Shift to Electric Vehicles (EVs): The accelerating global transition from internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs) poses a significant long-term threat to the demand for Garrett's traditional turbocharger products, despite their investments in electrification solutions.

Supply Chain Disruptions and Shortages: Ongoing global supply chain vulnerabilities, including shortages of critical components, raw materials, or labor, could lead to production delays, increased costs, and an inability to meet customer demand, impacting revenue and profitability.

Customer Concentration and Automotive Demand Fluctuations: A substantial portion of Garrett's revenue is derived from a limited number of major global automakers, making the company highly susceptible to changes in their production volumes, purchasing strategies, and overall automotive market demand cycles.