Garrett Motion Sets $250 Million Buyback, Targets $300 Million in 2027 Industrial Sales

Garrett Motion Inc. authorized a new $250 million share repurchase program and set a 2027 industrial sales target of about $300 million, up from an expected $230 million this year as it looks to industrial and HVAC growth to support margins.

Management said industrial and HVAC growth should help expand margins, while capacity investment will be needed. The industrial sales target sits alongside the company’s broader full-year outlook: Garrett reaffirmed midpoint guidance of $3.8 billion in net sales, $580 million in adjusted EBIT and $430 million in adjusted free cash flow.

The company expects operating performance to offset foreign-exchange headwinds, which it expects to be concentrated mainly in the fourth quarter.

Third-quarter net sales were $930 million, up 3% organically. President, CEO and Director Olivier Rabiller said, “We delivered a strong third quarter with organic sales growth, margin expansion and healthy adjusted free cash flow.”

Management characterized the automotive sector as uncertain and regional markets as changing. Management connected part of the gasoline weakness to a decline in China’s domestic market and the effects of tariff pass-through.