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Garrett Motion
(NASDAQ:GTX)
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Rating:61Neutral
Price Target:
$33.00
▲(4.73% Upside)
Action:Reiterated
Date:07/31/26
GTX scores 61 primarily due to solid profitability and strong current cash generation, offset by significant balance-sheet risk from persistently negative equity and sizable debt. The latest earnings call adds support via raised guidance and strong Q1 execution, while technicals are mixed with near-term weakness (below 20/50-day averages) despite a positive longer-term trend. Valuation appears reasonable (P/E 17) with a modest dividend, and recent refinancing/repayment actions provide a smaller additional tailwind.
Positive Factors
Strong cash generation
Consistent trailing‑twelve‑month operating and free cash flow provide durable internal funding for capital investments, R&D and shareholder returns. High FCF conversion supports deleveraging, program funding and resilience across multi‑year OEM cycles, improving strategic optionality.
Negative Factors
Persistently negative equity and sizable debt
Negative shareholders' equity and meaningful debt constrain financial flexibility, complicate covenant and refinancing dynamics, and raise bankruptcy sensitivity in severe downturns. This structural balance‑sheet weakness limits strategic options and increases cost of capital over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent trailing‑twelve‑month operating and free cash flow provide durable internal funding for capital investments, R&D and shareholder returns. High FCF conversion supports deleveraging, program funding and resilience across multi‑year OEM cycles, improving strategic optionality.
Read all positive factors
Garrett Motion Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Breaks down revenue by region (e.g., North America, Europe, Asia), showing where Garrett earns most of its sales. Highlights exposure to key auto markets, regional economic and demand cycles, currency effects, and geopolitical or supply-chain risks that could affect future growth.
Breaks down revenue by region (e.g., North America, Europe, Asia), showing where Garrett earns most of its sales. Highlights exposure to key auto markets, regional economic and demand cycles, currency effects, and geopolitical or supply-chain risks that could affect future growth.
Data provided by:
The Fly
The FlyGarrett Motion (GTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.81B
Dividend Yield0.96%
Average Volume (3M)2.49M
Price to Earnings (P/E)16.7
Beta (1Y)1.22
Revenue Growth8.47%
EPS Growth29.11%
CountryUS
Employees6,700
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.87
Shares Outstanding186,493,410
10 Day Avg. Volume1,952,913
30 Day Avg. Volume2,493,161
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.75Price Target Upside16.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.95
Revenue Forecast (FY)$3.81B
Garrett Motion Business Overview & Revenue Model
Company Description
Garrett Motion Inc., together with its global subsidiaries, specializes in the development, production, and sale of advanced turbocharging and electric-boosting systems. These innovative technologies are supplied to original equipment manufacturer...
How the Company Makes Money
Garrett primarily makes money by selling turbochargers and related air-management products to automotive OEMs for installation on new vehicles and powertrains. Revenue is largely tied to (1) series production programs, where Garrett supplies turbo...
Garrett Motion Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial performance: solid Q1 revenue growth (12% reported, 6% constant currency), improved adjusted EBIT and margin (15.3%), positive adjusted free cash flow ($49M), multiple strategic technology wins (E-Powertrain and industrial cooling compressors) and active capital returns. Management increased the midpoint/high end of the 2026 outlook while retaining the low end due to macro and geopolitical uncertainty. Near-term headwinds include muted industry light-vehicle production, temporary working capital use, tariff pass-throughs and early-stage timing impacts from productivity actions, but liquidity and leverage remain healthy and management expects operating performance to improve through the year.Positive Updates
Top-line Growth
Net sales of $985 million in Q1, up $107 million year-over-year (12% reported, 6% at constant currency), driven by double-digit growth in commercial vehicle, industrial and aftermarket, plus gasoline share gains.
Negative Updates
Muted Industry and Production Headwinds
Light vehicle production was down in Q1 and the broader industry remains muted, prompting management to keep the low end of the 2026 outlook unchanged despite raising mid/high points.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth
Net sales of $985 million in Q1, up $107 million year-over-year (12% reported, 6% at constant currency), driven by double-digit growth in commercial vehicle, industrial and aftermarket, plus gasoline share gains.
Read all positive updates
Company Guidance
Garrett raised the midpoint and high end of its 2026 outlook while keeping the low end unchanged, now implying midpoints of $3.75 billion in net sales (≈2% constant‑currency growth), $560 million of adjusted EBIT (14.9% margin) and $415 million of adjusted free cash flow; this upgrade was supported by a strong Q1 (net sales $985 million, +6% cc / $107 million, +12% reported YoY; adjusted EBIT $151 million, 15.3% margin; adjusted free cash flow $49 million). Management expects demand to remain strong through H1 driven by light‑vehicle share gains, commercial‑vehicle recovery and industrial growth (notably stationary power generation), but is maintaining the low end of the range given macro and geopolitical uncertainty. Liquidity stood at $772 million ( $630 million undrawn revolver + $142 million unrestricted cash) with net leverage ~1.92x; capital returned in Q1 included $87 million of share repurchases (under a $250 million program) and $16 million of dividends (Q2 dividend declared at $0.08 per share), and the company continues to target returning ~75% of adjusted FCF to shareholders over time.Garrett Motion Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.75B | 3.58B | 3.48B | 3.89B | 3.60B | 3.63B |
| Gross Profit | 731.00M | 878.00M | 889.00M | 908.00M | 840.00M | 859.00M |
| EBITDA | 508.00M | 596.00M | 590.00M | 597.00M | 664.00M | 724.00M |
| Net Income | 357.00M | 310.00M | 282.00M | 261.00M | 390.00M | 495.00M |
Balance Sheet | ||||||
| Total Assets | 2.47B | 2.37B | 2.28B | 2.53B | 2.64B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 158.00M | 179.00M | 126.00M | 260.00M | 248.00M | 464.00M |
| Total Debt | 1.42B | 1.51B | 1.52B | 1.69B | 1.20B | 1.63B |
| Total Liabilities | 3.15B | 3.17B | 2.95B | 3.26B | 2.75B | 3.17B |
| Stockholders Equity | -675.00M | -802.00M | -673.00M | -735.00M | -116.00M | -468.00M |
Cash Flow | ||||||
| Free Cash Flow | 365.00M | 341.00M | 317.00M | 382.00M | 284.00M | -382.00M |
| Operating Cash Flow | 442.00M | 413.00M | 408.00M | 465.00M | 375.00M | -310.00M |
| Investing Cash Flow | -53.00M | -41.00M | -14.00M | -55.00M | -91.00M | -71.00M |
| Financing Cash Flow | -459.00M | -326.00M | -520.00M | -403.00M | -482.00M | 139.00M |
Garrett Motion Technical Analysis
Negative
31.51
Price Trends
32.39
Negative
27.67
Positive
22.67
Positive
Market Momentum
-0.48
Positive
41.66
Neutral
51.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTX, the sentiment is Negative. The current price of 31.51 is above the 20-day moving average (MA) of 31.12, below the 50-day MA of 32.39, and above the 200-day MA of 22.67, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $6.54B | 12.13 | 10.90% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $9.50B | 17.73 | 27.88% | 0.92% | 13.99% | -25.70% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
62 Neutral | $2.70B | 20.85 | 8.62% | 1.45% | 7.65% | 35.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $5.81B | 16.66 | -46.50% | 0.95% | 8.47% | 29.11% | |
55 Neutral | $2.90B | -19.80 | -13.31% | 1.63% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
GTX
Garrett Motion
29.85
17.58
143.22%
ALSN
Allison Transmission Holdings
118.88
31.63
36.25%
DAN
Dana Incorporated
28.44
10.90
62.17%
LEA
Lear
122.84
29.61
31.76%
VC
Visteon
104.13
-7.92
-7.07%
PHIN
PHINIA Inc.
74.91
23.13
44.66%
Garrett Motion Corporate Events
Business Operations and StrategyExecutive/Board Changes
Garrett Motion strengthens board with new independent director
Positive
Jul 27, 2026
On July 21, 2026, Garrett Motion’s Board of Directors appointed veteran powertrain executive Dave Crompton as an independent director and member of its Technology Innovation Committee. Crompton’s four decades of leadership experience ...
Executive/Board ChangesShareholder Meetings
Garrett Motion Shareholders Reelect Board, Back Executive Pay
Positive
Jun 1, 2026
On May 28, 2026, Garrett Motion Inc. held its 2026 Annual Meeting of Shareholders, where shareholders elected eight directors, including Daniel Ninivaggi and CEO Olivier Rabiller, to serve until the 2027 annual meeting. The board’s compositi...
Business Operations and StrategyPrivate Placements and Financing
Garrett Motion Reprices Term Loan and Reduces Debt
Positive
May 20, 2026
On May 18, 2026, Garrett Motion Inc. amended its existing credit agreement to reprice its U.S. dollar term loan facility and completed a $50 million early repayment on its $635 million term loan due 2032. The repriced borrowings will now accrue in...
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.