Garrett Motion (GTX)
NASDAQ:GTX
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Garrett Motion
(NASDAQ:GTX)
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Rating:63Neutral
Price Target:
$18.00
▼(-1.85% Downside)
Action:ReiteratedDate:02/19/26
GTX scores moderately: strong technical momentum and a constructive earnings outlook with solid cash generation and capital returns are the key positives. These are meaningfully offset by elevated financial risk from a structurally weak balance sheet (persistent negative equity and high debt) and some earnings-quality volatility.
Positive Factors
Cash generation & FCF conversion
Consistent positive operating cash flow since 2022 and ~80% free-cash-flow conversion in 2025 demonstrate durable cash generation. Strong FCF and $807M liquidity support capex-light growth, shareholder returns and investment in new tech without relying on external funding.
Negative Factors
Persistent negative equity and leverage
A structurally weak balance sheet with persistent negative equity and sizable debt reduces financial flexibility. In a downturn this raises refinancing and covenant risks, limits capacity for defensive investments, and increases the probability of dilutive or costly capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF conversion
Consistent positive operating cash flow since 2022 and ~80% free-cash-flow conversion in 2025 demonstrate durable cash generation. Strong FCF and $807M liquidity support capex-light growth, shareholder returns and investment in new tech without relying on external funding.
Read all positive factors
Garrett Motion (GTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.37B
Dividend Yield1.49%
Average Volume (3M)2.49M
Price to Earnings (P/E)11.2
Beta (1Y)1.18
Revenue Growth-1.09%
EPS Growth56.16%
CountryUS
Employees6,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.43
Shares Outstanding189,971,050
10 Day Avg. Volume2,419,365
30 Day Avg. Volume2,492,429
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)-4.34
Price to Sales (P/S)0.97
P/FCF Ratio10.21
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit5.45
Enterprise Value/Ebitda8.02
Forecast
1Y Price Target
$22.67Price Target Upside23.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.77
Revenue Forecast (FY)$3.70B
Garrett Motion Business Overview & Revenue Model
Company Description
Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide. The company offers light vehicle gas...
How the Company Makes Money
Garrett primarily makes money by selling turbochargers and related components/systems to vehicle and engine manufacturers (OEMs) for installation on new vehicles and engines. This OEM business typically generates revenue based on production volume...
Garrett Motion Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial performance in 2025 (robust sales, healthy margins, very strong free cash flow and disciplined capital returns) alongside accelerating diversification into zero-emission and industrial cooling markets with meaningful partnerships (Trane) and production awards. Offsetting these positives were near-term headwinds: Q4 margin dilution from unfavorable mix and one-time charges, aftermarket softness (notably North America), regional gasoline/diesel volume weakness (Asia and Europe), and exposure to a modestly down global light-vehicle industry. On balance the operational strength, cash generation, share gains, technology wins and clear multi-year growth avenues materially outweigh the cited short-term challenges.Positive Updates
Strong Full-Year Financial Performance
Full-year 2025 net sales of $3.58 billion and adjusted EBIT of $510 million representing a 14.2% adjusted EBIT margin; adjusted free cash flow for the year was $403 million, with free cash flow conversion near 80%.
Negative Updates
Q4 Sequential Margin Pressure and One-Time Headwinds
Q4 adjusted EBIT margin declined by ~100 basis points sequentially driven by unfavorable product mix and one-time headwinds; tariffs diluted margin by ~20 basis points in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Full-year 2025 net sales of $3.58 billion and adjusted EBIT of $510 million representing a 14.2% adjusted EBIT margin; adjusted free cash flow for the year was $403 million, with free cash flow conversion near 80%.
Read all positive updates
Company Guidance
Garrett's 2026 guidance midpoint assumes a modest industry backdrop (global light-vehicle units -2%, BEV penetration ~19%, commercial vehicle +1.5%) and implies net sales of $3.7 billion, net income of $315 million and adjusted EBIT of $545 million (14.7% margin, +50 bps vs. 2025), with net cash provided by operating activities of $455 million and adjusted free cash flow of $405 million. Management expects margin expansion driven primarily by higher volumes and continued productivity that will offset unfavorable pricing, net inflation and mix; capital expenditures are guided at 2.5% of sales and RD&E at 4.2% of sales (with ~50% of RD&E toward zero-emission technologies and industrial cooling). The firm reiterated its capital-allocation framework—targeting distribution of ~75% of adjusted free cash flow to shareholders—authorized a $250 million repurchase program for 2026 and declared a $0.08 per share Q1 dividend, while closing 2025 with $807 million of liquidity, net leverage of ~1.9x, FY2025 net sales $3.58 billion, adjusted EBIT $510 million (14.2%), and adjusted free cash flow $403 million (≈80% conversion).Garrett Motion Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.58B | 3.48B | 3.89B | 3.60B | 3.63B |
| Gross Profit | 878.00M | 889.00M | 908.00M | 840.00M | 859.00M |
| EBITDA | 596.00M | 590.00M | 597.00M | 664.00M | 724.00M |
| Net Income | 310.00M | 282.00M | 261.00M | 390.00M | 495.00M |
Balance Sheet | |||||
| Total Assets | 2.37B | 2.28B | 2.53B | 2.64B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 179.00M | 126.00M | 260.00M | 248.00M | 464.00M |
| Total Debt | 1.51B | 1.52B | 1.69B | 1.20B | 1.63B |
| Total Liabilities | 3.17B | 2.95B | 3.26B | 2.75B | 3.17B |
| Stockholders Equity | -802.00M | -673.00M | -735.00M | -116.00M | -468.00M |
Cash Flow | |||||
| Free Cash Flow | 341.00M | 317.00M | 382.00M | 284.00M | -382.00M |
| Operating Cash Flow | 413.00M | 408.00M | 465.00M | 375.00M | -310.00M |
| Investing Cash Flow | -41.00M | -14.00M | -55.00M | -91.00M | -71.00M |
| Financing Cash Flow | -326.00M | -520.00M | -403.00M | -482.00M | 139.00M |
Garrett Motion Technical Analysis
Positive
18.34
Price Trends
18.74
Negative
17.88
Positive
15.18
Positive
Market Momentum
-0.30
Negative
49.94
Neutral
81.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTX, the sentiment is Positive. The current price of 18.34 is above the 20-day moving average (MA) of 18.29, below the 50-day MA of 18.74, and above the 200-day MA of 15.18, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTX.
Garrett Motion Risk Analysis
Garrett Motion disclosed 29 risk factors in its most recent earnings report. Garrett Motion reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Garrett Motion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.48B | 13.20 | 34.97% | 1.07% | -4.21% | -0.45% | |
72 Outperform | $6.00B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.36B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
68 Neutral | $2.54B | 19.35 | 8.21% | 1.77% | -0.72% | -4.90% | |
63 Neutral | $3.37B | 11.23 | -39.65% | 1.49% | -1.09% | 56.16% | |
62 Neutral | $3.54B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
GTX
Garrett Motion
17.76
9.74
121.31%
ALSN
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114.46
19.49
20.53%
DAN
Dana Incorporated
32.55
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152.46%
LEA
Lear
118.26
32.84
38.45%
VC
Visteon
87.83
10.18
13.11%
PHIN
PHINIA Inc.
67.11
24.88
58.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.