Garrett Motion Inc. secured its first commercial production award for its oil‑free, foil‑bearing centrifugal E‑Cooling compressor, a high‑speed electric motor solution designed for electric bus and truck HVAC systems. The award, granted by Chinese commercial‑vehicle HVAC leader Cling, will see the compressor integrated into Cling’s next‑generation electric bus and truck platforms, with serial production slated to begin in 2027.
The E‑Cooling compressor operates at over 160,000 RPM and is up to 50 % smaller and 30 % lighter than traditional scroll compressors. Its oil‑free design and 45,000‑hour maintenance‑free operation reduce vehicle energy consumption, extend driving range, and lower noise levels by about 10 dB, making it an attractive option for manufacturers seeking efficient, quiet thermal management in electric commercial vehicles.
Garrett’s Q4 2025 earnings, released on February 19 2026, showed net sales of $891 million—up 6 % year‑over‑year—and earnings per share of $0.42, beating estimates of $0.35. The beat was driven by strong demand in the company’s core turbocharger and industrial segments, while a modest margin compression reflected an unfavorable product mix and one‑time headwinds. Management guided 2026 net sales to $3.6 billion–$3.8 billion and adjusted EBIT to $520 million–$570 million, noting that light‑vehicle production is expected to decline 1‑3 % and that investment in zero‑emission technologies will continue.
Investors reacted to the earnings release with concern about future growth prospects and margin compression, even as the company’s guidance remained broadly in line with expectations. The subsequent award from Cling signals a new, high‑growth revenue stream that may help offset those concerns and reinforce confidence in Garrett’s long‑term trajectory.
Strategically, the award expands Garrett’s zero‑emission portfolio and positions the company as a key supplier in China’s rapidly expanding electric commercial‑vehicle market. It complements Garrett’s existing turbocharger and industrial product lines and supports the company’s broader strategy of leveraging high‑speed motor technology across automotive and industrial applications.
Looking ahead, Garrett’s 2026 guidance reflects a cautious outlook for light‑vehicle production but a continued focus on zero‑emission solutions. The company’s ability to secure serial production contracts like this one will be a key factor in sustaining growth and maintaining profitability in a competitive market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.