Garrett Motion Inc
NASDAQ:GTX
Garrett Motion Inc
Garrett Motion Inc. finds its roots deep within the annals of automotive history, dating back to its association with Honeywell's transportation systems division. Operating in a niche that demands precision and relentless innovation, Garrett has steadily evolved into a leader in the field of turbocharger technology. At the core of its operations, Garrett engineering fuels vehicles with power and efficiency. The company's products, primarily turbochargers and electric-boosting technologies, are embedded in the heart of engines. These components enhance performance by forcing extra air into combustion chambers—delivering more power from smaller engines and significantly improving fuel efficiency.
Garrett's revenue streams flow from direct sales to automotive manufacturers and a robust aftermarket segment. Original Equipment Manufacturers (OEMs) are pivotal partners, as automakers increasingly focus on reducing emissions while maintaining performance standards. As regulations tighten and demand shifts toward cleaner and more efficient solutions, Garrett's technologies serve as critical enablers of this transformation. By catering to both established manufacturers and emerging electric vehicle platforms, Garrett positions itself as an indispensable cog in the future of mobility, thriving in a landscape that rewards innovation and adaptability. This dual-focus strategy allows the company not only to ride the currents of conventional automotive strides but also to anchor itself firmly in the evolving electric frontier.
Garrett Motion Inc. finds its roots deep within the annals of automotive history, dating back to its association with Honeywell's transportation systems division. Operating in a niche that demands precision and relentless innovation, Garrett has steadily evolved into a leader in the field of turbocharger technology. At the core of its operations, Garrett engineering fuels vehicles with power and efficiency. The company's products, primarily turbochargers and electric-boosting technologies, are embedded in the heart of engines. These components enhance performance by forcing extra air into combustion chambers—delivering more power from smaller engines and significantly improving fuel efficiency.
Garrett's revenue streams flow from direct sales to automotive manufacturers and a robust aftermarket segment. Original Equipment Manufacturers (OEMs) are pivotal partners, as automakers increasingly focus on reducing emissions while maintaining performance standards. As regulations tighten and demand shifts toward cleaner and more efficient solutions, Garrett's technologies serve as critical enablers of this transformation. By catering to both established manufacturers and emerging electric vehicle platforms, Garrett positions itself as an indispensable cog in the future of mobility, thriving in a landscape that rewards innovation and adaptability. This dual-focus strategy allows the company not only to ride the currents of conventional automotive strides but also to anchor itself firmly in the evolving electric frontier.
Strong Results: Garrett posted another strong quarter, with net sales of $902 million, up 6% at constant currency and gasoline turbo sales up 10%.
Margins & Cash Flow: Adjusted EBIT was $133 million with a 14.7% margin, and adjusted free cash flow reached $107 million.
Guidance Raised: The company raised its 2025 outlook midpoint, now expecting net sales of $3.55 billion and adjusted EBIT of $510 million.
Capital Returns: Accelerated share repurchases ($84 million in Q3), paid a $12 million dividend, and announced a 33% dividend increase to $0.08 per share for Q4.
Technology Progress: Secured new awards in turbochargers for hybrids and zero-emission products, with industrial sales (especially for data centers) expected to exceed $100 million in 2025.
Debt & Ratings: Early $50 million loan repayment and credit rating upgrades from Fitch and S&P reflect improved financial strength.
