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, topping the consensus estimate of $0.45 by $0.06, FiscalAI reports. The firm had revenue of $930.00 million during the quarter. Garrett Motion had a net margin of 9.97% and a negative return on equity of 52.43%. The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.38 EPS.

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 Stock Performance

GTX stock traded down $1.57 during mid-day trading on Friday, hitting $20.91. The company had a trading volume of 4,774,228 shares, compared to its average volume of 3,940,470. The firm has a market cap of $3.90 billion, a PE ratio of 10.72, a price-to-earnings-growth ratio of 0.67 and a beta of 0.83. Garrett Motion has a 12 month low of $15.54 and a 12 month high of $36.25. The stock’s fifty day moving average price is $25.54 and its two-hundred day moving average price is $25.34.

Garrett Motion Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Tuesday, December 1st. Garrett Motion’s payout ratio is 17.58%.

More Garrett Motion News

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

• Positive Sentiment: Garrett reported third-quarter adjusted earnings of $0.51 per share, above the $0.45 analyst consensus and up from $0.38 a year earlier. Net sales rose 3% year over year to $930 million, while adjusted EBIT reached $152 million, or a 16.3% margin. Garrett Motion Q3 Earnings Surpass Estimates
• Positive Sentiment: The company announced a $250 million share-repurchase program for 2027, which could support earnings per share and signal management confidence in the stock’s valuation. Garrett also generated $136 million in adjusted free cash flow during the quarter. Garrett Motion Reports Q3 Results and Announces Repurchase Program
• Positive Sentiment: Garrett reaffirmed its 2026 full-year outlook and cited stronger-than-expected industrial growth, new turbocharger awards, and progress toward 2027 launches for electric powertrain and electric-cooling compressor products. The company also declared a quarterly dividend of $0.08 per share.
• Neutral Sentiment: Director Steven Tesoriere resigned from the board after representing Oaktree Capital Management. The company described the departure as orderly and praised his contributions, but the change may prompt some investor questions about governance and shareholder representation. Garrett Motion Announces Board Retirement
• Negative Sentiment: Although earnings exceeded estimates, quarterly revenue of $930 million was below the FactSet forecast of $935.2 million. Investors may also have been disappointed that Garrett reaffirmed, rather than raised, its full-year guidance despite the strong quarter. Garrett Motion Q3 Revenue Report

Insider Buying and Selling at Garrett Motion

In other news, SVP Daniel Deiro sold 30,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $26.70, for a total transaction of $801,000.00. Following the completion of the sale, the senior vice president owned 133,783 shares in the company, valued at $3,572,006.10. This trade represents a 18.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Garrett Motion

Several institutional investors have recently bought and sold shares of the company. Persistent Asset Partners Ltd bought a new stake in Garrett Motion during the 2nd quarter valued at $27,000. Root Financial Partners LLC purchased a new position in shares of Garrett Motion in the third quarter valued at $32,000. Signature Equity Partners LLC purchased a new position in shares of Garrett Motion in the third quarter valued at $35,000. Farther Finance Advisors LLC grew its position in shares of Garrett Motion by 39.6% in the third quarter. Farther Finance Advisors LLC now owns 1,679 shares of the company’s stock valued at $44,000 after purchasing an additional 476 shares in the last quarter. Finally, Summit Securities Group LLC bought a new stake in shares of Garrett Motion during the 1st quarter valued at $60,000. Hedge funds and other institutional investors own 86.27% of the company’s stock.

Wall Street Analyst Weigh In

GTX has been the topic of a number of research reports. Zacks Research lowered Garrett Motion from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. JPMorgan Chase & Co. decreased their price objective on Garrett Motion from $37.00 to $35.00 and set an “overweight” rating for the company in a report on Tuesday, September 15th. Weiss Ratings downgraded Garrett Motion from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, October 22nd. Deutsche Bank Aktiengesellschaft upgraded Garrett Motion from a “hold” rating to a “buy” rating and raised their target price for the company from $33.00 to $36.00 in a report on Thursday, July 30th. Finally, Wall Street Zen cut Garrett Motion from a “buy” rating to a “hold” rating in a research report on Saturday, October 3rd. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Garrett Motion presently has a consensus rating of “Moderate Buy” and a consensus target price 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.