Garrett Motion (GTX) - 2024 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2024 were $915 million, a decrease of 6% from $970 million in Q1 2023[4] - Net income for Q1 2024 was $66 million, resulting in a net income margin of 7.2%, down from 8.4% in Q1 2023[3] - Adjusted EBITDA for Q1 2024 totaled $151 million, with an adjusted EBITDA margin of 16.5%, compared to $168 million and 17.3% in Q1 2023[3] - Gross profit for Q1 2024 was $172 million, down from $189 million in Q1 2023, resulting in a gross margin of 18.8%[25] - Net income for Q1 2024 was $66 million, a decline of 18.5% from $81 million in Q1 2023, with a net income margin of 7.2%[25][29] - Adjusted EBITDA for Q1 2024 was $151 million, compared to $168 million in Q1 2023, reflecting an adjusted EBITDA margin of 16.5%[29] Cash Flow and Investments - Net cash provided by operating activities for Q1 2024 was $84 million, a decrease from $92 million in Q1 2023[11] - Adjusted free cash flow for Q1 2024 was $68 million, down from $88 million in Q1 2023[13] - The company projects net cash provided by operating activities for the full year 2024 to be between $370 million and $470 million[35] - Adjusted free cash flow for the full year 2024 is forecasted to range from $325 million to $425 million[35] - Expenditures for property, plant, and equipment are expected to be $87 million[35] Debt and Liabilities - Total principal amount of debt outstanding as of March 31, 2024, was $1,683 million, down from $1,696 million at the end of 2023[15] - Total liabilities decreased to $3,183 million as of March 31, 2024, compared to $3,262 million at the end of 2023[27] Assets and Cash Position - Total assets decreased to $2,448 million as of March 31, 2024, down from $2,527 million at the end of 2023[27] - Cash and cash equivalents at the end of Q1 2024 were $196 million, down from $259 million at the end of 2023[27] Stock Repurchase - The company repurchased $109 million of common stock during the quarter[16] - The company repurchased $107 million of common stock during Q1 2024[28] Future Outlook - Full year 2024 net sales outlook is projected between $3.80 billion and $3.95 billion, with a constant currency growth expectation of -2% to +2%[18] - The company expects full-year 2024 net sales growth at constant currency to range from -2% to 2%[33] - Full-year 2024 outlook for adjusted EBITDA is projected between $590 million and $650 million[34] Other Financial Projections - R&D investment is expected to be approximately 4.5% of sales in 2024, with around 60% allocated to zero emission technologies[20] - Cash payments for repositioning are estimated at $26 million[35] - Proceeds from cross currency swap contracts are anticipated to be $15 million[35] - Capital structure transformation costs are projected to be $1 million[35] Market Trends - The company is experiencing increased customer interest in larger turbos, resulting in new production awards in power generation[2]