Garrett Motion (GTX) Q3 2025 Earnings
How Did GTX Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: −0.45%.
Did GTX Beat Earnings? Q3 2025 Results
Yes. Garrett Motion reported Q3 2025 earnings of $0.38 a share on Oct 23, 2025, beating the $0.34 consensus estimate by 12.1%. Revenue was $902.0M against a $866.2M estimate.
Garrett Motion posted a convincing third-quarter beat on Thursday, with earnings per share of $0.38 clearing the $0.34 consensus estimate by 12.09% and revenue of $902.00 million topping expectations by 4.14% while rising 9.2% year over year, as stronger-than-expected gasoline and diesel turbocharger demand propelled the company ahead of a softening broader automotive market. Net income climbed to $77.00 million from $52.00 million a year ago, aided by higher volumes, a leaner interest expense of $29.00 million versus $37.00 million in the prior-year period, and sustained productivity gains that helped expand the Adjusted EBIT margin to 14.7% from 14.2%. Capital returns were also a theme, with Garrett repurchasing $84.00 million in stock and hiking its quarterly dividend by 33% to $0.08 per share. Looking ahead, the company raised the midpoint of its full-year 2025 net sales guidance to a $3.50 billion to $3.60 billion range and lifted net income guidance to $265.00 million to $295.00 million, reflecting confidence in second-half automotive production trends and continued turbocharging program wins across multiple global markets.
- Higher demand in gasoline and diesel turbochargers
- Favorable foreign currency translation impact of $26 million (3%)
- Recoveries on enacted import tariffs
- Productivity gains net of labor inflation
- Commodity, transportation and energy deflation of $7 million
- Lower R&D costs of $6 million
- Lower interest expense of $8 million year-over-year
“Garrett delivered another strong quarter in Q3, outperforming the industry, expanding our Adjusted EBIT margin to 14.7% and generating $107 million of adjusted free cash flow. This performance enabled $84 million in share repurchases in Q3 and a 33% increase in our quarterly dividend beginning in Q4, reinforcing our disciplined approach to capital allocation and commitment to driving shareholder value. Based on our year-to-date performance and favorable industry conditions, we are once again raising the midpoint for our full-year 2025 outlook.”
Garrett Motion CEO, on the earnings call
What Was Garrett Motion's Outlook in Q3 2025?
Garrett raised its full-year 2025 midpoint outlook. Net sales are now expected at $3.5 billion to $3.6 billion (prior: $3.4B-$3.6B). Net income guidance was raised to $265M-$295M (prior: $233M-$278M). Adjusted EBIT is expected at $490M-$530M (prior: $470M-$530M). Adjusted EBITDA is expected at $610M-$650M (prior: $590M-$650M). Net cash from operating activities is expected at $380M-$450M (prior: $370M-$450M). Adjusted free cash flow is expected at $350M-$420M (prior: $330M-$410M). The outlook assumes 2025 light vehicle industry production flat to up 2% vs 2024, commercial vehicle industry flat to +2%, average light vehicle BEV penetration of 16%, full direct tariff recovery, and excludes potential indirect impact of global trade policies and inflation.
GTX YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $902.0M | $826.0M | +9.2% |
| Gross Profit | $186.0M | $210.0M | −11.4% |
| Operating Income | $128.0M | $114.0M | +12.3% |
| Net Income | $77.0M | $52.0M | +48.1% |
Figures from SEC filings and company reports. Not investment advice.