NASDAQ$GTX

Garrett Motion Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Garrett Motion's financial performance remained solid amidst a volatile volume environment, with expanded adjusted EBITDA margin and significant progress on capital allocation priorities.

Garrett Motion reported net sales of $890 million, a decrease of 12% year-over-year. Net income was $64 million with an adjusted EBITDA of $150 million. The company repurchased $65 million of common stock and issued $800 million of senior unsecured notes to partially repay its Term Loan B.

  • Net sales totaled $890 million, down 12% on a reported basis.
  • Net income totaled $64 million; Net income margin of 7.2%.
  • Adjusted EBITDA totaled $150 million; Adjusted EBITDA margin of 16.9%.
  • Repurchased $65 million of Common Stock.

Headline financials

Total Revenue

$890M

Previous: $1.01B-12.0%
EPS

$0.28

Previous: $0.29-3.4%
Gross Profit Margin

20.8%

Previous: 20.0%+4.0%
Net Income Margin

7.2%

Previous: 7.0%+2.9%
Adjusted EBITDA

$150M

Previous: $170M-11.8%
Capital Expenditures

-$49M

Previous: -$33M-48.5%
Free Cash Flow

$15M

Previous: $38M-60.5%
Net Income

$64M

Previous: $71M-9.9%
Operating Income

$109M

Previous: $129M-15.5%
Gross Profit

$185M

Previous: $202M-8.4%
Cash & Equivalents

$98M

Previous: $478M-79.5%
Total Assets

$2.23B

Previous: $2.89B-22.9%
R&D Expense

$41M

No prior period
Stock-Based Comp

$5M

Previous: $5M+0.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$890M

Q2 2024-12%vs Q2 2023
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 updating its outlook for the full year 2024 for certain GAAP and Non-GAAP financial measures.

Tailwinds

  • 2024 light vehicle production down 2% vs. 2023 (flat vs. 2023 in prior outlook)
  • 2024 commercial vehicle production flat to down 1% including on- and off-highway (+2% in prior outlook)
  • FX EUR/$ at 1.08, $/JPY at 154 and $/CNY at 7.23
  • RD&E of ~4.4% of sales (vs. 4.5% in prior outlook), ~60% on zero emission technology
  • Capital expenditures ~2.4% of sales (vs. 2.2% in prior outlook), with greater than 30% on zero emission technologies

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 2024

Historical avgQ2 2024

+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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