Garrett Motion Reports Strong Q4 Earnings, Shares Dip
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GTX?
Source: Benzinga
- 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%.
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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: 20.590
Low
21.00
Averages
22.00
High
23.00
Current: 20.590
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 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 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 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 to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Garrett Motion is set to release its Q4 earnings on February 19 before market open, with consensus EPS estimated at $0.39 and revenue expected at $875.16 million, reflecting a 3.7% year-over-year growth, which will provide crucial insights into the company's financial health.
- Historical Performance Review: Over the past year, Garrett Motion has beaten EPS estimates 75% of the time, although it has only surpassed revenue estimates 25% of the time, indicating a relatively stable performance in profitability but challenges in revenue growth.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with one downward revision, while revenue estimates also saw no upward adjustments and two downward revisions, suggesting a cautious market outlook on the company's future growth.
- Stock Buyback Plan: Garrett Motion recently announced a $250 million share buyback program, which not only reflects the company's confidence in its stock value but may also enhance shareholder returns by reducing the number of shares outstanding, thereby potentially increasing EPS.
See More
Garrett Motion Launches Largest Turbocharger Platform with Weichai
- Platform Launch: Garrett Motion unveiled its largest turbocharger platform, MEG, in collaboration with Weichai, marking a significant advancement in high-power applications, particularly for marine propulsion and power generation.
- Market Demand Fulfillment: The new platform is engineered for large-bore engines and supports diesel, natural gas, and alternative fuels, assisting customers in achieving evolving efficiency and emissions goals, thereby expanding the company's market share.
- Management Commentary: CEO Olivier Rabiller emphasized that this collaboration represents a key milestone in the long-standing partnership with Weichai Power, showcasing Garrett's growing influence in the large-engine segment.
- Stock Performance: Following the announcement, Garrett Motion shares rose 0.91% to $20.99 in premarket trading, reaching a new 52-week high, reflecting positive market sentiment towards the company's new product.
See More
Garrett Motion Launches MEG Turbocharger with Weichai for Marine Applications
- Strategic Collaboration: The partnership between Garrett Motion and Weichai marks a significant milestone with the commercial application of the MEG turbocharger platform in large engine programs, enhancing the company's market position in marine and industrial sectors and potentially driving future sales growth.
- Product Innovation: The MEG platform is specifically engineered for large engines and supports multiple fuel types, including diesel and natural gas, addressing increasingly stringent global emissions standards while helping customers achieve higher fuel efficiency and lower lifecycle emissions.
- Market Demand Response: As demand for large engines in marine and industrial sectors rises, Garrett's MEG turbocharger delivers higher efficiency and long-term reliability through optimized aerodynamics and high-temperature materials, meeting customer needs for high-performance solutions.
- Global Strategic Positioning: Garrett's strong localized network in China and its long-standing partnership with Weichai enhance its competitiveness in the global market, which is expected to further advance next-generation powertrain technologies.
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 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 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 to Announce Q4 Earnings on February 19
- Earnings Announcement Schedule: Garrett Motion is set to release its Q4 earnings on February 19 before market open, with consensus EPS estimated at $0.39 and revenue expected at $875.16 million, reflecting a 3.7% year-over-year growth, which will provide crucial insights into the company's financial health.
- Historical Performance Review: Over the past year, Garrett Motion has beaten EPS estimates 75% of the time, although it has only surpassed revenue estimates 25% of the time, indicating a relatively stable performance in profitability but challenges in revenue growth.
- Expectation Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with one downward revision, while revenue estimates also saw no upward adjustments and two downward revisions, suggesting a cautious market outlook on the company's future growth.
- Stock Buyback Plan: Garrett Motion recently announced a $250 million share buyback program, which not only reflects the company's confidence in its stock value but may also enhance shareholder returns by reducing the number of shares outstanding, thereby potentially increasing EPS.
See More
Garrett Motion Launches Largest Turbocharger Platform with Weichai
- Platform Launch: Garrett Motion unveiled its largest turbocharger platform, MEG, in collaboration with Weichai, marking a significant advancement in high-power applications, particularly for marine propulsion and power generation.
- Market Demand Fulfillment: The new platform is engineered for large-bore engines and supports diesel, natural gas, and alternative fuels, assisting customers in achieving evolving efficiency and emissions goals, thereby expanding the company's market share.
- Management Commentary: CEO Olivier Rabiller emphasized that this collaboration represents a key milestone in the long-standing partnership with Weichai Power, showcasing Garrett's growing influence in the large-engine segment.
- Stock Performance: Following the announcement, Garrett Motion shares rose 0.91% to $20.99 in premarket trading, reaching a new 52-week high, reflecting positive market sentiment towards the company's new product.
See More
Garrett Motion Launches MEG Turbocharger with Weichai for Marine Applications
- Strategic Collaboration: The partnership between Garrett Motion and Weichai marks a significant milestone with the commercial application of the MEG turbocharger platform in large engine programs, enhancing the company's market position in marine and industrial sectors and potentially driving future sales growth.
- Product Innovation: The MEG platform is specifically engineered for large engines and supports multiple fuel types, including diesel and natural gas, addressing increasingly stringent global emissions standards while helping customers achieve higher fuel efficiency and lower lifecycle emissions.
- Market Demand Response: As demand for large engines in marine and industrial sectors rises, Garrett's MEG turbocharger delivers higher efficiency and long-term reliability through optimized aerodynamics and high-temperature materials, meeting customer needs for high-performance solutions.
- Global Strategic Positioning: Garrett's strong localized network in China and its long-standing partnership with Weichai enhance its competitiveness in the global market, which is expected to further advance next-generation powertrain technologies.
See More
