Earnings Call Transcript - GTX Q4 2025

Operator, Operator

Hello. My name is Jamie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion Fourth 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 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.

Cyril Grandjean, 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 uncertainties. Please refer to our SEC filings, including our most recent annual report on Form 10-K 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 review 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 Rabiller, 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 2026 outlook. With that, I'll turn it over to Olivier.

Olivier Rabiller, President and CEO

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 partnerships 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 disciplined 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 4. 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 VNT 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 margin 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-equaling compressors with a leading Chinese bus and truck HVAC supplier. Second, and even more important, we launched a strategic collaboration with Trane Technologies to integrate Garrett's next-generation oil-free, high-speed centrifugal compressors into Trane'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 Trane's labs confirmed the clear performance benefit versus incumbent solutions. Initial units from Trane 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 #5. We have developed an oil-free, high-speed centrifugal refrigerant compressor for HVAC applications by combining core Garrett technology, high-efficient turbomachinery, our unique oil-free foil bearings, high-speed electric motors, ultra-high frequency inverters, and model-based control software. 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 solutions. 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-Cooling 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 tonnes or from 25 to 1,750 kilowatts of cooling capacity, enabling us to serve applications from rooftop and unitary systems, battery energy storage cooling, computer in-room air conditioners, to small and large chillers used in comfort cooling and hyperscale data centers. These offerings leverage several of our key differentiated technologies 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 E-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 detail.

Sean Deason, Senior Vice President and CFO

Thanks, Olivier, and good morning, everyone. I will begin my remarks on Slide 6, 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 demand gains and a slow recovery of commercial vehicles, 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 7, 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 vehicles in 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 8. 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 9. 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 million of our term loan, bringing our net leverage ratio to approximately 1.9x 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 190 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 a 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 vehicles, 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 free 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 EBITDA 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.

Olivier Rabiller, President and CEO

Thanks, Sean. 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 #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-Powertrain and E-Cooling technologies, and we are now generating meaningful traction in power generation and E-Cooling 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 outperform in 2026 and beyond, and look forward to welcoming you to our Investor Day planned for May 20 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.

Operator, Operator

Our first question today comes from James Mulholland from Deutsche Bank.

James Mulholland, Analyst

So just some questions on the Trane 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 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?

Olivier Rabiller, President and CEO

That's a great question, James. I appreciate the chance to clarify a few points. Yes, we have a significant opportunity ahead. We are introducing a unique technology alongside the leader in that field, which has a wide range of applications from small to large cooling needs. The uniqueness of our technology has been developed, particularly in the automotive sector, positioning us well to serve the industrial sector. I want to emphasize that we anticipate delivering the first application in 2026 with several customers, but the substantial growth will occur in 2027. While we are not providing specific numbers for 2027 yet, we estimate that it will start to contribute, and the projection of exceeding 5% of revenue by the end of the decade highlights the potential speed of growth during this period. Regarding capital expenditures, everything is accounted for in our plan, and this is reflected in the 2.5% CapEx guidance for 2026. We will maintain disciplined spending on CapEx for these new product lines, and we aim to leverage our existing automotive scale, which will help limit the CapEx specifically related to this new business endeavor.

James Mulholland, Analyst

Great. Okay. And then quickly on my follow-up, sorry, go ahead.

Olivier Rabiller, President and CEO

There is just one point I did not answer your question about margin. Yes, it is accretive.

James Mulholland, Analyst

And so accretive on start of production essentially.

Olivier Rabiller, President and CEO

Yes.

James Mulholland, Analyst

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 and its growth outlook? Would you look to do inorganic acquisitions to tap into that further? Just your thoughts on that.

Olivier Rabiller, President and CEO

We remain committed to our long-standing approach regarding our technology, prioritizing sectors that appreciate the value we add to our products. This holds true for commercial vehicles, including both on-highway and off-highway applications, as well as in the industrial sector, where customers recognize the value of our technology. We have established a position in gensets, with the current demand largely driven by data centers. We've expanded our product line and recently announced significant achievements in securing original equipment wins with these new offerings and retrofitting existing products in the market. We will continue to advance this product range and have observed substantial growth beyond the $100 million target we mentioned for Q3 2025, with expectations for even greater growth as we move into 2026. The cooling sector is particularly intriguing, and we will maintain our focus on the genset area while recognizing the dynamic growth within cooling applications, especially related to data centers. We possess the foundational elements within our company to introduce unique solutions to the market. The increasing orders for our equipment provide us with strong momentum to promote our technology. Overall, I can confirm that our growth is significant and is likely exceeding our initial expectations, aligning perfectly with our stated strategy to enhance our power generation efforts and capitalize on our differentiated capabilities.

Operator, Operator

Our next question comes from Ryan Brinkman from JPMorgan.

Ryan Brinkman, Analyst

I wanted to ask about the strategic partnership with Trane. How do you view the opportunity between supplying industrial charges for stationary power generators outside data centers for their cooling needs and the newer opportunity to participate in cooling itself? Recently, another company announced the sale of their thermal management business related to stationary power gensets, indicating that while the market for data center stationary power generation is expected to grow quickly, the momentum for data center cooling is projected to grow even faster. How do you see these two markets evolving, and how should we evaluate the relative margins, content opportunities, or competitive advantages for Garrett in these interconnected markets?

Olivier Rabiller, President and CEO

You were having some trouble with the phone line. Let me rephrase your question: you are asking for a comparison of the growth we are experiencing in power generation and the big turbo sector versus the cooling space, and how both are related to the growth we are seeing in the data space. Is that correct?

Ryan Brinkman, Analyst

Yes.

Olivier Rabiller, President and CEO

It's challenging to make a direct comparison between the two sectors since both are experiencing rapid growth. We're seeing this with our partners, such as Trane, among others. Our major customers, including well-known names in both the U.S. and Asia, contribute to this dynamic. Each segment is influenced by broader fundamentals that extend beyond the data center demand for power generation. There's a global demand for energy that isn't solely dependent on data centers. Similarly, the cooling sector isn't exclusively driven by data centers; various macro factors are influencing the demand, prompting a technology refresh. For instance, the equipment we're launching with Trane can achieve energy savings of up to 10% compared to older applications, which is quite significant. This dual demand for energy and energy-efficient cooling is where we focus our efforts. We're well positioned in both these markets and do not view them as mutually exclusive. In fact, we anticipate that cooling will soon represent over 5% of our revenue. It's worth noting that the industrial sector isn't ramping up as quickly as the automotive industry, but we are witnessing a rapid increase in demand for turbos on the industrial side. We're excited about this growth and will continue to support it with our disciplined approach to ensure success.

Ryan Brinkman, Analyst

Great. And I apologize for the connection. And just lastly from me, relative to the new light vehicle turbo awards in key geographies, including diesel for light commercial vehicles and hybrid gasoline applications, is the pace of new wins relatively consistent with your past observation recent years? You have been winning on the order of magnitude of roughly half of industry turbocharger awards. And given that your current revenue share of turbochargers might be closer to one-sixth, what does this imply do you think for your future multiple market in light vehicle turbos?

Olivier Rabiller, President and CEO

So 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 5 or 6 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 guidance 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, as 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 viable geometry turbo, where 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 carmakers 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 keeps on shifting towards more electrified solutions. 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 guidance, it's a good illustration of that.

Operator, Operator

Our next question comes from Jake Scholl from BNP.

Thomas Scholl, Analyst

One more question about the Trane e-compressor win. Now that you've had an opportunity to observe the compressor's performance as part of a complete system, could you discuss the efficiency improvements you're experiencing, particularly in comparison to competing oil-free compressors that utilize magnetic foil technology rather than your magnetic bearing technology?

Olivier Rabiller, President and CEO

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 deep detail on the 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 are having a lot of traction even from people that are using mag 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 gains. But clearly, we have efficiency gains. We have controllability. We have maintenance. We have all of that, which plays in favor of our solution, both for where you have mag bearing that are the big stuff, but also where we are smaller compressors that are cell compressors and that are much less efficient from an energy standpoint.

Thomas Scholl, Analyst

Got it. 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 do you see additional cost savings opportunities going forward?

Olivier Rabiller, President and CEO

Yes, but 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. 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.

Operator, Operator

Our next question comes from Nathan Jones from Stifel.

Nathan Jones, Analyst

I've got one on the Trane partnership as well. You talked about 5% of sales by 2030. Can you confirm that's all coming from the Trane 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 products?

Olivier Rabiller, President and CEO

So first, we are very pleased to work with Trane, which are the leaders in terms of equipment, but they're 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 will certainly develop relationships with some other players. We had already tons of people coming to us asking for questions at the show. 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.

Nathan Jones, Analyst

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

Olivier Rabiller, President and CEO

There will be other opportunities by 2030 that go beyond Trane, 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 very, very quick and potentially quicker.

Nathan Jones, Analyst

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 the start of production on that? And then, is the $1 billion of revenue from all of these portfolio products still a target for 2030?

Olivier Rabiller, President and CEO

We are seeing significant progress across various areas, including many pre-development programs compared to a year ago, covering passenger vehicles, commercial vehicles, and industrial applications. This year, we've highlighted the award we received for E-powertrain in heavy-duty commercial vehicles, with production expected to begin next year. Our discussions are not just theoretical; we are moving towards production for heavy-duty electric axles starting early 2027. This has generated interest in new programs that we haven't yet announced, which will utilize our advancements in the commercial vehicle sector. On the passenger vehicle front, we are making substantial strides in testing our solutions and confirming their advantages over incumbent solutions, which are proving to be greater than anticipated for both passenger and commercial vehicles. The pace of decision-making by our customers will play a role in our progress, but the confirmed benefits are encouraging. Additionally, we have secured our first wins for E-Cooling in mobile applications. It’s worth noting that we tend to be successful in China earlier due to the faster decision-making processes there, which is positive for us as it indicates we can compete successfully in a highly competitive market. Overall, we are making good progress, and I'm very pleased with our advancements. More developments are on the way.

Hamed Khorsand, Analyst

Could you clarify the two comments you made? Sean, you mentioned that you expect EBITDA margin to expand due to an increase in unit volume, but you're also providing guidance indicating that global units will be down this year. Can you reconcile that?

Olivier Rabiller, President and CEO

And maybe before Sean picked that up, the comment we made on the industry down is for the light vehicle industry. And in the 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. Do you want to comment, Sean?

Sean Deason, Senior Vice President and CFO

No, that was exactly what I was going to say, Olivier. And it's 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 we'll continue to do so in 2026 and going forward.

Hamed Khorsand, Analyst

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

Olivier Rabiller, President and CEO

It's because of off-highway and specifically industrial turbos. So back to the question of one of your peers before, Hamed, we are seeing the growth on the industrial turbo side driven by genset.

Operator, Operator

And our next question comes from Eric Gregg from Four Tree Island Advisory.

Eric Gregg, Analyst

Congratulations to the entire team at Garrett for a strong Q4 and a successful outlook for 2025. My first question follows up on a previous inquiry regarding Trane's exclusivity. Is that exclusivity temporary, particularly in commercial HVAC, and will it lapse after a few years? Additionally, does the oil-free centrifugal compressor technology contribute to your $1 billion zero-emission sales target for 2030? Considering the recent slowdown in zero-emission vehicle penetration, is this technology a strategy to achieve the $1 billion goal you set a year or two ago for 2030 zero-emission revenues?

Olivier Rabiller, President and CEO

So first of all, just to clarify your 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 observes 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 Trane. But over time, that doesn't prevent us from developing ourselves with other players.

Operator, Operator

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.