Garrett Motion Inc - New
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.47%.
Did GTX Beat Earnings? Q2 2026 Results
Garrett Motion Inc. delivered a convincing second-quarter 2026 performance, with earnings per share of $0.53 beating the $0.49 consensus estimate by 8.41%, marking the fourth consecutive quarter the turbocharger maker has topped Wall Street's EPS expectations. Revenue climbed 6.9% year over year to $976.00 million, edging past the $964.76 million consensus by 1.17%, as broad-based volume growth across gasoline, diesel, and commercial vehicle segments provided the primary lift. Gross profit margin expanded 190 basis points to 21.7%, driven by volume leverage and productivity gains, while net income rose to $101.00 million from $87.00 million a year earlier. Institutional investors have taken note of the consistent execution, with ownership now concentrated above 86% of shares outstanding. Looking ahead, management raised its full-year 2026 net sales guidance to $3.70 billion to $3.90 billion and lifted its net income outlook to $330.00 million to $360.00 million, reflecting confidence in sustained demand across its diversified industrial and automotive customer base.
- Share-of-demand gains in passenger vehicles across gasoline and diesel
- Strong commercial vehicle and industrial performance driven by Chinese on-highway demand and North America genset for data centers
- Gross profit margin expansion of 190 bps driven by productivity, pricing, and lower R&D costs
- Aftermarket volume recovery in Europe, China, and Australia with favorable product mix
- New application launches and program ramp-ups in Europe, India, and South America
- Lower import tariffs contributed $16 million offset to COGS
“Garrett delivered a strong second quarter, highlighting the power of our differentiated technology portfolio and continued share-of-demand gains. Net sales were $976 million, up 5% at constant currency, and adjusted EBIT margin expanded 200 basis points to 15.6%, driven by disciplined execution across the business.”
Garrett Motion CEO, on the earnings call
Forward Guidance & Outlook
Garrett raised its full-year 2026 outlook: Net sales of $3.7 billion to $3.9 billion (up from $3.6-$3.9 billion), net sales growth at constant currency of +1% to +7% (up from -2% to +6%), net income of $330-$360 million (up from $300-$360 million), adjusted EBIT of $560-$600 million (up from $520-$600 million), net cash from operations of $435-$525 million (up from $407-$522 million), and adjusted free cash flow of $385-$475 million (up from $355-$475 million). Key assumptions include light vehicle industry production down 2-4%, commercial vehicle production up 1-2%, average BEV penetration of ~19%, Euro/dollar rate of 1.16, R&D at ~4.1% of sales, and capex at ~2.4% of sales.
GTX YoY Financials
Figures from SEC filings and company reports. Not investment advice.