What changed in this filing

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Item 1. Business

2025-02-20 compared with 2024-02-15 · 90 added, 83 removed, 217 unchanged (44% of the section changed)

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These products are key enablers for fuel economy, energy efficiency, thermal management, and compliance with emissions standards and overall greenhouse gas and other emission-reduction targets.

Our growth strategy in zero emission technologies is to focus on solving OEMs' pain points with existing technologies and bring differentiated technologies for traction (E-Powertrain) and thermal management (E-Cooling compressor), leveraging a unique set of technology pillars that are hard to replicate by competitors like high-speed motors and power electronics, controls software, oil-less bearings and system integration.

These technology pillars have been developed by Garrett over the past decade and require significant and sustained research and development ("R&D") investments, resulting in the successful launch of E-Boosting and fuel cell compressor applications.

Our growth strategy in zero-emission technologies is to focus on solving OEMs' pain points with existing technologies and bring differentiated technologies for traction (E-Powertrain) and thermal management (E-Cooling compressor), leveraging a unique set of technology pillars that are hard to replicate by competitors, such as high-speed motors and power electronics, controls software, oil-less bearings and system integration.

These technology pillars have been developed by Garrett over the past decade and require significant and sustained research and development ("R&D") investments, and have resulted in the successful launch of E-Boosting and fuel cell compressor applications.

They bring unique features to our offerings in terms of energy efficiency, lower weight and packaging requirements that are highly valued by our customers.

We provide cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles and industrial applications.

We provide cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles (which includes both on-highway and off-highway applications) and industrial applications.

Our products include mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as compressing air for fuel cell compressors, and compressing refrigerant for electric cooling compressors.

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At the same time, we have developed unique technological competencies, which we aim to continue leveraging to solve our customers’ energy-related challenges in the electrification evolution related to hybrids and electric powertrains.

We are developing solutions and increasing our research and development (“R&D”) spend, focusing more than 50% of total R&D expenditure in 2024 on technologies for electrification including zero emission technologies, fuel cell compressors for a broad range of cell stack power (40kW to 250kW) and high value electric vehicle components including E-Powertrain and E-Cooling Compressor technologies.

We are developing solutions and allocating our R&D spend appropriately, focusing more than 50% of total R&D expenditure in 2024 on zero-emission technologies, including for electrification, fuel cell compressors for a broad range of cell stack power (40kW to 250kW) and high-value electric vehicle components, including E-Powertrain and E-Cooling Compressor technologies.

On turbocharger side, we keep investing to support our customers, especially for hybrids, while also expanding our portfolio range with the development of larger turbocharger aimed at off-highway applications.

Key trends affecting our industry

Current global economic conditions due to geopolitical conflicts, high inflation in Europe and China's slow pace of recovery, all have adversely affected and may continue to adversely affect many industries including the automotive sector.

Growth in overall vehicle production

Light vehicle production increased 9% in 2023, compared to prior year.

Commercial vehicle production remained steady in 2023 while the on-highway segment increased 12%, and the off-highway sector decreased by 7%.

For 2024, S&P and KGP expect an overall drop of approximately 1% in the automotive (light vehicle and commercial vehicle) industry.

Moreover, significant uncertainty remains on global economic growth, with some supply chain disruptions, geopolitical tensions, and China facing low inflation and job market deterioration.

Changes in overall vehicle production

Light vehicle production decreased by approximately 1% in 2024, compared to prior year.

Commercial vehicle production experienced a decrease of almost 4% in 2024, with both the on-highway and off-highway segments decreasing by 5% and 4%, respectively.

For 2025, Standard & Poor ("S&P") and KGP Automotive Intelligence ("KGP") expect a similar production to 2024 in the automotive (light vehicle and commercial vehicle) industry.

Moreover, significant uncertainty remains 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.

parallel, the share of pure electric vehicles is expected to continue to increase, with short-term dynamics such as China's economic slow down, significant vehicle price gaps between gasoline and ICE-powered vehicles, and slower than planned charging infrastructure, limiting the pace of adoption.

In parallel, the share of pure electric vehicles is expected to continue to increase, with short-term dynamics, such as significant vehicle price gaps between electric vehicles and ICE-powered vehicles, and slower than anticipated charging infrastructure proliferation, limiting the pace of adoption.

Global vehicle fuel efficiency and emissions standards

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This combustion optimization is critical to engine efficiency, exhaust emissions, power and transient response and enables such concepts as 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 future tough fuel economy and emissions standards without sacrificing performance.

Consequently, we believe turbocharging will continue to be a key technology for automakers to meet increasingly tough fuel economy and emissions standards without sacrificing performance.

Turbocharger penetration

The utilization of turbochargers and electric-boosting technologies on vehicle powertrain systems is one of the most cost-effective solutions to address stricter standards, and OEMs are increasing their adoption of these technologies.

Total turbocharger production increased globally from approximately 46 million units in 2022 to 50 million units in 2023 and is expected to decrease from 2024 onward based on current expectations of electric vehicle penetration, gradually decreasing to 2022 volume levels by 2026.

Total turbocharger production decreased globally from approximately 50 million units in 2023 to 49 million units in 2024 and is expected to further decrease in 2025 and onward based on current expectations of electric vehicle penetration, gradually decreasing to 2022 volume levels by 2028.

S&P forecasts turbocharger penetration on ICE-based powertrains to grow in light vehicles from 54% in 2022 to approximately 58% in 2028 and to then come back to approximately 54% in 2032.

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Battery electric and fuel cell technologies

OEMs are investing in full battery electric vehicles ("BEV"s) to comply with increasingly tight regulatory targets across regions.

S&P and KGP expect that BEVs will compose 26% of total light and commercial vehicle production globally by 2026.

Consumer adoption hinges on future "cost of range", tightly linked to the energy capacity of the battery, but also how well that energy is used.

OEMs are investing in full battery electric vehicles ("BEVs") to comply with increasingly tight regulatory targets across regions.

S&P and KGP expect that BEVs will comprise 22% of total light and commercial vehicle production globally by 2027.

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.

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 are all critical problems to solve.

As OEMs strive to solve these issues, they are increasing investment in hydrogen fuel cell powered electric vehicles for demanding applications requiring long range, especially in the commercial vehicle space.

As OEMs strive to solve these issues, they are increasing investment in hydrogen fuel cell-powered electric vehicles for demanding applications requiring longer ranges, especially in the commercial vehicle space.

These vehicles, like battery electric vehicles, have fully electric motor powertrains, but they rely on the hydrogen fuel cell to generate the required electricity.

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We are a global leader in the $11 billion OEM turbocharger industry.

We believe we will continue to benefit from global technology leadership in the turbocharger industry through our deep-seated relationships with all global OEMs.

We believe we will continue to benefit from global technology leadership in the turbocharger industry through our deep-seated 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.

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In 2016, we launched our first high-volume VNT gasoline application, and this technology is expected to experience increased adoption in years to come.

According to a forecast by S&P, VNT represented 24% of global turbo gasoline production in 2023, reaching 36% by 2028.

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, global footprint and in-market capabilities to meet the volume of technological demands of global OEMs.

According to a forecast by S&P, VNT represented 38% of global turbo gasoline production in 2024, and is expected to reach 60% by 2029.

We have a long history of technology leadership in diesel engine turbochargers.

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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 target going forward, as diesel vehicles produce less CO2 on average than gasoline vehicles.

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 provide a comprehensive portfolio of turbocharger and electric-boosting technologies to manufacturers of hybrid-electric powertrains.

OEMs have increased their adoption of hybrid technologies given regulatory standards.

OEMs have increased their adoption of hybrid technologies in

light of stricter regulatory standards.

Similar to turbochargers for gasoline and diesel engines, turbochargers for hybrid vehicles are an essential component of maximizing fuel efficiency and overall engine performance.

Our products provide

OEMs with solutions that further optimize engine performance and position us well as they add more hybrid-electric vehicles into their fleets.

Our products provide OEMs with solutions that further optimize engine performance and position us well as they add more hybrid-electric vehicles into their fleets.

Internal combustion commercial vehicles & industrial products

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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 105L.

We continue to develop our product range to serve more engine needs, even beyond automotive (e.g.

our new GT80 product presented in 2023, our biggest turbocharger to date).

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 to serve more engine needs, even beyond automotive.

For example, we are expanding the application of our turbochargers to power generation, marine applications, and data centers.

Hydrogen fuel cell electric vehicles & industrial products

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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 H2 fuel consumption / range for applications equipped with H2 fuel cells.

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 40kW to 250+kW and we will launch our third generation of fuel cell products in 2024.

Electric (battery electric and H2 fuel cell electric) vehicles & industrial products

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.

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

Leveraging a set of unique technological building blocks, we are now offering to our customers 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.

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We operate through a distribution network of more than 340 distributors covering 165 countries.

Our aftermarket business has historically provided a stable stream of revenue supported by our large installer base, currently estimated at over 130 million vehicles.

As turbocharger penetration rates continue to increase, we expect that our installer base and aftermarket opportunities will continue to grow.

We are also working to enhance our sales channels with the introduction of Garrett Marketplace, an e-commerce platform connecting Garrett's major performance distributors with turbocharger enthusiasts, racing professionals and automotive hobbyists, allowing them to access Garrett performance and racing products faster and more conveniently.

Our aftermarket business has historically provided a stable stream of revenue supported by our large installed base, currently estimated at nearly 140 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 with over 300 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

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We have led the revolution in turbocharging technology over the last 60 years and maintain a leading technology portfolio of approximately 1,300 patents and patents pending.

We have a globally deployed team of approximately 1,300 engineers across five R&D centers and 11 close-to-customer engineering centers.

We have a globally deployed team of approximately 1,400 engineers across five R&D centers and nine 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 3 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.

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.

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 and increasing our R&D spend, focusing almost 60% of total research, development and engineering expenditures in 2024 on 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.

We are developing solutions and increasing our R&D spend, focusing almost 60% of total research, development and engineering expenditures in 2024, on 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.

Strong and collaborative relationships with leading OEMs globally

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Our top ten customers accounted for approximately 62% of net sales and our largest customer represented approximately 12% of our net sales in 2024.

With over 60 years in the turbocharger industry, we have developed strong capabilities working with all major OEMs.

With over 60 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 annually, 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 globally.

With regards to new technology offerings for zero emissions, 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.

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

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We have invested heavily to bring differentiated local capabilities to our customers in high-growth regions, including China and India.

In 2023, we manufactured more than 89% of our products in low-cost countries, including seven manufacturing facilities in China, India, Mexico, Romania and Slovakia.

In 2024, we manufactured more than 87% of our products in low-cost countries, including 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.

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

• Use of our differentiated technology to solve key challenges for zero emission vehicles;

• Leverage our differentiated technology to solve key challenges for zero-emission vehicles;

• Grow our aftermarket business

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

• Light vehicle gasoline turbochargers, which have historically lagged the adoption of diesel turbochargers, after reaching a peak in 2023, are now expected to decrease at a 4% annual CAGR from 2023 to 2026, according to S&P.

• Light vehicle gasoline turbochargers, which have historically lagged the adoption of diesel turbochargers, after reaching a peak in 2024, are now expected to decrease at a roughly 2% annual CAGR from 2024 to 2027, 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 the future years.

A major key to our strategy for gasoline growth is our plan to leverage our strengths in high temperature materials and variable geometry technologies as well as our scale, global footprint and in-region capabilities to meet the volume demands of global OEMs.

This also includes E-Boosting solutions for hybrids with many high volume application launches planned in coming years.

• The commercial vehicle and industrial spaces remain a focus for us, considering its slower shift to electric, and the increasing need for higher energy efficiency and productivity.

This also includes E-Boosting solutions.

• The commercial vehicle (including both on- and off-highway applications) and industrial spaces remain a focus for us, considering its slower shift to electric, and the increasing need for higher energy efficiency and productivity.

We continue to invest in turbocharger technology upgrades, including for new types of fuels for ICE, 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.

Use of our differentiated technology to solve key challenges for zero emission vehicles

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

We stand to benefit from the increased adoption of electric (battery or fuel cell) vehicles.

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Grow our aftermarket business

We have an opportunity to strengthen our global network of more than 300 distributors in 165 countries by deepening our channel penetration, leveraging our well-recognized Garrett brand, utilizing new online technologies for customer engagement and sales, and widening the product portfolio.

Installer Connect, a global web-based platform providing self-service tools aimed at connecting garage technicians generated more than 24,000 additional technicians certified, and our Turbo Service Replacement website attracted more than 800,000 visitors.

Additionally, the Garrett Web Racing & Performance section of our website attracted nearly 1 million visitors in 2023.

We have an opportunity to strengthen our global network of more than 340 distributors in 165 countries by deepening our channel penetration, by leveraging our well-recognized Garrett brand, by utilizing 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 generated nearly 16,000 additional technicians certified in 2024), 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.

Research, Development and Intellectual Property

We maintain technical engineering centers in major automotive production regions of the world to develop and provide advanced products, process 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.

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, 2024, we employed approximately 1,400 engineers.

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Additionally, the Company incurred engineering-related expenses, net of customer reimbursements, which are also included in Cost of goods sold of $(26) million, $(12) million and $11 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Engineering-related expenses include customer reimbursements of $46 million, $25 million and $21 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Customer reimbursements included in engineering-related expenses amounted to $67 million, $46 million and $25 million for the years ended December 31, 2024, 2023 and 2022, respectively.

We currently hold approximately 1,300 patents and patents pending.

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Our Customers

Our global customer base includes nine of the ten largest light vehicle OEMs and nine of the ten largest commercial vehicle engine makers.

Our global customer base includes most light vehicle commercial vehicle OEMs, including top global OEMs.

Our ten largest applications in 2024 were with six different OEMs.

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In 2024, 2023 and 2022, BMW accounted for 12%, 12%, and 12%, respectively, of our total sales.

In 2023, 2022 and 2021, our sales to Ford Motor Company (“Ford”) were 9%, 10%, and 10%, respectively, of our total sales.

In 2024, 2023 and 2022, our sales to Ford Motor Company (“Ford”), our second largest customer, were 10%, 9%, and 10%, 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.

Although the terms and conditions vary from customer to customer,

they typically contemplate a relationship under which our customers are not required to purchase a minimum amount of product from us.

Although the terms and conditions vary from customer to customer, they 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.

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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.

At this time, we are involved in various stages of investigation and cleanup related to environmental remediation matters at certain of our present and former facilities.

At this time, 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.

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Garrett's technologies enable sustainable automotive and industry transformation.

Our corporate sustainability framework, called WeCare4, starts from our mission by spearheading technology development and continuing to deliver industry-first innovations for mobility and beyond.

Our corporate sustainability framework starts from our mission by spearheading technology development and continuing to deliver industry-first innovations for mobility and beyond.

It is built on two main pillars - investing in a culture of innovation and operating responsibly to ensure long-term impact.

We embed sustainability in our governance structure.

Sustainability is embedded in our governance structure.

Our 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 its committees, provide Board oversight of our environment, social and governance ("ESG") activities, corporate responsibility and sustainability strategy.

Primary responsibility at 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.

Garrett articulates its commitments to social and environmental considerations in the communities in which it operates in the Company’s Code of Business Conduct, which can be found on our website at www.garrettmotion.com under "About Us – Investors – Leadership & Governance".

Our Board of Directors, including through its committees, provides oversight of our environment, social and governance ("ESG") 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.

Garrett articulates its commitments to social, environmental and governance considerations in the communities in which it operates in the Company’s Code of Business Conduct, which can be found on our website at www.garrettmotion.com.

The Company published its fiscal year 2023 Sustainability Report in 2024, 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.

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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, 2023, we employed approximately 7,600 permanent employees and 2,100 temporary and contract workers globally.

Diversity, equity and inclusion

Diversity and Inclusion is one of Garrett’s four fundamentals.

As of December 31, 2024, we employed approximately 7,000 employees globally, with 6,600 on a permanent basis and 400 on a temporary basis.

We also had an additional 2,000 workers contracted through third party agencies.

Diversity and inclusion

Diversity and inclusion is one of Garrett’s four fundamentals for how we operate.

As such, we strive to ensure that our employees are each involved, supported, respected and connected.

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Overall, in our global workforce we have representation of approximately 60 different nationalities.

As of December 31, 2023, Garrett's Board of Directors had 33% female representation.

In 2023, the Company continued to strengthen and develop its approach to diversity, equity and inclusion.

In 2024, the Company continued to strengthen and develop its approach to diversity and inclusion, and successfully deployed new Employee Resource Groups ("ERGs") across the organization.

These include the Garrett Women Network, the Cultural Mosaic, the LGBTQI+ and the Diverse Abilities ERGs.

Actions during the year included:

• Regular reporting and review of existing diversity and inclusion metrics and initiatives

• Work by our team of Diversity and Inclusion Champions in key countries to develop local Diversity and Inclusion initiatives suitable for the local context while aligning with the global strategy

• Training for all managers on Unconscious Bias

• Holding Garrett’s annual Diversity and Inclusion Week in December, where the focus was engagement around three new Employee Resource Groups ("ERGs"), Cultural Mosaic, LGBTIQ+ and Diverse Abilities, in addition to the long-standing Garrett Women's Network ERG.

The percentage of female employees in Garrett was 22.8% in 2023 (an increase from 21.8% in 2022).

The percentage of female employees in Senior Management roles was 19.5% in 2023.

The table below shows the evolution of our gender diversity representation over the last four years and our 2025 ambition:

2020 2021 2022 2023 2025 Ambition

• Holding regular reviews of our diversity initiatives in each of the countries where we operate

• Supporting our team comprised of Diversity and Inclusion Champions to help them develop local diversity and inclusion initiatives.

Thanks to their continuous engagement, more than 15 local new ERGs cover now all three regions, and every region covering all three new ERGs (not including Garrett Women’s Network)

• Raising awareness during Pride Month by recognizing the challenge and educating about the topic through training sessions

• Creating dialogue through local activities on the aspects of LGBTQI, diverse ability and cultural differences

• Training for all managers on Unconscious Bias (more than 1,000 employees completed the training)

• Holding Garrett’s annual Diversity and Inclusion Week in December 2024.

In 2024, the percentage of female employees in Garrett was 22.6%.

The percentage of female employees in salaried roles was 26.3% and the percentage of female employees in senior management roles was 22.4%.

We strive over the long-term to reach a gender diversity ambition of 25%.

The table below shows the evolution of our gender diversity representation over the last three years:

2022 2023 2024

% Women in total workforce 21.8% 22.8% 22.6%

% Women in salaried workforce 25.8% 26.6% 26.3%

% Women in senior management 19.0% 19.5% 22.4%

As of December 31, 2024, Garrett's Board of Directors had 22% female representation.

Talent management

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A variety of instructor led virtual programs were deployed during 2024 to support employees' development and a number of dedicated programs for emerging and experienced leaders were successfully held.

More than 68,500 hours of online training was delivered during 2023.

More than 86,200 hours of training were delivered during 2024.

We use regular talent reviews to strengthen the Company’s internal development processes and to calibrate assessment of individual performance.

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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 performance improved when measured by our Total Case Incident Rate (“TCIR”), which reduced to 0.04 in 2023, compared to 0.12 in 2022.

TCIR is measured as the number of recordable injuries and illnesses multiplied by 200,000 and then that number is divided by the total number of hours worked by employees.

Our safety incident numbers remain low compared to industry when measured by our Total Case Incident Rate (“TCIR”) at 0.11 for 2024.

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

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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 2023, Garrett welcomed 205 Interns in 11 countries, versus 261 internships in 2022 (approximately 44% in Engineering, 18% in Integrated Supply Chain, 16% in IT and the remainder in Finance, HR, Marketing and Sales, Legal and Internal Audit).

In 2024, Garrett welcomed 322 Interns in 13 countries, versus 205 internships in 2023 (approximately 44% in Engineering, 26% in Integrated Supply Chain, 11% in IT and the remainder in Finance, HR, Marketing, Aftermarket, Sales and Legal).

In 2024, Garrett onboarded 15 graduates into our Graduate Program in China and India to join existing Graduate Program cohorts moving through their rotational cycles and to gain experience and exposure to Garrett's cutting-edge technologies while at the same time building their leadership skills in a fast-paced and professional work environment.

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Garrett is involved in the community supporting STEM activities for high schools worldwide and in 2024, Garrett sponsored a high school team from the Czech Republic competing in hydrogen-powered racing.

The Company continues to enhance the engagement with global organizations with a focus on growing diversity interest in STEM and automotive engineering as well as intern and full time recruiting.

The Company continues to enhance the engagement 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 that push the envelope of technical innovation.

Our business is typically moderately seasonal.

Our primary North American customers historically reduce production during the month of July and halt operations for approximately one week in December;

our European customers generally reduce production during the months of July and August and for one week in December;

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.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business