NASDAQ$GTX

Garrett Motion Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Garrett Motion's financial performance decreased due to lower sales volume, inflation, and unfavorable foreign exchange impacts, but was partially offset by productivity and customer pass-through agreements.

Garrett Motion Inc. reported a decrease in net sales by 8% on a GAAP basis, but was flat at constant currency. Net income totaled $85 million with a net income margin of 9.9%. Adjusted EBITDA totaled $138 million with an adjusted EBITDA margin of 16.1%. The company completed $212 million in prepayments, resulting in full redemption of Series B preferred stock and updated its full year 2022 outlook.

  • Net sales totaled $859 million, down 8% on a GAAP basis, flat at constant currency.
  • Net income totaled $85 million; Net income margin 9.9%.
  • Adjusted EBITDA totaled $138 million; Adjusted EBITDA margin of 16.1%.
  • Completed $212 million in prepayments resulting in full redemption of Series B preferred stock.

Headline financials

Total Revenue

$859M

Previous: $935M-8.1%
EPS (adj)

$0.15

Previous: $1.73-91.3%
Gross Profit Margin

19.7%

Previous: 20.6%-4.4%
Net Income Margin

9.9%

Previous: 43.7%-77.3%
Adjusted EBITDA

$138M

Previous: $168M-17.9%
Interest Expense

$20M

Previous: $24M-16.7%
Capital Expenditures

-$52M

Previous: -$40M-30.0%
Free Cash Flow

$33M

Previous: $369M-91.1%
Net Income

$85M

Previous: $409M-79.2%
Operating Income

$113M

Previous: $130M-13.1%
Gross Profit

$169M

Previous: $193M-12.4%
Cash & Equivalents

$146M

Previous: $401M-63.6%
Total Assets

$2.46B

Previous: $2.84B-13.2%
Stock-Based Comp

$3M

Previous: $1M+200.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$859M

Q2 2022-8.1%vs Q2 2021
Beat estimate in 4 of 13 quarters(31%)
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 2022 for certain GAAP and Non-GAAP financial measures.

Tailwinds

  • Global light vehicle auto production growth of 1% versus 2021
  • Net sales (GAAP) $3.5 billion to $3.7 billion
  • Net sales growth at constant currency (Non-GAAP) 5% to 10%
  • Net income (GAAP) $290 million to $335 million
  • Adjusted EBITDA (Non-GAAP) $530 million to $590 million

Headwinds

  • An exchange rate of 1.04 EUR to 1.00 USD
  • Net cash provided by operating activities (GAAP) $405 million to $505 million
  • Adjusted free cash flow (Non-GAAP) $330 million to $430 million
  • Maintaining previous commitment of increased R&D investment in new technologies of approximately $18 million for the full year 2022.
  • No other negatives were found in the document.

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 2022

Historical avgQ2 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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