Moody's Upgrades Garrett Motion Outlook to Positive

Moody's affirmed Garrett Motion's Ba2 rating and shifted outlook from stable to positive, citing stronger performance and credit metrics.
2025 net sales hit $3.584 billion; Q1 2026 sales $985 million, up 12% YoY, prompting a raised 2026 sales guide of $3.6‑$3.9 billion.
EBIT margin improved to 14.1% LTM Q1 2026; debt‑to‑EBITDA fell to 2.4x, with $50 million debt repayments and $299 million free cash flow.
Company diversified into commercial‑vehicle, industrial and aftermarket markets, securing a second China E‑Powertrain award and an industrial E‑Cooling compressor award.