Garrett Motion (US:GTX)2025-10-23 10:58Financial Performance - Net sales for Q3 2025 reached $902 million, a 9% increase from $826 million in Q3 2024, with a 3% contribution from favorable foreign currency translation[3] - Adjusted EBIT for Q3 2025 was $133 million, reflecting a margin of 14.7%, up from $117 million and a margin of 14.2% in Q3 2024[3] - Net income for Q3 2025 was $77 million, compared to $52 million in Q3 2024, resulting in a net income margin of 8.5%[3] - Gross profit for Q3 2025 was $186 million, up from $166 million in Q3 2024, reflecting a gross margin of 20.6%[27] - Net income for the nine months ended September 30, 2025, was $226 million, compared to $182 million for the same period in 2024, representing a 24.2% increase[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was $477 million, an increase from $445 million in 2024, with an adjusted EBITDA margin of 17.7%[31] - The net income margin for Q3 2025 was 8.5%, compared to 6.3% in Q3 2024, indicating improved profitability[31] Cash Flow and Liquidity - Adjusted free cash flow for Q3 2025 totaled $107 million, an increase from $71 million in Q3 2024[15] - The company reported a net cash provided by operating activities of $314 million for the nine months ended September 30, 2025, compared to $277 million in 2024[30] - The company reported a cash flow from operations of $100 million for the three months ended September 30, 2025, compared to $67 million for the same period in 2024[35] - Cash and cash equivalents increased to $230 million as of September 30, 2025, from $125 million at the end of 2024[29] - The company reported $860 million in available liquidity as of September 30, 2025, including $230 million in unrestricted cash[16] Debt and Repurchase Activities - The company executed a $50 million voluntary early debt repayment during Q3 2025[1] - Garrett repurchased $84 million of common stock in Q3 2025, with a remaining repurchase capacity of $114 million[17] Outlook and Projections - Garrett raised its full-year 2025 net sales outlook to between $3.5 billion and $3.6 billion, up from the previous range of $3.4 billion to $3.6 billion[19] - Adjusted EBIT for the full year 2025 is projected to be between $490 million and $530 million, with a net income range of $265 million to $295 million[37] - Adjusted EBITDA for the full year 2025 is expected to be between $610 million and $650 million, including depreciation of $95 million and stock compensation expense of $25 million[37] - Reported net sales for 2025 are anticipated to grow by 1% to 4%, with constant currency sales growth projected to be between (1)% and 2%[36] - Garrett's outlook for 2025 includes expectations of flat to 2% growth in light vehicle industry production compared to 2024[23] Operational Insights - Adjusted EBIT margin and Adjusted EBITDA margin are calculated as a percentage of net sales, providing insights into operational performance[6] - The company incurred repositioning costs of $18 million and acquisition expenses of $6 million in the full year 2025 outlook[37] - Constant currency sales growth for gasoline was 10% for the three months ended September 30, 2025, while diesel saw a constant currency sales decline of 4%[34] Assets and Liabilities - Total assets as of September 30, 2025, were $2,436 million, compared to $2,276 million as of December 31, 2024, indicating a 7.0% increase[29] - The company’s total liabilities increased to $3,249 million as of September 30, 2025, from $2,949 million at the end of 2024[29] Interest and Other Income - Interest expense decreased to $29 million in Q3 2025 from $37 million in Q3 2024, contributing to improved net income[27] - The company reported interest income of $1 million for the three months ended September 30, 2025, compared to $0 million in the same period of 2024[2]