NASDAQ$GTX

Garrett Motion Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Garrett Motion's financial performance declined due to volume decreases, inflation, and unfavorable foreign exchange impacts, but was partially offset by increased productivity and a favorable mix.

Garrett Motion reported a decrease in net sales by 10% to $901 million, with a net income of $88 million. The adjusted EBITDA was $146 million, and adjusted free cash flow was $38 million. The company updated its 2022 outlook to adjust for reduced volume expectations and lower Euro to Dollar exchange rates.

  • Net sales totaled $901 million, down 10% on a GAAP basis and down 6% at constant currency.
  • Net income totaled $88 million; Net income margin 9.8%.
  • Adjusted EBITDA totaled $146 million; Adjusted EBITDA margin 16.2%.
  • Adjusted free cash flow totaled $38 million.

Headline financials

Total Revenue

$901M

Previous: $997M-9.6%
EPS (adj)

$0.15

Previous: $1.27-88.2%
Gross Profit Margin

19.4%

Previous: 19.7%-1.5%
Net Income Margin

9.8%

Previous: -10.5%+193.1%
Adjusted EBITDA

$146M

Previous: $176M-17.0%
Interest Expense

$23M

No prior period
Capital Expenditures

-$29M

Previous: -$18M-61.1%
Free Cash Flow

$59M

Previous: -$123M+148.0%
Net Income

$88M

Previous: -$105M+183.8%
Operating Income

$120M

Previous: $132M-9.1%
Gross Profit

$175M

Previous: $196M-10.7%
Cash & Equivalents

$315M

Previous: $382M-17.5%
Total Assets

$2.69B

Previous: $2.84B-5.2%
Stock-Based Comp

$2M

Previous: $2M+0.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$901M

Q1 2022-9.6%vs Q1 2021
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Garrett Motion · $839M total across 3 segments · Q2 2021

  • Gasoline
    $442M
  • Diesel
    $321M
  • Aftermarket
    $76M

Forward guidance

Garrett provided its full year 2022 outlook, including expectations for flat global light vehicle auto production versus 2021, an exchange rate of 1.08 EUR to 1.00 USD, and maintaining its commitment to increased R&D investment in new technologies of approximately $18 million for the full year 2022.

Tailwinds

  • Net sales between $3.5 billion to $3.7 billion
  • Net sales growth at constant currency between 1% to 6%
  • Net income between $250 million to $295 million
  • Adjusted EBITDA between $530 million to $590 million
  • Net cash provided by operating activities between $405 million to $505 million

Headwinds

  • Global light vehicle auto production flat versus 2021 (down from 7% growth) due to continued semiconductor shortages and zero-COVID policy in China
  • Exchange rate of 1.08 EUR to 1.00 USD, as compared with the prior outlook exchange rate assumption of 1.13 EUR to 1.00 USD
  • Lowered 2022 outlook to adjust for slightly reduced volume expectations
  • Lowered 2022 outlook to adjust for lower Euro to Dollar exchange rates
  • Semiconductor shortages and zero-COVID policy in China

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-3.0%

Avg return

30 days after

41%

15 / 37 earnings

Positive

+24.9%

Q1 2026

Best reaction

-17.1%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+24.9%+27.6%+59.8%
Q4 2025-6.5%-1.6%-17.6%
Q3 2025+19.3%+39.3%+28.5%
Q2 2025+1.4%+2.7%+3.1%
Q1 2025+10.6%+22.1%+15.0%
Q4 2024+5.2%+6.3%-3.6%
Q3 2024-6.8%-3.3%+4.1%
Q2 2024-3.9%-2.4%-8.6%
Q1 2024-0.2%-2.9%-8.5%
Q4 2023+13.6%+11.5%+13.5%
Q3 2023-0.4%-1.0%+4.0%
Q2 2023+8.1%+6.0%+7.4%
Q1 2023-0.2%+1.0%-0.4%
Q4 2022-1.4%-0.9%-16.2%
Q3 2022+14.6%+13.7%+21.9%
Q2 2022+0.3%+2.4%+10.5%
Q1 2022+1.7%+4.0%-9.1%
Q4 2021-0.4%-2.2%-1.3%
Q3 2021+0.3%+7.0%+11.3%
Q2 2021-9.1%+1.4%-2.0%
Q1 2021+9.3%+19.0%+71.2%
Q4 2020+4.1%+1.4%-21.2%
Q3 2020+10.7%+12.5%+25.9%
Q2 2020-17.1%-19.2%-53.5%
Q1 2020-16.2%-23.0%-1.8%
Q4 2019-3.5%-5.1%-53.8%
Q3 2019+1.5%-3.3%+10.9%
Q2 2019-4.9%-13.2%-34.0%
Q2 2018-4.9%-13.2%-34.0%
Q1 2018-4.2%-5.5%-17.5%
Q1 2019-0.8%-1.0%-14.5%
Q2 2017-3.4%-8.4%-12.0%
Q1 2017-3.4%-8.4%-12.0%
Q4 2018-2.8%+0.3%-9.8%
Q3 2017-5.5%-12.2%-21.9%
Q3 2018-5.5%-12.2%-21.9%
Q4 2017-5.5%-12.2%-21.9%

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