NASDAQ$GTX

Garrett Motion Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Garrett Motion reported a decline in revenue but improved profitability in Q4 2024.

Garrett Motion reported Q4 2024 revenue of $844 million, down 11% year-over-year, primarily due to lower diesel production volumes in Europe and weaker gasoline demand in China and North America. However, net income increased to $100 million, with a net income margin of 11.8%, driven by lower interest expenses and tax benefits. The company also generated strong free cash flow of $157 million and maintained solid operating performance.

  • Revenue decreased by 11% year-over-year to $844 million due to weak diesel and gasoline demand.
  • Net income increased to $100 million, benefiting from lower interest expenses and tax savings.
  • Gross profit margin improved to 21.6% from 20.0% in Q4 2023.
  • Adjusted free cash flow grew to $157 million, up from $137 million last year.

Headline financials

Total Revenue

$844M

Previous: $945M-10.7%
EPS (adj)

$0.47

Previous: $0.22+113.6%
Capital Expenditures

-$22M

Previous: -$26M+15.4%
Free Cash Flow

$157M

No prior period
Net Income

$100M

Previous: $52M+92.3%
Operating Income

$99M

Previous: $68M+45.6%
Gross Profit

$182M

Previous: $189M-3.7%
R&D Expense

$59M

Previous: $55M+7.3%

Revenue & EPS history

Garrett Motion · Revenue · Quarterly

$844M

Q4 2024-10.7%vs Q4 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 Motion expects 2025 revenue between $3.3 billion and $3.5 billion, with a focus on expanding zero-emission technologies and commercial vehicle growth.

Tailwinds

  • Continued strong demand for turbocharger technology in hybrid and commercial vehicles.
  • Expansion into zero-emission technologies, including fuel cell compressors.
  • Expected commercial vehicle industry growth of up to 2% in 2025.
  • Cost optimizations to enhance profitability despite industry headwinds.
  • Launch of a new $250 million share repurchase program for 2025.

Headwinds

  • Projected light vehicle industry production decline of up to 3% in 2025.
  • Headwinds from foreign exchange fluctuations and supply chain disruptions.
  • Increased investments in R&D may impact short-term margins.
  • Potential impact of US tariffs and trade restrictions not yet factored in.
  • Uncertainty in global economic conditions could affect demand.

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 2024

Historical avgQ4 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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