Garrett Motion Earnings Call Transcripts
Fiscal Year 2026
-
Technology rooted in turbocharging is extending into industrial compression, cooling and electrified products. Industrial turbo revenue was projected at $230 million this year and $300 million next year, while buybacks and debt repayment continue.
-
Q3 sales reached $930M and adjusted EBIT margin expanded to 16.3%; adjusted free cash flow was $136M. 2026 outlook midpoints were reaffirmed, with industrial sales expected to reach $300M in 2027 despite FX and market uncertainty.
-
Q2 2026 saw 7% sales growth and record margins, driven by gains across all segments and strong industrial demand. The full-year outlook was raised, reflecting continued share gains and robust execution, with significant progress in turbo and zero-emission technologies.
-
The meeting covered director elections, auditor ratification, and executive compensation approval, with all proposals passing by majority vote. No questions were raised during the Q&A session.
-
A diversified growth strategy targets a 5% revenue CAGR through 2035, with over half of sales from outside passenger vehicles by 2030. Industrial and zero-emission technologies will drive revenue and margin growth, supported by proprietary tech and strong partnerships. New products are accretive, with robust free cash flow and disciplined capital allocation.
-
Delivered strong Q1 2026 results with 6% constant currency sales growth and 15.3% Adjusted EBIT margin, driven by broad-based gains and strategic technology wins. Raised full-year outlook midpoints and returned over $100 million to shareholders.
Fiscal Year 2025
-
Delivered strong 2025 results with $3.58B in sales and 14.2% adjusted EBIT margin, expanded in zero-emission and industrial cooling, and returned significant capital to shareholders. 2026 outlook targets higher margins and continued growth in new technologies.
-
Strong margins and cash flow support investment in advanced technologies and share buybacks. Turbo and electrification platforms drive growth, with robust positions in Europe, China, and industrial markets. Variable cost structure and risk management underpin resilience.
-
Q3 2025 saw 6% constant currency sales growth, 14.7% adjusted EBIT margin, and $107M free cash flow, driven by strong gasoline turbo and industrial sales. Outlook for 2025 was raised, with increased capital returns and new technology awards supporting future growth.
-
Q2 2025 saw strong gasoline turbo sales and robust cash flow, with net sales of $913M and adjusted EBIT of $124M. The outlook for 2025 was raised, and over $1B in program extensions were secured, reinforcing future revenue visibility.
-
Strong Q1 performance with $878M net sales and 14.9% adjusted EBIT margin, driven by gasoline turbo growth and cost actions. Maintained 2025 outlook, continued innovation, and robust liquidity, while monitoring tariff and macro risks.
Fiscal Year 2024
-
Q4 and full-year 2024 saw strong margins and cash flow despite industry softness, with robust cost management, share repurchases, and investments in zero-emission tech. 2025 guidance anticipates flat EBITDA (ex-FX), continued capital returns, and increased R&D for electrification.
-
Q3 2024 saw a 17.4% adjusted EBITDA margin despite industry softness, with stable commercial and aftermarket segments offsetting light vehicle declines. Strong cash flow enabled continued share repurchases and investments in zero-emission technologies, while 2024 guidance reflects ongoing market headwinds.
-
Q2 2024 saw a 16.9% Adjusted EBITDA margin despite a 12% sales decline, driven by cost flexibility and strong aftermarket growth. Capital allocation included $65M in buybacks and $800M in new notes, while new contracts in zero-emission tech and turbo segments support long-term growth.