Financial Performance - Garrett Motion Inc. reported strong financial performance in 2024, with an adjusted EBITDA margin expansion of 90 basis points year-over-year to 17.2% and generated $358 million in adjusted free cash flow [4][6] - Net sales for Q4 2024 were $844 million, down 11% from Q4 2023, primarily due to lower diesel production volumes in Europe and soft gasoline demand in China and North America [6][7] - The company achieved a net income of $100 million in Q4 2024, compared to $52 million in Q4 2023, driven by lower interest and tax expenses [14][6] Cost and Profitability - Cost of goods sold for Q4 2024 was $662 million, down from $756 million in Q4 2023, attributed to lower sales volumes and higher productivity [8][9] - Gross profit for Q4 2024 was $182 million, with a gross profit percentage of 21.6%, an increase from 20.0% in Q4 2023 [9][6] - Selling, general and administrative expenses decreased to $62 million in Q4 2024 from $69 million in Q4 2023, due to lower professional services and legal fees [10] Shareholder Returns and Capital Allocation - In 2024, Garrett repurchased $296 million of common shares, equivalent to a 13% reduction in share count, and initiated a $50 million annual dividend [5][20] - A new $250 million share repurchase program was authorized for 2025, reflecting the company's commitment to returning value to shareholders [21] Liquidity and Debt Management - As of December 31, 2024, Garrett had $725 million in available liquidity, including $125 million in cash and cash equivalents [18] - Total principal amount of debt outstanding decreased to $1,493 million from $1,696 million as of December 31, 2023, due to early debt repayments [19] 2025 Outlook - For 2025, Garrett expects net sales between $3.3 billion and $3.5 billion, with a constant currency sales growth forecast of -3% to +2% [24][25] - The company anticipates adjusted EBITDA for 2025 to be in the range of $545 million to $605 million [49][50]

Company Overview - Garrett Motion Inc. is a leading provider of differentiated automotive technology with a 70-year history of innovation in the automotive sector and beyond [4] - The company specializes in turbocharging technology, which has led to significant reductions in engine size, fuel consumption, and CO2 emissions [4] - Garrett is actively developing technology solutions for Zero Emission Vehicles, including fuel cell compressors for hydrogen fuel cell vehicles and systems for battery electric vehicles [4] - The company operates five R&D centers, 13 manufacturing facilities, and employs over 9,000 people across more than 20 countries [4] Financial Results Announcement - Garrett Motion plans to release its fourth quarter financial results on February 20, 2025, prior to the market opening in the United States [1] - A conference call will be held on the same day at 8:30 am EDT / 2:30 pm CET to discuss the financial results [2] - The conference call will be available via webcast, and a slide presentation will accompany the call [3]

Core Viewpoint - Garrett Motion Inc. has successfully refinanced its existing debt, reducing interest expenses and extending the maturity profile of its loans, which reflects strong market demand and confidence in the company's financial health [1][2]. Financial Summary - The company refinanced a $692 million term loan and upsized its revolving credit facility from $600 million to $630 million [1]. - The new borrowings will bear interest at SOFR plus 225 basis points, a reduction of 50 basis points from previous rates [1]. - The new term loan will mature in 2032, extending the maturity by approximately four years, while the revolving credit facility will mature in 2030, extending by about two years [1]. Company Overview - Garrett Motion Inc. is a leader in differentiated automotive technology with a 70-year history in innovation across various sectors, including automotive and off-highway equipment [3]. - The company specializes in turbocharging technology, contributing to reduced engine size, fuel consumption, and CO2 emissions [3]. - Garrett is actively developing technology solutions for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems [3]. - The company operates five R&D centers and 13 manufacturing facilities, employing over 9,000 people in more than 20 countries [3].

Garrett Motion (GTX) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system ...

Core Insights - Investors in Garrett Motion Inc. (GTX) should monitor stock movements due to high implied volatility in the options market, particularly for the Jan 17, 2025 $3 Call option [1] Company Analysis - Garrett Motion is currently rated Zacks Rank 4 (Sell) in the Automotive - Original Equipment industry, which is in the bottom 35% of the Zacks Industry Rank [3] - Over the last 60 days, one analyst has increased the earnings estimate for the current quarter from 27 cents per share to 29 cents, with no downward revisions [3] Options Market Dynamics - The high implied volatility suggests that options traders are anticipating a significant price movement for Garrett Motion shares, indicating potential trading opportunities [4] - Seasoned options traders often seek high implied volatility options to sell premium, aiming for the underlying stock to not move as much as expected by expiration [4]

Core Viewpoint - Garrett Motion Inc. has adopted a long-term capital allocation framework aimed at returning 75% or more of its Adjusted Free Cash Flow to shareholders through share repurchases and quarterly cash dividends, reflecting a commitment to shareholder value while investing in future growth technologies [1][2]. Capital Allocation Framework - The new framework includes a target of approximately $50 million in total dividends for 2025, with the first quarterly dividend set at $0.06 per share, payable on January 31, 2025 [1]. - A share repurchase program for 2025 has been approved, allowing the company to repurchase up to $250 million of its common stock throughout the year [1][3]. - The company has previously repurchased $438 million in stock since the conversion of its Series A Preferred Stock through Q3 2024 [3]. Financial Management - The company has de-levered approximately $400 million since the conversion of its Series A Preferred Stock, indicating prudent debt management [3]. - The capital allocation strategy is supported by a flexible cost structure and strong cash generation capabilities, ensuring the company can maintain its investment in differentiated technology while returning value to shareholders [2]. Technology Investment - Garrett Motion remains committed to balanced R&D investments, focusing on advancing zero-emissions solutions and expanding turbo offerings to support growth in hybrid vehicles and industrial applications [2].

Garrett Motion (GTX) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this maker of vehicle turbocharging and electric-boosting gear would post earnings of $0.24 per share when it actually produced earnings of $0.28, delivering a surprise of 16 ...

Third Quarter 2024 Financial Highlights Net sales totaled $826 million, down 14% on a reported and constant currency* basisNet income totaled $52 million; Net income margin of 6.3%Adjusted EBITDA* totaled $144 million; Adjusted EBITDA margin* of 17.4%Net cash provided by operating activities totaled $67 millionAdjusted free cash flow* totaled $71 million Third Quarter 2024 Business Highlights Won new marine and auxiliary power awards for our largest turbocharger with start of production in 2026Entered into ...

ROLLE, Switzerland and PLYMOUTH, Mich., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (NYSE: GTX) and China National Heavy Duty Truck Group Co., Ltd. (SinoTruk) signed a Letter of Intent (LoI) to enhance cooperation in advanced technologies for electric commercial vehicles, aiming to jointly develop leading next-generation E-powertrain for application in SinoTruk's product portfolio, with the aim of joining forces to start mass production of trucks equipped with this next gen E-powertrain by 2027. N ...

Garrett Motion (GTX) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are better ...