Garrett Motion Reports $87 Million Net Income in Q2 2025, Revenue Increases to $913 Million

Garrett Motion Inc. reported a net income of $87 million for the second quarter of 2025, a significant increase from $64 million in the same period last year. This growth was attributed to a reduction in interest expenses, which fell to $25 million from $62 million, and a decrease in tax expenses. The company’s revenue for the quarter reached $913 million, marking a 2.6% increase compared to $890 million in the second quarter of 2024. However, for the first half of 2025, total revenue decreased slightly to $1.791 billion from $1.805 billion in the prior year.

The company experienced a mixed performance across its product lines. Sales of gasoline products increased by 6% due to new application launches, while diesel product sales decreased by 1%, reflecting a shift towards gasoline hybrids in Europe. Commercial vehicle sales rose by 6%, driven by recovering demand in off-highway applications, but aftermarket sales fell by 8% due to weaker demand for replacement parts in North America. The overall gross profit margin for the second quarter was 19.8%, down from 20.8% in the previous year, primarily due to unfavorable product mix and pricing pressures.

Garrett Motion has been actively managing its operational costs, with selling, general, and administrative expenses decreasing to $59 million from $61 million year-over-year. The company also repurchased $22 million of its common stock during the quarter, leaving $198 million remaining under its authorized share repurchase program. Additionally, the Board of Directors declared a cash dividend of $0.06 per share, totaling $13 million, which was paid on June 16, 2025.

In terms of strategic developments, Garrett has secured ongoing business through the extension of light vehicle programs and won a significant E-Turbo program in Europe. The company is also advancing its zero-emission technologies, having been awarded serial production for its fuel cell compressor by a leading Asian OEM. The company’s cash and cash equivalents increased to $232 million as of June 30, 2025, up from $125 million at the end of 2024, reflecting improved liquidity.

Looking ahead, Garrett Motion anticipates continued challenges in the automotive market, particularly with fluctuating demand for diesel and aftermarket products. However, the company remains optimistic about its growth prospects in gasoline and commercial vehicle applications, supported by its ongoing investments in new technologies and strategic growth opportunities. The management is focused on leveraging its differentiated technologies to enhance operational performance and drive future growth.