NASDAQ$GTX

Garrett Motion Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Garrett Motion reported strong performance in 2023, driven by a solid fourth quarter, and issued its 2024 outlook.

Garrett Motion's Q4 2023 results showed a 5% increase in net sales to $945 million and a net income of $52 million. The company's adjusted EBITDA stood at $145 million. They also announced a new $350 million share repurchase program.

  • Net sales increased by 5% to $945 million, or 3% at constant currency.
  • Net income was $52 million, with a net income margin of 5.5%.
  • Adjusted EBITDA totaled $145 million, resulting in an adjusted EBITDA margin of 15.3%.
  • Adjusted free cash flow totaled $137 million.

Headline financials

Total Revenue

$945M

Previous: $898M+5.2%
EPS (adj)

$0.22

Previous: $0.23-4.3%
Gross Profit Margin

20.0%

Previous: 17.9%+11.7%
Net Income Margin

5.5%

Previous: 12.5%-56.0%
Adjusted EBITDA

$145M

Previous: $140M+3.6%
Interest Expense

$55M

No prior period
Capital Expenditures

-$26M

Previous: $13M-300.0%
Net Income

$52M

Previous: $112M-53.6%
Operating Income

$68M

Previous: $135M-49.6%
Gross Profit

$189M

Previous: $161M+17.4%
R&D Expense

$55M

No prior period
Stock-Based Comp

$2M

Previous: $3M-33.3%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$945M

Q4 2023+5.2%vs Q4 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 anticipates delivering financial results in line with 2023, while increasing investment in innovation and zero emissions products, in an industry environment expected to be flat to down.

Tailwinds

  • Net sales of $3.80 billion to $3.95 billion.
  • Net income of $230 million to $275 million.
  • Adjusted EBITDA of $590 million to $650 million.
  • Net cash provided by operating activities of $370 million to $470 million.
  • Adjusted free cash flow of $325 million to $425 million.

Headwinds

  • 2024 light vehicle industry production flat to down 1% from 2023.
  • 2024 commercial vehicle industry, including both on- and off-highway, up 2% from 2023.
  • 2024 average light vehicle battery electric vehicle penetration of 15%.
  • Euro/dollar assumption of 1.08 EUR to 1.00 USD.
  • RD&E investment at 4.5% of sales in 2024, with approximately 60% 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 Q4 2023

Historical avgQ4 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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