Garrett Motion Inc. reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $985 million, a 12.2% increase from $878 million in the same period of 2025. The growth was attributed to higher demand across all product verticals, favorable foreign currency impacts, and a positive product mix. Gross profit also rose to $196 million, up from $179 million, although the gross profit margin slightly decreased to 19.9% from 20.4% due to increased costs associated with higher sales volumes and foreign exchange impacts.
The company's net income for the quarter was $95 million, compared to $62 million in the prior year, marking a 53.2% increase. This rise in profitability was driven by higher gross profit, increased non-operating income, and lower expenses in several categories, including interest and selling, general, and administrative costs. The effective tax rate decreased to 19.5% from 27.1%, primarily due to a favorable global mix of earnings and deductions related to employee share-based payments.
Operationally, Garrett Motion has seen growth in various segments, with notable increases in gasoline and diesel product sales, which rose by 10% and 12%, respectively. The commercial vehicles and industrial segment also experienced a 17% increase in sales. The company reported a total of $98 million in cash provided by operating activities, a significant increase from $56 million in the previous year, reflecting improved working capital management and higher net income.
In terms of strategic developments, Garrett Motion repurchased $87 million of its common stock during the quarter, part of a $250 million share repurchase program authorized by the Board of Directors. The company also declared a cash dividend of $0.08 per share, totaling $16 million, which was paid on March 16, 2026. Looking ahead, Garrett Motion remains focused on expanding its manufacturing capacity and investing in new technologies, particularly in zero-emission solutions, while actively monitoring macroeconomic conditions that may impact its operations.
Overall, Garrett Motion's first-quarter results reflect a strong performance driven by increased demand across its product lines, effective cost management, and strategic financial decisions, positioning the company for continued growth in the evolving automotive and industrial markets.
About Garrett Motion Inc.
Garrett Motion Inc. designs and manufactures advanced turbocharging, air compression, and electric motor technologies for mobility and industrial markets. Its products serve internal combustion engines, fuel cell systems, and electric vehicles, focusing on emission reduction and energy efficiency. With a strong OEM customer base, global manufacturing, and a robust R&D focus on zero-emission solutions, Garrett leverages innovation and strategic partnerships to maintain industry leadership.
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