Garrett Motion Delivers Strong Q3 Performance, Sets Sights on Continued Growth
Garrett Motion, a leading global technology company, delivered a strong third quarter with organic sales growth, margin expansion, and healthy adjusted free cash flow. The company's Q3 2026 financial results conference call highlighted the success of its diversified technologies business.
"We delivered a strong third quarter with organic sales growth, margin expansion, and healthy adjusted free cash flow," said Olivier Rabiller, President and Chief Executive Officer of Garrett Motion. "Net sales were $930 million, up 3% organically as we outperformed light vehicle industry production and grew commercial vehicle and industrial by 23%."
Garrett Motion's Q3 results saw net sales increase to $930 million, with organic growth driven by commercial vehicle and industrial segments. The company's adjusted EBIT (Earnings Before Interest and Taxes) was $152 million, representing a margin of 16.3%, supported by favorable product mix and strong year-over-year operating performance.
Adjusted free cash flow was $136 million, demonstrating a strong earnings to cash conversion of 89%. The company also returned value to shareholders through share repurchases, paying $57 million in dividends, and repaying $50 million of term loan debt, bringing year-to-date repayments to $100 million.
Garrett Motion's diversified technologies business continues to drive growth across various segments. In turbo, the company launched a new high-volume E-Turbo with Mercedes and secured multiple light vehicle wins. In industrial, growth for existing power generation programs further accelerated, exceeding prior expectations.
In Zero-Emission Technologies, Garrett Motion completed multiple E-Powertrain light vehicle proof-of-concept tests, validating the value of its high-speed architecture. The company also progressed with testing and industrialization of its heavy-duty applications, supporting launch in 2027 for commercial vehicle E-Powertrain.
"We continue to see strong momentum across our differentiated technologies," said Olivier Rabiller. "Our turbo business is driving growth in light vehicles, while our industrial and Zero-Emission Technologies businesses are expanding into new markets."
Garrett Motion reaffirmed its midpoint outlook as strong operating performance is expected to offset foreign exchange headwinds mainly in the fourth quarter.
The company also announced a new $250 million share repurchase program for 2027, demonstrating its commitment to returning value to shareholders. With these strong Q3 results and continued growth prospects, Garrett Motion remains well-positioned for future success.
