Garrett Motion (NASDAQ:GTX) Issues Earnings Results

Garrett Motion (NASDAQ:GTX) issued its earnings results on Wednesday. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.07, FiscalAI reports. Garrett Motion had a net margin of 9.51% and a negative return on equity of 46.50%. The company had revenue of $976.00 million for the quarter. During the same period last year, the business posted $0.42 EPS. The firm’s revenue for the quarter was up 6.9% compared to the same quarter last year.

Here are the key takeaways from Garrett Motion’s conference call:

• Strong second-quarter performance: Net sales rose 7% year over year to $976 million, while Adjusted EBIT increased 22% to a record $152 million, with margin expanding 200 basis points to 15.6%.
• Garrett generated $122 million of Adjusted Free Cash Flow, repaid $50 million of term debt, reduced net leverage to 1.8 times, and returned capital through $28 million of share repurchases and $15 million of dividends.
• Full-year 2026 guidance was raised: The company now expects approximately $3.8 billion of sales, $580 million of Adjusted EBIT at a 15.3% margin, and $430 million of Adjusted Free Cash Flow, with the EBIT outlook lifted by $20 million at the midpoint.
• Industrial demand is accelerating, particularly for power-generation turbochargers, with full-year industrial sales now expected to reach about $200 million versus roughly $100 million-plus previously anticipated; Garrett also secured new genset awards, including its first MEG200 data-center power-generation award.
• Management acknowledged softer light-vehicle production and continued macroeconomic and geopolitical uncertainty, although share gains and stronger commercial-vehicle and industrial demand are expected to offset much of the weakness. Zero-emission initiatives—including electric powertrain, e-cooling, and air-compressor programs—continue progressing, with initial data-center production expected between late 2027 and early 2028.

Garrett Motion Stock Performance

GTX stock traded up $0.03 during midday trading on Friday, hitting $31.04. 1,042,070 shares of the company’s stock were exchanged, compared to its average volume of 2,600,063. Garrett Motion has a one year low of $12.26 and a one year high of $36.25. The company has a market cap of $5.81 billion, a PE ratio of 17.05, a price-to-earnings-growth ratio of 0.85 and a beta of 0.78. The stock’s fifty day moving average price is $32.70 and its 200-day moving average price is $24.84.

Garrett Motion Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.08 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.32 annualized dividend and a yield of 1.0%. Garrett Motion’s payout ratio is currently 17.58%.

Analyst Ratings Changes

A number of equities analysts have issued reports on GTX shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Garrett Motion in a research note on Friday, July 24th. Royal Bank Of Canada set a $42.00 target price on shares of Garrett Motion in a research report on Thursday, May 21st. Zacks Research downgraded Garrett Motion from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. BWS Financial restated a “buy” rating and issued a $42.00 price target on shares of Garrett Motion in a research report on Thursday. Finally, Stifel Nicolaus lifted their price objective on Garrett Motion from $29.00 to $36.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $37.80.

Insiders Place Their Bets

In related news, SVP Thierry Mabru sold 70,000 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $33.00, for a total value of $2,310,000.00. Following the completion of the transaction, the senior vice president directly owned 147,956 shares in the company, valued at approximately $4,882,548. The trade was a 32.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mark Albert Rodrigues sold 6,140 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $33.30, for a total value of $204,462.00. Following the sale, the senior vice president directly owned 77,038 shares of the company’s stock, valued at approximately $2,565,365.40. The trade was a 7.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 213,834 shares of company stock valued at $6,918,710 over the last ninety days. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Fuller & Thaler Asset Management Inc. bought a new stake in shares of Garrett Motion during the fourth quarter worth $180,383,000. Arrowstreet Capital Limited Partnership boosted its stake in Garrett Motion by 170.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company’s stock worth $89,580,000 after purchasing an additional 3,241,952 shares during the period. Merewether Investment Management LP acquired a new position in Garrett Motion in the 3rd quarter worth $40,590,000. BlueCrest Capital Management Ltd bought a new position in Garrett Motion during the 3rd quarter worth about $36,539,000. Finally, Apis Capital Advisors LLC increased its holdings in Garrett Motion by 1,492.9% during the 4th quarter. Apis Capital Advisors LLC now owns 2,230,000 shares of the company’s stock worth $38,869,000 after purchasing an additional 2,090,000 shares in the last quarter. Institutional investors own 86.27% of the company’s stock.

About Garrett Motion

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.