NASDAQ$GTX

Garrett Motion Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Garrett Motion reported solid Q3 financial results driven by productivity gains and operational excellence, which offset currency and product mix headwinds. The company also saw momentum in zero emission vehicle products and executed capital allocation priorities.

Garrett Motion's Q3 2023 net sales were $960 million, up 2% year-over-year. Net income was $57 million, with an adjusted EBITDA of $152 million. The company repaid $200 million of debt and repurchased $161 million of common stock.

  • Net sales totaled $960 million, up 2% on a reported basis, down 1% at constant currency
  • Net income totaled $57 million; Net income margin 5.9%
  • Adjusted EBITDA totaled $152 million; Adjusted EBITDA margin of 15.8%
  • Repurchased $161 million of Common Stock

Headline financials

Total Revenue

$960M

Previous: $945M+1.6%
EPS (adj)

$0.23

Previous: $0.21+9.5%
Gross Profit Margin

18.3%

Previous: 18.8%-2.7%
Net Income Margin

5.9%

Previous: 11.1%-46.8%
Adjusted EBITDA

$152M

Previous: $146M+4.1%
Capital Expenditures

-$57M

Previous: -$78M+26.9%
Free Cash Flow

$0.00

Previous: $27M-100.0%
Net Income

$57M

Previous: $105M-45.7%
Operating Income

$101M

Previous: $116M-12.9%
Gross Profit

$176M

Previous: $178M-1.1%
Cash & Equivalents

$162M

Previous: $159M+1.9%
Total Assets

$2.53B

Previous: $2.6B-2.7%
R&D Expense

$39M

No prior period
Stock-Based Comp

$4M

Previous: $3M+33.3%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$960M

Q3 2023+1.6%vs Q3 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 the following revised outlook for the full year 2023 for certain GAAP and Non-GAAP financial measures.

Tailwinds

  • Net sales (GAAP) $3.83 billion to $3.90 billion
  • Net sales growth at constant currency (Non-GAAP) +7% to +9%
  • Net income (GAAP) $252 million to $272 million
  • Adjusted EBITDA (Non-GAAP) $615 million to $645 million
  • Net cash provided by operating activities (GAAP) $413 million to $463 million

Headwinds

  • 2023 Euro/dollar assumption of 1.08 EUR to 1.00 USD, 1.05 EUR for Q4, decrease vs. prior outlook of 1.10 EUR to 1.00 USD

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 2023

Historical avgQ3 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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