Garrett Motion Lands E-Cooling Compressor Deal and Beats Q4 with $891M Sales
Garrett Motion secured its first production order for an E-Cooling compressor with Cling for electric buses and trucks by 2027, featuring a 160,000-RPM oil-free design that is 50% smaller and 30% lighter. Q4 net sales rose 6% to $891 M with $84 M net income and a $250 M buyback.
1. E-Cooling Compressor Production Award
Garrett Motion received its first commercial production award for the E-Cooling compressor from Cling, targeting integration into next-generation electric buses and trucks starting in 2027. The centrifugal unit operates at over 160,000 RPM, uses oil-free foil bearings and delivers a footprint 50% smaller and mass 30% lighter than conventional scroll compressors.
2. Fourth-Quarter Financial Highlights
The company reported net sales of $891 million in Q4, up 6% year-over-year, with net income of $84 million and adjusted EPS of $0.42. Garrett generated $99 million of operating cash flow, $139 million of adjusted free cash flow, repurchased $72 million of stock and authorized a new $250 million buyback program for 2026.
3. Implications for ETF Exposure
Garrett Motion represents 1.73% of the SPDR S&P Kensho Smart Mobility ETF (HAIL), so stronger production visibility and improved cash returns could support the ETF’s performance. Any significant inflows driven by this news may translate into proportional buying pressure on the ETF’s holdings.