Key Highlights

  • Garrett Motion's $0.08 quarterly Dividend trades ex-date September 1, 2026, payable September 15.
  • The dividend yields approximately 1.20% at current share price levels.
  • Q2 2026 net sales rose 7% year over year to $976 million, with record adjusted EBIT of $152 million and a Margin of 15.6%.
  • Adjusted free Cash Flow was $122 million, and the company raised its full-year 2026 outlook across sales, EBIT, and free cash flow.

Garrett Motion's $0.08 dividend yields approximately 1.20%, a modest rate that undersells a Business posting genuinely record profitability even amid softer global vehicle production. The more relevant story isn't the yield but the raised full-year guidance behind it, since management now expects $430 million of adjusted free cash flow for 2026.

Dividend Program and Shareholder Returns

Garrett Motion (NASDAQ:GTX) declared a quarterly Cash Dividend of $0.08 per share, trading ex-dividend September 1, 2026, and payable September 15 to shareholders of record. The company returned $43 million to shareholders in Q2 through $28 million in share repurchases and $15 million in dividends, with $115 million repurchased year-to-date under its $250 million authorization.

About the Company

Garrett Motion develops turbochargers, electric boosting systems, and fuel-cell compressors for passenger and commercial vehicles, helping internal-combustion engines meet fuel-efficiency and emissions requirements while also addressing hybrid, battery-electric, and hydrogen applications. The company emerged from Bankruptcy in 2020 with a restructured Balance Sheet and has since focused on improving cash flow and reducing leverage.

Financial Performance Behind the Payout

Garrett reported Q2 2026 net sales of $976 million, up 7% year over year, with record adjusted EBIT of $152 million and an adjusted EBIT margin of 15.6%, up from 13.6% a year earlier despite foreign-exchange headwinds. Adjusted free cash flow totaled $122 million, an 80% conversion rate from adjusted EBIT, driven by higher Earnings partly offset by unfavorable working-capital timing.

Raised Guidance Reflects Broad-Based Strength

Management raised its full-year 2026 outlook across every major measure, now expecting net sales of approximately $3.8 billion, adjusted EBIT of $580 million at a 15.3% margin, and adjusted free cash flow of $430 million. The company also said industrial turbocharger Demand is accelerating, helped by data centers, power generation, and grid investment, with full-year industrial turbo sales now expected near $200 million, up from an earlier $100 million-plus estimate.

Outlook

Garrett's dividend is a small piece of a capital-return program weighted toward buybacks, comfortably covered by $122 million of quarterly adjusted free cash flow. Investors should track sales relative to global vehicle production, industrial turbo growth, and whether the raised full-year guidance continues to hold as the year progresses.