NASDAQ$GTX

Garrett Motion Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Garrett Motion reported solid financial performance in Q3 2024 amid industry softness and increased competitive pressure, while expanded adjusted EBITDA margin and generated adjusted free cash flow.

Garrett Motion's Q3 2024 net sales totaled $826 million, a 14% decrease year-over-year. Net income was $52 million with a margin of 6.3%. Adjusted EBITDA was $144 million, representing a 17.4% margin. The company generated $71 million in adjusted free cash flow and continued share repurchases.

  • Net sales totaled $826 million, down 14% on a reported and constant currency basis.
  • Net income totaled $52 million, with a net income margin of 6.3%.
  • Adjusted EBITDA totaled $144 million, with an adjusted EBITDA margin of 17.4%.
  • Adjusted free cash flow totaled $71 million.

Headline financials

Total Revenue

$826M

Previous: $960M-14.0%
EPS (adj)

$0.24

Previous: $0.23+4.3%
Capital Expenditures

-$69M

Previous: -$57M-21.1%
Free Cash Flow

-$17M

Previous: $0.00
Net Income

$52M

Previous: $57M-8.8%
Operating Income

$96M

Previous: $101M-5.0%
Gross Profit

$166M

Previous: $176M-5.7%
Cash & Equivalents

$96M

Previous: $162M-40.7%
Total Assets

$2.16B

Previous: $2.53B-14.9%
R&D Expense

$43M

Previous: $39M+10.3%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$826M

Q3 2024-14%vs Q3 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

  • Net sales (GAAP) $3.40 billion to $3.50 billion
  • Net sales growth at constant currency (Non-GAAP) -12% to -10%
  • Net income (GAAP) $240 million to $255 million
  • Adjusted EBITDA (Non-GAAP) $585 million to $605 million
  • Adjusted free cash flow (Non-GAAP) $300 million to $350 million

Headwinds

  • 2024 light vehicle production down 3% vs. 2023
  • 2024 commercial vehicle production down 1% including on- and off-highway
  • RD&E of ~4.7% of sales, with greater than 50% on zero-emission technologies
  • Capital expenditures ~2.5% of sales, with greater than 30% on zero-emission technologies
  • Stable FX environment (EUR/$ at 1.08)

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 2024

Historical avgQ3 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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