SCHEDULE: Oaktree Reduces Garrett Motion Stake to 12.19%

Oaktree Capital Group Holdings and its affiliates have reduced their beneficial ownership in Garrett Motion Inc. to 12.19% following a share repurchase by the issuer.

Summary

• Oaktree Capital Group Holdings, LLC and its affiliated entities (the "Reporting Persons") have filed Amendment No. 10 to their Schedule 13D.
• The amendment reports a change in beneficial ownership of Garrett Motion Inc. (the "Issuer") Common Stock.
• On November 3, 2025, Garrett Motion Inc. repurchased an aggregate of 2,500,000 shares from the Direct Holders (Oaktree entities) at a price of $16.26 per share.
• The total value of the repurchase transaction was $40,650,000.
• Following this transaction, the Reporting Persons beneficially own 23,394,816 shares of Common Stock.
• This represents approximately 12.19% of the Issuer's Common Stock outstanding.
• The percentage is calculated based on 194,482,518 shares outstanding as of October 17, 2025, as reported in the Issuer's Form 10-Q, decreased by the 2,500,000 repurchased shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive for Garrett Motion Inc. due to the share repurchase, which typically signals management confidence and can be accretive to EPS. However, it's slightly negative for Oaktree as they are reducing their stake, which could be interpreted as a partial exit strategy. The overall impact on the company's fundamental outlook is not explicitly detailed in this ownership filing.

Positives

• Garrett Motion Inc. executed a share repurchase, which can be a positive signal for investors as it reduces the number of outstanding shares, potentially increasing earnings per share and shareholder value.
• The repurchase demonstrates the company's confidence in its valuation and ability to deploy capital effectively.

Negatives

• Oaktree Capital Group Holdings and its affiliates have reduced their stake, indicating a partial exit or reallocation of capital from Garrett Motion Inc.

Risks

• The reduction in a significant institutional investor's stake could be perceived as a lack of conviction in the company's long-term prospects, potentially influencing other investors' sentiment.
• The share repurchase uses company capital, which could otherwise be used for growth initiatives, debt reduction, or other strategic investments.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from Garrett Motion Inc. regarding its future operations or financial performance. It primarily details a past transaction related to beneficial ownership.

Industry Context

This filing primarily concerns a change in the ownership structure of Garrett Motion Inc. by a significant institutional investor, Oaktree Capital. While the automotive and turbocharger industry in which Garrett operates faces ongoing shifts (e.g., electrification, supply chain dynamics), this specific filing does not provide direct insights into those broader industry trends or how Garrett is positioned within them. The share repurchase by Garrett could be seen as a capital allocation decision in the context of its industry position and financial health.

Related Party Transactions

• The repurchase of 2,500,000 shares by Garrett Motion Inc. from Oaktree entities can be considered a related party transaction, given Oaktree's significant beneficial ownership and influence as a major shareholder.

Stakeholder Impact

• Shareholders: The share repurchase reduces the total number of outstanding shares, which could lead to an increase in earnings per share and potentially boost the stock price for remaining shareholders. However, Oaktree's reduction in stake might be viewed negatively by some investors.
• Oaktree Capital: The transaction represents a partial monetization of their investment in Garrett Motion Inc., providing liquidity and allowing for capital reallocation.

Key Dates

Recommendation

The filing details a significant share repurchase by Garrett Motion Inc. from a major institutional holder, Oaktree Capital. While a share repurchase is generally a positive signal, indicating management's confidence and potentially enhancing shareholder value by reducing share count, Oaktree's decision to reduce its stake warrants careful consideration. This could suggest Oaktree sees limited further upside or is reallocating capital. Without additional financial performance data or strategic updates from Garrett Motion, a 'hold' recommendation is prudent. Investors should monitor future earnings reports and Oaktree's continued involvement for further insights before making a definitive 'buy' or 'sell' decision.

Keywords

Garrett Motion Inc., Oaktree Capital, Share Repurchase, Schedule 13D/A, Beneficial Ownership, Common Stock, Institutional Investor, Equity Stake