NASDAQ$GTX

Garrett Motion Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong financial results driven by increased net sales and adjusted EBITDA.

Garrett Motion Inc. reported a significant increase in net sales, reaching $935 million, up 82.6% at constant currency. Net income available to common shareholders totaled $385 million, while Adjusted EBITDA increased to $168 million with an improved margin of 18.0%. The company completed its financial restructuring and emerged from Chapter 11 on April 30, 2021.

  • Net sales totaled $935 million, up 82.6% at constant currency.
  • Net income available to common shareholders totaled $385 million; Adjusted net income was $90 million.
  • Adjusted EBITDA increased to $168 million; Adjusted EBITDA margin improved to 18.0%.
  • Completed financial restructuring and emerged from Chapter 11 on April 30, 2021.

Headline financials

Total Revenue

$935M

Previous: $477M+96.0%
EPS (adj)

$1.73

Previous: $0.07+2371.4%
Gross Profit Margin

20.6%

Previous: 17.6%+17.0%
Net Income Margin

43.7%

No prior period
Adjusted EBITDA

$168M

Previous: $63M+166.7%
Interest Expense

$24M

No prior period
Capital Expenditures

-$40M

Previous: -$63M+36.5%
Free Cash Flow

$369M

Previous: -$72M+612.5%
Net Income

$409M

Previous: -$9M+4644.4%
Operating Income

$130M

Previous: $12M+983.3%
Gross Profit

$193M

Previous: $84M+129.8%
Cash & Equivalents

$401M

Previous: $139M+188.5%
Total Assets

$2.84B

Previous: $2.07B+37.3%
Stock-Based Comp

$1M

Previous: $4M-75.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$935M

Q2 2021+96%vs Q2 2020
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Garrett is providing the following outlook for the full year 2021 for certain GAAP and Non-GAAP financial measures.

Tailwinds

  • Net sales (GAAP) $3.70 billion to $3.90 billion
  • Net sales growth at constant currency (Non-GAAP) +18% to +23%
  • Outperforming global LV auto production by 8 to 12 percentage points
  • Net income (GAAP) $428 million to $468 million
  • Adjusted EBITDA (Non-GAAP) $590 million to $640 million

Headwinds

  • Net cash used for operating activities (GAAP) ($291) million to ($191) million
  • Adjusted free cash flow (Non-GAAP) $300 million to $400 million
  • global light vehicle auto production will increase between 10% and 11% for the full year 2021
  • global commercial vehicle production will increase between 3.5% and 4.5% for the full year 2021
  • Garrett’s capital expenditures and RD&E expenses for the full year 2021 are expected to total approximately 3.5% and 4.3%, respectively, of net sales.

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 Q2 2021

Historical avgQ2 2021

+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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