Garrett Motion Inc - New
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.25%.
Did GTX Beat Earnings? Q4 2025 Results
Garrett Motion closed out 2025 on a firm note, posting fourth-quarter earnings per share of $0.42 against a consensus estimate of $0.39, a beat of nearly 8%, while revenue of $891 million topped expectations by 1.81% and grew 5.6% year over year. The top-line strength was driven by a combination of favorable foreign currency tailwinds, stronger commercial vehicle and diesel demand, and $10 million in import tariff recoveries, though weaker gasoline volumes and margin pressure from pricing pass-throughs kept the quarter from being more decisive. Net income slipped to $84 million from $100 million a year ago, largely due to $20 million in higher tax expense that had been flattered in the prior-year period by reserve releases. J.P. Morgan maintained its Buy rating and $23.00 price target following the results. Looking ahead, Garrett guided 2026 net sales of $3.60 billion to $3.80 billion and adjusted EBIT of $520 million to $570 million, while authorizing a new $250 million share buyback program for the year.
- Higher demand for commercial vehicle and diesel applications
- Favorable foreign currency impacts ($34 million or 4% in Q4)
- $10 million of recoveries on import tariffs
- Lower RD&E costs contributing $5 million to gross profit improvement
- Commodity, transportation, and energy deflation of $4 million
“In 2025, we delivered solid growth, stronger margins and healthy free cash flow while expanding our product offerings. Our turbo business continued to win globally, and we accelerated in zero emission technologies, securing our first production wins for our E‑Powertrain and E‑Cooling technologies. At the same time, we made significant progress in further broadening our portfolio in industrial applications for power generation and industrial cooling.”
Garrett Motion CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Garrett guides net sales of $3.6 billion to $3.8 billion (constant currency growth of -2% to +2%), net income of $295 million to $335 million, adjusted EBIT of $520 million to $570 million, operating cash flow of $407 million to $502 million, and adjusted free cash flow of $355 million to $455 million. Assumptions include light vehicle production down 1-3%, commercial vehicle production up 1-2%, 19% average BEV penetration, EUR/USD rate of 1.17, RD&E at 4.2% of sales (~50% on zero-emission technologies), capex at 2.5% of sales (~25% on zero-emission technologies). The outlook range does not consider potential impact of new tariffs or other trade actions.
GTX YoY Financials
Figures from SEC filings and company reports. Not investment advice.