NASDAQ$GTX

Garrett Motion Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Garrett Motion's financial performance was strong, with raised full-year outlook and plans for partial debt repayment.

Garrett Motion reported strong second-quarter results, driven by operational excellence and strong customer demand. Net sales increased by 18% to $1,011 million, and adjusted EBITDA reached $170 million. The company is raising its full-year outlook for 2023 and planning an early debt repayment of $200 million in Q3.

  • Net sales totaled $1,011 million, up 18% on a reported basis and 19% at constant currency.
  • Net income totaled $71 million, with a net income margin of 7.0%.
  • Adjusted EBITDA totaled $170 million, with an adjusted EBITDA margin of 16.8%.
  • The company is raising its outlook for 2023.

Headline financials

Total Revenue

$1.01B

Previous: $859M+17.7%
EPS (adj)

$0.29

Previous: $0.15+93.3%
Gross Profit Margin

20.0%

Previous: 19.7%+1.5%
Net Income Margin

7.0%

Previous: 9.9%-29.3%
Adjusted EBITDA

$170M

Previous: $138M+23.2%
Adjusted EBITDA Margin

16.8%

No prior period
Interest Expense

$30M

Previous: $20M+50.0%
Capital Expenditures

-$33M

Previous: -$52M+36.5%
Free Cash Flow

$38M

Previous: $33M+15.2%
Net Income

$71M

Previous: $85M-16.5%
Operating Income

$129M

Previous: $113M+14.2%
Gross Profit

$202M

Previous: $169M+19.5%
Cash & Equivalents

$478M

Previous: $146M+227.4%
Total Assets

$2.89B

Previous: $2.46B+17.5%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$1.01B

Q2 2023+17.7%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

Garrett is providing a raised outlook for the full year 2023 for certain GAAP and Non-GAAP financial measures.

Tailwinds

  • Net sales (GAAP) $3.84 billion to $4.03 billion
  • Net sales growth at constant currency (Non-GAAP) +6% to +11%
  • Net income (GAAP) $255 million to $290 million
  • Adjusted EBITDA (Non-GAAP) $620 million to $670 million
  • Net cash provided by operating activities (GAAP) $410 million to $510 million

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 2023

Historical avgQ2 2023

+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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