Garrett Motion Inc.
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
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, 2026 · Filed Jul 29, 2026
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 2026-03-31; filed 2026-04-30.
0001735707-26-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001735707-26-000027
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 75 previous paragraphs and 97 current paragraphs.
32 unchanged; 41 reworded; 17 added; 1 removed; 1 previous and 7 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 (17)
Current report
(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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
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.
Current report
Other expense, net for the three months ended June 30, 2026 was consistent with the prior period.
Current report
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.
Current report
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.
Current report
For thethree 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.
Current report
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.
Current report
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.
Current report
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.
Current report
Critical Accounting Policies and Estimates
Removed paragraphs (1)
Previous report
Critical Accounting Policies
Reworded paragraphs (41)
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, 2026.
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, 2026.
Previous wording
During the first quarter of 2026, we outperformed the light vehicle industry across all verticals. This was driven by growth in diesel and gasoline volumes from new program launches, increased commercial vehicle demand in all key regions, as well as continued industrial strength. Aftermarket growth further contributed to a favorable product mix. We continued to deliver productivity year-over-year across both variable and fixed costs; however, these benefits were offset by the timing of foreign exchange pass-through. Our financial results were also impacted by the timing of customer recoveries. As a result, Net income for the quarter was $95 million, and Adjusted EBIT was $151 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.
Current wording
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.
Previous wording
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.
Current wording
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.
Previous wording
For the three months ended March 31, 2026, we repurchased $87 million of Common Stock under our share repurchase program. These repurchases include a total of 2,500,000 shares from funds affiliated with Oaktree Capital Management, L.P., a related party, for $50 million. As of March 31, 2026, we had $163 million of the authorized amount remaining under our share repurchase program. The repurchased shares are held as treasury stock.
Current wording
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.
Previous wording
On February 19, 2026, the Board of Directors declared a cash dividend of $0.08 per share of Common Stock, payable on March 16, 2026, to shareholders of record as of March 2, 2026. The total amount of dividends paid on March 16, 2026 amounted to $16 million.
Current wording
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.
Previous wording
The following tables show our revenues by geographic region and product line for the three months ended March 31, 2026 and 2025, respectively.
Current wording
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.
Previous wording
Results of Operations for the Three Months Ended March 31, 2026
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2026
Previous wording
For the three months ended March 31, 2026, net sales compared to the prior period increased by $107 million or 12% (including a favorable impact of $58 million or 6% due to foreign currency translation primarily driven by higher Euro-to-U.S. dollar exchange rates). The increase was primarily related to higher demand across all verticals, favorable foreign currency impacts and favorable product mix partially offset by price net of inflation pass-through. Net sales also increased by $5 million driven by recoveries on import tariffs.
Current wording
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.
Previous wording
Diesel product sales increased by $24 million or 12% (including a favorable impact of $18 million or 9% due to foreign currency translation), primarily driven by strong demand for light commercial vehicles and pickup trucks in North America, Brazil, Southeast Asia and application launches in India.
Current wording
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.
Previous wording
Gasoline product sales increased by $40 million or 10% (including a favorable impact of $27 million or 7% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe.
Current wording
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.
Previous wording
Aftermarket sales increased by $16 million or 16% (including a favorable impact of $6 million or 6% due to foreign currency translation), primarily driven by stronger demand for commercial vehicle parts in all key regions.
Current wording
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.
Previous wording
Commercial vehicles/industrial sales increased by $26 million or 17% (including a favorable impact of $6 million or 4% due to foreign currency translation), primarily driven by growth in all key regions as well as continued industrial growth.
Current wording
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.
Previous wording
For the three months ended March 31, 2026, cost of goods sold increased by $90 million, primarily driven by $42 million from higher sales volumes, $40 million from foreign currency impacts, $7 million of lower productivity net of labor inflation and repositioning costs, $6 million from import tariffs and $4 million of unfavorable product mix. These increases were partially offset by $7 million of lower RD&E costs and $2 million of commodity, transportation and energy deflation.
Current wording
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.
Previous wording
For the three months ended March 31, 2026, gross profit increased by $17 million, primarily driven by $19 million from higher sales volumes, $18 million from foreign currency impacts, $7 million of lower RD&E costs, $4 million of favorable product mix and $2 million from commodity, transportation and energy deflation. These increases were partially offset by $21 million of lower productivity net of labor deflation and repositioning costs, $11 million of pricing, net of inflation pass-through and $1 million from import tariffs.
Current wording
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 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.
Previous wording
Selling, general and administrative (“SG&A”) expenses for the three months ended March 31, 2026, decreased by $1 million compared with the prior period, primarily driven by $3 million of lower professional services, $2 million of bad debt recovery and $1 million of lower personnel costs, partially offset by $5 million of unfavorable foreign currency impacts.
Current wording
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.
Previous wording
Other expense, net for the three months ended March 31, 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.
Current wording
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.
Previous wording
For the three months ended March 31, 2026, interest expense decreased by $2 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.
Current wording
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.
Previous wording
For the three months ended March 31, 2026, we had non-operating income of $8 million versus $1 million in the prior period. The increase in non-operating income was primarily driven by the resolution of certain environmental liabilities and foreign exchange transactional gains.
Current wording
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.
Previous wording
The effective tax rates for the three months ended March 31, 2026 and 2025 were 19.5% and 27.1%, respectively.
Current wording
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.
Previous wording
The change in the effective tax rate for the three months ended March 31, 2026, compared to the prior period is primarily related to a decrease in U.S. taxes on international operations, the global mix of earnings, and deductions related to employee share-based compensation.
Current wording
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.
Previous wording
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 payments, internal restructurings, and pension mark-to-market adjustments.
Current wording
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.
Previous wording
Net income for the three months ended March 31, 2026, increased by $33 million compared with the prior period, primarily due to $17 million of higher gross profit, $7 million of higher non-operating income, $6 million of lower other expense, net, $2 million of lower interest expense and $1 million of lower SG&A expense.
Current wording
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.
Previous wording
We define “EBIT” as our net income calculated in accordance with U.S. 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.
Current wording
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.
Previous wording
(1)Reflects interest income of $1 million and $0 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(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.
Previous wording
(3)Reflects the non-service component of net periodic pension income and, for the three months ended March 31, 2026, also includes $5 million related to the resolution of certain environmental liabilities not directly related to the Company's operations.
Current wording
(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.
Previous wording
(4)Reflects third-party costs directly attributable to the refinancing of our credit facilities and any amendments.
Current wording
(4)Reflects third-party costs directly attributable to the refinancing of our credit facilities and any amendments thereto.
Previous wording
For thethree months ended March 31, 2026, net income increased by $33 million versus the prior period as discussed above within Results of Operations for Three Months Ended March 31, 2026.
Current wording
For thethree 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.
Previous wording
During the three months ended March 31, 2026, we saw volume growth across all verticals. Gasoline growth was driven by new application launches and program ramp-ups in Europe. Diesel growth was due to strong demand for light commercial vehicles and pickup trucks in North and South America, Southeast Asia and application launches in India. Commercial vehicles/industrial growth was driven by strong demand for commercial vehicles in all key regions, as well as continued industrial growth. Aftermarket volumes also increased across all regions for commercial vehicle parts, resulting in a favorable product mix.
Current wording
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.
Previous wording
Adjusted EBIT increased by $20 million compared to the prior period driven by $19 million of higher volumes, $13 million of benefit from foreign currency impacts, $7 million of lower RD&E costs, $4 million of favorable impacts from product mix and $2 million of commodity, transportation and energy deflation. This increase was partially offset by $14 million of lower productivity and $11 million of pricing net of inflation pass-through.
Current wording
For thesix 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 commodity, transportation, and energy inflation, $4 million of lower productivity, and $3 million of pricing net of inflation pass-through.
Previous wording
The increased productivity from our ability to flex our variable cost structure while driving sustained fixed cost productivity was more than offset by year-over-year labor inflation, higher stock based compensation and the timing of our productivity actions. Our overall financial results for the three months ended March 31, 2026 were also impacted by the timing of customer recoveries.
Current wording
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.
Previous wording
Gains in foreign currency from translational, transactional, and hedging effects in the three months ended March 31, 2026, primarily driven by a higher Chinese Yuan-to-U.S. dollar versus the prior period, accounted for a $13 million increase in Adjusted EBIT.
Current wording
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.
Previous wording
During the three months ended March 31, 2026, we paid cash dividends of $16 million. On April 30, 2026, we 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.
Current wording
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.
Previous wording
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.
Current wording
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.
Previous wording
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 three months ended March 31, 2026, we repurchased $87 million of Common Stock, with $163 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.
Current wording
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.
Previous wording
Cash Flow Summary for the Three Months Ended March 31, 2026
Current wording
Cash Flow Summary for the Six Months Ended June 30, 2026
Previous wording
Cash provided by operating activities incr eased by $42 million for the three months ended March 31, 2026, versus the prior year. The increase was primarily driven by $21 million of higher net income net of non-cash charges, $18 million of favorable impacts from working capital changes and $3 million of favorable impact from changes in other assets and liabilities.
Current wording
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.
Previous wording
Cash flow used for investing activities increased by $4 million for the three months ended March 31, 2026, compared to the same period in the prior year. The increase was driven by $3 million in higher capital expenditures on property, plant and equipment versus the prior year and $1 million in reduced proceeds from our cross currency swaps.
Current wording
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.
Previous wording
Cash used for financing activities was $105 million for the three months ended March 31, 2026, compared with $31 million in the prior year. During the three months ended March 31, 2026, we made payments of $87 million for the repurchase of Common Stock under our share repurchase program, payments of $16 million for dividends on our Common Stock and debt repayments of $2 million.
Current wording
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.
Previous wording
In comparison, cash used for financing activities was $31 million for the three months ended March 31, 2025 primarily driven by debt repayments of $71 million, payments of $30 million for Common Stock repurchases 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.
Current wording
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.
Previous wording
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 are summarized in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our 2025 Form 10-K.
Current wording
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.
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Current report — wording carried from elsewhere
Net Sales for the Six Months Ended June 30, 2026
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit for the Six Months Ended June 30, 2026
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
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.
Current report — wording carried from elsewhere
Adjusted EBIT for the Six Months Ended June 30, 2026
Current report — wording carried from elsewhere
For thesix 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.
Current report — wording carried from elsewhere
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
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Previous report — wording carried elsewhere
(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.