Garrett Motion Inc. Reports Strong Q4 2025 Earnings and Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy GTX?
Source: seekingalpha
- Strong Financial Performance: Garrett Motion reported Q4 2025 net sales of $891 million and adjusted EBIT of $122 million with a 13.7% margin, demonstrating robust operational capabilities in a complex industry environment, which is expected to drive future market share gains.
- Strategic Investments and Buybacks: The company voluntarily repaid $50 million in loans, repurchased $208 million in common stock, and paid $52 million in dividends during 2025, showcasing strong cash flow and capital management that lays the groundwork for future investments and shareholder returns.
- New Business Expansion: Garrett secured significant production awards in gasoline VNT applications and hybrid electric vehicle platforms, with industrial cooling projected to represent over 5% of revenue by 2030, further enhancing its competitiveness in the zero-emission technology market.
- Optimistic 2026 Outlook: The company anticipates net sales of $3.7 billion and adjusted EBIT of $545 million for 2026, reflecting confidence in future growth, particularly through ongoing investments in zero-emission technologies and industrial cooling that will enhance market share.
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Analyst Views on GTX
Wall Street analysts forecast GTX stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 20.270
Low
21.00
Averages
22.00
High
23.00
Current: 20.270
Low
21.00
Averages
22.00
High
23.00
About GTX
Garrett Motion Inc is a Switzerland-based automotive technology company. The Company designs, manufactures and sells turbocharger and electric boosting technologies for light and commercial vehicle original equipment manufacturers (OEMs) and the aftermarket. The Company offers turbochargers for gasoline, diesel, natural gas and electrified (hybrid and fuel cell) powertrains. In addition, the Company provides products and services for the connected vehicle market, including software focused on automotive cybersecurity and integrated vehicle health management (IVHM). The Company has a number of research and development (R&D) centers, engineering facilities and factories around the world, as well as a global distribution network. It is a spin-off of Honeywell International Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Garrett Motion Announces Breakthrough E-Cooling Compressor Production Award
- Electrification Milestone: Garrett Motion announced a partnership with Chinese commercial vehicle HVAC leader Cling to integrate its oil-free, foil bearing-based centrifugal compressor into next-generation electric bus and truck platforms, with production set to begin in 2027, thereby enhancing the efficiency and environmental responsibility of electric transportation.
- Compressor Technology Advantage: The new high-speed compressor operates at over 160,000 RPM, is 50% smaller and 30% lighter than traditional scroll compressors, and significantly reduces noise levels, providing EV manufacturers with a more energy-efficient thermal management solution that improves overall system performance and extends vehicle range.
- Financial Performance Exceeds Expectations: In Q4, Garrett achieved a 9% year-over-year increase in commercial vehicle revenue and a 4% rise in aftermarket sales, generating $99 million in operating cash flow and $139 million in adjusted free cash flow, indicating strong financial health.
- Future Outlook and Shareholder Returns: The company projects total revenue between $3.6 billion and $3.8 billion for 2023 and plans to repurchase $250 million in stock by 2026, with the CEO highlighting the zero-emission product portfolio as a core element of its long-term growth strategy, reflecting confidence in future market opportunities.
See More
Garrett Motion Partners with Cling to Launch New Compressor
- Technological Breakthrough: Garrett Motion collaborates with Chinese industry leader Cling to integrate its oil-free foil bearing centrifugal compressor into electric buses and trucks, with production expected to start in 2027, marking a significant advancement in the electric commercial vehicle sector.
- Performance Enhancement: The new system significantly improves cooling efficiency and capacity while reducing size by 50%, weight by 30%, and noise levels by 10 dB, greatly enhancing comfort and environmental responsibility in electric commercial vehicles.
- Market Potential: The compressor supports 400V–800V heat pump systems and is compatible with low-pressure, low-GWP refrigerants, helping vehicle manufacturers improve energy performance, extend driving range, and meet global sustainability and durability requirements, thus driving global EV deployment.
- Strategic Partnership: Olivier Rabiller, CEO of Garrett Motion, stated that this collaboration will drive innovation for electric buses and trucks, while Cling's General Manager Junfeng Guo emphasized their leadership in commercial vehicle HVAC systems, showcasing a shared vision for future markets.
See More
Garrett Motion Partners with Cling for New Compressor Production
- Technological Breakthrough: Garrett Motion has secured a volume production order for its breakthrough oil-free, foil bearing centrifugal compressor from Chinese industry leader Cling, with production expected to start in 2027, marking a significant advancement in the electric commercial vehicle sector.
- Product Advantages: The new E-Cooling compressor integrates an ultra-high-speed motor exceeding 160,000 RPM, achieving a 50% reduction in size, 30% weight reduction, and 10 dB noise reduction, significantly enhancing cooling efficiency and performance for electric buses and trucks.
- Market Impact: The compressor's oil-free design and up to 45,000 hours of maintenance-free operation will help vehicle manufacturers improve energy efficiency, extend driving range, and meet global sustainability and durability requirements, driving growth in the electric vehicle market.
- Strategic Partnership: The collaboration between Garrett Motion and Cling not only enhances both companies' technological capabilities in commercial vehicle HVAC systems but also sets new standards for environmental responsibility and comfort in the Chinese and global markets, driving industry innovation.
See More
Garrett Motion Reports Strong Q4 Earnings, Shares Dip
- Earnings Overview: Garrett Motion reported Q4 net sales of $891 million, a 6% year-over-year increase that surpassed the $875.16 million consensus estimate, driven by higher demand for commercial vehicles and favorable foreign currency effects, indicating strong market positioning.
- Profitability Improvement: Adjusted earnings per share reached $0.42, exceeding the $0.36 estimate, with net income totaling $84 million and adjusted EBIT of $122 million, yielding an EBIT margin of 13.7%, reflecting effective cost management and operational efficiency.
- Cash Flow and Capital Allocation: The company generated robust operating cash flow of $99 million and adjusted free cash flow of $139 million, maintaining strong liquidity with $807 million in available funds, including $177 million in cash equivalents, showcasing solid financial health.
- Future Outlook: Garrett anticipates FY26 sales between $3.60 billion and $3.80 billion, with adjusted EBIT of $520 million to $570 million and free cash flow of $355 million to $455 million, despite a projected 1% to 3% decline in light vehicle production, the commercial vehicle sector is expected to grow by 1% to 2%.
See More
Garrett Motion Inc. Reports Strong Q4 2025 Earnings and Positive Outlook
- Strong Financial Performance: Garrett Motion reported Q4 2025 net sales of $891 million and adjusted EBIT of $122 million with a 13.7% margin, demonstrating robust operational capabilities in a complex industry environment, which is expected to drive future market share gains.
- Strategic Investments and Buybacks: The company voluntarily repaid $50 million in loans, repurchased $208 million in common stock, and paid $52 million in dividends during 2025, showcasing strong cash flow and capital management that lays the groundwork for future investments and shareholder returns.
- New Business Expansion: Garrett secured significant production awards in gasoline VNT applications and hybrid electric vehicle platforms, with industrial cooling projected to represent over 5% of revenue by 2030, further enhancing its competitiveness in the zero-emission technology market.
- Optimistic 2026 Outlook: The company anticipates net sales of $3.7 billion and adjusted EBIT of $545 million for 2026, reflecting confidence in future growth, particularly through ongoing investments in zero-emission technologies and industrial cooling that will enhance market share.
See More
Garrett Motion Q4 Earnings Beat Expectations
- Strong Earnings Report: Garrett Motion reported a Q4 GAAP EPS of $0.42, beating expectations by $0.07, indicating a sustained enhancement in the company's profitability.
- Revenue Growth: The fourth quarter revenue reached $891 million, a 5.6% year-over-year increase, with a favorable foreign currency impact of $34 million contributing 4%, reflecting strong demand in commercial vehicle and diesel applications.
- Positive Outlook: Garrett's outlook for 2026 indicates expected net sales between $3.6 billion and $3.8 billion, surpassing the market consensus of $3.69 billion, demonstrating the company's confidence in future growth.
- Cash Flow Expectations: The anticipated adjusted free cash flow for 2026 is projected to be between $355 million and $455 million, indicating that the company will continue to generate strong cash flow from operating activities to support future investments and buyback plans.
See More
Garrett Motion Announces Breakthrough E-Cooling Compressor Production Award
- Electrification Milestone: Garrett Motion announced a partnership with Chinese commercial vehicle HVAC leader Cling to integrate its oil-free, foil bearing-based centrifugal compressor into next-generation electric bus and truck platforms, with production set to begin in 2027, thereby enhancing the efficiency and environmental responsibility of electric transportation.
- Compressor Technology Advantage: The new high-speed compressor operates at over 160,000 RPM, is 50% smaller and 30% lighter than traditional scroll compressors, and significantly reduces noise levels, providing EV manufacturers with a more energy-efficient thermal management solution that improves overall system performance and extends vehicle range.
- Financial Performance Exceeds Expectations: In Q4, Garrett achieved a 9% year-over-year increase in commercial vehicle revenue and a 4% rise in aftermarket sales, generating $99 million in operating cash flow and $139 million in adjusted free cash flow, indicating strong financial health.
- Future Outlook and Shareholder Returns: The company projects total revenue between $3.6 billion and $3.8 billion for 2023 and plans to repurchase $250 million in stock by 2026, with the CEO highlighting the zero-emission product portfolio as a core element of its long-term growth strategy, reflecting confidence in future market opportunities.
See More
Garrett Motion Partners with Cling to Launch New Compressor
- Technological Breakthrough: Garrett Motion collaborates with Chinese industry leader Cling to integrate its oil-free foil bearing centrifugal compressor into electric buses and trucks, with production expected to start in 2027, marking a significant advancement in the electric commercial vehicle sector.
- Performance Enhancement: The new system significantly improves cooling efficiency and capacity while reducing size by 50%, weight by 30%, and noise levels by 10 dB, greatly enhancing comfort and environmental responsibility in electric commercial vehicles.
- Market Potential: The compressor supports 400V–800V heat pump systems and is compatible with low-pressure, low-GWP refrigerants, helping vehicle manufacturers improve energy performance, extend driving range, and meet global sustainability and durability requirements, thus driving global EV deployment.
- Strategic Partnership: Olivier Rabiller, CEO of Garrett Motion, stated that this collaboration will drive innovation for electric buses and trucks, while Cling's General Manager Junfeng Guo emphasized their leadership in commercial vehicle HVAC systems, showcasing a shared vision for future markets.
See More
Garrett Motion Partners with Cling for New Compressor Production
- Technological Breakthrough: Garrett Motion has secured a volume production order for its breakthrough oil-free, foil bearing centrifugal compressor from Chinese industry leader Cling, with production expected to start in 2027, marking a significant advancement in the electric commercial vehicle sector.
- Product Advantages: The new E-Cooling compressor integrates an ultra-high-speed motor exceeding 160,000 RPM, achieving a 50% reduction in size, 30% weight reduction, and 10 dB noise reduction, significantly enhancing cooling efficiency and performance for electric buses and trucks.
- Market Impact: The compressor's oil-free design and up to 45,000 hours of maintenance-free operation will help vehicle manufacturers improve energy efficiency, extend driving range, and meet global sustainability and durability requirements, driving growth in the electric vehicle market.
- Strategic Partnership: The collaboration between Garrett Motion and Cling not only enhances both companies' technological capabilities in commercial vehicle HVAC systems but also sets new standards for environmental responsibility and comfort in the Chinese and global markets, driving industry innovation.
See More
Garrett Motion Reports Strong Q4 Earnings, Shares Dip
- Earnings Overview: Garrett Motion reported Q4 net sales of $891 million, a 6% year-over-year increase that surpassed the $875.16 million consensus estimate, driven by higher demand for commercial vehicles and favorable foreign currency effects, indicating strong market positioning.
- Profitability Improvement: Adjusted earnings per share reached $0.42, exceeding the $0.36 estimate, with net income totaling $84 million and adjusted EBIT of $122 million, yielding an EBIT margin of 13.7%, reflecting effective cost management and operational efficiency.
- Cash Flow and Capital Allocation: The company generated robust operating cash flow of $99 million and adjusted free cash flow of $139 million, maintaining strong liquidity with $807 million in available funds, including $177 million in cash equivalents, showcasing solid financial health.
- Future Outlook: Garrett anticipates FY26 sales between $3.60 billion and $3.80 billion, with adjusted EBIT of $520 million to $570 million and free cash flow of $355 million to $455 million, despite a projected 1% to 3% decline in light vehicle production, the commercial vehicle sector is expected to grow by 1% to 2%.
See More
Garrett Motion Inc. Reports Strong Q4 2025 Earnings and Positive Outlook
- Strong Financial Performance: Garrett Motion reported Q4 2025 net sales of $891 million and adjusted EBIT of $122 million with a 13.7% margin, demonstrating robust operational capabilities in a complex industry environment, which is expected to drive future market share gains.
- Strategic Investments and Buybacks: The company voluntarily repaid $50 million in loans, repurchased $208 million in common stock, and paid $52 million in dividends during 2025, showcasing strong cash flow and capital management that lays the groundwork for future investments and shareholder returns.
- New Business Expansion: Garrett secured significant production awards in gasoline VNT applications and hybrid electric vehicle platforms, with industrial cooling projected to represent over 5% of revenue by 2030, further enhancing its competitiveness in the zero-emission technology market.
- Optimistic 2026 Outlook: The company anticipates net sales of $3.7 billion and adjusted EBIT of $545 million for 2026, reflecting confidence in future growth, particularly through ongoing investments in zero-emission technologies and industrial cooling that will enhance market share.
See More
Garrett Motion Q4 Earnings Beat Expectations
- Strong Earnings Report: Garrett Motion reported a Q4 GAAP EPS of $0.42, beating expectations by $0.07, indicating a sustained enhancement in the company's profitability.
- Revenue Growth: The fourth quarter revenue reached $891 million, a 5.6% year-over-year increase, with a favorable foreign currency impact of $34 million contributing 4%, reflecting strong demand in commercial vehicle and diesel applications.
- Positive Outlook: Garrett's outlook for 2026 indicates expected net sales between $3.6 billion and $3.8 billion, surpassing the market consensus of $3.69 billion, demonstrating the company's confidence in future growth.
- Cash Flow Expectations: The anticipated adjusted free cash flow for 2026 is projected to be between $355 million and $455 million, indicating that the company will continue to generate strong cash flow from operating activities to support future investments and buyback plans.
See More
