Garrett Motion Inc.
For the period ended Sep 30, 2026. Filed Oct 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.
Sep 30, 2026 · Filed Oct 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 2026-06-30; filed 2026-07-29.
0001735707-26-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001735707-26-000034
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 97 previous paragraphs and 95 current paragraphs.
36 unchanged; 50 reworded; 9 added; 9 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 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 (9)
Current report
Results of Operations for the Three and Nine Months Ended September 30, 2026
Current report
For the three months ended September 30, 2026, net sales compared to the prior period increased by $28 million or 3% (including an unfavorable impact of $3 million or 0.3% due to foreign currency fluctuation). The increase was primarily related to strong demand in commercial vehicles, industrial and aftermarket, favorable price net of inflation pass-through, partially offset by lower import tariffs and post summary corrections.
Current report
Diesel product sales increased by $11 million or 5% (including an unfavorable impact of $2 million or 1% due to foreign currency translation), primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, North and South America, and India.
Current report
Commercial vehicle and Industrials sales increased by $38 million or 23% (with no significant impact due to foreign currency translation), primarily driven by strong demand in North America and China for industrial and off-highway applications combined with higher on-highway demand in Japan, Korea and India.
Current report
Aftermarket sales increased by $30 million or 9% (including a favorable impact of $7 million or 2% due to foreign currency translation), primarily driven by stronger demand for passenger vehicle replacement parts in Europe and stronger demand for off-highway and industrial applications in North America, China, Japan and Korea.
Current report
For the three months ended September 30, 2026, cost of goods sold increased by $8 million, primarily driven by $39 million related to product mix, $18 million of commodity, transportation, and energy inflation, $6 million of higher RD&E costs and $5 million from foreign currency impacts. These increases were partially offset by $24 million of higher productivity net of labor inflation and repositioning costs, $19 million of lower import tariffs primarily driven by tariff recoveries that we expect to be subsequently reimbursed to our customers, and $17 million from lower sales volumes.
Current report
Non-Operating Expense (Income)
Current report
During the three months ended September 30, 2026, we saw strong demand in commercial vehicle, industrial, aftermarket, and diesel, partially offset by lower demand in gasoline. The decrease in gasoline was primarily driven by demand softness in China, partially offset by program ramp-ups in Europe and Asia. The increase in Diesel was primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, North and South America and India. The growth in commercial vehicle and industrials were primarily driven by strong demand in North America and China for industrial and off-highway applications combined with higher on-highway demand in Japan, Korea and India. The increase in aftermarket was primarily driven by higher demand for replacement parts in North America off-highway and industrial and stronger demand for passenger vehicles replacement parts in Europe.
Current report
Cash provided by operating activities increased$64 million for the nine months ended September 30, 2026 compared to the prior period. The increase was primarily driven by the Company's strong operating performance with a $67 million improvement in net income from the prior year.
Removed paragraphs (9)
Previous report
Results of Operations for the Three and Six Months Ended June 30, 2026
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
Non-Operating Income, Net
Previous report
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 report
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.
Reworded paragraphs (50)
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 and six months ended June 30, 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 nine months ended September 30, 2026.
Previous 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.
Current wording
During the third quarter of 2026, we outperformed the light vehicle industry and saw growth especially in commercial vehicles and industrial sales. This was primarily driven by demand growth in light commercial diesel applications in Europe, as well as continued expansion in commercial vehicle and industrial. Demand for aftermarket off-highway and industrial replacement parts further contributed to a favorable product mix. We delivered strong operating performance year-over-year, resulting in Net income for the quarter of $97 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. We also kicked off pre-development of a commercial vehicle E-powertrain with a Japanese truck maker.
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. Development and testing is on track for start of production for both our high-speed Powertrain and our E-Cooling oil free compressor. During the quarter we secured an additional award for our Industrial E-Cooling oil-free compressor technology and continue to broaden and advance our engagement with multiple HVAC customers. We completed multiple proof of concept tests for our high-speed E-Powertrain, advancing our discussions with customers.
Previous 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.
Current wording
For the three months ended September 30, 2026, we repurchased$57 million of Common Stock under our share repurchase program. As of September 30, 2026, we had$78 million of the authorized amount remaining under our share repurchase program. The repurchased shares are held as treasury stock.
Previous 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.
Current wording
The following tables show our revenues by geographic region and product line for the three and nine months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
Gasoline product sales decreased by $20 million or 5% (including an unfavorable impact of $1 million due to foreign currency translation), primarily driven by demand softness in China, partially offset by program ramp-ups in Europe, Japan, Korea, and India.
Previous wording
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 wording
Aftermarket sales increased by $6 million or 5% (with no significant impact due to foreign currency translation), primarily driven by higher demand for replacement parts in North America off-highway and industrial and stronger demand for passenger vehicles replacement parts in Europe.
Previous wording
Net Sales for the Six Months Ended June 30, 2026
Current wording
Net Sales for the Nine Months Ended September 30, 2026
Previous 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.
Current wording
For the nine months ended September 30, 2026, net sales compared to the prior period increased by $198 million or 7% (including a favorable impact of $70 million or 2% due to foreign currency translation). The increase was primarily related to higher demand across all verticals, favorable foreign currency impacts and price net of inflation pass-through, partially offset by lower import tariffs and post summary corrections.
Previous 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.
Current wording
Gasoline product sales increased by $38 million or 3% (including a favorable impact of $34 million or 3% due to foreign currency translation), primarily driven by new application launches and program ramp-ups in Europe, India and South America, partially offset by demand softness in China.
Previous 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.
Current wording
Diesel product sales increased by $53 million or 8% (including a favorable impact of $22 million or 3% due to foreign currency translation), primarily driven by strong demand for light commercial vehicles and pickup trucks in Europe, North and South America and India.
Previous 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.
Current wording
Commercial vehicle and Industrials sales increased by $82 million or 17% (including a favorable impact of $6 million or 1% due to foreign currency translation), primarily driven by strong demand in North America and China for industrial and off-highway applications combined with higher on-highway demand in Japan and Korea.
Previous 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.
Current wording
For the three months ended September 30, 2026, gross profit increased by $20 million, primarily driven by $21 million of favorable product mix, $20 million of higher productivity net of labor inflation and repositioning costs, $18 million of price net of inflation pass-through, and $1 million of import tariffs. These increases were partially offset by $18 million of commodity, transportation, and energy inflation, $8 million from lower sales volumes, $8 million from foreign currency impacts, and $6 million of higher RD&E costs.
Previous wording
Cost of Goods Sold and Gross Profit for the Six Months Ended June 30, 2026
Current wording
Cost of Goods Sold and Gross Profit for the Nine Months Ended September 30, 2026
Previous 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.
Current wording
For the nine months ended September 30, 2026, cost of goods sold increased by $130 million, primarily driven by $61 million related to product mix, $60 million from higher sales volumes, $60 million of foreign currency impacts, and $24 million of commodity, transportation, and energy inflation. These increases were partially offset by $41 million of productivity net of labor inflation and repositioning costs, $29 million of lower import tariffs, and $5 million of lower RD&E costs.
Previous wording
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 wording
For the nine months ended September 30, 2026, gross profit increased by $68 million, primarily driven by $28 million of favorable product mix, $27 million from higher sales volumes, $15 million of price net of inflation pass-through, $10 million from favorable foreign currency impacts, $7 million of productivity net of labor inflation and repositioning costs, and $5 million of lower RD&E costs. These increases were partially offset by $24 million of commodity, transportation, and energy inflation.
Previous 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.
Current wording
Selling, general and administrative (“SG&A”) expenses for the three months ended September 30, 2026 increased by $1 million compared with the prior period, primarily driven by $3 million of higher personnel cost, partially offset by $2 million of lower professional services and patent costs.
Previous wording
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 wording
SG&A expenses for the nine months ended September 30, 2026 increased by $4 million compared with the prior period, primarily driven by $6 million of unfavorable foreign currency impacts and $6 million of higher personnel costs, partially offset by $3 million of lower bad debt expense and $6 million of acquisition and divestiture expenses incurred in the previous year.
Previous 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.
Current wording
Other expense, net for the nine months ended September 30, 2026 decreased by $6 million compared to the prior period, primarily driven by professional fees incurred in the prior year related to our Restatement Agreement.
Previous 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.
Current wording
For the three months ended September 30, 2026, interest expense decreased by $2 million compared to the prior period. This decrease was primarily from lower interest expense due to a lower notional amount of debt outstanding during the period.
Previous wording
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 wording
For the nine months ended September 30, 2026, interest expense decreased by $5 million compared to the prior period. This decrease was primarily due to a lower notional amount of debt outstanding during the period and the repricing of our Credit Agreement at a lower interest rate.
Previous wording
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 wording
For the three months ended September 30, 2026, we had non-operating expense of $1 million compared to non-operating income of $3 million in the prior period. The change in non-operating expense from the prior period was primarily driven by the finalization of a tax indemnification obligation.
Previous 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.
Current wording
For the nine months ended September 30, 2026, we had non-operating income of $9 million versus $10 million in the prior period. The decrease in non-operating income was primarily driven by a decrease in interest income and foreign exchange transactional gains, and the finalization of a tax indemnification obligation, partially offset by the resolution of certain environmental liabilities and an increase in the non-service cost components of net periodic pension benefits.
Previous 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.
Current wording
The effective tax rates for the three months ended September 30, 2026 and 2025 were 18.5% and 24.5%, respectively. The effective tax rates for the nine months ended September 30, 2026 and 2025 were 19.3% and 21.8%, respectively.
Previous 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.
Current wording
The change in the effective tax rate for the three and nine months ended September 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
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.
Current wording
Net income for the three months ended September 30, 2026 increased by $20 million compared with the prior period, due to $20 million of higher gross profit, $3 million of lower tax expense and $2 million of lower interest expense, partially offset by $4 million of increased non-operating expense and $1 million of higher SG&A expense.
Previous wording
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 wording
Net income for the nine months ended September 30, 2026 increased by $67 million compared with the prior period, due to $68 million of higher gross profit, $6 million of lower other expense, net and $5 million of lower interest expense, partially offset by $7 million of higher tax expense, $4 million of higher SG&A expense and $1 million of lower non-operating income.
Previous wording
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.
Current wording
We believe that EBIT and Adjusted EBIT are important indicators of operating performance and provide useful information for investors and management 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.
Previous wording
The following table reconciles Net income under GAAP to Adjusted EBIT:
Current wording
The following table reconciles Net income under GAAP to EBIT and Adjusted EBIT:
Previous 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.
Current wording
(1)Reflects interest income of $1 million for each of the three months ended September 30, 2026 and 2025, and $1 million and $3 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
(2)Repositioning costs includes severance costs related to restructuring projects to improve future productivity.
Current wording
(2)Repositioning costs includes severance costs related to restructuring projects.
Previous 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.
Current wording
(3)Reflects the non-service component of net periodic pension income and, for the three and nine months ended September 30, 2026, includes $4 million payable to the Company's former parent pursuant to an indemnity agreement established in connection with the Company's spin-off. For the nine months ended September 30, 2026, the amount also includes a $5 million gain related to the resolution of certain environmental liabilities not directly related to the Company's operations.
Previous 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.
Current wording
For the three months ended September 30, 2026, net income increased by $20 million versus the prior period as discussed above within Results of Operations for Three and Nine Months Ended September 30, 2026.
Previous 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.
Current wording
For the three months ended September 30, 2026, Adjusted EBIT increased by $19 million compared to the prior period, driven by $21 million of favorable product mix impact, $19 million of pricing net of inflation pass-through and $18 million of favorable productivity, SG&A net. This increase was partially offset by $18 million of commodity, transportation and energy inflation, $8 million of lower volume, $7 million of unfavorable foreign currency impact and $6 million of higher RD&E costs.
Previous wording
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 wording
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.
Previous wording
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 wording
Losses in foreign currency for the three months ended September 30, 2026 were primarily driven by a strong Chinese Yuan and Japanese Yen.
Previous wording
Adjusted EBIT for the Six Months Ended June 30, 2026
Current wording
Adjusted EBIT for the Nine Months Ended September 30, 2026
Previous wording
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 wording
For the nine months ended September 30, 2026, net income increased by $67 million versus the prior period as discussed above within Results of Operations for Three and Nine Months Ended September 30, 2026.
Previous wording
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 wording
For the nine months ended September 30, 2026, Adjusted EBIT increased by $67 million compared to the prior period, driven by a $28 million favorable product mix impact, $27 million of higher volumes, $16 million pricing net of inflation pass-through, $14 million of favorable productivity, SG&A net, $5 million of lower RD&E costs and a $1 million benefit from foreign currency impact. This increase was partially offset by $24 million of commodity, transportation and energy inflation.
Previous wording
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 wording
During the nine months ended September 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, partially offset by demand softness in China. Diesel growth was due to strong demand for light commercial vehicles and pickup trucks in Europe, North and South America, and India. Commercial vehicle volume growth was driven by strong demand in North America and China for industrial and off-highway applications combined with higher on-highway demand in Japan and Korea. Aftermarket growth was driven by stronger demand for passenger vehicles replacement parts in Europe and stronger demand for off-highway and industrial in North America and Asia.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried 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