Garrett Motion Wins E-Cooling Compressor Award, Q4 Sales Rise 6%
Garrett Motion secured its first commercial production award for its oil-free E-Cooling compressor with Cling, slated for integration into next-generation electric buses and trucks starting in 2027. In Q4, the company posted $891 million in net sales (up 6% YoY) and 42 cents adjusted EPS, beating estimates and authorizing a $250 million buyback.
1. E-Cooling Compressor Partnership
Garrett Motion secured its first commercial production award for the oil-free, foil bearing-based E-Cooling centrifugal compressor in a partnership with Cling. The high-speed unit operates above 160,000 RPM, is up to 50% smaller and 30% lighter than traditional scroll compressors, and will enter production on electric buses and trucks in 2027.
2. Q4 Financial Results
In the fourth quarter, the company reported net sales of $891 million, a 6% increase year over year, and adjusted earnings per share of $0.42, topping the $0.36 consensus. Net income reached $84 million as commercial vehicle revenue rose 9% and aftermarket sales climbed 4%.
3. Cash Flow and Buyback
Garrett generated $99 million in operating cash flow and $139 million in adjusted free cash flow, ending the quarter with $807 million in liquidity. The company repurchased $72 million of stock and approved a new $250 million share buyback program for 2026.
4. Full-Year Guidance and Strategic Outlook
For the full year, revenue guidance stands at $3.60 billion to $3.80 billion, with adjusted free cash flow forecasted between $355 million and $455 million. Leadership pointed to an expanding zero-emission product portfolio as a key driver of long-term growth.