
Sales fee         1  
Reclassification out of Accumulated Other Comprehensive Income            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Gain on sale of equity investment         $ 5  
Scenario Forecast            
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from sale of equity investment           $ 7

v3.25.2
Subsequent Events (Details) - $ / shares
3 Months Ended
Jul. 24, 2025
Jun. 30, 2025
Dec. 31, 2024
Subsequent Event [Line Items]      
Common stock, dividends, per share, declared (in US dollar per share)   $ 0.06 $ 0.06
Subsequent Event      
Subsequent Event [Line Items]      
Common stock, dividends, per share, declared (in US dollar per share) $ 0.06    

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