Hello, my name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion 4th Quarter and Full Year 2025 Financial Results Conference Call. This call is being recorded, and a replay will be available later today. After the company's presentation, we will be a question and answer session. At this time, I would like to turn the call over to Cyril Grandjean, Garrett's Vice President, Investor Relations and Treasurer.

Thank you, Jamie, and good day, everyone. We appreciate you joining us to review Garrett Motion's fourth quarter and full year 2025 results. Our presentation and press release are available on the investor relations section of our website. Today's discussion includes forward-looking statements that involve risks and uncertainty. Please refer to our SEC filings, including our most recent annual report on Form 10 for a discussion of factors that could cause our results to differ materially from these forward-looking statements. Today's presentation also includes certain non-GAAP metrics, which we use to help describe how we manage and operate our business. Please read the disclaimers on slide 2 of our presentation as the content of our call will be governed by this language. With me today are Olivier Rabier, President and CEO, and Sean Deason, Senior Vice President and CFO. Olivier will begin with highlights from another year of strong performance and strategic acceleration. Sean will then review our 2025 financial results and 26 outlook. With that, I'll turn it over to Olivier.

Thank you, Cyril. Good morning, everyone, and welcome. 2025 was another fantastic year for Garrett. We delivered strong operational performance in a complex industry environment and, at the same time, advanced our strategy, increasing share of demand, growing our portfolio, expanding margin, and securing key awards and partnership across turbo, zero-emission technologies, and industrial applications. In Q4, net sales were $891 million, and adjusted EBIT was $122 million, with a 13.7% margin. For the full year, net sales reached $3.58 billion, and adjusted EBIT was $510 million, with a 14.2% margin. Adjusted free cash flow for the year was $403 million, once again demonstrating our discipline, execution, and operational rigor. These strong results allowed us to stay firmly on track with our capital allocation framework, returning significant capital to shareholders, and strengthening our balance sheet. In 2025, we voluntarily repaid $50 million of our term loan, repurchased $208 million of common stock, and paid $52 million in dividends. As you will see later on, we plan for another year of strong execution for 2026, as we anticipate further share of demand gains, margin expansion, and strong free cash flow. Sean will obviously provide additional details on our 2026 outlook later in the presentation, But for now, let me move to slide four. In 2025, we continued to strengthen our core business while accelerating our zero-emission technologies. We secured a significant number of new light vehicle turbo awards, driving our growing share of demand in gasoline BNT applications and increasing our traction in hybrid and range-extended electric vehicle platforms. These wins reinforce how our differentiated technologies remain central to efficiency and emissions reduction for our customers. We also won important awards in diesel applications for light commercial vehicles and trucks, where diesel remains highly valued for its lower emissions, fuel economy, and high torque. And I want to pause on this point for a moment. Back in 2018, light vehicle diesel represented 41% of our revenue, and many questioned whether Garrett could sustain its margins through the transition to gasoline. Today, gasoline accounts for over 44% of our sales, and diesel remains resilient at more than 23%, and, as just mentioned, we delivered a 14.2 adjusted EBIT margin. once again demonstrating the strength of our business model grounded in technology leadership and operational excellence. Beyond light vehicles, we also secured numerous commercial vehicle awards across on-highway, off-highway, and industrial applications. This momentum was further supported by our first series production awards for our largest turbo frame size, the MEG, as well as the first aftermarket sales for this product line as a retrofit option in the aftermarket space. Moving now to our zero emission and industrial technologies. In addition to the wins and progress we have announced in 2025, we made two announcements in February that are very significant when it comes to that part of our portfolio. First, we announced a series production award for mobility-equating compressors with a leading Chinese bus and truck HVAC supplier. Second, and even more important, we launched a strategic collaboration with TRAIN Technologies to integrate Garrett's next-generation oil-free high-speed centrifugal compressors into TRAIN's commercial HVAC applications from unitary rooftop and modular chillers to large capacity chillers, bringing the maturity, quality, and scale of the products we have developed in the automotive industry into the industrial world. And extensive testing in trains labs confirm the clear performance benefits of the synchronous solution. Initial units from train will be available to select customers already this year with broader series production across applications beginning in 2027. But let me spend a little bit more time on this cooling opportunity on slide number five. We have developed an oil-free, high-speed centrifugal refrigerant compressor for HVAC applications by combining core Garrett technology, high-efficient turbo machinery, our unique oil-free foil bearings, high-speed electric motors, ultra-high frequency inverters, and model-based control software. And importantly, all of this comes straight from our technologies we have already developed, validated, and industrialized at automotive scale and quality. Our testing has shown that our technology can deliver more than 10% real-world energy savings compared to incumbent solution. This allows HVAC operators to materially reduce the total cost of ownership and helps limit energy demand in power-intensive environments, such as data centers. These benefits are even greater as customers move to ultra-low global warming potential refrigerants. Our E-Coulding compressor portfolio, introduced at the AHR HVAC show in Las Vegas earlier this month, has already attracted strong interest from this industry. The product range spans from 7 to 500 tons, or from 25 to 1,750 kilowatts of cooling capacity, enabling us to serve application from rooftop and unitary system, battery energy storage cooling, computer in-room air conditioners, to small and large heaters used in comfort cooling and hyperscale data center. These offerings leverage several of our key differentiated technology to address the fast-growing needs of a sector that will progressively shift to ultra-low global warming potential refrigerants. Industrial cooling represents a significant growth vector for Garrett and is expected to scale quickly to more than 5% of our revenue by the end of the decade as programs launch and ramp up. Taken together, these developments show how Garrett is executing, diversifying, and expanding outside of the automotive industry, a deliberate part of our strategy. Cooling is now a tangible vector of growth on top of high-speed powertrain, fuel cell compressors and alongside our core turbo business. With that, I'll turn over to Sean to discuss our Q4 and full year 2025 financial results in more details. Thanks, Olivier, and good morning,

everyone. I will begin my remarks on side six, where we talked about our quarterly financial trends. As Olivier highlighted, we delivered another year of strong financial performance in 2025. We finished Q4 with net sales of $891 million, driven by gasoline share of demand gains and a slow recovery of commercial vehicle, partially offset by continued weakness in aftermarket. We delivered $122 million of adjusted EBIT, equating to a 13.7% margin. Adjusted EBIT in Q4 was down sequentially, driven by unfavorable product mix and one-time headwinds, but in line with our 2025 full-year outlook midpoint of $510 million. Finally, adjusted free cash flow was a very strong $139 million in the quarter as the business continues to efficiently convert earnings into cash. Now, moving to slide seven, we show our net sales bridge by vertical as compared with the prior periods. In the fourth quarter, net sales increased by $47 million versus the prior year, or 6% on a reported basis and 1% on a constant currency basis, reflecting favorable foreign exchange currency impacts. We experienced growth in commercial vehicle and diesel. Gasoline volumes declined outside of Europe, particularly in Asia. For the full year of 2025, we experienced gasoline growth across most regions through a number of new launches and ramp-ups. Our commercial vehicle off-highway sales expanded as well across regions. These gains were partially offset by lower diesel, particularly in Europe, where the industry continued to decline. Aftermarket declines were driven by lower demand for off-highway applications, particularly in North America. And finally, during Q4 and the full year, we recovered $10 million and $40 million of tariffs, respectively. Turning to slide eight, as mentioned earlier, during the quarter, we generated $122 million of adjusted EBIT and a margin of 13.7%, which was down 100 basis points. Q4 operating performance was in line with expectations as we absorbed several one-time charges in addition to an unfavorable mix and a 20 basis point margin dilution due to tariffs. The unfavorable mix was driven mostly by growth in small engine light vehicle diesel, partially offset by growth in commercial vehicle applications across regions. For the full year 2025, unfavorable mix was driven by increased light vehicle gasoline and softness in the aftermarket, mostly in North America, partially offset by increased commercial vehicle. Now, turning to slide nine, I'll walk you through the full year 2025 adjusted EBIT to adjusted free cash flow bridge. We delivered strong adjusted free cash flow of $403 million for the year. We had a slight working capital benefit, which reflects the very strong fourth quarter working capital recovery of $60 million. Capital expenditures came in slightly lower than anticipated due to timing, and cash taxes, depreciation, and cash interest were all in line with our expectations. Taken all together, these strong results equate to a free cash flow conversion of nearly 80% in 2025. Now, moving to slide 10, we closed the year with strong liquidity of $807 million and a very healthy balance sheet. In Q4, we repaid $50 billion of our term loan, bringing our net leverage ratio to approximately 1.9 times as of year end. We continue to have no significant debt maturities until 2032. Moving to slide 11, we continue to generate strong cash flow and return capital to shareholders. In the fourth quarter, we repurchased $72 million worth of shares for total repurchases of $208 million in 2025, reducing our share count at year end to 191 million shares outstanding. We also increased and paid a dividend in Q4 of $0.08 per share and authorized a $250 million share repurchase program for 2026. As of February 13, 2026, we had 189.97 million shares outstanding. Additionally, we just declared our Q1 2026 dividend for $0.08 per share. We continue to target distribution of approximately 75% of our adjusted free cash flow to shareholders over time through dividends and share repurchases, the latter of which will vary over time and will depend on various factors, including macroeconomic and industry conditions. I'll now turn to slide 12 to discuss our 2026 outlook. At the midpoint, industry assumptions for this outlook can play a 2% decline of the global light vehicle industry, an average BEV penetration of 19%, and a slight recovery in commercial vehicle, including on and off highway, of 1.5%. The financial midpoints implied in this outlook are as follows. Net sales of $3.7 billion, net income of $315 million, adjusted EBIT of $545 million, implying a 14.7% margin, net cash provided by operating activities of $455 million, and finally, adjusted pre-cash flow of $405 million. Capital expenditures and RD&E expenses are expected to be 2.5% and 4.2% of sales, respectively, in line with our financial framework. Approximately 50% of our RD&E will be directed towards zero-emission technologies and industrial cooling. Now, turning to slide 13, we show our 2026 midpoint outlook bridge for adjusted EBIT. For 2026, as discussed on the prior slide, our midpoint outlook is $545 million with a 14.7% implied margin, up 50 basis points compared to 2025. This adjusted EBIT improvement is expected mostly from increased volumes and our continuous focus on operating performance and productivity, which offsets unfavorable pricing, net inflation, and product mix. I'll now turn the call back to Olivier for closing remarks.

Function. Now let's turn to slide 14. Our strategic priorities remain clear and consistent. We aim to identify and deliver on our customer needs by leveraging our capabilities to develop differentiated, high-speed, and highly efficient technologies. In doing so, we generate robust returns for our shareholders. Let me wrap this up on our final slide, slide number 15, with three takeaways. First, we delivered strong full-year 2025 results in line with our guidance, including share-of-demand gains, margin expansion, and strong cash flows. Second, our pipeline is expanding in turbo and accelerating in zero-emission technologies and industrial applications. We secured our first production wins for our e-power train and e-coulding technologies, and we are now generating meaningful traction in power generation and e-coulding technologies for industrial applications. Third, we remain disciplined in our capital allocation, investing in what wins and returning capital to shareholders. We are extremely well positioned to have performed in 2026 and beyond and look forward to welcoming you to our Investor Day planned for May the 20th in New York, where we will provide additional updates on our long-term strategy and outlook. Thank you for your time, and operator, we are now ready for Q&A.

At this time, we'll begin that question and answer session. To ask a question, you may press star and then one using a touchtone telephone. To withdraw your questions, you may press star and two. If you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. Once again, that is star and then one to join the question queue. queue. We'll pause momentarily to assemble the roster. And our first question today comes from James Mulholland from Deutsche Bank. Please go ahead with your question.

Great, thanks. Good morning, everyone. So just some questions on the train partnership and the use of the high-speed compressor. Could you give us some sense of the economic opportunity here in the shorter term, understanding that it might get to 5% of sales in a few years, But what level of contribution would you expect in 27, and what kind of margins should we expect there? Will it be accretive at the start of production, or will there be a ramp-up? And is part of the CapEx this year going to be in preparation for that?

That's a very good question, James, and you're giving me the opportunity to precise a few points there. Yes, it's a very significant opportunity. We are introducing a technology that is unique with the leader of that space. And with the broad range of portfolio applications, from small cooling to much bigger cooling needs. This is something, and quite frankly, the uniqueness is linked to what has already matured into the automotive space. So we are uniquely positioned to provide that to this industrial sector. So that's just something I wanted to remind everyone again. uh we see today to that we will be deliver the first application 2026 with a number of customers but the real ramp will come for 2027 today we are not giving you numbers on 2027 it will be the start but the number we are giving you and that you picked up the five percent in excess of five percent of revenue by the end of the decade shows the magnitude and the speed of the ramp up that will happen between now and then. In terms of CAPEX, it's all included in our plan, and that's all taken into account in the 2.5% CAPEX guidance that we gave for 2026. We are still applying to this new line of product the same discipline in CAPEX spend for the new product lines. And there are a number of elements, as I was mentioning before, that are the same or leveraging the scale that we have on the automotive side so that limits the capex that is just specific for that business pursuit.

Great. Okay. And then quickly on my follow-up.

Sorry. There is just one point I did not answer. Your question about margin, yes, it is accretive.

So accretive on startup production, essentially. Yes. Okay. Great. And then on my follow-up, your largest competitor announced last week that it's going to be diversifying into power generation for data centers. Now, I think in the past, you've mentioned you would do about $100 million in sales for 25, and that should grow, I think, double digits this year. Outside of the HVAC opportunity, do you see other areas to increase exposure or use your tech stack to further penetrate that data center up and its growth outlook? Would you look to do inorganic acquisitions to tap into that further? Just your

thoughts on that. Well, we are very consistent with what we said about our technology for a long time saying that we will favor verticals that are valuing the technology that we put in our products. And obviously, when you get into commercial vehicle, on highway, off highway, and even more in industrial space, these are the spaces that are valuing, where customers are valuing the technology we bring. So it's true, we've developed, we had already a position on Genset, and today the biggest part of the demand for Genset, Big Genset, is data center driven. And we've developed our range. We've developed a new range of product on top. And you may have seen that we just made a few important announcements showing that in a matter of a very short amount of time, we've been able to secure OE wins with these new products and even get into retrofitting some of the products that were already into the marketplace. So we'll keep on pushing that range of product. And, yes, we are seeing a very significant growth above and beyond the $100 million that we mentioned in Q3 2025. And we expect that growth, obviously, to amplify as we get into 2026. The cooling side is very interesting. We'll keep on, obviously, developing our position on the genset side. But the cooling side is very interesting. It's obviously a very dynamic industry driven by the growth of cooling across many applications and obviously the data center piece. And once again, we have the right building blocks into the company that allow us to propose something that is not existing there. And the fact that a lot of equipment is being ordered gives us the momentum into the marketplace to adopt our technology. So, yes, overall, the only thing I could say is that, yes, it's very significant. It's probably going a bit faster than what we had anticipated at the beginning, but extremely consistent with everything we've been saying for the last few years that we would reinforce on power generation and putting, leveraging the building blocks that we have in the company and that are differentiated versus what's existing out there.

Great. Thank you very much, guys.

Our next question comes from Ryan Brinkman from JPMorgan. Please go ahead with your question.

Hi, thanks for taking my question. Maybe a similar one. I just wanted to ask following the announcement of the strategic collaboration with the train, how do you compare and contrast the relative opportunity of, on the one hand, supplying industrial turbochargers for the stationary power gensets located outside of the data centers to provide energy for their operational cooling versus, on the other hand, this newer opportunity to participate in cooling itself? On Medin's call the other week announced in a sale of the portion of their business that includes thermal management to the stationary power gen sets that you use, it was discussed that while the market for data center stationary power generation was thought to grow very quickly, the market for thermal management of the inside data centers was thought to grow quite a bit faster still. So how do you see these two markets growing, and how should we think about the relative margin or content opportunity or competitive edge for Garrett in these two different relatively related markets?

You were breaking quite a bit on the phone line. So I think, if I may, to rephrase your question that you were asking us to give a little bit of a comparison of the growth that we are seeing on the one hand with the power gen and the big turbo space, and on the other hand, the cooling, both of them being more directly or less directly liaised to the growth that we see onto the data space. Is it your question? So I would say it's difficult to compare. So both of them are growing fast, and you see that for the players that we are dealing with on the one-minute strain, obviously, that we talked about, but not only. And on the other hand, with the biggest customers we are having today on the big engines, and you know all the big names out there, whether they are in the U.S. or in Asia. So it's difficult to compare the two. They are all driven by this. They are all driven, I would say, on the power gen side by other fundamentals that are not only directly linked to data centers when it comes to increased needs for power generation. There is a need for energy all around the world, and that is not only – it's partly driven by data centers, but not only driven by that. And then on the cooling side, I would say not everything is driven by data centers either. you have a lot of macros that are driving the demand, and also in that space, driving people to refresh the technologies that they are using. Because when we announce that with the equipment that we are putting on the marketplace with train, we can save up to 10% energy compared to incumbent application, that's very significant when you combine the two. Need for energy on the one hand, this is an underlying macro, and on the other hand, there is a need for cooling that is much more energy efficient, and this is where we play. So I think we are addressing very well those two. I would not oppose the two. I mean, quite frankly, when we say that cooling we forecast it to be quickly above 5% of our revenue, and you know that the industrial world is not ramping up exactly at the speed of the automotive industry, that means a very quick ramp up by industrial standard anyway and we are seeing today very quick ramp up as well on the industrial side for turbos so we are very pleased with that we are very pleased with the growth and we'll keep on funding that with our discipline approach so that we are successful with it

great thank you i have a project for the connection just lastly from me uh relative to the new light vehicle turbo awards and key geographies including diesel for light commercial vehicles and hybrid gas and applications is the pace of new wins uh relatively consistent of your past observation in recent years you have been waiting on the order of magnitude of roughly one half of industry turbocharger awards and given that your current revenue share of turbochargers might be closer to a third and a half. What does this imply, do you think, for your future motor market in light vehicle turbos?

Ryan, we are very clear. We've been keeping on winning, and the way we measure that is we measure our business win rate, and we publish that once a year. It has been very consistent above 50% when you look at the last five, six years. when we win at that level it means that we are increasing our share of demand in the industry and if you do the math and I'm sure you're doing that very carefully you will see that with the guide we have on revenue and the results we have on the revenue for 2025 versus what the industry is doing we are obviously winning shares and we'll keep on winning shares with what we have. The underlying drivers for that are what we explained in the past being a technology-driven consolidation. The industry needs a wide portfolio of technologies and advanced technologies, especially as we get to hybrid vehicles, where we need more valuable geometry turbo. There we need more electric boosting solutions, and we are launching a number of those this year. And therefore, not everyone can provide that. And there is also another consolidation that has happened is that the car makers and the truck makers want to make sure that they work with players that are relevant today and will be relevant tomorrow as the industry keep on shifting towards a more electrified solution. So I think we are well positioned on those two, and that drives shares that is growing for the leaders of the industry. And there is absolutely no change. And when you look at our revenue guide, it's a good illustration of that.

Our next question comes from Jake Scholl from BMP. Please go ahead with your question.

Hey, guys. One more question on the train e-compressor winds. Now that you've had a chance to see how the compressor performs as part of a total system, can you talk a little bit about the efficiency gains you're seeing especially against competing oil-free compressors using magnetic bearing technology instead of your foil bearings? Thank you.

Well, a few things. I will not get into a lot of technical details today on this call, and I'm sure we can have a very detailed technical discussion when we meet for the Investor Day in May. But what we see is that our solution, first, is proven at scale. I mean, the industry has been looking for the most effective and efficient solutions that are oil-free. And today we're having a lot of traction, even from people that are using MAC bearing, towards our type of bearing. It's less difficult to control in other ways. it's difficult for me to get in five minutes into why it is less difficult to control and the efficiency gain, but clearly we have efficiency gains. We have controllability. We have maintenance. We have all of that that plays in favor of our solution, both for where you have Mach bearing that are the big stuff, but also where we are smaller compressors that are scroll compressors and that are much less efficient from an energy standpoint.

Got it. Thank you. And then I just wanted to double click on your SG&A cost savings this year. That's a pretty impressive number. Can you talk a little bit about where those are coming from and if you see additional cost savings opportunities going forward?

Yeah, as we've always said, we are always working on the efficiency of the company. We are always leveraging everything we can to make the company faster, more nimble, more agile, more reactive. Today, we have a number of tools at our disposal, whether it's fine-tuning the organization, developing systems, and I would not get on the famous AI stuff that everybody is using but we are obviously having an agenda to transform the company to make it even more efficient in the future. So we are pleased with the results we are having on SG&A but in all fairness because we like performance we are looking for a step improvement versus that in the coming years.

Our next question comes from Nathan Jones from Stifel. Please go ahead with your question.

Good morning everyone. I've got one on the Train partnership as well. You talked about 5% of sales by 2030. Can you confirm that's all coming from the Train partnership? And then is there any exclusivity in the product with them, or are you able to market and sell this to other suppliers in other areas? And if so, can you just comment on what the overall addressable market might be for the product?

So, first, we are very pleased to work with Train, which are the leaders. in terms of equipment, but they are also a technology leader in that industry and a company that is setting the trend. So for us, it's very important to work very closely together in the coming years, and we are very pleased with this agreement, obviously, because that's giving us very quickly the scale and the understanding of the marketplace. Quite frankly, in the long run, we'll keep on leveraging that partnership. And as opportunities are coming with other players and other segments of the cooling industry, we'll certainly develop relationship with some other players. We had already a ton of people coming to us asking for questions at the show. So I think I don't want to be too proud of it, but I think we had a turnout from the rest of the industry that we were not expecting.

So is it fair to say then that, you know, kind of by that 2030 target, the product's going to generate more than 5% of revenue. It's 5% of revenue with train, but there'll be other opportunities as well.

You know, there will be other opportunities by 2030 that go beyond train, that's for sure. and we are giving that as a view and that purely depends on the speed at which the industry is ramping up that could be depending on the take of the industry that could go very, very quick and even potentially quicker.

Thanks, Pat. I guess my follow-up question is going to be on your other zero emission progress. You've had a number of pre-development contracts ongoing for the last few years. Can you talk about that progress towards getting those to awards and plans for start-up production on that? And then is the billion dollars of revenue from all of this portfolio of products still a target for 2030?

So, Clion, we are seeing a lot of – it's not because we talk about training today that we're not seeing traction with the rest. We have an accelerated number of pre-development programs that we are working on today we are working on many more pre-development programs than what we are doing a year ago to give you an idea both passenger vehicle commercial vehicle and industrial application we've talked a lot this year about the award we got for e-powertrain for commercial vehicle, heavy duty. We will be in production already next year at this time. So it's not just a PowerPoint kind of discussion that we're having. We are talking production for heavy duty electric axle 2027, beginning of 2027. And then from there, obviously, it's bringing interest about programs that we have not communicated about yet that are leveraging what we do on those vehicles to apply that to other vehicles. I'm talking about commercial vehicle space. On the passenger vehicle side, we are making very good progress now on the testing of our solutions, and we are confirming benefits of our solution versus incumbent solution in the industry even greater than what we had seen and communicated initially. So now it depends on the speed at which The decision-making is happening at our customers, but quite frankly, the benefits have been confirmed, and if anything, they are greater than what we are and our customers were expecting, both in the passenger vehicle and in the commercial vehicle space. On the equaling, we just confirmed the first few wings for equaling for mobile application. Same again. Obviously, it's not a surprise that we tend to win earlier in China because the industry tends to make decisions and move faster than in the rest of the world. We all know that. But at the same time, it's very positive for us because it shows that we can win in the most competitive market you have out there. So we take it like we are moving at China speed on a lot of that stuff, and we are delivering the performance at the cost customers are willing to pay in the toughest industry around the world.

Thanks very much for taking it.

So in all fairness, we have long answer, yes, we are doing progress, and yes, I'm very pleased with it. More to come.

Our next question comes from Ahmad Korsan from BWS Financial. Please go ahead with your question.

Hi. First question was, could you just reconcile the two comments you made? Sean, you said that you're expecting EBIT margin to expand because unit volume would increase, but then you're giving guidance with the expectation that global units will be down this year. So could you just reconcile that, please?

Maybe before Sean picks that up, the comment we made on industry down is for the light vehicle industry. And in a light vehicle industry that is down, we are expecting to be up despite the growth of battery electric vehicles. So that means significant share of demand gains for Garrett.

That was exactly what I was going to say, Olivier. And also, obviously, there's growth in commercial vehicle as well. So we're quite pleased with the guide, and of course, it's underlined by our strong productivity performance that we have demonstrated over the cycles, over various cycles, and will continue to do so in 2026 and going forward.

Okay. And then you reported that the commercial went up this quarter and it looks like it's going to go up again in 26th in your forecast. Is that because of what's happening in off-highway or is that because of the commercial on-road aspect?

It's because of a highway and specifically industrial turbos. So back to the question of one of your peers before, Amit. We are seeing the growth on the industrial turbo side driven by gensets.

Thank you.

And our next question comes from Eric Dreg from Four Tree Island Advisory. Please go ahead with your question.

First up, congratulations on a really strong Q4 in 2025. Just following up on some people to go. and it does that exclusively fall away after that. And then second of all, is that pre-central mutual commercial technology, compressor technology, is that going to be additive in the target? So first of all, just to clarify a point,

we are not developing a new line of projects just to patch a weakness that we would have on the other side of the portfolio. We make decisions on the portfolio to go where we have differentiated technology and where we see growth moving forward. So it's not like we have one investment that comes at the expense of the other or the other way around. Yes, it's part of our ambition towards the $1 billion, and that's obviously counted as part of that. Now, we will update you on that during our next investor meeting, and we'll give you more clarity about the way it goes. but we are very pleased to have not only one driver that gets us there but several drivers and are depending on different industries which is the best option and the best way that we can strengthen towards our ambition. Then your point, it's obvious that when you work with someone like Trane you place a lot of eggs in the basket that helps you be successful on the marketplace. So at the beginning, it's true that we'll dedicate a lot of attention with training. But over time, that doesn't prevent us from developing ourselves with other players.

And with that, we'll be concluding today's question and answer session as well as today's presentation. We do thank you for joining. You may now disconnect your lines.