Garrett Motion Inc.

Market-leading turbocharger franchise with top-decile cash generation and returns, tempered by secular BEV decline risk.

Strengths

• FCF margin 9.5% (85th pct), OCF 86.7th pct and ROA 13.1% (88th pct)
• Net margin 8.6% (80th pct); strong, hard-to-replicate engineering IP and scale
• Net income up strongly with disciplined buybacks and dividends

Risks

• Negative book equity (buyback artifact) drives a meaningless -39% ROE
• Long-run turbocharger demand erodes as BEV penetration rises
• Top-10 customers ~62% of sales; cyclical auto-OEM exposure

Notable findings

• Negative equityNegative book equity (debt/equity -1.76)
• Weak liquidityCurrent ratio 0.97 (<1)
• Customer concentration~62% of revenue from one customer/distributor — For the fiscal year ended December 31, 2025, our top ten customers accounted for approximately 62% of our net sales and our largest customer accounted for approximately 12% of our net sales
• Chronic dilutionShare count +22%/yr over 4y (dilution)
• Strong balance sheetStrong balance sheet — $177M cash & investments