Garrett Motion sells turbochargers that help carmakers meet emissions rules, and in 2025 the business produced more cash than profit. The question is whether that holds as battery-electric cars, which need no turbocharger, spread.
If your car has a small gasoline engine that still feels lively, it probably has a turbocharger. This compact pump uses the engine's own exhaust to force in extra air, so a smaller engine can do the work of a bigger one. Garrett Motion designs and sells turbochargers, mostly to makers of cars and trucks, plus replacement units. Carmakers buy them to meet tightening emissions rules in the United States, Europe, China, Japan and Korea without losing performance.
Vehicle makers pay for turbochargers fitted to their engines, so Garrett's sales follow how many engines they build and the rules shaping them. Gasoline-engine turbos are the largest line, at $1.6 billion of 2025 revenue, with diesel, commercial vehicles and replacement units making up most of the rest. Buyers are concentrated: three customers each took more than a tenth of 2025 sales. What remains depends on how much of today's profit goes into tomorrow's products. About half of research, development and engineering spending goes to zero-emission products, such as electric compressors, air pumps driven by electricity rather than exhaust. In effect, the turbocharger business pays for its possible successor.
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