Garrett Motion adopts capital allocation framework, $250M share repurchase plan

Garrett Motion (GTX) announced the adoption of a long-term capital allocation framework, under which the Company will target returning 75% or more of its Adjusted Free Cash Flow to shareholders over time through a combination of share repurchases and a regular quarterly cash dividend. As part of this framework, the Company’s Board of Directors has approved a new dividend policy, pursuant to which the Board intends to declare and pay quarterly dividends on its common stock in an aggregate amount of approximately $50 million in 2025. The Board has declared the first quarter 2025 cash dividend on the Company’s outstanding common stock of $0.06 per share payable January 31, 2025, to all common shareholders of record as of the close of business on January 15, 2025. The Board has also approved a new share repurchase program for 2025, pursuant to which the Company may repurchase up to $250 million of its common stock throughout the course of the year. The long-term capital allocation framework will be supported by the Company’s flexible cost structure and strong cash generation capabilities, and is consistent with the Company’s existing capital allocation priorities, which remain unchanged: Investment in Differentiated Technology: The Company remains committed to balanced R&D investments across its portfolio, with a continued focus on advancing zero-emissions solutions while expanding turbo offerings to support anticipated growth in hybrid vehicles and industrial applications. Shareholder Returns: The new quarterly dividend and repurchase authorization for 2025 build on the $438 million in stock repurchased by the Company since the conversion of our Series A Preferred Stock through Q3 2024. Debt Management: The Company will continue to prudently manage its leverage and cash interest expense, having de-levered approximately $400 million since the conversion of our Series A Preferred Stock. The Company’s target to return 75% or more of its Adjusted Free Cash Flow to shareholders is subject to various factors, including industry and market conditions, the price of the Company’s common stock, and alternative uses of capital, and actual returns to shareholders may vary over time.