Can Garrett Motion Sustain Its Turbocharger Momentum in 2026?

Garrett Motion GTX continues to stand out for its strong position in turbocharger technology. The company has been securing new program awards across passenger vehicles, commercial vehicles and industrial applications, reinforcing the importance of its products in improving engine efficiency and reducing emissions.

Garrett has maintained a turbocharger win rate above 50% over the past several years, highlighting its ability to gain share even when underlying industry volumes are not growing. Recent program awards indicate that the company continues to gain traction with automakers.

During 2025, Garrett secured a significant number of new light-vehicle turbo awards, particularly in gasoline variable nozzle turbine applications. These technologies help improve fuel efficiency while maintaining engine performance, making them increasingly attractive for modern gasoline engines.

Expanding Role in Hybrid and Combustion Platforms

Beyond conventional gasoline engines, the company is also gaining ground in hybrid and range-extended electric vehicle platforms. While battery-electric vehicles receive much of the attention, hybrids remain a major part of the global transition toward electrification. Efficient turbocharged engines play an important role in these systems, and Garrett’s growing presence in hybrid programs highlights the continued relevance of its technology.

At the same time, diesel turbochargers remain a meaningful part of the business. Diesel engines continue to dominate several commercial segments because they offer high torque and strong fuel efficiency.

Garrett’s opportunities also extend beyond light vehicles. The company is expanding its footprint in commercial and industrial turbo markets, securing numerous awards across on-highway, off-highway and industrial platforms. A key milestone was the first series production awards for its largest turbo frame size — the MEG platform. This product is designed for large engines used in marine propulsion, power generation and heavy-duty industrial applications.

Building New Growth Adjacencies

Management is also developing adjacencies that could extend the company’s growth profile. Garrett is advancing zero-emission technologies, including e-powertrain systems, e-cooling compressors and fuel-cell compressors. Management targets approximately $1 billion in revenue from zero-emission technologies by 2030, supported by multiple growth drivers across mobility and industrial applications. The company has already secured its first series-production awards in e-cooling, while initial electric truck programs are expected to begin production in 2027.

These business wins matter from an investment perspective because they reinforce Garrett’s competitive position in a highly specialized market. Garrett’s long history in turbomachinery and its global manufacturing scale provide a strong advantage when customers select suppliers for new engine programs.

For context within auto suppliers, BorgWarner BWA is also pursuing a mix of combustion, hybrid and electrification content, while Magna International MGA brings broad exposure across multiple vehicle systems and geographies.

Investor Takeaway

Investors should monitor whether Garrett sustains its program-win momentum and executes production ramps smoothly, particularly in gasoline variable-geometry turbos and hybrid or range-extended platforms. Continued success in these areas would provide a clear path for the company to outgrow underlying industry volumes. For 2026, management guided net sales of $3.6-$3.8 billion. At the midpoint, that is a step up from fiscal 2025 net sales of $3.58 billion.

GTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has a solid earnings surprise history. It beat EPS estimates in each of the trailing four quarters, with the average surprise of 13%.

The Zacks Consensus Estimate for Garrett’s 2026 and 2027 EPS implies year-over-year growth of 16% each. See how the EPS estimates have been revised in the past 60 days.

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