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Garrett Motion (GTX) - 2024 Q4 - Annual Results
GTXGarrett Motion (GTX)2025-02-20 11:58

Financial Performance - Net sales for Q4 2024 totaled 844million,down11844 million, down 11% year-over-year, with a net income of 100 million and a net income margin of 11.8%[5]. - Full year 2024 net sales reached 3,475million,adecreaseof113,475 million, a decrease of 11% from 2023, with adjusted EBITDA of 598 million and an adjusted EBITDA margin of 17.2%[5]. - Net income for the year ended December 31, 2024, increased to 282million,comparedto282 million, compared to 261 million in 2023, resulting in earnings per share of 1.27[30][33].−NetincomeforQ42024was1.27[30][33]. - Net income for Q4 2024 was 100 million, up from 52millioninQ42023,resultinginanetincomemarginof11.852 million in Q4 2023, resulting in a net income margin of 11.8% compared to 5.5% in the previous year[34]. - Adjusted EBITDA for Q4 2024 was 153 million, an increase from 145millioninQ42023,withanadjustedEBITDAmarginof18.1145 million in Q4 2023, with an adjusted EBITDA margin of 18.1%, up from 15.3%[34]. - Full year 2025 outlook projects net income between 209 million and 254million,withadjustedEBITDAexpectedtorangefrom254 million, with adjusted EBITDA expected to range from 545 million to 605million[40].CashFlowandLiquidity−Adjustedfreecashflowfor2024was605 million[40]. Cash Flow and Liquidity - Adjusted free cash flow for 2024 was 358 million, enabling the company to repurchase 296millionofcommonshares,representinga13296 million of common shares, representing a 13% reduction in share count[4]. - Cash and cash equivalents at the end of Q4 2024 were 126 million, down from 260millionattheendofQ42023[33].−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof260 million at the end of Q4 2023[33]. - The company reported a net cash provided by operating activities of 408 million for the year ended December 31, 2024, compared to 465millionin2023[33].−Adjustedfreecashflowfor2025isprojectedtobebetween465 million in 2023[33]. - Adjusted free cash flow for 2025 is projected to be between 300 million and 390million,withnetcashprovidedbyoperatingactivitiesestimatedat390 million, with net cash provided by operating activities estimated at 357 million to 447million[41].DebtandLiabilities−AsofDecember31,2024,totalprincipalamountofdebtoutstandingwas447 million[41]. Debt and Liabilities - As of December 31, 2024, total principal amount of debt outstanding was 1,493 million, down from 1,696millionin2023,duetoearlydebtrepayments[18].−Totalliabilitiesdecreasedto1,696 million in 2023, due to early debt repayments[18]. - Total liabilities decreased to 2,949 million as of December 31, 2024, from 3,262millionin2023[32].−AvailableliquidityasofDecember31,2024,was3,262 million in 2023[32]. - Available liquidity as of December 31, 2024, was 725 million, including 125millionincashandcashequivalents[17].FutureProjections−For2025,thecompanyprojectsnetsalesbetween125 million in cash and cash equivalents[17]. Future Projections - For 2025, the company projects net sales between 3.3 billion and 3.5billion,withadjustedEBITDAexpectedtorangefrom3.5 billion, with adjusted EBITDA expected to range from 545 million to 605million[23].−The2025outlookincludesaforecastofflattodown3605 million[23]. - The 2025 outlook includes a forecast of flat to down 3% light vehicle industry production compared to 2024, and a commercial vehicle industry growth of 0% to 2%[26]. - The company anticipates a reported net sales change of -6% to 0% for 2025, with constant currency sales growth projected between -3% and 2%[39]. - Capital expenditures for 2025 are expected to be 94 million, impacting the net cash provided by operating activities[41]. - Stock compensation expense for 2025 is projected at 25million,contributingtotheadjustedEBITDAcalculation[40].−Thecompanyreportedaforeigncurrencytranslationimpactof−325 million, contributing to the adjusted EBITDA calculation[40]. - The company reported a foreign currency translation impact of -3% to -2% on net sales for 2025[39]. Investments and Strategic Initiatives - Research, development, and engineering investment is projected at 4.6% of sales in 2025, with over 50% allocated to zero-emission technologies[26]. - The company secured contracts for marine and back-up power with its largest turbocharger, set to start production in 2026, and entered a letter of intent with SinoTruk for e-powertrain systems by 2027[4]. - Garrett Motion is focusing on developing technology solutions for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems[28]. - The company plans to initiate a 50 million annual dividend and a new 250millionsharerepurchaseprogramfor2025[4].−Thecompanyrepurchased250 million share repurchase program for 2025[4]. - The company repurchased 296 million of common stock during the year, reflecting a strategic move to enhance shareholder value[33]. Operational Metrics - Gross profit for the year ended December 31, 2024, was 705million,downfrom705 million, down from 756 million in 2023, reflecting a gross margin of 20.2%[30]. - Total assets decreased to 2,276millionasofDecember31,2024,from2,276 million as of December 31, 2024, from 2,527 million in 2023[32]. - The company has five R&D centers and 13 manufacturing facilities, employing over 9,000 people globally[28]. - Constant currency sales for Q4 2024 showed a decline of 10%, while gasoline sales decreased by 8% and diesel sales decreased by 22%[37].