Garrett Motion Inc. (GTX) Business

Item 1. Business

Our Company

Garrett is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency. We design, manufacture and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers ("OEMs") and independent aftermarket distributors in the mobility and industrial fields.

We have significant expertise in delivering highly engineered products at scale for internal combustion engines ("ICE") using gasoline, diesel, natural gas and hydrogen, as well as zero-emission vehicles ("ZEV"). Our products are key enablers for fuel economy, energy efficiency, thermal management, and compliance with greenhouse gas and other emission-reduction targets.

Our growth strategy is two-fold: (i) expand our turbocharger leadership across passenger and commercial vehicles, maritime and industrial applications, as well as the aftermarket, and (ii) apply our differentiated technologies to develop new solutions for traction (E-Powertrain) and thermal management (E-Cooling compressor). The underlying technology pillars, such as high-speed motors, controls software, oil-free foil bearings, power electronics and system integration expertise, are hard to replicate by competitors. These technologies have been developed by Garrett over time and require significant and sustained research, development and engineering ("RD&E") investments. They bring significant benefits in terms of energy efficiency (thereby reducing total cost of ownership), lower weight and compact packaging that are highly valued by our customers.

Our Industry

Overview

We provide cutting-edge technology for the mobility and industrial fields, including light vehicles, commercial vehicles (which includes both on-highway and off-highway applications) and industrial applications. Our solutions include mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as for compressing air and refrigerants for industrial and mobility use (including, but not limited to, use in commercial heating, ventilation and air conditioning ("HVAC") systems, data center cooling and fuel cell systems).

As of 2025, our primary source of sales comes from the global turbocharger industry for gasoline, diesel and natural gas engines across light vehicle, on- and off-highway commercial vehicles and industrial applications as well as the aftermarket for these products. Sales also come from E-Boosting and hydrogen fuel cell air compression solutions, already manufactured at scale.

At the same time, we have developed unique technological competencies, which we are leveraging to solve our customers’ challenges in the evolution towards hybrids and electric powertrains. We are developing solutions and allocating our RD&E spend accordingly, focusing approximately 50% of total RD&E expenditure in 2025 on Electric Compression and E-Powertrain technologies for both mobile and industrial applications. On the turbocharger side, we continue investing to support our customers, especially for hybrids, while also expanding our portfolio with the development of larger turbochargers, including the new Garrett MEG product line, aimed at marine and industrial applications, including backup power generation for data centers.

Key trends affecting our industry

Ongoing geopolitical and trade tensions, persistent elevated inflation across Europe, and a slowdown in the growth of China's domestic economy, partially offset by an increase in exports, have continued to exert pressure on global industry and have adversely affected sectors such as automotive throughout 2025.

Changes in overall vehicle and machinery production

Light vehicle production increased by approximately 4% in 2025, compared to the prior year. Commercial vehicle production experienced an increase of 3% in 2025, with both the on-highway and off-highway segments increasing by roughly 4% and 2%, respectively. For 2026, Standard & Poor Global Mobility ("S&P") expects production volumes to

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decrease slightly from 2025 in the automotive (light vehicle) industry whereas Knibb Gormezano & Partners Automotive Intelligence ("KGP") expects a slight increase in the commercial vehicle (on-highway and off-highway) industry.

Moreover, there continues to be significant uncertainty around global economic growth, as the macroeconomic landscape continues to experience supply chain disruptions, geopolitical tensions and economic uncertainties. The shift from pure gasoline and diesel ICE to hybridized powertrains is expected to continue in response to increasingly strict fuel efficiency and regulatory standards in many of the regions in which we operate. In parallel, the share of full battery electric vehicles ("BEVs") is expected to continue to increase, with short-term dynamics, such as significant vehicle price gaps between BEVs and ICE-powered vehicles, and slower than anticipated charging infrastructure proliferation, limiting the pace of adoption.

Commercial vehicles trends in On-Highway and Off-Highway machinery

The global commercial vehicle industry continues to navigate a challenging macroeconomic and regulatory environment, with trends diverging across on- and off-highway segments. On-highway, freight demand remains subdued in North America and Europe amid economic uncertainty, high interest rates, and geopolitical tensions, leading to delayed fleet purchases and minimal pre-buy activity ahead of upcoming emissions standards. Electrification progress is slower than anticipated outside China, where battery-electric heavy-duty truck adoption is accelerating due to falling battery costs and supportive trade-in policies. In contrast, hydrogen-powered trucks face delays into the next decade, and OEMs are prioritizing cost control over rapid zero-emission deployment. Off-highway — spanning agriculture, construction, materials handling, power generation, marine, and backup power generation for data centers — is similarly constrained by high input costs and uneven demand recovery. Agricultural equipment faces margin pressure despite easing fertilizer and fuel costs, while construction activity is dampened by fiscal tightening and weak residential investment. Materials handling demand is transitioning to a replacement cycle, with electrification advancing in compact segments. Power generation and data center applications remain resilient, supported by critical infrastructure needs and hybrid solutions, while marine applications focus on compliance and efficiency. Overall, growth expectations have shifted toward 2026-2027, with near-term conditions characterized by caution and selective investment.

Global vehicle fuel efficiency and emissions standards

OEMs are facing increasingly strict constraints for vehicle fuel efficiency and emissions standards in many of the regions in which we operate. Despite recent revisions, mostly still ongoing, regulatory authorities in key regions such as the United States, the European Union, China, Japan, and Korea have instituted regulations that require sustained and significant reductions in greenhouse gas (including CO2 and NOx) and particulate matter vehicle emissions. OEMs are required to evaluate and adopt various solutions to address these stricter standards. Turbochargers allow OEMs to reduce engine size without sacrificing vehicle performance, thereby increasing fuel efficiency and decreasing harmful emissions. Furthermore, turbochargers allow more precise “air control” over both engine intake and exhaust conditions, such as gas pressures, flows and temperatures, enabling optimization of the combustion process. This combustion optimization is critical to engine efficiency, exhaust emissions, power and transient response (i.e., how the engine reacts to changes in operating conditions, such as acceleration or load changes). It also allows exhaust gas recirculation for diesel engines and Miller-cycle operation for gasoline engines. Consequently, we believe turbocharging will continue to be a key technology for automakers to meet increasingly stringent fuel economy and emissions standards without sacrificing performance.

Turbocharger penetration

Use of turbochargers and electric-boosting technologies on vehicle powertrain systems is one of the most cost-effective solutions to address stricter fuel economy and emissions standards, and OEMs are increasing their adoption of these technologies. Total turbocharger production increased globally from approximately 49 million units in 2024 to close to nearly 50 million units in 2025, increasing by more than half a million units year-over-year, and is expected to decrease in 2026 and onward (based on current expectations for BEV penetration), gradually declining to 2022 volume levels by 2030. S&P forecasts turbocharger penetration on ICE-based powertrains to grow in light vehicles from 54% in 2022 to approximately 57% in 2026, stabilizing around 56% up to 2033.

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Medium-Term Powertrain Trends

Note: Years 2023 - 2025 represent actual data and years 2026 - 2030 represent forecasted data.

Source: S&P, KGP

Electrification and hybrids

In order to address stricter fuel economy standards, OEMs also have been increasing the electrification of their vehicle offerings, primarily with the addition of hybrid powertrains equipped with a gasoline or diesel internal combustion engine in combination with an electric motor. This includes growing interest for hybridized powertrains that blur the boundaries between ICE and BEVs, such as REEVs (Range Extended EVs, which have a small ICE-powered generator that recharges the battery pack). S&P estimates that hybrid vehicles (excluding mild hybrids, but including REEVs) produced globally will grow from a total of approximately 16 million vehicles in 2025 to 26 million vehicles in 2029, representing a CAGR of 11%. Many of these vehicles utilize turbos; additionally, the hybrid setup enables the use of electric turbos and compressors as well as E-Powertrain technology.

Battery electric and fuel cell technologies

OEMs are investing in BEVs in part to comply with regulatory targets across regions. S&P expects that BEVs will comprise 28% of total light vehicle production globally by 2030. Consumer adoption hinges not only on future "cost of range," which is tightly linked to the energy capacity of the battery, but also on how well that energy is used. Critical issues include energy efficiency increases (including how to best address thermal management challenges), battery price (and consequently vehicle price), weight reduction through increases in power density, and shorter recharging times. As OEMs strive to solve these issues, they are also investing in hydrogen fuel cell-powered electric vehicles for demanding applications requiring longer ranges, especially for commercial vehicles. These vehicles, like BEVs, have fully electric motor powertrains, but they rely on the hydrogen fuel cell to generate the required electricity. The hydrogen fuel cell also requires advanced electric-boosting technology to run efficiently and optimize range and cost of ownership. We are investing to address selected opportunities, sparked by the electrification trend, where our differentiated technology can bring benefits related to lighter, more compact and more energy efficient components for electric vehicles.

Our Products

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We are a global leader in the $10 billion OEM turbocharger industry. We believe we will continue to benefit from global technology leadership in the turbocharger industry through our deep relationships with global OEMs. Continuous product innovation to bring innovative and differentiated technologies for electric vehicles (E-Powertrain and E-Cooling compressors), fuel cell compressors and solutions beyond automotive are the new challenges we are embracing and pursuing.

Products for light vehicle ICE

•Gasoline: The global adoption of turbochargers by OEMs on gasoline engines has increased rapidly from approximately 14% in 2013 to approximately 51% in 2025 and is forecasted by S&P to increase to 53% in 2026. In addition to the volume growth, tightening of CO2 regulations is driving a technology shift, moving away from standard waste gate technology to variable geometry turbo ("VNT"), which is a premium technology where we hold technological competitive advantages. In 2016, we launched our first high-volume VNT gasoline application, and this technology is expected to experience increased adoption in the years to come. According to a forecast by S&P, VNT represented 21% of global turbo gasoline production in 2025 and is expected to reach 29% by 2030. A key to our strategy for gasoline growth is thus to leverage our technological leadership in high-temperature materials and variable geometry, as well as our scale and global footprint to meet the demands of global OEMs.

•Diesel: We have a long history of technology leadership in diesel engine turbochargers. Although diesel is weak in certain vehicle segments, we derive most of our diesel turbocharger revenues from segments with continued strong performance: heavier and bigger vehicles like SUVs, pickup trucks and light commercial vehicles (such as delivery vans). Diesel maintains a unique advantage in terms of fuel consumption, cost of ownership, and towing capacity, which makes it the powertrain of choice for heavier vehicle applications. Diesel also remains essential for OEMs to meet their CO2 fleet average regulatory targets going forward, as diesel vehicles produce less CO2 on average than gasoline vehicles.

•Hybrid vehicles: We offer a comprehensive portfolio of turbocharger and electric-boosting technologies (including E-Turbo and E-Compressor solutions) to manufacturers of hybrid-electric powertrains. OEMs are increasingly adopting hybrid technologies to meet stricter regulatory standards. Like turbochargers for gasoline and diesel engines, turbochargers for hybrid vehicles are an essential component of maximizing fuel efficiency and overall engine performance.

Internal combustion commercial vehicles & industrial products

Our Company traces its roots to the 1950s when we helped develop a turbocharged commercial vehicle for Caterpillar. We have maintained our strategic relationship with key commercial vehicle OEMs for over 70 years as well as industry-leading positions for both on- and off-highway use. Our products improve engine performance and enable lower emissions on trucks, buses, agriculture equipment, construction equipment and mining equipment with engine sizes ranging 1.8L to more than 100L. We continue to develop our product range - including the introduction of our largest turbocharger, Garrett MEG - reinforcing our presence in marine and industrial applications, such as backup power generation for data centers.

Electric (battery electric and hydrogen fuel cell electric) vehicles & industrial products

We provide a comprehensive range of electric air compressors to manufacturers of fuel cell systems. Our system consists of efficient, powerful, and lightweight air compressors using leading automotive technologies to boost fuel cell vehicles. Air supply is critical for performance, durability and hydrogen fuel consumption and range for applications equipped with hydrogen fuel cells. We launched the auto industry's first fuel cell production car application in 2016. We now provide a comprehensive portfolio of fuel cell air compressors covering a broad range of fuel cell stack power from 30kW to 250+kW and we launched our third generation of fuel cell products in 2024.

Leveraging a set of unique technological building blocks, we now offer disruptive solutions for electric traction (E-Powertrain) and electric thermal management (E-Cooling compressor) that can enhance an application’s energy efficiency in a reduced packaging space and with significant weight savings. We are engaged in several pre-development programs with OEMs in various regions, both within mobility and industrial applications.

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Aftermarket and performance products

Our Garrett aftermarket brand has strong recognition across distributors and garages globally, and is known for quality, reliability and boosting engine performance. We operate through a network of more than 370 distributors covering 165 countries. Our aftermarket business has historically provided a stable stream of revenue supported by our large installed base, currently estimated at nearly 150 million vehicles. As turbocharger penetration rates continue to increase, we expect that our installed base and aftermarket opportunities will continue to grow. We are also working to broaden our portfolio with our Remanufactured ("REMAN") offering in Europe, the Middle East and Africa and North America which so far has increased our portfolio by over 400 additional applications, and at the same time provides the additional benefit of utilizing recovered parts while maintaining our required quality standards (by using original components and original assembly processes in our REMAN workshops).

Our Competitive Strengths

We believe that we differentiate ourselves through the following competitive strengths:

•Differentiated and innovative technology in, and beyond, mobility

•Strong and collaborative relationships with leading OEMs globally

•Global and low-cost manufacturing footprint with operational excellence

Differentiated and innovative technology in, and beyond, mobility

We have led the revolution in turbocharging technology over the last 70 years and maintain a leading technology portfolio of approximately 1,350 patents and patents pending. We have a globally deployed team of approximately 1,330 engineers across six R&D centers and ten close-to-customer engineering centers. Our engineers have led the mainstream commercialization of several leading turbocharger innovations, including variable geometry turbines, dual-boost compressors, ball-bearing rotors, electrically actuated controls, and air-bearing electric compressors for hydrogen fuel cells. We maintain a culture of continuous product innovation, introducing about ten new technologies per year and upgrading our existing key product lines approximately every three years. At the end of 2023, we announced an expansion of our turbocharger portfolio to serve large bore engines used in industrial applications, including marine, power generation and other machinery. In 2024, we delivered the first prototypes of our new industrial applications to a key OEM, and in 2025 we sold our first "MEG" (very large) turbochargers. Outside of our turbocharger product lines, we apply this culture of continuous innovation to meet the needs of our customers in new areas. We are developing solutions for zero-emission technologies for mobility and beyond, such as fuel cell compressors for a broad range of cell stack power (40kW to 250kW) and high-value electric products including E-Powertrain and E-Cooling compressor technologies, with approximately 50% of total RD&E spend focused on these new solutions.

Strong and collaborative relationships with leading OEMs globally

We supply our products to more than 60 OEMs globally. Our top ten customers accounted for approximately 62% of net sales and our largest customer represented approximately 12% of our net sales in 2025. With over 70 years in the turbocharger industry, we have developed strong capabilities working with major OEMs around the world. We consistently meet their stringent design, performance and quality standards while achieving capacity and delivery timelines that are critical for customer success. Our track record of successful collaborations, as demonstrated by our strong client base and our ability to successfully launch multiple product applications every year, is well recognized. Our regional research, development and manufacturing capabilities are a key advantage in helping us to supply OEMs as they expand geographically and shift towards standardized engines and vehicle platforms. With regards to new technology offerings for zero-emission vehicles, our proven track record in bringing innovation to production is a key decision factor for our customers to engage in joint technology assessments through pre-development projects with Garrett.

Global and low-cost manufacturing footprint with operational excellence

Our geographic footprint locates RD&E and manufacturing capabilities close to our customers, enabling us to tailor technologies and products for the specific vehicle types sold in each geographic industry. In all regions where we operate, we leverage low-cost sourcing through our robust supplier development program, which continually works to develop new suppliers that can meet our specific quality, productivity and cost requirements. We now source more than two-thirds of our materials from low-cost countries and believe our high-quality, low-cost supplier network to be a significant competitive advantage. We have invested heavily to bring differentiated local capabilities to our customers in high-growth regions, including China and India.

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In 2025, we manufactured more than 89% of our products in low-cost countries, including in seven manufacturing facilities in China, India, Mexico, Brazil, Romania and Slovakia. We have a long-standing culture of lean manufacturing excellence and continuous productivity improvement. We believe global uniformity and operational excellence across facilities is a key competitive advantage in our industry given that OEM powertrain platforms are often designed centrally but manufactured locally, requiring suppliers to meet the exact same specifications across all locations.

Our Strategy

Garrett invests in innovative technologies that address the needs of our customers in the ongoing auto industry transformation. This continued investment in differentiated technology, coupled with our relentless focus on customer relationships and our global capabilities, allows us to drive the following business strategies:

•Strengthen our leadership in the turbocharger industry within the light vehicle, commercial vehicle and industrial space, including product expansion to larger turbocharger frames (Garrett MEG).

•Leverage our differentiated technology to solve key challenges for zero-emission vehicles and energy efficiency needs beyond the mobility space.

•Grow our aftermarket business.

Strengthen our leadership in the turbocharger industry within the light vehicle, commercial vehicle and industrial space

We are focused on strengthening our industry position in the light vehicle, commercial vehicle and industrial turbocharger industries:

•Light vehicle gasoline turbochargers, whose adoption has historically lagged that of diesel turbochargers, are expected to grow until 2032, reaching a peak of 54%, after which a long plateau is expected, above 2020 levels until after 2036, according to S&P. We have launched the first modern 1.5L VNT gasoline application with a major OEM and expect to see increasing adoption of this technology in future years. A major key to our strategy for gasoline growth is our plan to leverage our strengths in high temperature materials, variable geometry technologies, and E-Boosting solutions, as well as our scale, global footprint and in-region capabilities, to meet the volume demands of global OEMs.

•The commercial vehicle (including both on- and off-highway applications) and industrial spaces remain a focus for us, considering their slower shift to electrification, and the increasing need for increased energy efficiency and productivity. We continue to invest in turbocharger technology upgrades, including for new types of fuels for ICE applications, like hydrogen. We also are expanding our portfolio with the launch of new frame sizes aimed at serving larger engines, mostly used in marine and power generation verticals.

Leverage our differentiated technology to solve key challenges for zero emission vehicles and energy efficiency needs beyond the mobility space

We stand to benefit from the increased adoption of electric (battery or fuel cell) vehicles. S&P estimates that the global production of electrified vehicles (battery and fuel cell electric) will increase from approximately 15 million vehicles in 2025 to approximately 28 million vehicles by 2030, representing an annualized growth rate of approximately 13%. To solve current challenges in terms of range, vehicle cost and performance, OEMs will need technologies enabling step changes in energy efficiency, weight and packaging and thermal management. We expect to continue to invest in product innovation and new technologies, and by leveraging our capabilities and expertise to develop selected offerings for electric vehicles, we believe that we are well positioned to remain a technology leader in the field of electrified vehicles. In particular, we have already developed a full portfolio of fuel cell compressors, and we are in the pre-development phase with some of our customers for differentiated E-Powertrain and E-Cooling compressor solutions.

Grow our aftermarket business

We have an opportunity to strengthen our global network of more than 370 distributors in 165 countries by deepening our channel penetration, by leveraging our well-recognized Garrett brand, by using new online technologies for customer engagement and sales, like our Installer Connect program (a global web-based platform providing self-service tools for garage technicians, which helped generate nearly 25,000 additional certified technicians in 2025), and by widening our product portfolio with an expansion initiative on large industrial turbos, for which we plan to onboard certified Service Centers to support these industrial end-customers in the years to come.

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Research, Development, Engineering and Intellectual Property

We maintain technical engineering centers in major automotive production regions of the world to develop and provide advanced products, processes and manufacturing support to all of our manufacturing sites, and to provide our customers with local engineering capabilities and design developments on a global basis. As of December 31, 2025, we employed approximately 1,330 engineers. Our total RD&E expenses, net of customer reimbursements, were $151 million, $161 million and $163 million for the years ended December 31, 2025, 2024 and 2023, respectively, with approximately 50% of our total RD&E spend in 2025 focused on zero-emission technologies.

We currently hold approximately 1,350 patents and patents pending. Our current patents are expected to expire between 2026 and 2044. While no individual patent or group of patents, taken alone, is considered material to our business, taken in the aggregate, these patents provide meaningful protection for our intellectual property.

Materials

The most significant raw materials we use to manufacture our products are grey iron, aluminum, stainless steel and a nickel-, iron- and chromium-based alloy. As of December 31, 2025, we have not experienced any significant shortage of raw materials and we or our suppliers (on our behalf) do not typically carry inventories of such raw materials in excess of those reasonably required to meet our production and shipping schedules.

Our Customers

Our global customer base includes most light and commercial vehicle OEMs. Our ten largest applications in 2025 were with six different OEMs. OEM sales were approximately 86% of our 2025 revenues while our aftermarket and other products contributed approximately 14%.

Our largest customer is Stellantis N.V. (“Stellantis”). In 2025, 2024 and 2023, our sales to Stellantis accounted for 12%, 9% and 9%, respectively, of our total sales. In 2025, 2024 and 2023, our sales to Bayerische Motoren Werke AG (“BMW”), our second largest customer, were 11%, 12%, and 12%, respectively, of our total sales. In 2025, 2024 and 2023, our sales to Ford Motor Company (“Ford”), our third largest customer, were 11%, 10%, and 9%, respectively, of our total sales.

Supply relationships with our customers

We typically supply products to our OEM customers through “open” purchase orders, which are generally governed by terms and conditions negotiated with each OEM. These arrangements typically contemplate a relationship under which our customers are not required to purchase a minimum amount of product from us. These relationships typically extend over the life of the related engine platform. Prices are negotiated with respect to each business award, which may be subject to adjustments under certain circumstances, such as commodity or foreign exchange escalation/de-escalation clauses, or cost reductions achieved by us. The terms and conditions typically include a warranty on the products supplied. We may also be obligated to share in all or a part of recall costs if the OEM recalls its vehicles for defects attributable to our products.

Individual purchase orders are terminable for cause or non-performance and, in most cases, upon our insolvency and certain change of control events. In addition, many of our OEM customers have the option to terminate for convenience on certain programs, which allows them to impose pressure on pricing during the life of the vehicle program, and issue purchase contracts for less than the duration of the vehicle program, potentially reducing our profit margins and increasing the risk of losing future sales under those purchase contracts. We manufacture and ship based on customer release schedules, normally provided on a weekly basis, which can vary due to cyclical automobile production or inventory levels throughout the supply chain.

Although customer programs typically extend to future periods, and although there is an expectation that we will supply certain levels of OEM production during such future periods, customer agreements including applicable terms and conditions do not necessarily constitute firm orders. Firm orders are generally limited to specific and authorized customer purchase order releases placed with our manufacturing and distribution centers for actual production and order fulfillment. Firm orders are typically fulfilled as promptly as possible from the conversion of available raw materials, sub-components and work-in-process inventory for OEM orders and from current on-hand finished goods inventory for aftermarket orders. The dollar amount of such purchase order releases on hand and not processed at any point in time is not believed to be significant based upon the time frame involved.

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Regulatory and Environmental Compliance

We are subject to the requirements of environmental and health and safety laws and regulations in each country in which we operate. These include, among other things, laws regulating air emissions, water discharge, hazardous materials and waste management. We have an environmental management structure designed to facilitate and support our compliance with these requirements globally. Although it is our intent to comply with all such requirements and regulations, we cannot provide assurance that we are at all times in compliance. Environmental requirements are complex, change frequently and have tended to become more stringent over time. Accordingly, we cannot ensure that environmental requirements will not change or become more stringent over time or that our eventual environmental costs and liabilities will not be material.

Certain environmental laws assess liability on current or previous owners or operators of real property for the cost of removal or remediation of hazardous substances. We are involved in various stages of investigation and clean-up related to environmental remediation matters at certain of our present and former facilities. In addition, there may be soil or groundwater contamination at several of our properties resulting from historical, ongoing or nearby activities.

As of December 31, 2025, the undiscounted reserve for environmental investigation and remediation was $14 million. We do not currently have sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and we cannot determine either the timing or the amount of the ultimate costs associated with environmental matters, which could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. However, considering our past experience and existing reserves, we do not currently expect that environmental matters will have a material adverse effect on our consolidated financial position.

Corporate Responsibility

Our sustainability approach

We are a global innovator and technology leader delivering differentiated solutions for emission reduction and energy efficiency. At Garrett, our business growth and sustainability strategy go hand in hand. We are passionate about innovating for more sustainable mobility and industrial applications and, with a 70-year legacy, we serve customers worldwide with passenger vehicle, commercial vehicle, industrial aftermarket, and performance enhancement solutions.

Our mission to deliver differentiated solutions for emission reduction and energy efficiency is at the heart of our contribution to society. Our engineering expertise and transformative technologies help optimize fuel and energy efficiency, reduce emissions and manage growing vehicle complexity, all of which are critical to a clean transportation future. Our technologies enable sustainable automotive and industry transformation.

Our corporate sustainability framework starts from our corporate mission of spearheading technology development and continuing to deliver industry-first innovations. It relies on two main pillars - fostering a culture of innovation and operating responsibly to ensure our actions have a meaningful and long-term impact.

Sustainability is embedded in our corporate governance structure. Our Senior Executive Sustainability Committee, composed of the CEO and several members of Garrett’s senior leadership team, is sponsored by our Chief Technology Officer and oversees our sustainability strategy development, definition and deployment. Our Board of Directors, including through its committees, provides oversight of our environment, social and governance activities, corporate responsibility and sustainability strategy. Primary responsibility at the Board level for reviewing and reporting to the full Board on our sustainability programs and policies, as well as our corporate citizen commitments, resides with the Nominating & Governance Committee.

We articulate our commitments to environmental, social and governance considerations in the communities in which we operate in our Code of Business Conduct, which can be found on our website at www.garrettmotion.com. The Company published its fiscal year 2024 Sustainability Report in 2025, the content of which is not incorporated by reference into this Annual Report or in any other report or document we file with the SEC.

Human Capital

We place a high value on developing the right working environment and skill sets to advance our performance culture and support our growth strategy. We invest in creating an inclusive, stimulating and safe work environment where our employees can deliver their workplace best every day. As of December 31, 2025, we employed approximately 6,700

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employees globally, with 6,300 on a permanent basis and 400 on a temporary basis. We also had approximately 2,000 workers contracted through third-party agencies.

Diversity and inclusion

Diversity and inclusion is one of the four fundamentals for how we operate. We strive to ensure that each of our employees are involved, supported, respected and connected. Embracing diverse thoughts and ideas through an inclusive work environment leads to a competitive advantage in the market, increased innovation as we generate new and better ideas, and customer-centric decision making. We pride ourselves on the diversity at the top of the organization, with 25 different nationalities represented in our senior management team, bringing with them a wide variety of different backgrounds and experiences. Overall, we have representation of approximately 60 different nationalities in our global workforce.

In 2025, the Company continued to advance its commitment to creating an inclusive workplace. We recognize that diversity and inclusion are key drivers of performance—when people feel respected, valued, and supported, they are empowered to contribute their best ideas, make stronger decisions, and deliver superior results. This performance-driven mindset ensures that inclusion is not just a value, but a core part of how we succeed together. Our approach to diversity and inclusion is designed to embrace all backgrounds and perspectives, ensuring that no one feels excluded. Building on prior successes, we continued to build on our Employee Resource Groups ("ERGs"), which are open to all employees and foster collaboration and understanding across the organization. These include the Women in Garrett, Cultural Mosaic, Boost your Pride and Diverse Abilities ERGs—each promoting inclusivity, understanding and engagement for everyone.

Key actions during the year included:

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•Conducting regular reviews of diversity initiatives in every country where we operate to help promote alignment and inclusiveness.

•Empowering our network of Diversity and Inclusion Champions to drive local initiatives. Their dedication resulted in further strengthening of more than 15 local ERGs across all three major regions where we operate, helping to promote broad participation and representation.

•Raising awareness during Pride Month through educational sessions and open dialogue, reinforcing that inclusion benefits everyone.

•Facilitating conversations related to our various ERGs through local activities that encourage mutual understanding.

•Hosting Garrett's annual Diversity and Inclusion Week in November 2025 under the theme "YOUnited in Action" featuring engaging local activities to reinforce our commitment to a welcoming workplace for all.

Talent management

We encourage our employees to develop their skills and capabilities through a comprehensive Performance and Talent Management system. From annual goal setting and performance reviews to learning opportunities for employees and leaders, the Company helps its people align their professional experience with the Company’s business objectives and encourages them to take ownership of their development and career paths.

Our learning environment offers employees access to approximately 3,300 online training programs that address a wide range of functional competencies, technical skills, and human skills. Learning can be self-paced, while our growing online peer-to-peer learning communities also allow employees to easily access courses specific to their function and to share materials and ideas on topics of interest. A variety of instructor-led virtual programs were deployed during 2025 to support employees' development and a number of dedicated programs for emerging and experienced leaders were successfully held. More than 94,500 hours of training were delivered during 2025.

We use regular talent reviews to strengthen our internal development processes and to calibrate assessment of individual performance. At least twice per year, we hold succession planning meetings up to and including the executive level, during which the bench-strength of teams are scrutinized and development plans for their talent are reviewed. Ahead of both annual and mid-year performance reviews, leaders hold calibration meetings to ensure that assessment ratings are consistent and fair amongst peer groups. To support our strategy and objectives, in 2023 we implemented a skills intelligence system. This system, enabled by artificial intelligence, can detect known and hidden capabilities of our employees. We expect this system will support us in identifying efficient paths of upskilling, reskilling and hiring for our future needs.

Be well, work well

Health and safety

World-class health and safety considerations are integrated into Garrett’s procedures and processes. Our management system aligns with the global standard ISO 45001 (and ISO 14001 and ISO 50-001) and provides protection of human health and safety during normal and emergency situations. Compliance with our standards and local regulatory requirements is monitored through a company-wide self-assessment process assured through annual audits. In 2025, we continued a rolling 4-year audit of compliance with local regulations, conducted by a global service provider. The timely development and implementation of process improvement and corrective action plans, including any improvements identified through our local regulatory compliance audits, are closely monitored.

Our safety incident numbers remain low compared to industry when measured by our Total Case Incident Rate (“TCIR”) at 0.04 for 2025. TCIR is measured as the number of recordable injuries multiplied by 200,000 and then divided by the total number of hours worked by employees.

Compensation and benefits

Our rewards programs are rooted in our “Be well, work well” principle, and aim to support employees in achieving the right work-life balance. We invest significant time and resources in establishing compensation programs that are both

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competitive and equitable. We constantly evaluate our positions for market competitiveness and adjust, when necessary, with the goal of ensuring the retention of top talent and continuation of equitable pay practices.

As part of our commitment to the well-being of our employees, we offer an external counselling service designed to assist employees with personal, family, or workplace matters. This service is confidential and is also available to each employee’s dependents.

Employee feedback, representation, and retention

Our Performance and Talent Management system aims to ensure that two-way dialogue is ongoing between employees and managers, punctuated by both an annual and a mid-year review, which provides employees the opportunity to express their opinions and ideas for development goals and career aspirations.

Our strategy is to build positive, direct, business-focused working relationships with all employees in order to drive business results. The Company respects employees’ rights and their wish to be part of employee representative bodies including unions, work councils and employee forums. The Company understands the value of collective bargaining in its labor and employee relations strategy and the importance of trust in its working relationships. Approximately 40% of the Company’s permanent employees (including both full-time and part-time employees) are represented by unions and works councils under current collective bargaining agreements.

The Company closely monitors employee turnover to measure retention and define improvement actions as and where necessary. The Company’s annual voluntary turnover for 2025 was 8.3%, which reflects the trends of the current global marketplace for talent. Garrett has developed a full set of actions to maximize retention, carried out at both a global and local level, with line managers as well as functional leaders held accountable for their employee turnover performance. We intend to continue to work diligently on this area to mitigate against the challenges of a highly competitive global marketplace for talent.

Educating future innovators

Garrett places a high value on STEM research and learning opportunities that provide young people with the skills needed to develop the future of sustainable mobility. The Company sponsors higher education institutes in several countries to further critical research in technical areas and provide students with opportunities to study STEM programs.

Garrett’s Internship Programs enable students to connect theoretical knowledge with practical responsibilities in the spirit of ‘living laboratories,’ during which they are encouraged to take ownership of business projects and define tactics to meet the project goals. In 2025, Garrett welcomed 305 Interns in 13 countries (approximately 82% covering Engineering, Integrated Supply Chain and IT and the remainder in Finance, HR, Marketing, Aftermarket, Sales and Legal).

Garrett also offers a graduate program, which serves as a career accelerator, equipping recent graduates with the skills and expertise needed for upcoming roles in technology. The program consists of three consecutive 12-month placements, primarily based in our major Engineering Hubs across Europe and Asia. Throughout the program, participants collaborate closely with engineering professionals and leaders, benefiting from training programs emphasizing technical skills and leadership capabilities.

In 2025, the Company sponsored 4 Formula SAE and Formula Student teams in several countries providing the students in the racing team with technical workshops in electrical powertrain, leadership coaching, parts for the racing vehicle and financial support. Garrett sponsored the Formula SAE event in the U.S. and the Formula Student race in the Czech Republic, where our experts worked as technical judges, provided technical support and awarded 2 EV Formula Student University teams with the Garrett E-Powertrain Innovation award. During 2025, the Company shared its growth vision with over 2,000 students and over 200 female engineers and automotive enthusiasts.

Every year, the Garrett engineering student programs hires over 120 students globally to support challenging projects in multiple engineering fields providing an enriching growth experience for potential future Garrett employees. The Company also supports local universities globally with master thesis projects, class speakers and technical sharing events.

Garrett supports STEM activities for high schools worldwide and in 2025, hosted or visited multiple high schools and colleges local to its main engineering sites in France, Czech Republic, India, and China. In 2025, Garrett Czech Republic, as a founding member, participated in the Future Shapers project driven by Fab Lab, a local initiative to attract primary and secondary school students to study STEM programs, including conducting workshops for students aged between 13 and 15. Garrett also sponsored the MyMachine global foundation via technical guidance from engineers, aiding primary school

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students to design their dream machine, which were then brought into reality by a group of secondary students. The Company continues to engage with global organizations with a focus on growing diversity interest in STEM and automotive engineering as well as intern and full time recruiting.

Garrett works closely with leading universities globally on over 20 collaboration projects at the forefront of technical innovation.

Seasonality

Our business is typically moderately seasonal. Our primary North American customers historically reduce production during the months of July and December; our European customers generally reduce production during the months of July, August and December; and our Chinese customers often reduce production during the period surrounding the Chinese New Year. Shut-down periods in the rest of the world generally vary by country. In addition, automotive production is traditionally reduced in the months of July, August and September due to the launch of parts production for new vehicle models. Accordingly, our results reflect this seasonality. Our sales predictability in the short term might also be impacted by sudden changes in customer demand, driven by our OEM customers’ supply chain management.

We also typically experience seasonality in cash flow, as a relatively small portion of our full-year cash flow is typically generated in the first quarter of the year and a relatively large portion in the last quarter. This seasonality in cash flow is mostly caused by timing of supplier payments for capital expenditures, changes in working capital balances related to the sales seasonality discussed above, and incentive payments.

Additional Information

Our Annual Reports on Form 10-K, including this Annual Report, our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, as well as all amendments and other reports filed with or furnished to the SEC, are also available free of charge on our internet site at https://www.garrettmotion.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The contents of our internet site are not incorporated by reference into this Annual Report. The SEC maintains a website at SEC.gov that contains reports, proxy and information statements, and other information regarding issuers that file with the SEC, including our Company.