NASDAQ$GTX

Garrett Motion Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Garrett Motion's financial performance increased due to volume recovery and strong operating performance.

Garrett Motion reported a strong third quarter with net sales of $945 million, a 13% increase, and net income of $105 million. The company's performance was driven by volume recovery and effective inflation management, leading to robust cash generation. The company has revised its full year 2022 outlook and expects stable fourth quarter demand.

  • Net sales totaled $945 million, up 13% on a GAAP basis, up 25% at constant currency.
  • Net income totaled $105 million, resulting in a net income margin of 11.1%.
  • Adjusted EBITDA totaled $146 million, with an Adjusted EBITDA margin of 15.4%.
  • Adjusted free cash flow totaled $120 million.

Headline financials

Total Revenue

$945M

Previous: $839M+12.6%
EPS (adj)

$0.21

Previous: $0.21+0.0%
Gross Profit Margin

18.8%

Previous: 19.4%-3.1%
Net Income Margin

11.1%

No prior period
Adjusted EBITDA

$146M

Previous: $134M+9.0%
Adjusted EBITDA Margin

15.4%

No prior period
Interest Expense

$18M

Previous: $25M-28.0%
Capital Expenditures

-$78M

Previous: -$74M-5.4%
Free Cash Flow

$27M

Previous: -$11M+345.5%
Net Income

$105M

Previous: $63M+66.7%
Operating Income

$116M

Previous: $89M+30.3%
Gross Profit

$178M

Previous: $163M+9.2%
Cash & Equivalents

$159M

Previous: $456M-65.1%
Total Assets

$2.6B

Previous: $2.72B-4.2%
Stock-Based Comp

$3M

Previous: $2M+50.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$945M

Q3 2022+12.6%vs Q3 2021
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 the following outlook for the full year 2022 for certain GAAP and Non-GAAP financial measures. Net sales (GAAP) $3.57 billion to $3.67 billion. Net income (GAAP) $325 million to $345 million. Adjusted EBITDA (Non-GAAP) $545 million to $575 million. Net cash provided by operating activities (GAAP) $380 million to $440 million. Adjusted free cash flow (Non-GAAP) $310 million to $370 million.

Tailwinds

  • Maintaining previous outlook exchange rate of 1.04 EUR to 1.00 USD
  • Maintaining previous commitment of increased R&D investment in new technologies of approximately $18 million for the full year 2022.

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 Q3 2022

Historical avgQ3 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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