Garrett Motion (GTX) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 totaled $844 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 $3,475 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 $282 million, compared to $261 million in 2023, resulting in earnings per share of $1.27[30][33]. - Net income for Q4 2024 was $100 million, up from $52 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 $145 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 $254 million, with adjusted EBITDA expected to range from $545 million to $605 million[40]. Cash Flow and Liquidity - Adjusted free cash flow for 2024 was $358 million, enabling the company to repurchase $296 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 $260 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 $465 million in 2023[33]. - Adjusted free cash flow for 2025 is projected to be between $300 million and $390 million, with net cash provided by operating activities estimated at $357 million to $447 million[41]. Debt and Liabilities - As of December 31, 2024, total principal amount of debt outstanding was $1,493 million, down from $1,696 million in 2023, due to early debt repayments[18]. - Total liabilities decreased to $2,949 million as of December 31, 2024, from $3,262 million in 2023[32]. - Available liquidity as of December 31, 2024, was $725 million, including $125 million in cash and cash equivalents[17]. Future Projections - For 2025, the company projects net sales between $3.3 billion and $3.5 billion, with adjusted EBITDA expected to range from $545 million to $605 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 $25 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 $250 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 $705 million, down from $756 million in 2023, reflecting a gross margin of 20.2%[30]. - Total assets decreased to $2,276 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].