GARRETT MOTION INC

Company Overview

Garrett Motion is a Switzerland‑headquartered auto‑parts supplier focused on turbochargers and emerging zero‑emission propulsion components (E‑Turbo, fuel‑cell compressors, E‑Cooling compressors). In Q2 2025 the company reported $913M in net sales (up 3% y/y), Adjusted EBIT of $124M and net income of $87M, with Europe representing ~50% of revenue. Management highlights program wins and ramps in gasoline and electric/zero‑emission products while facing near‑term headwinds from diesel weakness, aftermarket softness, tariffs and FX. Liquidity and capital return actions (YTD $52M repurchases, $25M dividend) improved after a credit restatement that increased revolving capacity to $630M.

Executive Compensation Practices

Given Garrett’s operating profile, incentive pay is likely tied to near‑term operational metrics such as Adjusted EBIT/EBITDA, gross margin, free cash flow and working capital improvements (productivity and tariff pass‑through are specifically called out in the MD&A). Long‑term awards are likely oriented to equity (RSUs/stock options) or performance shares that vest on TSR, multi‑year margin/EBITDA targets, or commercialization and serial‑production milestones for zero‑emission technologies. Retention pay and long‑term incentives may be emphasized for engineering and program‑management talent because successful program launches and ramp‑ups materially affect future revenue. Finally, the company’s credit agreements, repurchase program and dividend policy can constrain or shape discretionary payouts and timing of equity‑based compensation.

Insider Trading Considerations

Insider activity at Garrett will often cluster around clearly material operational events: quarterly earnings (margins, tariff recoveries, FX), major OEM program awards or production ramps (E‑Turbo and fuel‑cell compressor wins), and material liquidity actions (debt refinancings, buybacks/dividends). High customer concentration with major OEMs and sensitivity to tariffs/FX means contract news or regulatory tax changes (e.g., OECD Pillar Two, U.S. tax rules) can trigger meaningful insider buying or selling. Expect standard blackouts around earnings and material disclosures and common use of 10b5‑1 plans for scheduled trades; cross‑jurisdictional (U.S./Swiss) reporting and withholding/tax considerations may also affect timing of option exercises and sales.