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Item 1. Business

2026-02-19 compared with 2025-02-20 · 168 added, 162 removed, 145 unchanged (69% of the section changed)

Garrett is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency.

We design, manufacture and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers ("OEMs") and distributors within the mobility and industrial space.

We have significant expertise in delivering products at scale for internal combustion engines ("ICE") using gasoline, diesel, natural gas and hydrogen, as well as for zero-emission technologies using hydrogen fuel cell systems, both for mobility and industrial use.

As our customers continue to progress on electrification, we are applying our technological pillars to develop highly engineered E-Powertrain and E-Cooling compressor products to support their ambition.

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, 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 (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.

As of 2024, our primary source of sales is associated with the global turbocharger industry for gasoline, diesel and natural gas engines across light vehicle, commercial vehicle and industrial applications.

Sales also come from E-Boosting solutions and hydrogen fuel cell compression solutions, already manufactured at scale.

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 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.

We design, manufacture and sell highly engineered turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers ("OEMs") and independent aftermarket distributors in the mobility and industrial fields.

We have significant expertise in delivering highly engineered products at scale for internal combustion engines ("ICE") using gasoline, diesel, natural gas and hydrogen, as well as zero-emission vehicles ("ZEV").

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

Our growth strategy is two-fold:

(i) expand our turbocharger leadership across passenger and commercial vehicles, maritime and industrial applications, as well as the aftermarket, and (ii) apply our differentiated technologies to develop new solutions for traction (E-Powertrain) and thermal management (E-Cooling compressor).

The underlying technology pillars, such as high-speed motors, controls software, oil-free foil bearings, power electronics and system integration expertise, are hard to replicate by competitors.

These technologies have been developed by Garrett over time and require significant and sustained research, development and engineering ("RD&E") investments.

They bring significant benefits in terms of energy efficiency (thereby reducing total cost of ownership), lower weight and compact packaging that are highly valued by our customers.

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

Our solutions include mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as for compressing air and refrigerants for industrial and mobility use (including, but not limited to, use in commercial heating, ventilation and air conditioning ("HVAC") systems, data center cooling and fuel cell systems).

As of 2025, our primary source of sales comes from the global turbocharger industry for gasoline, diesel and natural gas engines across light vehicle, on- and off-highway commercial vehicles and industrial applications as well as the aftermarket for these products.

Sales also come from E-Boosting and hydrogen fuel cell air compression solutions, already manufactured at scale.

At the same time, we have developed unique technological competencies, which we are leveraging to solve our customers’ challenges in the evolution towards hybrids and electric powertrains.

We are developing solutions and allocating our RD&E spend accordingly, focusing approximately 50% of total RD&E expenditure in 2025 on Electric Compression and E-Powertrain technologies for both mobile and industrial applications.

On the turbocharger side, we continue investing to support our customers, especially for hybrids, while also expanding our portfolio with the development of larger turbochargers, including the new Garrett MEG product line, aimed at marine and industrial applications, including backup power generation for data centers.

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.

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.

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.

Ongoing geopolitical and trade tensions, persistent elevated inflation across Europe, and a slowdown in the growth of China's domestic economy, partially offset by an increase in exports, have continued to exert pressure on global industry and have adversely affected sectors such as automotive throughout 2025.

Changes in overall vehicle and machinery production

Light vehicle production increased by approximately 4% in 2025, compared to the prior year.

Commercial vehicle production experienced an increase of 3% in 2025, with both the on-highway and off-highway segments increasing by roughly 4% and 2%, respectively.

For 2026, Standard & Poor Global Mobility ("S&P") expects production volumes to

decrease slightly from 2025 in the automotive (light vehicle) industry whereas Knibb Gormezano & Partners Automotive Intelligence ("KGP") expects a slight increase in the commercial vehicle (on-highway and off-highway) industry.

Moreover, there continues to be significant uncertainty 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 in many of the regions in which we operate.

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

Commercial vehicles trends in On-Highway and Off-Highway machinery

The global commercial vehicle industry continues to navigate a challenging macroeconomic and regulatory environment, with trends diverging across on- and off-highway segments.

On-highway, freight demand remains subdued in North America and Europe amid economic uncertainty, high interest rates, and geopolitical tensions, leading to delayed fleet purchases and minimal pre-buy activity ahead of upcoming emissions standards.

Electrification progress is slower than anticipated outside China, where battery-electric heavy-duty truck adoption is accelerating due to falling battery costs and supportive trade-in policies.

In contrast, hydrogen-powered trucks face delays into the next decade, and OEMs are prioritizing cost control over rapid zero-emission deployment.

Off-highway — spanning agriculture, construction, materials handling, power generation, marine, and backup power generation for data centers — is similarly constrained by high input costs and uneven demand recovery.

Agricultural equipment faces margin pressure despite easing fertilizer and fuel costs, while construction activity is dampened by fiscal tightening and weak residential investment.

Materials handling demand is transitioning to a replacement cycle, with electrification advancing in compact segments.

Power generation and data center applications remain resilient, supported by critical infrastructure needs and hybrid solutions, while marine applications focus on compliance and efficiency.

Overall, growth expectations have shifted toward 2026-2027, with near-term conditions characterized by caution and selective investment.

Global vehicle fuel efficiency and emissions standards

OEMs are facing increasingly strict constraints for vehicle fuel efficiency and emissions standards globally.

Regulatory authorities in key regions such as the United States, the European Union, China, Japan, and Korea have instituted regulations that require sustained and significant reductions in greenhouse gas (including CO2 and NOx) and particulate matter vehicle emissions.

OEMs are facing increasingly strict constraints for vehicle fuel efficiency and emissions standards in many of the regions in which we operate.

Despite recent revisions, mostly still ongoing, regulatory authorities in key regions such as the United States, the European Union, China, Japan, and Korea have instituted regulations that require sustained and significant reductions in greenhouse gas (including CO2 and NOx) and particulate matter vehicle emissions.

OEMs are required to evaluate and adopt various solutions to address these stricter standards.

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Furthermore, turbochargers allow more precise “air control” over both engine intake and exhaust conditions, such as gas pressures, flows and temperatures, enabling optimization of the combustion process.

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 increasingly tough fuel economy and emissions standards without sacrificing performance.

This combustion optimization is critical to engine efficiency, exhaust emissions, power and transient response (i.e., how the engine reacts to changes in operating conditions, such as acceleration or load changes).

It also allows 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 increasingly stringent 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 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.

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

Total turbocharger production increased globally from approximately 49 million units in 2024 to close to nearly 50 million units in 2025, increasing by more than half a million units year-over-year, and is expected to decrease in 2026 and onward (based on current expectations for BEV penetration), gradually declining to 2022 volume levels by 2030.

S&P forecasts turbocharger penetration on ICE-based powertrains to grow in light vehicles from 54% in 2022 to approximately 57% in 2026, stabilizing around 56% up to 2033.

Medium-Term Powertrain Trends

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In order to address stricter fuel economy standards, OEMs also have been increasing the electrification of their vehicle offerings, primarily with the addition of hybrid powertrains equipped with a gasoline or diesel internal combustion engine in combination with an electric motor.

S&P estimates that hybrid vehicles produced globally will grow from a total of approximately 20 million vehicles in 2024 to 31 million vehicles by 2028, representing a CAGR of 9%.

The electrified powertrain of hybrid vehicles enables the usage of highly synergistic electric-boosting technologies, which augment standard turbochargers with electrically assisted boosting and electrical-generation capability.

Furthermore, the application of electric boosting extends the requirement for engineering collaboration with OEMs to include electrical integration, software controls, and advanced sensing.

Overall, the move to electric boosting further increases the role and value of turbocharging by improving vehicle fuel economy and reducing exhaust emissions.

This includes growing interest for hybridized powertrains that blur the boundaries between ICE and BEVs, such as REEVs (Range Extended EVs, which have a small ICE-powered generator that recharges the battery pack).

S&P estimates that hybrid vehicles (excluding mild hybrids, but including REEVs) produced globally will grow from a total of approximately 16 million vehicles in 2025 to 26 million vehicles in 2029, representing a CAGR of 11%.

Many of these vehicles utilize turbos;

additionally, the hybrid setup enables the use of electric turbos and compressors as well as E-Powertrain technology.

Battery electric and fuel cell technologies

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.

OEMs are investing in BEVs in part to comply with regulatory targets across regions.

S&P expects that BEVs will comprise 28% of total light vehicle production globally by 2030.

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 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.

Critical issues include 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.

As OEMs strive to solve these issues, they are also investing in hydrogen fuel cell-powered electric vehicles for demanding applications requiring longer ranges, especially for commercial vehicles.

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

The hydrogen fuel cell also requires advanced electric-boosting technology to run efficiently and optimize range and cost of ownership.

We are investing to address selected opportunities, raised by the electrification trend, where our differentiated technology can bring benefits related to lighter, more compact and more energy efficient components for electric vehicles.

We are investing to address selected opportunities, sparked by the electrification trend, where our differentiated technology can bring benefits related to lighter, more compact and more energy efficient components for electric vehicles.

We are a global leader in the $10 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 global OEMs.

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

Internal combustion light vehicle products

The global adoption of turbochargers by OEMs on gasoline engines has increased rapidly from approximately 14% in 2013 to approximately 49% in 2024 and is forecasted by S&P to increase to 51% by 2025.

In addition to the volume growth, tightening of CO2 regulations is driving a technology shift, moving away from standard waste gate technology to variable geometry turbo ("VNT") which is a premium technology that offers us technological competitive advantages.

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

Products for light vehicle ICE

The global adoption of turbochargers by OEMs on gasoline engines has increased rapidly from approximately 14% in 2013 to approximately 51% in 2025 and is forecasted by S&P to increase to 53% in 2026.

In addition to the volume growth, tightening of CO2 regulations is driving a technology shift, moving away from standard waste gate technology to variable geometry turbo ("VNT"), which is a premium technology where we hold technological competitive advantages.

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

According to a forecast by S&P, VNT represented 21% of global turbo gasoline production in 2025 and is expected to reach 29% by 2030.

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 technological demands of global OEMs.

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 and global footprint to meet the demands of global OEMs.

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

Despite the diesel industry's weakness for some vehicle segments, the majority of our diesel turbocharger revenues come from heavier and bigger vehicles like SUVs, pickup trucks and light commercial vehicles (such as delivery vans), which remain a stable part of the diesel industry.

Although diesel is weak in certain vehicle segments, we derive most of our diesel turbocharger revenues from segments with continued strong performance:

heavier and bigger vehicles like SUVs, pickup trucks and light commercial vehicles (such as delivery vans).

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.

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• 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 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.

We offer a comprehensive portfolio of turbocharger and electric-boosting technologies (including E-Turbo and E-Compressor solutions) to manufacturers of hybrid-electric powertrains.

OEMs are increasingly adopting hybrid technologies to meet stricter regulatory standards.

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

Internal combustion commercial vehicles & industrial products

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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

We continue to develop our product range - including the introduction of our largest turbocharger, Garrett MEG - reinforcing our presence in marine and industrial applications, such as backup power generation for data centers.

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

We provide a comprehensive range of electric air compressors to manufacturers of fuel cell systems.

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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.

Our customers have taken note of these products, and we are engaged in a number of pre-development programs with OEMs in all regions.

Leveraging a set of unique technological building blocks, we now offer 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.

We are engaged in several pre-development programs with OEMs in various regions, both within mobility and industrial applications.

Aftermarket and performance products

Our Garrett aftermarket brand has strong recognition across distributors and garages globally, and is known for boosting performance, quality and reliability.

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

Our Garrett aftermarket brand has strong recognition across distributors and garages globally, and is known for quality, reliability and boosting engine performance.

We operate through a network of more than 370 distributors covering 165 countries.

Our aftermarket business has historically provided a stable stream of revenue supported by our large installed base, currently estimated at nearly 150 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).

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 by over 400 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 70 years and maintain a leading technology portfolio of approximately 1,350 patents and patents pending.

We have a globally deployed team of approximately 1,400 engineers across five R&D centers and nine close-to-customer engineering centers.

We have a globally deployed team of approximately 1,330 engineers across six R&D centers and ten 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 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.

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, and in 2025 we sold our first "MEG" (very large) turbochargers.

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 for 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, with approximately 50% of total RD&E spend focused on these new solutions.

Strong and collaborative relationships with leading OEMs globally

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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 track record of successful collaborations, as demonstrated by our strong client base and our ability to successfully launch multiple product applications every year, 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.

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Global and low-cost manufacturing footprint with operational excellence

Our geographic footprint locates R&D, engineering and manufacturing capabilities close to our customers, enabling us to tailor technologies and products for the specific vehicle types sold in each geographic industry.

In all regions where we operate, we leverage low-cost sourcing through our robust supplier development program, which continually works to develop new suppliers that are able to meet our specific quality, productivity and cost requirements.

Our geographic footprint locates RD&E and manufacturing capabilities close to our customers, enabling us to tailor technologies and products for the specific vehicle types sold in each geographic industry.

In all regions where we operate, we leverage low-cost sourcing through our robust supplier development program, which continually works to develop new suppliers that can meet our specific quality, productivity and cost requirements.

We now source more than two-thirds of our materials from low-cost countries and believe our high-quality, low-cost supplier network to be a significant competitive advantage.

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

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.

In 2025, we manufactured more than 89% of our products in low-cost countries, including in 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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Garrett invests in innovative technologies that address the needs of our customers in the ongoing auto industry transformation.

This continued investment into differentiated technology, coupled with our relentless focus on customer relationships and our global capabilities, allows us to drive the following business strategies:

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

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

This continued investment in differentiated technology, coupled with our relentless focus on customer relationships and our global capabilities, allows us to drive the following business strategies:

• Strengthen our leadership in the turbocharger industry within the light vehicle, commercial vehicle and industrial space, including product expansion to larger turbocharger frames (Garrett MEG).

• Leverage our differentiated technology to solve key challenges for zero-emission vehicles and energy efficiency needs beyond the mobility space.

• 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 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.

• 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.

• Light vehicle gasoline turbochargers, whose adoption has historically lagged that of diesel turbochargers, are expected to grow until 2032, reaching a peak of 54%, after which a long plateau is expected, above 2020 levels until after 2036, 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 future years.

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

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

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

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

Leverage our differentiated technology to solve key challenges for zero emission vehicles and energy efficiency needs beyond the mobility space

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 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 have an opportunity to strengthen our global network of more than 370 distributors in 165 countries by deepening our channel penetration, by leveraging our well-recognized Garrett brand, by using 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 helped generate nearly 25,000 additional certified technicians in 2025), 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, Engineering and Intellectual Property

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, 2025, we employed approximately 1,330 engineers.

Our total R&D expenses were $187 million, $175 million and $153 million for the years ended December 31, 2024, 2023 and 2022, respectively, with more than 50% of our total R&D spend in 2024 focused on zero-emission technologies.

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.

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.

Our total RD&E expenses, net of customer reimbursements, were $151 million, $161 million and $163 million for the years ended December 31, 2025, 2024 and 2023, respectively, with approximately 50% of our total RD&E spend in 2025 focused on zero-emission technologies.

We currently hold approximately 1,350 patents and patents pending.

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Our Customers

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

Our global customer base includes most light and commercial vehicle OEMs.

Our ten largest applications in 2025 were with six different OEMs.

OEM sales were approximately 85% of our 2024 revenues while our aftermarket and other products contributed 15%.

Our largest customer is Bayerische Motoren Werke AG (“BMW”).

In 2024, 2023 and 2022, BMW accounted for 12%, 12%, and 12%, 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.

OEM sales were approximately 86% of our 2025 revenues while our aftermarket and other products contributed approximately 14%.

Our largest customer is Stellantis N.V.

(“Stellantis”).

In 2025, 2024 and 2023, our sales to Stellantis accounted for 12%, 9% and 9%, respectively, of our total sales.

In 2025, 2024 and 2023, our sales to Bayerische Motoren Werke AG (“BMW”), our second largest customer, were 11%, 12%, and 12%, respectively, of our total sales.

In 2025, 2024 and 2023, our sales to Ford Motor Company (“Ford”), our third largest customer, were 11%, 10%, and 9%, 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.

These arrangements 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.

Prices are negotiated with respect to each business award, which may be subject to adjustments under certain circumstances, such as commodity or foreign exchange escalation/de-escalation clauses or for cost reductions achieved by us.

The terms and conditions typically provide that we are subject to a warranty on the products supplied.

The terms and conditions typically include a warranty on the products supplied.

We may also be obligated to share in all or a part of recall costs if the OEM recalls its vehicles for defects attributable to our products.

Individual purchase orders are terminable for cause or non-performance and, in most cases, upon our insolvency and certain change of control events.

In addition, many of our OEM customers have the option to terminate for convenience on certain programs, which permits our customers to impose pressure on pricing during the life of the vehicle program, and issue purchase contracts for less than the duration of the vehicle program, potentially reducing our profit margins and increasing the risk of losing future sales under those purchase contracts.

In addition, many of our OEM customers have the option to terminate for convenience on certain programs, which allows them to impose pressure on pricing during the life of the vehicle program, and issue purchase contracts for less than the duration of the vehicle program, potentially reducing our profit margins and increasing the risk of losing future sales under those purchase contracts.

We manufacture and ship based on customer release schedules, normally provided on a weekly basis, which can vary due to cyclical automobile production or inventory levels throughout the supply chain.

Although customer programs typically extend to future periods, and although there is an expectation that we will supply certain levels of OEM production during such future periods, customer agreements including applicable terms and conditions do not necessarily constitute firm orders.

Firm orders are generally limited to specific and authorized customer purchase order releases placed with our manufacturing and distribution centers for actual production and order fulfilment.

Firm orders are generally limited to specific and authorized customer purchase order releases placed with our manufacturing and distribution centers for actual production and order fulfillment.

Firm orders are typically fulfilled as promptly as possible from the conversion of available raw materials, sub-components and work-in-process inventory for OEM orders and from current on-hand finished goods inventory for aftermarket orders.

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Environmental requirements are complex, change frequently and have tended to become more stringent over time.

Accordingly, we cannot assure that environmental requirements will not change or become more stringent over time or that our eventual environmental costs and liabilities will not be material.

Accordingly, we cannot ensure that environmental requirements will not change or become more stringent over time or that our eventual environmental costs and liabilities will not be material.

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 clean-up related to environmental remediation matters at certain of our present and former facilities.

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.

As of December 31, 2025, the undiscounted reserve for environmental investigation and remediation was $14 million.

We do not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and we cannot determine either the timing or the amount of the ultimate costs associated with environmental matters, which could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid.

However, considering our past experience and existing reserves, we do not expect that environmental matters will have a material adverse effect on our consolidated financial position.

We do not currently have sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and we cannot determine either the timing or the amount of the ultimate costs associated with environmental matters, which could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid.

However, considering our past experience and existing reserves, we do not currently expect that environmental matters will have a material adverse effect on our consolidated financial position.

Corporate Responsibility

Our sustainability approach

Garrett is a cutting-edge technology leader delivering differentiated solutions for emission reduction and energy efficiency.

We are passionate about innovating for mobility and beyond.

With a 70-year legacy, we serve customers worldwide with passenger vehicle, commercial vehicle, aftermarket replacement, and performance enhancement solutions.

Garrett’s mission to deliver differentiated solutions for emission reduction and energy efficiency is at the heart of our contribution to society.

Our engineering expertise and transformative technologies help optimize fuel efficiency, reduce emissions and manage growing vehicle complexity, all of which are critical areas on the road to a clean transportation future.

Garrett's technologies enable sustainable automotive and industry transformation.

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.

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

We are a global innovator and technology leader delivering differentiated solutions for emission reduction and energy efficiency.

At Garrett, our business growth and sustainability strategy go hand in hand.

We are passionate about innovating for more sustainable mobility and industrial applications and, with a 70-year legacy, we serve customers worldwide with passenger vehicle, commercial vehicle, industrial aftermarket, and performance enhancement solutions.

Our mission to deliver differentiated solutions for emission reduction and energy efficiency is at the heart of our contribution to society.

Our engineering expertise and transformative technologies help optimize fuel and energy efficiency, reduce emissions and manage growing vehicle complexity, all of which are critical to a clean transportation future.

Our technologies enable sustainable automotive and industry transformation.

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

It relies on two main pillars - fostering a culture of innovation and operating responsibly to ensure our actions have a meaningful and long-term impact.

Sustainability is embedded in our corporate governance structure.

Our Senior Executive 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 through its committees, provides oversight of our environment, social and governance 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.

We articulate our commitments to environmental, social and governance considerations in the communities in which we operate in our Code of Business Conduct, which can be found on our website at www.garrettmotion.com.

The Company published its fiscal year 2024 Sustainability Report in 2025, 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.

Human Capital

At Garrett, we place a high value on developing the right working environment and skill sets to advance our performance culture, support our growth strategy and ensure that the world at large can continue to benefit from breakthroughs in sustainable mobility.

We place a high value on developing the right working environment and skill sets to advance our performance culture and support our growth strategy.

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, 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.

As of December 31, 2025, we employed approximately 6,700

employees globally, with 6,300 on a permanent basis and 400 on a temporary basis.

We also had approximately 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.

Embracing diverse thoughts and ideas through inclusion leads to a competitive advantage in the market, increased innovation as we generate new and better ideas, and customer-centric decision making.

We pride ourselves that diversity is represented from the top of the organization, for example 26 different nationalities are represented in our senior management team and they bring with them a wide variety of different backgrounds and experiences.

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

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:

• 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.

Diversity and inclusion is one of the four fundamentals for how we operate.

We strive to ensure that each of our employees are involved, supported, respected and connected.

Embracing diverse thoughts and ideas through an inclusive work environment leads to a competitive advantage in the market, increased innovation as we generate new and better ideas, and customer-centric decision making.

We pride ourselves on the diversity at the top of the organization, with 25 different nationalities represented in our senior management team, bringing with them a wide variety of different backgrounds and experiences.

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

In 2025, the Company continued to advance its commitment to creating an inclusive workplace.

We recognize that diversity and inclusion are key drivers of performance—when people feel respected, valued, and supported, they are empowered to contribute their best ideas, make stronger decisions, and deliver superior results.

This performance-driven mindset ensures that inclusion is not just a value, but a core part of how we succeed together.

Our approach to diversity and inclusion is designed to embrace all backgrounds and perspectives, ensuring that no one feels excluded.

Building on prior successes, we continued to build on our Employee Resource Groups ("ERGs"), which are open to all employees and foster collaboration and understanding across the organization.

These include the Women in Garrett, Cultural Mosaic, Boost your Pride and Diverse Abilities ERGs—each promoting inclusivity, understanding and engagement for everyone.

Key actions during the year included:

• Conducting regular reviews of diversity initiatives in every country where we operate to help promote alignment and inclusiveness.

• Empowering our network of Diversity and Inclusion Champions to drive local initiatives.

Their dedication resulted in further strengthening of more than 15 local ERGs across all three major regions where we operate, helping to promote broad participation and representation.

• Raising awareness during Pride Month through educational sessions and open dialogue, reinforcing that inclusion benefits everyone.

• Facilitating conversations related to our various ERGs through local activities that encourage mutual understanding.

• Hosting Garrett's annual Diversity and Inclusion Week in November 2025 under the theme "YOUnited in Action" featuring engaging local activities to reinforce our commitment to a welcoming workplace for all.

Talent management

At Garrett, we encourage our employees to develop their skills and capabilities through a comprehensive Performance and Talent Management system.

We encourage our employees to develop their skills and capabilities through a comprehensive Performance and Talent Management system.

From annual goal setting and performance reviews to learning opportunities for employees and leaders, the Company helps its people align their professional experience with the Company’s business objectives and encourages them to take ownership of their development and career paths.

Our learning environment offers employees access to approximately 3,200 online trainings that address a wide range of functional competencies, technical skills, and human skills.

Learning can be self-paced, while the Company’s growing online peer-to-peer learning communities also allow employees to easily access courses specific to their function and to share materials and ideas on topics of interest.

Our learning environment offers employees access to approximately 3,300 online training programs that address a wide range of functional competencies, technical skills, and human skills.

Learning can be self-paced, while our growing online peer-to-peer learning communities also allow employees to easily access courses specific to their function and to share materials and ideas on topics of interest.

A variety of instructor-led virtual programs were deployed during 2025 to support employees' development and a number of dedicated programs for emerging and experienced leaders were successfully held.

More than 94,500 hours of training were delivered during 2025.

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

Twice per year, we hold succession planning meetings up to and including the executive level, during which the bench-strength of teams are scrutinized and development plans for their talent are reviewed.

We use regular talent reviews to strengthen our internal development processes and to calibrate assessment of individual performance.

At least twice per year, we hold succession planning meetings up to and including the executive level, during which the bench-strength of teams are scrutinized and development plans for their talent are reviewed.

Ahead of both annual and mid-year performance reviews, leaders hold calibration meetings to ensure that assessment ratings are consistent and fair amongst peer groups.

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Compliance with our standards and local regulatory requirements is monitored through a company-wide self-assessment process assured through annual audits.

In 2024 we continued a rolling 4-year compliance audit against local regulations by a global service provider.

In 2025, we continued a rolling 4-year audit of compliance with local regulations, conducted by a global service provider.

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.

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Compensation and benefits

Garrett’s rewards programs are rooted in our “Be well, work well” principle, and aim to support employees in achieving the right work-life balance.

We invest significant time and resources in establishing compensation programs that are both competitive and equitable.

Our rewards programs are rooted in our “Be well, work well” principle, and aim to support employees in achieving the right work-life balance.

We invest significant time and resources in establishing compensation programs that are both

competitive and equitable.

We constantly evaluate our positions for market competitiveness and adjust, when necessary, with the goal of ensuring the retention of top talent and continuation of equitable pay practices.

As part of our commitment to the well-being of our employees, the Company offers an Employee Assistance Program.

It is an external counselling service designed to assist employees with personal, family, or workplace matters.

As part of our commitment to the well-being of our employees, we offer an external counselling service designed to assist employees with personal, family, or workplace matters.

This service is confidential and is also available to each employee’s dependents.

Employee feedback, representation, and retention

Garrett’s Performance and Talent Management system aims to ensure that two-way dialogue is ongoing between employees and managers, punctuated by both an annual and a mid-year review, which provides employees the opportunity to express their opinions and ideas in terms of their development goals and career aspirations.

Garrett’s strategy is to build positive, direct, business-focused working relationships with all employees in order to drive business results.

Our Performance and Talent Management system aims to ensure that two-way dialogue is ongoing between employees and managers, punctuated by both an annual and a mid-year review, which provides employees the opportunity to express their opinions and ideas for development goals and career aspirations.

Our strategy is to build positive, direct, business-focused working relationships with all employees in order to drive business results.

The Company respects employees’ rights and their wish to be part of employee representative bodies including unions, work councils and employee forums.

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The Company closely monitors employee turnover to measure retention and define improvement actions as and where necessary.

As of December 31, 2024, the Company’s annual voluntary turnover for 2024 was 10.1%, which reflects the trends of the current global marketplace for talent.

Garrett has developed a full set of actions to maximize retention that are carried out at both a global and local level, with line managers as well as functional leaders held accountable for their employee turnover performance.

The Company’s annual voluntary turnover for 2025 was 8.3%, which reflects the trends of the current global marketplace for talent.

Garrett has developed a full set of actions to maximize retention, carried out at both a global and local level, with line managers as well as functional leaders held accountable for their employee turnover performance.

We intend to continue to work diligently on this area to mitigate against the challenges of a highly competitive global marketplace for talent.

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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 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.

In 2024, the Company sponsored 6 Formula SAE and Formula Student teams in several countries providing the students in the racing team with over 8 technical workshops in electrical powertrain, leadership coaching, parts for the racing vehicle and financial support.

Garrett sponsored the Formula SAE event in the U.S., the Formula Student race in Hungary and the Formula Student race in the Czech Republic, where our experts worked as technical judges, provided technical support and awarded 3 EV Formula Student University teams with the Garrett E-Powertrain Innovation award.

In 2025, Garrett welcomed 305 Interns in 13 countries (approximately 82% covering Engineering, Integrated Supply Chain and IT and the remainder in Finance, HR, Marketing, Aftermarket, Sales and Legal).

Garrett also offers a graduate program, which serves as a career accelerator, equipping recent graduates with the skills and expertise needed for upcoming roles in technology.

The program consists of three consecutive 12-month placements, primarily based in our major Engineering Hubs across Europe and Asia.

Throughout the program, participants collaborate closely with engineering professionals and leaders, benefiting from training programs emphasizing technical skills and leadership capabilities.

In 2025, the Company sponsored 4 Formula SAE and Formula Student teams in several countries providing the students in the racing team with technical workshops in electrical powertrain, leadership coaching, parts for the racing vehicle and financial support.

Garrett sponsored the Formula SAE event in the U.S.

and the Formula Student race in the Czech Republic, where our experts worked as technical judges, provided technical support and awarded 2 EV Formula Student University teams with the Garrett E-Powertrain Innovation award.

During 2025, the Company shared its growth vision with over 2,000 students and over 200 female engineers and automotive enthusiasts.

The Company also sponsored the European BEST Engineering Competition, the biggest international competition in Central Europe.

The Garrett student programs hires over 120 students globally to support challenging projects in multiple engineering fields providing an enriching growth experience for potential future Garrett employees.

Every year, the Garrett engineering student programs hires over 120 students globally to support challenging projects in multiple engineering fields providing an enriching growth experience for potential future Garrett employees.

The Company also supports local universities globally with master thesis projects, class speakers and technical sharing events.

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.

Garrett works closely with leading Universities globally on over 20 collaboration projects that push the envelope of technical innovation.

Garrett supports STEM activities for high schools worldwide and in 2025, hosted or visited multiple high schools and colleges local to its main engineering sites in France, Czech Republic, India, and China.

In 2025, Garrett Czech Republic, as a founding member, participated in the Future Shapers project driven by Fab Lab, a local initiative to attract primary and secondary school students to study STEM programs, including conducting workshops for students aged between 13 and 15.

Garrett also sponsored the MyMachine global foundation via technical guidance from engineers, aiding primary school

students to design their dream machine, which were then brought into reality by a group of secondary students.

The Company continues to engage 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 at the forefront of technical innovation.

Our business is typically moderately seasonal.

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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