Garrett Motion Inc · Q1 2023 earnings

Briefing

Garrett Motion's financial performance in Q1 2023 was marked by revenue growth outpacing the global light vehicle industry, driven by new product launches and strong operational execution, resulting in outstanding financial results and cash flow generation.

Garrett Motion reported a strong start to 2023, with revenue growth significantly outpacing the global light vehicle industry. Key highlights include a net sales increase of 8% to $970 million, net income of $81 million, and adjusted EBITDA of $168 million. The company reaffirmed its outlook for 2023, anticipating continued growth and strong financial performance.

• Net sales reached $970 million, up 8% on a reported basis and 13% at constant currency.
• Net income totaled $81 million, resulting in a net income margin of 8.4%.
• Adjusted EBITDA was $168 million, with an adjusted EBITDA margin of 17.3%.
• The company reaffirmed its outlook for 2023, expecting continued growth.

Headline financials

Revenue & EPS history

Garrett reaffirmed the following outlook for the full year 2023 for certain GAAP and Non-GAAP financial measures. Net sales (GAAP) $3.79 billion to $3.98 billion. Net sales growth at constant currency (Non-GAAP) +5% to +10%. Net income (GAAP) $231 million to $268 million. Adjusted EBITDA (Non-GAAP) $585 million to $635 million. Net cash provided by operating activities (GAAP) $392 million to $492 million. Adjusted free cash flow (Non-GAAP) $315 million to $415 million.