Garrett Motion (NASDAQ:GTX) Posts Earnings Results

Garrett Motion (NASDAQ:GTX) released its quarterly earnings results on Thursday. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.06, FiscalAI reports. Garrett Motion had a negative return on equity of 46.50% and a net margin of 9.51%. The business had revenue of $930.00 million during the quarter. During the same quarter in the prior year, the firm earned $0.38 earnings per share. The company’s revenue for the quarter was up 3.1% compared to the same quarter last year.

Here are the key takeaways from Garrett Motion’s conference call:

• Strong third-quarter performance: Net sales rose 3% organically to $930 million, adjusted EBIT increased 14% to $152 million, and the margin expanded 160 basis points to 16.3%, supported by favorable product mix and improved operating performance.
• Commercial vehicle and industrial sales grew 23% organically, with industrial revenue now expected to reach approximately $230 million in 2026 and $300 million in 2027, driven primarily by power-generation demand.
• Garrett reported continued technology momentum, including new turbo wins, progress toward 2027 E-Powertrain and industrial cooling launches, and an E-Cooling Compressor award from new customer Multistack.
• The company generated $136 million of adjusted free cash flow, repaid $50 million of term-loan debt during the quarter, and returned capital through $57 million of share repurchases and $15 million of dividends; the board also authorized a new $250 million repurchase program for 2027.
• Garrett reaffirmed its 2026 midpoint outlook, but foreign-exchange headwinds—particularly in the fourth quarter—and continued uncertainty across regional automotive markets are expected to offset some operational gains; gasoline-related demand declined mainly because of weaker Chinese domestic-market activity.

Garrett Motion Price Performance

Shares of NASDAQ:GTX traded up $0.15 during mid-day trading on Thursday, reaching $22.48. 5,035,149 shares of the company traded hands, compared to its average volume of 2,728,711. The company’s 50 day moving average price is $25.75 and its 200-day moving average price is $25.31. The firm has a market cap of $4.19 billion, a PE ratio of 12.35, a PEG ratio of 0.65 and a beta of 0.83. Garrett Motion has a 52 week low of $15.54 and a 52 week high of $36.25.

Garrett Motion Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.08 per share. The ex-dividend date is Tuesday, December 1st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.4%. Garrett Motion’s payout ratio is 17.58%.

Key Stories Impacting Garrett Motion

Here are the key news stories impacting Garrett Motion this week:

• Positive Sentiment: Adjusted earnings beat estimates: Third-quarter EPS was $0.51, above the $0.45 consensus and up from $0.38 a year earlier. Net sales increased 3% on a constant-currency basis to $930 million, led by commercial vehicle and industrial demand. Garrett Motion Q3 Earnings Surpass Estimates
• Positive Sentiment: Strong profitability and cash flow: Garrett generated $152 million in adjusted EBIT, a 16.3% margin, $97 million in net income and $136 million in adjusted free cash flow. These results support the company’s ability to fund investments and return capital to shareholders. Garrett Motion Reports Strong Third Quarter 2026 Results
• Positive Sentiment: $250 million buyback announced: The planned 2027 share-repurchase program could support GTX’s earnings per share and provide a meaningful demand signal from management. Garrett Motion Announces Equity Buyback
• Positive Sentiment: Growth opportunities expanded: Garrett secured additional turbocharger programs, commercial-vehicle applications and an industrial e-cooling compressor award. E-powertrain and e-cooling products remain on track for 2027 production, while data-center cooling applications offer a longer-term opportunity. Garrett Motion Data Center Cooling Technology
• Neutral Sentiment: Full-year outlook reaffirmed: Management maintained the midpoint of its 2026 guidance rather than raising expectations, limiting the potential for a stronger near-term revaluation. Garrett Motion 2026 Earnings Guidance
• Negative Sentiment: Revenue slightly missed forecasts: Quarterly sales of $930 million were below the approximately $935 million FactSet estimate, suggesting that operating execution and margin strength have not yet translated into an upside revenue surprise. Garrett Motion Q3 Revenue Flash
• Negative Sentiment: Board transition adds uncertainty: Director Steven Tesoriere, an Oaktree representative and former Finance Committee chair, resigned from the board. The company described the departure positively, but investors may monitor governance continuity and Oaktree’s reduced involvement. Garrett Motion Board Retirement

Insider Buying and Selling

In other Garrett Motion news, SVP Daniel Deiro sold 20,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $26.89, for a total transaction of $537,800.00. Following the sale, the senior vice president owned 113,783 shares in the company, valued at approximately $3,059,624.87. This trade represents a 14.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Garrett Motion

A number of hedge funds have recently modified their holdings of GTX. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Garrett Motion by 54.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 398,397 shares of the company’s stock valued at $14,434,000 after acquiring an additional 140,254 shares during the last quarter. Castleark Management LLC purchased a new position in shares of Garrett Motion in the 2nd quarter worth $17,009,000. The Manufacturers Life Insurance Company bought a new stake in shares of Garrett Motion in the 2nd quarter worth about $3,429,000. Jupiter Topco LLC bought a new stake in shares of Garrett Motion in the 2nd quarter worth about $2,847,000. Finally, Bank of America Corp DE purchased a new stake in shares of Garrett Motion during the 2nd quarter valued at about $45,490,000. 86.27% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on GTX. Deutsche Bank Aktiengesellschaft raised shares of Garrett Motion from a “hold” rating to a “buy” rating and raised their price objective for the stock from $33.00 to $36.00 in a report on Thursday, July 30th. JPMorgan Chase & Co. reduced their target price on shares of Garrett Motion from $37.00 to $35.00 and set an “overweight” rating for the company in a report on Tuesday, September 15th. BWS Financial reiterated a “buy” rating and issued a $42.00 price target on shares of Garrett Motion in a research report on Thursday, October 8th. Weiss Ratings cut shares of Garrett Motion from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, October 22nd. Finally, Wall Street Zen cut shares of Garrett Motion from a “buy” rating to a “hold” rating in a research note on Saturday, October 3rd. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, Garrett Motion currently has an average rating of “Moderate Buy” and a consensus price target of $38.20.

Garrett Motion Company Profile

Garrett Motion Inc is an automotive technology company that develops and manufactures solutions designed to improve vehicle performance, efficiency and emissions. Its products serve passenger vehicles, commercial vehicles and off-highway applications, supporting both internal-combustion and electrified powertrains.

The company is best known for its turbocharging technologies, including turbochargers and related air-management systems. Garrett also develops electric boosting systems, fuel-cell compressors, thermal-management products and other components intended to support hybrid, electric and fuel-cell vehicles.