Garrett Motion Revs Up Engine Performance, Fueling Growth Across Verticals
Garrett Motion, a leading supplier of turbo and turbo-related technologies, has reported another strong quarter, driven by growth across all its verticals. According to the company's Q2 2026 financial results conference call transcript, Garrett delivered net sales of $976 million, up 7% on a reported basis and 5% at constant currency.
Despite lower light vehicle production in the quarter, Garrett's growth reflects continued share of demand gains in light vehicles, recovery in commercial vehicles, and increased demand for industrial applications. In fact, so far this year, Garrett has sold over $80 million worth of turbos for industrial applications, with expectations to reach around $200 million in sales for the full year.
The company's disciplined execution and thorough productivity actions enabled it to deliver strong operating performance, achieving a record Adjusted EBIT of $152 million and an Adjusted EBIT margin of 15.6%. This was accompanied by a healthy Adjusted Free Cash Flow of $122 million, which allowed Garrett to repurchase $28 million of common stock and pay $15 million in dividends.
Garrett's continued progress across its differentiated technology has also been highlighted. The company has built momentum across its turbo portfolio and secured multiple gasoline awards this quarter, including a large program in North America. It has also made further progress in zero-emission technologies, with the kick-off of pre-development activity for commercial vehicle electric powertrain solutions with a Japanese truck manufacturer.
On the passenger vehicle side, Garrett's high-speed E-Powertrain continues to generate positive test results and encouraging feedback from OEMs. The company has also seen growing interest across multiple HVAC OEMs for various target applications, following its previously announced E-Cooling partnership.
The strong progress made by Garrett in both turbo and zero-emission technologies emphasizes the strategy presented during its technology and investor day in May. With a continued focus on innovation and growth, Garrett is well-positioned to drive performance across all its verticals.
