Garrett Motion Inc. (GTX): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if a century-old component supplier can truly pivot to the electric future, and honestly, Garrett Motion Inc.'s business model is the perfect case study right now. I've broken down their nine building blocks to show you exactly how they're balancing the legacy business-which still pulled in $902 million in Q3 2025 OE sales-with their aggressive push into Zero Emission Vehicle (ZEV) tech like E-Powertrain. It's a strategy built on deep OEM collaboration, significant R&D spend, and a solid balance sheet showing $862 million in liquidity as of Q3 2025, all aimed at hitting their $3.55 billion full-year sales target. Dive in below to see the precise partnerships and cost structure that define this transition.

Garrett Motion Inc. (GTX) - Canvas Business Model: Key Partnerships

You're looking at the network of external relationships Garrett Motion Inc. (GTX) relies on to build and sell its differentiated technology. These aren't just casual agreements; they are deep integrations that secure future revenue and accelerate technology deployment, especially in the shift to electrification.

The strategic alliance with Shaanxi Hande Axle Co., Ltd. (HanDe) is a major commitment to the commercial vehicle sector. This partnership, formalized at Auto Shanghai 2025, centers on co-developing and manufacturing advanced electric beam axle systems for medium- and heavy-duty trucks. Production is targeted for 2027, with field trials starting in 2026. This joint solution integrates Garrett Motion's high-speed electric motor and inverter technology with HanDe's established axle platforms. The resulting e-axle is engineered for an overall 40% reduction in weight and size compared to industry benchmarks and aims for a ~30% reduction in the need for sensitive materials like rare earths. This collaboration has already secured multi-year production awards from major Chinese commercial vehicle manufacturers, positioning the solution for high-volume deployment.

Garrett Motion is solidifying its digital backbone through an expanded relationship with PTC, announced on November 19, 2025. This move involves adopting PTC's Codebeamer+ ALM (Application Lifecycle Management) and Windchill+ PLM (Product Lifecycle Management) solutions, building upon their existing use of the Onshape CAD platform. The goal is to unify engineering disciplines across Garrett Motion's 9,000+ employees in over 20 countries and create an AI-ready product data foundation. This unification is crucial for managing the complexity of new electrified products.

The push into passenger vehicle electrification is supported by active proof-of-concept work. As of the third quarter of 2025, Garrett Motion reported 'Growing interest for E-Powertrain with additional proof-of-concept initiatives with two OEMs.' This E-Powertrain technology, which integrates the electric motor, inverter, and gearbox, is scalable, offering both 400V and 800V options and high-speed motors up to 35,000 rpm. The E-Powertrain was first detailed at the 2025 Vienna Motor Symposium.

For two-wheeler performance, Garrett Motion announced a groundbreaking collaboration with Honda on Electric Boosting on November 4, 2025, aiming to redefine performance and efficiency in that segment. This adds to the company's broader zero-emission technology portfolio, which also includes E-Cooling compressors.

The company maintains visibility and support within the performance and aftermarket sectors. Garrett Motion returned as the official turbo sponsor for Global Time Attack (GTA) for the 2025 season. Furthermore, the company actively showcases its future technology, like the E-Turbo, at key industry events, such as the MIA CTS 2025 in October 2025 and the Swiss Automotive Show in August 2025.

Here's a snapshot of the key partnership elements and associated metrics:

The company's recent financial performance provides context for these strategic investments. For the third quarter of 2025, Garrett Motion reported net sales of $902 million and an Adjusted EBIT margin of 14.7%. Full-year 2024 net sales were $3.475 billion.

You should track the successful migration to the new PTC suite as a leading indicator for future product development speed. Finance: draft 13-week cash view by Friday.

Garrett Motion Inc. (GTX) - Canvas Business Model: Key Activities

Manufacturing and global supply chain management for turbochargers.

Garrett Motion Inc. reported net sales of $902 million for the third quarter of 2025, with gasoline sales up 10%. The company operates with a capital-light model, spending less than 3% of sales on Capital Expenditures (CapEx) for 2025. For the first quarter of 2025, CapEx was at 2.8% of sales.

R&D in Zero Emission Vehicle (ZEV) technologies like E-Powertrain and E-Cooling.

Research, Development, and Engineering (RD&E) investment is planned at 4.6% of sales in 2025, with more than 50% allocated to zero-emission technologies. Capital expenditures for zero-emission technologies are set at more than 25% of the total CapEx budget for 2025. Garrett Motion Inc. aims for $1 billion in sales from new electric products, including E-Powertrain, E-Cooling, and fuel cell compressors, by 2030. New business wins for products supporting stationary power generation are expected to generate sales exceeding $100 million in 2025. The company secured its first major series production award for electric motors in the first quarter of 2025.

The focus areas for ZEV technology advancement include:

• E-Powertrain proof of concepts.
• Advancements in E-Cooling technology.
• Fuel cell compressor program awards.
• Major E-Turbo program awards in Europe.

Securing new Original Equipment (OE) program awards, including $1 billion in light vehicle turbo extensions.

Garrett Motion Inc. secured over $1 billion in extensions for light vehicle turbo programs during the second quarter of 2025, providing revenue visibility into 2034. The company also won several awards for commercial vehicles and industrial power generation applications.

Disciplined operational execution to drive productivity gains.

In the third quarter of 2025, Adjusted EBIT reached $133 million with an Adjusted EBIT margin of 14.7%. Adjusted Free Cash Flow for Q3 2025 was $107 million. Management noted that operational productivity gains helped offset an unfavorable product mix in Q3 2025. The operating margin for the company stands at 13.72%, and the net margin is 8.7%. For Q2 2025, Adjusted Free Cash Flow was $121 million, representing a 98% quarterly conversion rate.

Capital allocation strategy including share repurchases and dividend increases.

Garrett Motion Inc. targets returning 75% or more of its Adjusted Free Cash Flow to shareholders over time. The Board approved a new share repurchase program for 2025, authorizing up to $250 million of common stock repurchases. During the third quarter of 2025, the company repurchased $84 million in common stock. In the first quarter of 2025, $30 million of common stock was repurchased. The Board declared a Q4 2025 quarterly dividend of $0.08 per share, a 33% increase from the previous $0.06 per share. The total intended aggregate dividend payout for 2025 was approximately $50 million.

• Q3 2025 Share Repurchase: $84 million.
• Q4 2025 Quarterly Dividend: $0.08 per share.
• Total 2025 Planned Dividend Payout: Approximately $50 million.
• 2025 Share Repurchase Authorization: $250 million.

Garrett Motion Inc. (GTX) - Canvas Business Model: Key Resources

You're looking at the core assets Garrett Motion Inc. (GTX) relies on to deliver its value proposition. These aren't just line items; they are the tangible and intangible foundations supporting their technology leadership in motion control.

The physical and financial backbone of Garrett Motion Inc. (GTX) as of late 2025 can be summarized by these key operational and liquidity metrics:

This strong liquidity position of $862 million as of Q3 2025, which includes $232 million in unrestricted cash, gives Garrett Motion the flexibility to fund its ongoing research and capital expenditures without immediate strain. Honestly, that cash buffer is a solid foundation for the next phase of growth.

The intellectual property (IP) is where the real differentiation happens. Garrett Motion Inc. (GTX) builds its moat around proprietary knowledge in several critical areas:

• Differentiated intellectual property in turbocharging technology.
• Expertise in air and fluid compression systems.
• Proprietary technology in high-speed electric motors.
• Advanced solutions for Zero Emission Vehicles (ZEVs), including fuel cell compressors and electric propulsion systems.

The company's talent pool is deep, with over 9,000 employees globally, including a China R&D team of over 200 specialists as of April 2025. That engineering depth is defintely a key resource.

Customer relationships translate directly into revenue visibility. Garrett Motion Inc. (GTX) maintains long-term Original Equipment (OE) relationships, evidenced by lasting partnerships with more than 40 global and Chinese automakers. Furthermore, the company announced a collaboration with Honda in November 2025 to advance two-wheeler performance through Electric Boosting. While the specific contract term until 2034 isn't explicitly confirmed in the latest reports, the existing base of partnerships provides significant revenue predictability.

Garrett Motion Inc. (GTX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Garrett Motion Inc. (GTX) products, which is really about enabling cleaner, more powerful motion across the entire vehicle spectrum, from traditional engines to full electrification. Honestly, the numbers show they are deeply embedded in the current powertrain landscape while aggressively building out the next one.

Enhanced engine performance and fuel efficiency for Internal Combustion Engine (ICE) and hybrid vehicles.

Garrett Motion Inc. provides boosting solutions that directly translate to better engine output and less fuel burn. For instance, in the third quarter of 2025, the gasoline segment, which heavily relies on their advanced turbochargers, saw sales grow by a strong 10%. This technology is foundational, powering over 140 million vehicles from top original equipment manufacturers (OEMs) on the road globally. The value here is proven performance in the existing fleet.

Here's a quick look at how their core ICE/Hybrid tech is performing against their overall business in late 2025:

The company is definitely still winning share in the traditional space, which helps fund the transition.

Solutions for CO2 and emission reduction, meeting global regulatory benchmarks.

Meeting ever-tightening global emissions rules is a core value driver. Garrett Motion Inc. has already made tangible progress on its internal environmental goals, achieving a 7.9% reduction in its own Scope 1 & 2 Greenhouse Gas (GHG) emissions in 2024. This aligns with their Science-Based Target (SBT) commitment to reduce absolute Scope 1 and 2 GHG emissions by 46.2% by 2030, using a 2019 baseline year. Their products are designed to help customers meet their own regulatory benchmarks, offering solutions that provide up to 28% less NOx and 4% less CO2 on fuel economy compared to non-original replacement turbos.

The focus on cleaner combustion is clear:

• 46.2% GHG emission reduction target (Scope 1 & 2) by 2030.
• >50% of R&D spend dedicated to zero-emission technologies.
• Targeting $1 billion revenue from zero-emission technologies by 2030.
• Hydrogen Internal Combustion Engine (H2ICE) turbocharger solutions available for engines up to 100L.

Advanced E-Boosting and E-Powertrain systems for vehicle electrification.

This is where Garrett Motion Inc. is placing significant bets for future growth. They are moving beyond traditional turbocharging into full electrification components. Their 3-in-1 E-Powertrain, which integrates the high-speed electric motor, inverter, and reducer, offers up to a 40% reduction in size and weight compared to industry benchmarks. This is critical for improving packaging and range in electric vehicles (EVs) and Range Extended Electric Vehicles (REEVs). Furthermore, sales from products supporting stationary power generation are expected to exceed $100 million in 2025, with new lifetime revenue awards for gensets in Q3 2025 alone exceeding $40 million.

You see this commitment in their recent wins:

• Secured awards for turbochargers specifically for hybrids and REEVs.
• Progress on E-Cooling technology testing showing efficiency gains.
• First production award for a heavy-duty E-Powertrain targeting a 2027 start of production.

Reliable aftermarket replacement and performance parts for a large installed base.

The aftermarket value proposition is built on trust and global reach, leveraging the success of the OE technology. The company supports this segment with seven technical support centers, five distribution centers, and more than 350 distributors worldwide, ensuring replacement turbos are always within easy reach. Replacement units are certified by OEMs with up to 3 years durability and a 150,000 km road test guarantee, contrasting with lower-cost, non-OE quality units. While Q3 2025 results noted weakness in this area, the underlying infrastructure and quality promise remain a key differentiator.

High-speed electric motor systems for industrial and stationary power applications.

The expertise in high-speed electric motors, derived from turbo technology, is being directly applied to non-automotive sectors. The value here is high efficiency and power density in demanding environments. As noted, the sales projection for these stationary power generation products is set to surpass $100 million for the full year 2025. This diversification provides a stable revenue stream outside the cyclical light vehicle market. Finance: draft 13-week cash view by Friday.

Garrett Motion Inc. (GTX) - Canvas Business Model: Customer Relationships

You're looking at how Garrett Motion Inc. manages its connections with the buyers of its engineered technologies, which really splits into two distinct groups: the big vehicle makers and the parts sellers.

Dedicated, long-term engineering collaboration with global OEMs.

The relationship with Original Equipment Manufacturers (OEMs) is deep, built on co-development over the lifecycle of vehicle platforms. This isn't just selling a part off the shelf; it's embedding technology early on. For instance, in the second quarter of 2025, Garrett Motion secured awards for more than $1 billion in light vehicle turbo program extensions. Also in Q2 2025, the company won several awards with local and global OEMs for commercial vehicles and industrial power generation applications. New business wins secured in 2025 are expected to contribute sales exceeding $100 million in the year 2025 alone. A major milestone showing this long-term view was securing the first major series production award for electric motors, with production slated to start in 2027.

High-touch, direct sales and technical support for OE customers.

This engineering partnership necessitates direct, high-involvement support. The focus remains heavily on the core business, with Q3 2025 net sales reaching $902 million, where gasoline sales grew by 10% during that quarter, reflecting share of demand gains with these key partners. The company is actively advancing its zero-emission portfolio, which requires close technical alignment with OEMs on future platforms.

Standardized, transactional relationship with Aftermarket distributors.

The Aftermarket segment operates differently, relying on distributors for parts replacement. This channel showed some softness recently; for example, Q1 2025 results cited lower aftermarket sales due to softness in North America. Similarly, in Q2 2025, strong demand in other areas was more than offset by weaker demand for replacement parts on aftermarket sales. The company generally derives the majority of its revenue from gasoline applications and geographically from Europe, which influences the transactional dynamics with its global distribution network.

Investor relations focused on capital returns, like the $0.08 quarterly dividend.

Garrett Motion Inc. communicates its relationship with shareholders through concrete capital allocation actions. The Board approved a 33% increase in the quarterly dividend to $0.08 per share for the fourth quarter of 2025. This follows the initiation of a $0.06 per share dividend in Q1 2025. The last declared dividend amount was $0.0800, payable on December 15, 2025, to shareholders of record as of December 1, 2025. The annual dividend stands at $0.32 per share, representing a payout ratio of 12.72% based on the latest figures.

Here's a quick look at the capital returns activity through the third quarter of 2025:

The company also repurchased $30 million of common stock in Q1 2025. The full-year 2025 net sales outlook was raised to $3.55 billion.

You can see the commitment to capital return is a clear part of the external narrative.

Garrett Motion Inc. (GTX) - Canvas Business Model: Channels

You're looking at how Garrett Motion Inc. gets its engineered turbocharger and electric-boosting technologies into the hands of its customers across the globe, spanning both new vehicle production and the service market.

Direct sales force to Original Equipment Manufacturers (OEMs) globally

Garrett Motion Inc. designs, manufactures, and sells its technologies directly to light and commercial vehicle original equipment manufacturers (OEMs) worldwide. The company's Q3 2025 net sales reached $902 million. Management's raised full-year 2025 outlook targets net sales at the midpoint of $3.55 billion. Within this OEM channel, gasoline sales showed strong momentum, growing by 10% during the third quarter of 2025.

Global Aftermarket distribution network for replacement parts

The company serves the aftermarket through a dedicated distribution network, which historically supported an installer base estimated at over 130 million vehicles. This network is extensive, comprising more than 160 distributors spanning more than 100 countries. Through this structure, Garrett Motion provides approximately 5,300 product references to service garages globally. To be fair, this channel faced headwinds; Q1 2025 saw lower aftermarket sales due to softness in North America, and Q3 2025 results noted continued weakness in aftermarket sales.

R&D centers for co-development and technology transfer with partners

Co-development with OEMs is supported by a global footprint of engineering and research facilities. Garrett Motion engineers are deployed across a specific number of centers to ensure deep, value-adding partnerships.

The new Wuhan Innovation Center, opened in June 2025, joins the Shanghai R&D Center to form a dual innovation engine in China, focusing on zero-emission systems like the E-Powertrain. This center also acts as a collaboration platform, forging partnerships with academic institutions and industry players.

Digital platforms for engineering collaboration (e.g., PTC cloud solutions)

Garrett Motion is actively transforming its product development tools using Software-as-a-Service (SaaS) solutions to enhance global collaboration across engineering disciplines. As of November 19, 2025, the company expanded its relationship with PTC, adopting new cloud-based platforms.

• Adoption of PTC Codebeamer+ Application Lifecycle Management (ALM).
• Adoption of PTC Windchill+ Product Lifecycle Management (PLM).
• Building upon the existing successful use of PTC Onshape cloud-native Computer-Aided Design (CAD) and Product Data Management (PDM).

This unified engineering suite helps extend access to product data and enhance traceability between software and hardware requirements. Finance: draft 13-week cash view by Friday.

Garrett Motion Inc. (GTX) - Canvas Business Model: Customer Segments

You're looking at the customer base for Garrett Motion Inc. (GTX) as of late 2025, grounded in their Q3 2025 performance and updated full-year guidance. The company's Chief Operating Decision Maker (CODM) assesses performance on a consolidated basis, but the market clearly breaks down into these four key groups.

The overall financial context for the business in the third quarter of 2025 showed net sales of $902 million, with the full-year 2025 net sales midpoint outlook raised to $3.55 billion.

The primary focus remains on the automotive sector, which is navigating a transition, as evidenced by the 2025 light vehicle industry production outlook being down 3% to flat versus 2024, while the average light vehicle battery electric vehicle penetration is projected at 16% for the year.

Global Light Vehicle OEMs (primary segment, strong growth in gasoline turbo sales)

• Secured multiple new turbocharger programs for hybrid and range-extended electric vehicles.
• Gasoline sales were a key driver, growing 10% in the third quarter of 2025.
• The company is advancing E-Powertrain proof-of-concepts with two OEMs.

Commercial Vehicle OEMs (on-highway, off-highway, heavy-duty trucks)

• Garrett Motion Inc. secured awards for products supporting heavy trucks and on-highway applications.
• Achieved a first major series production award for E-Powertrain in heavy-duty commercial vehicles, production targeted for 2027.
• The 2025 commercial vehicle industry outlook is projected between flat and +2% growth.

Industrial Equipment Manufacturers (stationary power, gensets, marine)

• Secured new business awards totaling more than $40 million in lifetime revenue specifically for gensets.
• Anticipates total industrial sales to surpass $100 million for the full year 2025.
• Testing is progressing on E-Cooling technology with industrial customers.

Aftermarket Distributors and Performance Enthusiasts

• Demand for replacement parts was weaker, contributing to an unfavorable product mix in Q3 2025.
• Continued weakness in aftermarket sales was noted across Q2 and Q3 2025 reports.

Finance: draft 13-week cash view by Friday.

Garrett Motion Inc. (GTX) - Canvas Business Model: Cost Structure

You're looking at the cost side of Garrett Motion Inc. (GTX) as of late 2025, and honestly, it's what you'd expect from a major component manufacturer: heavy on production costs but actively managing overhead and debt.

Garrett Motion Inc. is defintely cost-driven, focusing hard on manufacturing efficiency and scale to keep its competitive edge in the automotive supply chain. Management consistently points to productivity gains and structural cost actions as key drivers for margin improvement, even when facing headwinds like commodity prices or unfavorable product mix. For instance, in Q3 2025, they noted that productivity, net of labor inflation, contributed positively to gross profit.

The bulk of the cost base sits squarely in the Cost of Goods Sold (COGS), which is typical when you're making complex, high-precision hardware. This reflects the expense of raw materials and the actual production process. Here's a quick look at how COGS trended in the third quarter:

Even with higher sales volumes in Q3 2025, COGS increased by $56 million year-over-year, driven by higher sales volumes, enacted import tariffs ($12 million impact), and foreign currency impacts, though partially offset by deflation and productivity.

Operating expenses require close watching, especially Selling, General & Administrative (SG&A). You see the pressure here, as SG&A expenses for the third quarter of 2025 rose to $57 million, up by $4 million compared to the $53 million reported in Q3 2024. That $4 million jump is something to track for continued operational discipline.

On the R&D front, while Garrett Motion Inc. is making significant investments in future-facing technologies like E-Powertrain proof-of-concepts and E-Cooling testing, the reported R&D cost in Q3 2025 was actually $6 million lower than in Q3 2024. This suggests a shift in spending timing or successful capitalization/amortization, rather than a simple year-over-year increase in current period spend.

Finally, the cost of capital has seen a noticeable improvement, which helps the bottom line. Debt servicing costs, specifically the interest expense, were significantly reduced. Interest expense in Q3 2025 was $29 million, a reduction of $8 million from the $37 million recorded in Q3 2024, largely due to the Credit Agreement amendment and restatement.

Here are the key cost movements you should note from the Q3 2025 results:

• SG&A expenses: Increased by $4 million to $57 million.
• Interest Expense: Decreased by $8 million to $29 million.
• R&D Costs: Reported as $6 million lower versus Q3 2024.
• COGS: Rose to $716 million due to volume and tariffs.

Finance: draft 13-week cash view by Friday.

Garrett Motion Inc. (GTX) - Canvas Business Model: Revenue Streams

You're looking at how Garrett Motion Inc. brings in cash as we head toward the end of 2025. The revenue picture is built on a few core areas, with the latest quarterly results showing solid momentum feeding into the full-year expectation.

The total net sales for the third quarter of 2025 hit $902 million. This quarterly performance helped management raise the full-year 2025 net sales outlook midpoint to $3.55 billion. That new midpoint sits within the raised full-year guidance range of $3.5 billion to $3.6 billion.

Here's a look at the key components driving those sales:

The OE segment, which includes turbochargers for both gasoline and diesel engines, remains a primary driver. You saw gasoline sales specifically jump by 10% during the third quarter of 2025, showing strong traction in that part of the business. The company is also actively securing new business wins for turbochargers designed for hybrid and range-extended electric vehicles, which fall under the broader OE and Zero-Emission categories.

The Aftermarket segment, which accounted for 13% of 2024 revenue, is currently facing headwinds; management noted continued weakness in this area during the Q3 2025 reporting. Still, the growth in other areas is helping to offset this. For instance, the Industrial Sales stream, focused on stationary power, is set to contribute over $100 million in 2025 revenue.

Garrett Motion Inc. is clearly positioning its revenue base to capture future trends:

• Gasoline & Diesel Turbos remain the core OE revenue base.
• Zero-Emission technologies like E-Powertrain are moving from concept to production awards.
• Industrial sales are a growing, confirmed revenue contributor exceeding the $100 million mark for the year.

The total revenue expectation for the year is substantial, targeting a $3.55 billion midpoint. Finance: draft 13-week cash view by Friday.