Garrett Motion Inc.
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
GTX$20.13+4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001735707-25-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001735707-25-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 94 current paragraphs.
40 unchanged; 30 reworded; 19 added; 3 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
We continue to have success across our differentiated technologies by winning business across our turbo and zero emission technologies offerings. We have secured ongoing business through the extension of light vehicle programs, and won a significant E-Turbo program in Europe. We have been awarded serial production for our Fuel cell compressor by a leading Asian OEM. Additionally, we received positive testing feedback on the application of our E-Cooling Compressor, laying the foundation for future business growth.
Current report
On May 1, 2025, the Board of Directors declared a cash dividend of $0.06 per share of Common Stock, payable on June 16, 2025, to shareholders of record as of June 2, 2025. The total amount of dividends paid on June 16, 2025 amounted to $13 million.
Current report
Gasoline product sales increased by $23 million or 6% (including a favorable impact of $9 million or 2% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe, North America and India.
Current report
For the six months ended June 30, 2025, net sales compared to the prior period decreased by $14 million or 1% (including a favorable impact of $2 million or 0% due to foreign currency translation, primarily driven by fluctuations in global exchange rates). This decrease was mainly driven by soft demand in diesel and replacement parts on aftermarket sales, partially offset by higher demand for gasoline and commercial vehicle applications, recoveries on newly enacted import tariffs, and favorable foreign exchange impacts. Net sales further decreased due to price, net of inflation pass-through driven by commodity deflation.
Current report
Commercial vehicle sales increased by $3 million or 1% (including a favorable impact of $1 million or 0% due to foreign currency translation), primarily driven by recovering demand in off-highway across Europe, North America and China as well as the launch of a new on-highway program in Europe.
Current report
Aftermarket sales decreased by $24 million or 10% (with no impact from foreign currency translation), primarily due to softer demand for off-highway replacement parts in North America.
Current report
For the six months ended June 30, 2025, cost of goods sold decreased by $17 million, primarily driven by $24 million of productivity net of labor inflation, $13 million of commodity, transportation and energy deflation, $12 million of lower sales volumes and $1 million of lower R&D costs. These decreases were partially offset by $19 million of higher cost of goods sold due to the impact of newly enacted import tariffs, $12 million from unfavorable product mix and $2 million of foreign currency impact.
Current report
For the six months ended June 30, 2025, gross profit increased by $3 million, primarily driven by $25 million of productivity, net of labor inflation, $13 million of commodity, transportation and energy deflation, $2 million of pricing, net of inflation pass-through, $1 million of lower R&D costs and $1 million of foreign currency impact. These increases were partially offset by $32 million from unfavorable product mix and $6 million of lower sales volumes. We also saw a $1 million impact to gross profit from newly enacted import tariffs due to the timing of negotiated recoveries.
Current report
SG&A expenses for the six months ended June 30, 2025, decreased by $7 million compared with the prior period, primarily driven by $4 million lower personnel costs and $2 million of lower legal fees.
Current report
Other expense, net for the three months ended June 30, 2025 decreased by $2 million compared to the prior period, primarily due to professional fees incurred in the prior year associated with our 2032 Senior Notes.
Current report
For the three months ended June 30, 2025, interest expense decreased by $37 million compared to the prior period. This decrease was primarily due to a $29 million reduction in debt issuance cost amortization, driven by accelerated amortization in the prior year, and $8 million in lower interest expense resulting from a change in the notional amount of debt outstanding during the period. Additionally, we recorded net gains of $4 million on designated and undesignated interest rate derivatives, consistent with the prior year's net gains of $4 million.
Current report
The effective tax rates for the three months ended June 30, 2025 and 2024 were 14.7% and 26.4%, respectively. The effective tax rates for the six months ended June 30, 2025 and 2024 were 20.3% and 22.6%, respectively.
Current report
The change in the effective tax rate for the three months ended June 30, 2025, compared to the prior period is primarily relatedto a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations.
Current report
On July 4, 2025, the United States enacted H.R. 1, comprehensive legislation that introduced changes to federal tax law, among other things. We are currently evaluating the implications of the new tax law and its impact on our Consolidated Interim Financial Statements. Further enactment of legislation by jurisdictions in which we do business could also have an impact on our future effective tax rate, tax liabilities, and cash tax.
Current report
Net income for the six months ended June 30, 2025, increased by $19 million compared with the prior period, primarily due to $39 million of lower interest expense, $7 million of lower SG&A expense, $3 million of higher gross margin and a $1 million increase in non-operating income. These were partially offset by $4 million of higher other expense, net and the prior year gain of $27 million on the sale of an equity interest in an unconsolidated joint venture.
Current report
Adjusted EBIT increased by$11 million compared to the prior year, mainly from $29 million of operational productivity, net of labor inflation and repositioning costs, $13 million of commodity, transportation, and energy deflation, $4 million of favorable foreign exchange impacts and $2 million price net of inflation pass through. These increases were partially offset by $32 million unfavorable product mix and $6 million of lower sales volume from diesel and aftermarket products.
Current report
During thesix months ended June 30, 2025, diesel volume declined, driven by impact of lower industry production mainly in Europe and Aftermarket Off-highway applications in North America. These volume decreases were partially offset by favorable demand in gasoline driven by new application launches and program ramp-ups in Europe, North America and India.
Current report
Cash flow used for investing activities decreased by $44 million for the six months ended June 30, 2025, compared to the same period in the prior year. The decrease was primarily driven by $46 million in proceeds from the sale of our unconsolidated joint venture realized in the prior year, along with $6 million in reduced proceeds from the cross currency swap. These impacts were partially offset by $8 million in lower capital expenditures on property, plant and equipment.
Current report
In comparison, cash used for financing activities was $384 million for the six months ended June 30, 2024 primarily driven by aggregate debt repayments of $989 million on our term loan facilities. We also made payments of $173 million for Common Stock repurchases, $7 million for debt issuance costs and $9 million for other financing activities. These payments were partially offset by proceeds of $794 million, net of deferred financing costs, from the issuance of our 2032 Senior Notes.
Removed paragraphs (3)
Previous report
We continue to strengthen our global leadership position in turbo, winning business across all regions and verticals, including plug-in hybrids and range extended vehicles, as well as natural gas applications for heavy trucks. We also secured new awards for our largest turbos used on industrial applications, significantly expanding our presence in Asia in that segment. On the zero-emission differentiated solutions side we are building positive momentum, having reached a major milestone by receiving our first series production award for our high-speed electric motor for an on-highway application. Additionally, we received another award for our Fuel Compressor technology and positive testing feedback on the application of our E-Cooling Compressor, laying the foundation for future business growth.
Previous report
R&D expenses were flat, reflecting a shift in investment from turbo technology to zero-emission technologies.
Previous report
Cash flow from investing activities decreased by $6 million for the three months ended March 31, 2025, versus the prior year, mainly due to $6 million of decreased expenditures for property, plant and equipment.
Reworded paragraphs (30)
Previous wording
The following MD&A is intended to help you understand the results of operations and financial condition of Garrett Motion Inc. for the three months ended March 31, 2025.
Current wording
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, 2025.
Previous wording
During the first quarter of 2025, we faced significant geopolitical and macro-environmental challenges, including declines in light vehicle diesel volumes, particularly in Europe, and decreased demand for replacement parts in North America. These challenges were partially offset by growth in light vehicle gasoline volumes, primarily driven by new program launches in North America and volume recovery in Japan. Our operating margin performance was robust, largely due to the sustainable fixed and variable cost measures implemented in 2024.
Current wording
During the second quarter of 2025, we continued to navigate macro-economical challenges. Increased demand in light vehicle gasoline, primarily driven by new program launches in Europe, North America and India, was offset by declines in light vehicle volumes, particularly in Europe, and decreased demand for replacement parts in North America. Our sustainable cost measures implemented in the prior year, along with our effective recoveries on enacted import tariffs and a favorable foreign exchange environment, enabled us to achieve Net income of $87 million and Adjusted EBIT of $124 million for the quarter.
Previous wording
For the three months ended March 31, 2025, we repurchased $30 million of Common Stock under our share repurchase program. As of March 31, 2025, we had $220 million of the authorized amount remaining under our share repurchase program.
Current wording
For the three months ended June 30, 2025, we repurchased $22 million of Common Stock under our share repurchase program. As of June 30, 2025, we had $198 million of the authorized amount remaining under our share repurchase program.
Previous wording
The following tables show our revenues by geographic region and product line for the three months ended March 31, 2025 and 2024, respectively.
Current wording
The following tables show our revenues by geographic region and product line for the three and six months ended June 30, 2025 and 2024, respectively.
Previous wording
Results of Operations for the Three Months Ended March 31, 2025
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2025
Previous wording
For the three months ended March 31, 2025, net sales compared to the prior period decreased by $37 million or 4% (including an unfavorable impact of $21 million or 2% due to foreign currency translation), primarily driven by lower Euro-to-US dollar exchange rates, soft demand in diesel and commercial vehicle applications, and lower demand for replacement parts on aftermarket sales. These decreases were partially offset by increased demand in gasoline products.
Current wording
For the three months ended June 30, 2025, net sales compared to the prior period increased by $23 million or 3% (including a favorable impact of $23 million or 3% due to foreign currency translation primarily driven by higher Euro-to-U.S. dollar exchange rates). This increase was driven by foreign currency impacts and recoveries on newly enacted import tariffs. Strong demand for gasoline and commercial vehicle applications was more than offset by weaker demand for replacement parts on aftermarket sales and diesel products.
Previous wording
Diesel product sales decreased by $33 million or 14% (including an unfavorable impact of $6 million or 3% due to foreign currency translation), primarily driven by passenger vehicles in Europe transitioning to gasoline hybrids, partially offset by sustained demand for pickup trucks in South America.
Current wording
Diesel product sales decreased by $3 million or 1% (including a favorable impact of $8 million or 4% due to foreign currency translation), primarily driven by passenger vehicles in Europe transitioning to gasoline hybrids, partially offset by sustained demand for pickup trucks in North and South America.
Previous wording
Commercial vehicle sales decreased by $6 million or 4% (including an unfavorable impact of $3 million or 2% due to foreign currency translation), primarily driven by volume softness in China and Europe, partially offset by off-highway product launches in India.
Current wording
Commercial vehicle sales increased by $9 million or 6% (including a favorable impact of $3 million or 2% due to foreign currency translation), primarily driven by recovering demand in off-highway across Europe, North America and China as well as the launch of a new on-highway program in Europe.
Previous wording
Aftermarket sales decreased by $14 million or 13% (including an unfavorable impact of $2 million or 3% due to foreign currency translation), primarily due to softer demand in North America for off-highway and lower demand in the North America independent aftermarket.
Current wording
Aftermarket sales decreased by $10 million or 8% (including a favorable impact of $2 million or 2% due to foreign currency translation), primarily due to softer demand for off-highway replacement parts in North America. The decrease was partially offset by stronger demand for replacement parts through the independent aftermarket channels in Europe, China, South America and India.
Previous wording
Gasoline product sales increased by $15 million or 4% (including an unfavorable impact of $10 million or 2% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in North America, program launches in India, and recovery in Japan from prior year volume softness.
Current wording
Gasoline product sales increased by $38 million or 5% (including an unfavorable impact of $1 million or 0% due to foreign currency translation) driven by new application launches and program ramp-ups in Europe, North America and India.
Previous wording
For the three months ended March 31, 2025, cost of goods sold decreased by $44 million, primarily driven by $15 million of lower sales volumes, $9 million of commodity, transportation and energy deflation, $14 million from foreign currency impacts, and $16 million of productivity net of labor inflation. These decreases were partially offset by $6 million of higher cost of goods sold due to unfavorable product mix and $4 million from the impact of enacted import tariffs.
Current wording
For the three months ended June 30, 2025, cost of goods sold increased by $27 million, primarily driven by $16 million from foreign currency impacts, $15 million from the impact of newly enacted import tariffs, $6 million due to unfavorable product mix and $3 million of higher sales volumes. These increases were partially offset by $8 million of productivity net of labor inflation, $4 million of commodity, transportation and energy deflation, and $1 million of lower R&D costs.
Previous wording
For the three months ended March 31, 2025, gross profit increased by $7 million, primarily driven by $16 million of productivity, net of labor inflation, $9 million of commodity, transportation and energy deflation, and $4 million of pricing, net of inflation pass-through. These increases were partially offset by $7 million from lower sales volumes, $7 million from unfavorable product mix, and $8 million from foreign currency impacts. There was no impact to gross profit from enacted import tariffs as we managed to fully pass through the costs of the tariffs.
Current wording
For the three months ended June 30, 2025, gross profit decreased by $4 million, primarily driven by $25 million of unfavorable product mix, and $2 million of pricing, net of inflation pass-through. These decreases were partially offset by $9 million from foreign currency impacts, $9 million of productivity, net of labor inflation, $4 million of commodity, transportation and energy deflation, $1 million from higher sales volumes, and $1 million of lower R&D costs. We also saw a $1 million impact to gross profit from newly enacted import tariffs due to the timing of negotiated recoveries.
Previous wording
Selling, general and administrative (“SG&A”) expenses for the three months ended March 31, 2025, decreased by $5 million compared with the prior period, mainly driven by $2 million of lower stock-based compensation expense, $2 million of favorable foreign exchange impacts, and $1 million of lower personnel related costs.
Current wording
Selling, general and administrative (“SG&A”) expenses for the three months ended June 30, 2025, decreased by $2 million compared with the prior period, primarily driven by $3 million lower personnel costs partially offset by $2 million of unfavorable foreign currency impact.
Previous wording
Other expense, net for the three months ended March 31, 2025 increased by $6 million compared to the prior period, primarily driven by debt financing costs related to the Restatement Agreement.
Current wording
Other expense, net for the six months ended June 30, 2025 increased by $4 million compared to the prior period, primarily driven by $6 million in professional fees related to our Restatement Agreement partially offset by $2 million of professional fees associated with our 2032 Senior Notes in the prior year.
Previous wording
For the three months ended March 31, 2025, interest expense decreased by $2 million compared to the prior period, primarily driven by $10 million of lower interest expense due to a different notional amount of debt outstanding during the period and $1 million of lower debt issuance cost amortization. In addition, we recorded $6 million of gains on our interest derivatives in the current year, in comparison to $8 million of gains in the prior year. We also recognized $6 million of marked-to-market remeasurement losses during the three months ended March 31, 2025, on our undesignated interest rate swap contracts, in comparison to no marked-to-market remeasurement losses in the prior year.
Current wording
For the six months ended June 30, 2025, interest expense decreased by $39 million compared to the prior period. This decrease was primarily due to a $30 million reduction in debt issuance cost amortization, driven by accelerated amortization in the prior year, and $18 million of lower interest expense resulting from a change in the notional amount of debt outstanding during the period. In addition, we recorded net gains of $4 million on our designated and undesignated interest derivatives in the current year, in comparison to net gains of $14 million in the prior year.
Previous wording
For the three months ended March 31, 2025, we had non-operating income of $1 million versus $5 million in the prior period. The decrease in non-operating income was primarily driven by lower equity income due to the prior year sale of an equity interest in an unconsolidated joint venture and a decrease in foreign exchange transactional gains.
Current wording
For the six months ended June 30, 2025, we had non-operating income of $7 million versus $6 million in the prior period. The increase in non-operating income was primarily driven by $2 million in foreign exchange transactional gains and $1 million of lower other non-operating expense, partially offset by lower equity income of $2 million due to the prior year sale of an equity interest in an unconsolidated joint venture.
Previous wording
The effective tax rates for the three months ended March 31, 2025 and 2024 were 27.1% and 18.5%, respectively. The change in the effective tax rate for the three months ended March 31, 2025, compared to the prior period is primarily related to higher U.S. taxes on international operations and reversal of tax reserves in 2024.
Current wording
The change in the effective tax rate for the six months ended June 30, 2025, compared to the prior period is primarily related to a one-time sale of an equity interest in an unconsolidated joint venture in the prior year and a one-time benefit attributable to the revaluation of deferred tax assets in China, partially offset by an increase in U.S. taxes on international operations and additional tax reserve positions in the current year.
Previous wording
The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries we operate in continue to announce changes in their tax laws and regulations based on the Pillar Two framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. For 2025, Pillar Two is not expected to have a material impact to our effective tax rate. However, further enactment of legislation by jurisdictions in which we do business could have an impact on our future effective tax rate, tax liabilities, and cash tax.
Current wording
The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries we operate in continue to announce changes in their tax laws and regulations based on the Pillar Two framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. For 2025, Pillar Two is not expected to have a material impact to our effective tax rate.
Previous wording
Net income for the three months ended March 31, 2025, decreased by $4 million compared with the prior period, primarily due to $8 million of higher tax expense, $6 million of higher other expense, net, and a $4 million decrease in non-operating income. These increases were partially offset by $7 million of increased gross profit and $5 million of lower SG&A expense.
Current wording
Net income for the three months ended June 30, 2025, increased by $23 million compared with the prior period, primarily due to $37 million of lower interest expense, $8 million of lower tax expense, $2 million of lower SG&A expense, $2 million of lower other expense, net, and a $5 million increase in non-operating income. These were partially offset by $4 million of decreased gross profit and the prior year gain of $27 million on the sale of an equity interest in an unconsolidated joint venture.
Previous wording
(1)Reflects interest income of $0 million and $2 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(1)Reflects interest income of $2 million and $1 million for the three months ended June 30, 2025 and 2024, respectively, and $2 million and $3 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
(4)Reflects the third-party costs directly attributable to the Restatement Agreement.
Current wording
(4)Reflects the third-party costs directly attributable to the refinancing of our term loan and revolving credit facility.
Previous wording
For thethree months ended March 31, 2025, net income decreased by$4 million versus the prior period as discussed above within Results of Operations for Three Months Ended March 31, 2025.
Current wording
For thethree months ended June 30, 2025, net income increased by$23 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2025.
Previous wording
Adjusted EBIT increased by$10 million compared to the prior period, driven by productivity and lower stock based compensation, commodity, transportation and energy deflation, and pricing net of inflation pass-through. This increase was partially offset by lower volumes across all product lines, except gasoline, driving an unfavorable product mix.
Current wording
Adjusted EBIT increased by$1 million compared to the prior period, driven by $11 million of foreign currency impacts, $11 million of productivity, $4 million of commodity, transportation and energy deflation, and $1 million of higher volumes. These increases were partially offset by $25 million of unfavorable product mix and $2 million of lower pricing net of inflation pass-through.
Previous wording
During the three months ended March 31, 2025, we saw diesel volume softness, mainly due to passenger vehicles in Europe transitioning to gasoline hybrids and Aftermarket soft demand primarily in North America Off-highway. These volume decreases were partially offset by favorable demand in gasoline driven by new application launches and program ramp-ups in North America, program launches in India, and recovery in Japan from prior year volume softness.
Current wording
During the three months ended June 30, 2025, diesel volume declined, driven by lower industry production in Europe and Aftermarket softness in off-highway applications in North America. These volume decreases were partially offset by favorable demand in gasoline due to new application launches and program ramp-ups in Europe, North America, and India.
Previous wording
The increased 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 lower equity income following the prior year sale of an equity interest in an unconsolidated joint venture.
Current wording
The increased 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.
Previous wording
Losses in foreign currency from translational, transactional, and hedging effects in the three months ended March 31, 2025, primarily driven by a lower Euro-to-US dollar versus the prior period, accounted for a $7 million decrease in Adjusted EBIT.
Current wording
Gains in foreign currency from translational, transactional, and hedging effects in the three months ended June 30, 2025, primarily driven by a higher Euro-to-U.S. dollar versus the prior period, accounted for a $11 million increase in Adjusted EBIT.
Previous wording
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid from January 1, 2025, until December 31, 2025. During the three months ended March 31, 2025, the Company repurchased $30 million of Common Stock, with $220 million remaining under the share repurchase program as of that date. The Company 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. The Company is 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.
Current wording
On December 4, 2024, the Board of Directors authorized a $250 million share repurchase program valid from January 1, 2025, until December 31, 2025. During the six months ended June 30, 2025, the Company repurchased $52 million of Common Stock, with $198 million remaining under the share repurchase program as of that date. The Company 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. The Company is 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.
Previous wording
Cash Flow Summary for the Three Months Ended March 31, 2025
Current wording
Cash Flow Summary for the Six Months Ended June 30, 2025
Previous wording
Cash provided by operating activities decreased by $28 million for the three months ended March 31, 2025, versus the prior year. The decrease was primarily driven by $54 million of unfavorable impacts from working capital changes and $4 million of lower net income, partially offset by an increase of $21 million of non-cash charges, as well as $9 million of favorable impacts from changes in other assets and liabilities.
Current wording
Cash provided by operating activities increased by $4 million for the six months ended June 30, 2025, versus the prior year. The increase was primarily driven by $22 million of favorable impacts from working capital changes and $19 million of higher net income, partially offset by a decrease of $16 million of non-cash charges, as well as $21 million of unfavorable impacts from changes in other assets and liabilities.
Previous wording
Cash used for financing activities was $31 million for the three months ended March 31, 2025, compared with $112 million in the prior year. During the three months ended March 31, 2025, we made debt repayments of $71 million, payments of $30 million for the repurchase of Common Stock under our share repurchase program and payments of $12 million for dividends on our Common Stock. These payments were partially offset by proceeds of $68 million from the Credit Facilities and $17 million of bank overdrafts. In comparison, cash used for financing activities in the prior year was primarily related to $107 million for the repurchase of Common Stock under our share repurchase program.
Current wording
Cash used for financing activities was $89 million for the six months ended June 30, 2025, compared with $384 million in the prior year. During the six months ended June 30, 2025, we made debt repayments of $73 million, payments of $52 million for the repurchase of Common Stock under our share repurchase program 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.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Diesel product sales decreased by $36 million or 8% (including a favorable impact of $2 million or 0% due to foreign currency translation), primarily driven by passenger vehicles in Europe pursuing transition to gasoline hybrids, partially offset by sustained demand for pickup trucks in North and South America.
Current report — wording carried from elsewhere
For the three months ended June 30, 2025, we had non-operating income of $6 million versus $1 million in the prior period. The increase in non-operating income was primarily driven by foreign exchange transactional gains.
Current report — wording carried from elsewhere
Adjusted EBIT for the Six Months Ended June 30, 2025
Current report — wording carried from elsewhere
For thesix months ended June 30, 2025, net income increased by$19 million versus the prior period as discussed above within Results of Operations for Three and Six Months Ended June 30, 2025.
Current report — wording carried from elsewhere
The increased 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On January 30, 2025, we entered into a Restatement Agreement, which amended and restated our Existing Credit Agreement. Under the Restatement Agreement, we refinanced in full our 2021 Dollar Term Facility and replaced it with the 2025 Dollar Term Facility in an aggregate principal amount of $692 million. The 2025 Dollar Term Facility will mature on January 30, 2032. At the same time, we also replaced our existing $600 million revolving facility with the New Revolving Facility in an aggregate principal amount of $630 million. The maturity date of the New Revolving Facility is January 30, 2030.