GTXAP

The following discussion and analysis of our financial condition and results of operations, which we refer to as our “MD&A,” should be read in conjunction with our Consolidated Interim Financial Statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q as well as the audited annual Consolidated Financial Statements for the year ended December 31, 2025, included in our 2025 Form 10-K. Some of the information contained in this MD&A or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve various risks and uncertainties. Please refer to the "Special Note Regarding Forward-Looking Statements" below. The following MD&A is intended to help you understand the results of operations and financial condition of Garrett Motion Inc. for the three and six months ended June 30, 2026. Executive Summary During the second quarter of 2026, we outperformed the light vehicle industry and saw growth across all verticals. This was primarily driven by increased gasoline volumes from new program launches, strong demand in light commercial vehicle as well as continued industrial growth. Aftermarket growth further contributed to a favorable product mix. We delivered strong operating performance year-over-year, resulting in Net income for the quarter of $101 million and Adjusted EBIT(1) of $152 million. As the broader macroeconomic and geopolitical conditions evolve, we continue to actively monitor developments and their potential impacts on the industry and our operations. We continue to have success across our differentiated technologies by winning business in both turbo and zero emission offerings. We secured light vehicle turbo, commercial vehicle and industrial awards across multiple regions, including turbo technology for data centers. We have also received favorable feedback from mobility and industrial customers related to expected efficiency gains from our E-Cooling oil-free compressor over existing recognized technologies. We also kicked off pre-development of a commercial vehicle E-powertrain with a Japanese truck maker. For the three months ended June 30, 2026, we repurchased $28 million of Common Stock under our share repurchase program. As of June 30, 2026, we had $135 million of the authorized amount remaining under our share repurchase program. The repurchased shares are held as treasury stock. On April 30, 2026, the Board of Directors declared a cash dividend of $0.08 per share of Common Stock, payable on June 15, 2026, to shareholders of record as of June 1, 2026. The total amount of dividends paid on June 15, 2026 amounted to $15 million. On July 29, 2026, the Board of Directors declared a cash dividend of $0.08 per share of Common Stock, payable on September 15, 2026, to shareholders of record as of September 1, 2026. (1) Adjusted EBIT is a non-GAAP measure. Refer to "Non-GAAP Measures" below for a definition of Adjusted EBIT and a reconciliation of Adjusted EBIT to net income, the most directly comparable GAAP financial measure. Disaggregated Revenue The following tables show our revenues by geographic region and product line for the three and six months ended June 30, 2026 and 2025, respectively. By Region Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) United States $ 174 18% $ 178 20% $ 353 18% $ 354 20% Europe 509 52% 461 50% 1,012 52% 886 49% Asia 261 27% 250 27% 538 27% 507 28% Other 32 3% 24 3% 58 3% 44 3% Total $ 976 $ 913 $ 1,961 $ 1,791 24 By Product Line Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Diesel $ 235 24% $ 217 24% $ 467 24% $ 425 24% Gas 416 43% 398 43% 859 44% 801 45% Commercial Vehicles / Industrial 188 19% 170 19% 369 19% 325 18% Aftermarket 119 12% 111 12% 233 12% 209 11% Other 18 2% 17 2% 33 1% 31 2% Total $ 976 $ 913 $ 1,961 $ 1,791 Results of Operations for the Three and Six Months Ended June 30, 2026 Net Sales Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Net sales $ 976 $ 913 $ 1,961 $ 1,791 % change compared with prior period 6.9 % 9.5 % Net Sales for the Three Months Ended June 30, 2026 For the three months ended June 30, 2026, net sales compared to the prior period increased by $63 million or 7% (including a favorable impact of $15 million or 2% due to foreign currency fluctuation). The increase was primarily related to higher demand across all verticals, favorable price net of inflation pass-through, and foreign currency impacts, partially offset by lower customer recoveries on import tariffs. Gasoline product sales increased by $18 million or 5% (including a favorable impact of $7 million or 2% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe, India, and South America. Diesel product sales increased by $18 million or 8% (including a favorable impact of $6 million or 2% due to foreign currency translation), primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, Asia, and South America, and program ramp-ups in India. Commercial vehicle and Industrial sales increased by $18 million or 10% (with no impact from foreign currency translation), primarily driven by volume recovery in China and continued industrial growth in China and North America stationary power generation ("Gensets") for data centers. Aftermarket sales increased by $8 million or 8% (including a favorable impact of $2 million or 1% due to foreign currency translation), primarily due to stronger demand for replacement parts in Europe, China, and Australia, partially offset by softer demand for off-highway replacement parts in North America. 25 Net Sales for the Six Months Ended June 30, 2026 For the six months ended June 30, 2026, net sales compared to the prior period increased by $170 million or 9% (including a favorable impact of $73 million or 4% due to foreign currency translation). The increase was primarily related to higher demand across all verticals, and favorable foreign currency impacts, partially offset by unfavorable price net of inflation pass-through and lower customer recoveries on import tariffs. Gasoline product sales increased by $58 million or 7% (including a favorable impact of $34 million or 4% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe, India, and South America. Diesel product sales increased by $42 million or 10% (including a favorable impact of $24 million or 6% due to foreign currency translation), primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, Asia, and South America and program ramp-ups in India. Commercial vehicle and Industrial sales increased by $44 million or 14% (including a favorable impact of $6 million or 2% due to foreign currency translation), primarily driven by volume recovery in China and continued industrial growth in China and North America Gensets for data centers. Aftermarket sales increased by $24 million or 11% (including a favorable impact of $8 million or 3% due to foreign currency translation), primarily due to stronger demand for replacement parts in Europe, India, China, and Australia, while North America remains stable compared with the prior period. Cost of Goods Sold and Gross Profit Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Cost of goods sold $ 764 $ 732 $ 1,553 $ 1,431 % change compared with prior period 4.4 % 8.5 % Gross profit percentage 21.7 % 19.8 % 20.8 % 20.1 % 26 Cost of Goods Sold and Gross Profit for the Three Months Ended June 30, 2026 Cost of Goods Sold Gross Profit (Dollars in millions) Cost of Goods Sold / Gross Profit for the three months ended June 30, 2025 $ 732 $ 181 Increase/(decrease) due to: Volume 35 16 Product mix 18 3 Price, net of inflation pass-through — 8 Commodity, transportation & energy inflation 8 (8) Productivity, net (24) 8 Import tariffs (16) — Research, development & engineering (4) 4 Foreign exchange rate impacts 15 — Cost of Goods Sold / Gross Profit for the three months ended June 30, 2026 $ 764 $ 212 For the three months ended June 30, 2026, cost of goods sold increased by $32 million, primarily driven by $35 million from higher sales volumes, $18 million of unfavorable mix, $15 million from foreign currency impacts, and $8 million of commodity, transportation, and energy inflation. These increases were partially offset by $24 million productivity net of labor inflation and repositioning costs, $16 million of lower import tariffs, and $4 million of lower RD&E costs. For the three months ended June 30, 2026, gross profit increased by $31 million, primarily driven by $16 million from higher sales volumes, $8 million productivity net of labor inflation and repositioning costs, $8 million of price net of inflation pass-through, $4 million of lower RD&E costs, and $3 million of favorable product mix. These increases were partially offset by $8 million of commodity, transportation, and energy inflation. There was no impact from import tariffs for the three months ended June 30, 2026. Cost of Goods Sold and Gross Profit for the Six Months Ended June 30, 2026 Cost of Goods Sold Gross Profit (Dollars in millions) Cost of Goods Sold / Gross Profit for the six months ended June 30, 2025 $ 1,431 $ 360 Increase/(decrease) due to: Volume 77 35 Product mix 22 7 Price, net of inflation pass-through — (3) Commodity, transportation & energy inflation 6 (6) Productivity, net (17) (13) Import tariffs (10) (1) Research, development & engineering (11) 11 Foreign exchange rate impacts 55 18 Cost of Goods Sold / Gross Profit for the six months ended June 30, 2026 $ 1,553 $ 408 For the six months ended June 30, 2026, cost of goods sold increased by $122 million, primarily driven by $77 million from higher sales volumes, $55 million of foreign currency impacts, $22 million of favorable mix, and $6 million of commodity, transportation, and energy inflation. These increases were partially offset by $17 million productivity net of labor inflation and repositioning costs, $11 million of lower RD&E costs, and $10 million of lower import tariffs. For the six months ended June 30, 2026, gross profit increased by $48 million, primarily driven by $35 million from higher sales volumes, $18 million from favorable foreign currency impacts, $11 million of lower RD&E costs, and $7 27 million of favorable product mix. These increases were partially offset by $13 million of lower productivity net of labor inflation and repositioning costs, $6 million of commodity, transportation, and energy inflation, $3 million of price net of inflation pass-through, and $1 million of import tariffs. Selling, General and Administrative Expenses Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Selling, general and administrative expense $ 63 $ 59 $ 121 $ 118 % of sales 6.5 % 6.5 % 6.2 % 6.6 % Selling, general and administrative (“SG&A”) expenses for the three months ended June 30, 2026 increased by $4 million compared with the prior period, primarily driven by $3 million of higher personnel costs and $2 million of unfavorable foreign currency impact, partially offset by $1 million of lower bad debt expense. SG&A expenses for the six months ended June 30, 2026 increased by $3 million compared with the prior period, primarily driven by $6 million of unfavorable foreign currency impact, partially offset by $3 million of lower bad debt expense. Other Expense, Net Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Other expense, net $ 1 $ 1 $ 2 $ 8 Other expense, net for the three months ended June 30, 2026 was consistent with the prior period. Other expense, net for the six months ended June 30, 2026 decreased by $6 million compared to the prior period, primarily driven by $6 million in professional fees incurred in the prior year related to our Restatement Agreement. Interest Expense Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Interest expense $ 24 $ 25 $ 51 $ 54 For the three months ended June 30, 2026, interest expense decreased by $1 million compared to the prior period. This decrease was primarily due to $3 million in lower interest expense due to a different notional amount of debt outstanding during the period. In addition, we recorded net gains of $2 million on our interest derivatives in the current year, in comparison to net gains of $4 million in the prior year. For the six months ended June 30, 2026, interest expense decreased by $3 million compared to the prior period. This decrease was primarily due to $5 million in lower interest expense due to a different notional amount of debt outstanding during the period and the repricing of our Credit Agreement. In addition, we recorded net gains of $1 million on our interest derivatives in the current year, in comparison to net gains of $4 million in the prior year. Non-Operating Income, Net Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Non-operating income, net $ (2) $ (6) $ (10) $ (7) 28 For the three months ended June 30, 2026, we had non-operating income of $2 million versus $6 million in the prior period. The decrease in non-operating income was primarily driven by a decrease in foreign exchange transactional gains. For the six months ended June 30, 2026, we had non-operating income of $10 million versus $7 million in the prior period. The increase in non-operating income was primarily driven by the resolution of certain environmental liabilities, partially offset by a decrease in foreign exchange transactional gains. Tax Expense Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Tax expense $ 25 $ 15 $ 48 $ 38 Effective tax rate 19.8 % 14.7 % 19.7 % 20.3 % The effective tax rates for the three months ended June 30, 2026 and 2025 were 19.8% and 14.7%, respectively. The effective tax rates for the six months ended June 30, 2026 and 2025 were 19.7% and 20.3%, respectively. The change in the effective tax rate for the three and six months ended June 30, 2026 compared to the prior period is primarily related to a decrease in U.S. taxes on international operations during 2026, the global mix of earnings from year-to-year, a one-time benefit related to the revaluation of deferred tax assets in China during 2025, and deductions related to employee share-based compensation during 2026. The effective tax rate can vary from quarter to quarter due to changes in the Company’s global mix of earnings, the resolution of income tax audits, changes in tax laws (including updated guidance on U.S. tax reform), deductions related to employee share-based compensation, internal restructurings, and pension mark-to-market adjustments. Net Income Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Net income $ 101 $ 87 $ 196 $ 149 Net income margin 10.3 % 9.5 % 10.0 % 8.3 % Net income for the three months ended June 30, 2026 increased by $14 million compared with the prior period, primarily due to $31 million of higher gross profit and $1 million of lower interest expense, partially offset by $10 million of higher tax expense, $4 million of lower non-operating income, and $4 million of higher SG&A expense. Net income for the six months ended June 30, 2026 increased by $47 million compared with the prior period, primarily due to $48 million of higher gross profit, $6 million lower other expense, net, $3 million lower interest expense, and $3 million higher non-operating income, partially offset by $10 million higher tax expense and $3 million higher SG&A expense. Non-GAAP Measures It is management’s intent to provide non-GAAP financial information to supplement the understanding of our business operations and performance, and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the most directly comparable GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to other similarly titled measures used by other companies. Additionally, the non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, an analysis of the Company’s operating results as reported under GAAP. 29 EBIT and Adjusted EBIT We define “EBIT” as our net income calculated in accordance with GAAP, plus the sum of (i) interest expense net of interest income and (ii) tax expense. We define “Adjusted EBIT” as EBIT, plus the sum of (i) repositioning costs, (ii) foreign exchange (gain) loss on debt net of related hedging (gains) losses, (iii) discounting costs on factoring, (iv) gain on sale of equity investment, (v) acquisition and divestiture expenses, (vi) other non-operating income, and (vii) debt refinancing and redemption costs, if any. We believe that EBIT and Adjusted EBIT are important indicators of operating performance and provide useful information for investors because EBIT and Adjusted EBIT exclude the effects of income taxes, as well as the effects of financing activities by eliminating the effects of interest. Certain adjustment items, while periodically affecting our results, may also vary significantly from period to period and have disproportionate effect in a given period, which affects the comparability of our results. The following table reconciles Net income under GAAP to Adjusted EBIT: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Net income $ 101 $ 87 $ 196 $ 149 Interest expense, net of interest income (1) 25 23 51 52 Tax expense 25 15 48 38 EBIT 151 125 295 239 Repositioning costs (2) 1 (2) 13 5 Foreign exchange gain on debt, net of related hedging loss — (1) — — Factoring and notes receivables discount fees 1 1 2 2 Other non-operating income (3) (2) (2) (8) (3) Debt refinancing and redemption costs (4) 1 — 1 6 Acquisition and divestiture expenses — 3 — 6 Adjusted EBIT $ 152 $ 124 $ 303 $ 255 (1)Reflects interest income of $0 million and $2 million for the three months ended June 30, 2026 and 2025, respectively, and $0 million and $2 million for the six months ended June 30, 2026 and 2025, respectively. (2)Repositioning costs includes severance costs related to restructuring projects to improve future productivity. (3)Reflects the non-service component of net periodic pension income and, for the six months ended June 30, 2026, also includes $5 million related to the resolution of certain environmental liabilities not directly related to the Company's operations. (4)Reflects third-party costs directly attributable to the refinancing of our credit facilities and any amendments thereto. 30 Adjusted EBIT for the Three Months Ended June 30, 2026 For the three months ended June 30, 2026, net income increased by $14 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2026. For the three months ended June 30, 2026, Adjusted EBIT increased by $28 million compared to the prior period, driven primarily by $16 million of higher volumes, $10 million of higher productivity, $8 million of pricing net of inflation pass-through, $4 million of lower RD&E costs, and $3 million of favorable product mix. These increases were partially offset by $8 million of commodity, transportation, and energy inflation and $5 million of unfavorable foreign currency impacts. During the three months ended June 30, 2026, we saw volume growth across all verticals. Gasoline growth was driven by new application launches and program ramp-ups in Europe, India, and South America. Diesel growth was due to strong demand for light commercial vehicles and pickup trucks in Europe, Asia and South America, and program ramp-ups in India. Commercial vehicle and industrials growth was driven by strong on-highway demand in China following launches and North America Gensets for data centers. Aftermarket volumes increased in Europe, China, and Australia, resulting in a favorable product mix. The strong operational productivity from our ability to flex our variable cost structure while driving sustained fixed cost productivity was partially offset by year-over-year labor inflation and higher stock based compensation. Losses in foreign currency for the three months ended June 30, 2026 were primarily driven by a strong Chinese Yuan and Japanese Yen, partially offset by gains from our derivatives for a $5 million decrease in Adjusted EBIT. Adjusted EBIT for the Six Months Ended June 30, 2026 For the six months ended June 30, 2026, net income increased by $47 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2026. For the six months ended June 30, 2026, Adjusted EBIT increased by $48 million compared to the prior period, driven primarily by $35 million of higher volumes, $11 million of lower RD&E costs, $8 million of favorable foreign currency impacts, and $7 million of favorable product mix. These increases were partially offset by $6 million of 31 commodity, transportation, and energy inflation, $4 million of lower productivity, and $3 million of pricing net of inflation pass-through. During the six months ended June 30, 2026, we saw volume growth across all verticals. Gasoline growth was driven by new application launches and program ramp-ups in Europe, India, and South America. Diesel growth was due to strong demand for light commercial vehicles and pickup trucks in Europe, Asia, and South America and program ramp-ups in India. Commercial vehicle volume growth was driven by higher on-highway demand in Asia from new launches and following low volumes in the prior period and strong demand in China and North America for Gensets for data centers. Aftermarket volumes increased in Europe, India, China, and Australia for commercial vehicle parts, resulting in favorable mix. The increased productivity from our ability to flex our variable cost structure while driving sustained fixed cost productivity was offset by year-over-year labor inflation, higher stock-based compensation, and one-time expenses. Gains in foreign currency from translational, transactional, and hedging effects in the six months ended June 30, 2026 were primarily driven by a stronger Chinese Yuan-to-U.S. dollar versus the prior period, accounting for an $8 million increase in Adjusted EBIT. Liquidity and Capital Resources Overview June 30, 2026 December 31, 2025 (Dollars in millions) Cash and cash equivalents $ 158 $ 177 Restricted cash 2 2 Revolving Facility - available borrowing capacity 630 630 Revolving Facility - borrowings or letters of credit outstanding — — Term Loan Facilities - principal outstanding 583 637 Senior Notes - principal outstanding 800 800 Bilateral letter of credit facility - utilized capacity 10 10 On May 18, 2026, we entered into the Second Amendment to the Restatement Agreement, which reduced the Applicable Rate to the Adjusted Term SOFR Rate plus 1.75% per annum in the case of Term Benchmark Loans and the Alternate Base Rate plus 0.75% per annum in the case of ABR Loans. Additionally, the Second Amendment reduced the applicable margin for revolving borrowings to a range of 1.75% to 1.25% per annum in the case of Term Benchmark Loans and 0.75% to 0.25% per annum in the case of ABR loans. We also made an early debt repayment of $50 million on our 2025 Dollar Term Facility. During the six months ended June 30, 2026, we paid cash dividends of $31 million. On July 29, 2026, we declared a cash dividend of $0.08 per share of Common Stock, payable on September 15, 2026, to shareholders of record as of September 1, 2026. We employ several means to manage our liquidity, and our sources of financing include cash flows from operations, cash and cash equivalents on hand, the 2032 Senior Notes, and our Credit Agreement, including our 2025 Dollar Term Facility and our New Revolving Facility. We expect to continue investing in our facilities as we expand our manufacturing capacity for new product launches and invest in new technologies and strategic growth opportunities, in particular in connection with our zero-emission technologies. We believe the combination of expected cash flows, the term loan borrowings, the 2032 Senior Notes, and the New Revolving Facility, will provide us with adequate liquidity to support the Company's operations and investments in strategic growth opportunities through at least the next 12 months. From time-to-time, we may opportunistically access the debt or equity capital markets, or otherwise pursue financing transactions, to supplement our sources of liquidity. Share Repurchase Program On December 3, 2025, the Board of Directors authorized a $250 million share repurchase program valid from January 1, 2026, until December 31, 2026. During the six months ended June 30, 2026, we repurchased $115 million of Common 32 Stock, with $135 million remaining under the share repurchase program as of that date. These repurchases include a total of 2,500,000 shares repurchased from funds affiliated with Oaktree Capital Management, L.P., a related party, for $50 million. We may repurchase shares from time to time under the program through various methods, including in open market transactions, block trades, privately negotiated transactions, and otherwise. The timing, as well as the number and value of shares repurchased under the program, will depend on a variety of factors. We are not obligated to purchase any shares under the share repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. For more information, see Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. Cash Flow Summary for the Six Months Ended June 30, 2026 Six Months Ended June 30, 2026 2025 (Dollars in millions) Cash provided by (used for): Operating activities $ 243 $ 214 Investing activities (38) (26) Financing activities (222) (89) Effect of exchange rate changes on cash and restricted cash (2) 8 Net (decrease) increase in cash, cash equivalents and restricted cash $ (19) $ 107 Cash provided by operating activities increased by $29 million for the six months ended June 30, 2026 compared to the prior period. The increase was primarily driven by $32 million of higher net income net of non-cash charges and $63 million of favorable impact from changes in other assets and liabilities, partially offset by $66 million of unfavorable impacts from working capital changes. Cash flow used for investing activities increased by $12 million for the six months ended June 30, 2026 compared to the prior period. The increase was driven by $5 million in higher capital expenditures on property, plant and equipment versus the prior period and $7 million in reduced proceeds from our cross currency swaps. Cash used for financing activities was $222 million for the six months ended June 30, 2026 compared with $89 million in the prior period. During the six months ended June 30, 2026, we made payments of $115 million for the repurchase of Common Stock under our share repurchase program, debt repayments of $110 million, and payments of $31 million for dividends on our Common Stock. These payments were partially offset by $56 million of proceeds from our Credit Facilities. In comparison, cash used for financing activities was $89 million for the six months ended June 30, 2025, primarily driven by debt repayments of $73 million, payments of $52 million for Common Stock repurchases, and payments of $25 million for dividends on our Common Stock. These payments were partially offset by proceeds of $68 million from the Credit Facilities. Off-Balance Sheet Arrangements We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. Critical Accounting Policies and Estimates The preparation of our Consolidated Interim Financial Statements in accordance with GAAP is based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. Actual results could differ from our estimates and assumptions, and any such differences could be material to our financial statements. Our critical accounting policies and estimates are summarized in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Form 10-K. 33 Recent Accounting Pronouncements See Note 2, Summary of Significant Accounting Policies of the Notes to the Consolidated Interim Financial Statements for further discussion of recent accounting pronouncements. Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q and the other reports filed by us with the SEC from time to time, as well as statements incorporated by reference herein and related comments by our management, contain forward-looking statements within the meaning of the U.S. federal securities laws. All statements other than statements of historical fact, including without limitation statements regarding our future results of operations and financial position, expectations regarding the growth of the turbocharger and electric vehicle markets and other industry trends, the sufficiency of our cash and cash equivalents, anticipated sources and uses of cash, anticipated investments in our business, our business strategy, pending litigation, anticipated interest expense, and the plans and objectives of management for future operations and capital expenditures are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of these terms or other similar expressions. In making these forward-looking statements, we rely on our current expectations and projections about possible future events and financial trends that we believe may affect our business, financial condition and results of operations. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are beyond our control. These factors, which may be revised or supplemented in subsequent reports we file with the SEC, include, among other things, risks related to the following: (1) the ongoing evolution of the automotive industry; (2) the highly competitive markets in which we operate; (3) our reliance on sales to major customers; (4) changing industry and economic conditions; (5) the unique aspects of our aftermarket business; (6) pricing pressures from our original equipment manufacturer customers; (7) the foreign markets in which we operate; (8) climate change and increased scrutiny from customers, investors, regulators, and other stakeholders; (9) recruitment, development, and retention of qualified personnel; (10) program launch difficulties; (11) volatility in the cost of raw materials, components, energy, transportation, and other inputs; (12) supply shortages or supplier distress leading to a disruption of our operations; (13) realization of sales from awarded business; (14) economic, political, regulatory, foreign exchange, and other risks of our international operations; (15) geopolitical conditions, catastrophic events, and pandemics; (16) joint venture partnerships, joint development projects, and other strategic opportunities; (17) intellectual property rights; (18) work stoppages or other disruptions at our facilities; (19) realization of productivity and efficiency improvements and repositioning projects; (20) warranty claims, product recalls, field actions, or product liability actions; (21) litigation, government proceedings and other contingencies and uncertainties; (22) environmental matters and liabilities; (23) information technology and data privacy considerations, including cybersecurity and other security concerns; (24) our substantial indebtedness and restrictive covenants related to such indebtedness; (25) tax considerations; (26) our ability to raise capital; (27) our pension funding obligations; or (28) payment of dividends and share repurchases. For a further discussion of these and other risks, refer to Part I, Item 1A. "Risk Factors" of our 2025 Form 10-K. You should read this Quarterly Report and the documents that we reference herein completely and with the understanding that our actual future results may be materially different from those envisioned by these forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise.