NASDAQ$GTX

Garrett Motion Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported a strong rebound across all regions and product lines, with net sales up 4% on a GAAP basis and 15% at constant currency. Adjusted EBITDA margin was 15.6%.

Garrett Motion reported fourth-quarter net sales of $898 million, a 4% increase on a GAAP basis and a 15% increase at constant currency. Net income was $112 million, with an adjusted EBITDA of $140 million. The company expects to profitably grow share of demand and generate strong free cash flow in 2023.

  • Net sales totaled $898 million, up 4% on a GAAP basis, up 15% at constant currency
  • Net income totaled $112 million; Net income margin 12.5%
  • Adjusted EBITDA totaled $140 million; Adjusted EBITDA margin of 15.6%
  • Net cash provided by operating activities totaled $137 million

Headline financials

Total Revenue

$898M

Previous: $862M+4.2%
EPS (adj)

$0.23

Previous: $0.25-8.0%
Gross Profit Margin

17.9%

Previous: 18.0%-0.6%
Net Income Margin

12.5%

Previous: 14.8%-15.8%
Adjusted EBITDA

$140M

Previous: $129M+8.5%
Capital Expenditures

$13M

Previous: -$2M+750.0%
Free Cash Flow

$132M

Previous: $151M-12.6%
Net Income

$112M

Previous: $128M-12.5%
Operating Income

$135M

Previous: $89M+51.7%
Gross Profit

$161M

Previous: $155M+3.9%
Cash & Equivalents

$246M

Previous: $423M-41.8%
Total Assets

$2.64B

Previous: $2.71B-2.5%
Stock-Based Comp

$3M

Previous: $2M+50.0%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$898M

Q4 2022+4.2%vs Q4 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 2023 for certain GAAP and Non-GAAP financial measures. Full Year 2023 OutlookNet sales (GAAP)$3.55 billion to $3.85 billion Net sales growth at constant currency (Non-GAAP)*+1% to +6%Net income (GAAP)$255 million to $300 million Adjusted EBITDA (Non-GAAP)*$555 million to $615 million Net cash provided by operating activities (GAAP)$390 million to $490 million Adjusted free cash flow (Non-GAAP)*$300 million to $400 million

Tailwinds

  • 2023 light vehicle industry production in line with 2022
  • 2023 Euro/dollar assumption of 1.05 EUR to 1.00 USD flat to 2022
  • R&D investment at 4.6% of sales in 2023 flat to 2022, >50% on electrification technologies
  • Capital expenditures at 2.4% of sales, 20% into electrification technologies
  • 2023 assumed volume of 14 million units reflecting share-of-demand increases

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 Q4 2022

Historical avgQ4 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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