Garrett Motion Inc - New
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did GTX Beat Earnings? Q1 2026 Results
Garrett Motion kicked off 2026 with a strong first quarter, posting earnings per share of $0.49 against a consensus estimate of $0.43, a beat of 14.49%, while revenue of $985.00 million topped analyst expectations by 6.59% and grew 12.2% year over year. The broad-based revenue strength was fueled by share of demand gains in passenger vehicles and a 17% surge in commercial vehicle and industrial sales, with aftermarket revenue jumping 16% and a $58.00 million foreign currency tailwind adding lift across all segments. Net income climbed to $95.00 million from $62.00 million a year ago, expanding net income margin to 9.6%, while Adjusted EBIT reached $151.00 million at a 15.3% margin. Shares rallied roughly 6% following the results, reflecting investor confidence in both the quarter and the company's raised full-year 2026 outlook, which now calls for net sales of $3.60 billion to $3.90 billion and net income of $300.00 million to $360.00 million, up from prior guidance on both measures.
- Share of demand gains in passenger vehicles
- Strong commercial vehicle, off-highway and industrial performance
- New application launches and program ramp-ups in gasoline and diesel
- Strong aftermarket demand driving favorable product mix
- Import tariff recoveries
- Favorable foreign currency translation of $58 million (6% impact)
- Higher sales volumes contributing $19 million to gross profit
- Lower RD&E costs of $7 million
“Garrett had a strong start to 2026, delivering 6% organic growth. Net sales increased to $985 million, Adjusted EBIT margin expanded to 15.3% and we generated $49 million of Adjusted Free Cash Flow, reflecting disciplined execution and strong volume conversion. During the quarter, we repurchased $87 million of common shares and returned more than $100 million to shareholders including dividends.”
Garrett Motion CEO, on the earnings call
Forward Guidance & Outlook
Garrett raised its full-year 2026 outlook: Net sales (GAAP) of $3.6 billion to $3.9 billion (prior: $3.6B to $3.8B); constant currency sales growth of -2% to +6% (prior: -2% to +2%); Net income (GAAP) of $300M to $360M (prior: $295M to $335M); Adjusted EBIT of $520M to $600M (prior: $520M to $570M); Net cash from operations of $407M to $522M (prior: $407M to $502M); Adjusted free cash flow of $355M to $475M (prior: $355M to $455M). Key assumptions include light vehicle production down 1-3%, commercial vehicles up 1-2%, BEV penetration of ~19%, EUR/USD rate of 1.17, RD&E investment at ~4.2% of sales, and capex at ~2.5% of sales.
GTX YoY Financials
Figures from SEC filings and company reports. Not investment advice.