Garrett Motion, Inc. (GTX)
NASDAQ:GTX
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Garrett Motion
(NASDAQ:GTX)
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Rating:68Neutral
Price Target:
$33.00
▲(65.75% Upside)
Action:Reiterated
Date:05/21/26
The score is primarily held back by financial risk factors—especially persistent negative equity and a sharp TTM revenue decline—despite solid profitability and strong recent cash flow. Offsetting this, the stock shows strong upward technical momentum and appears attractively valued on earnings, while the latest earnings call was constructive with raised guidance tempered by macro and tariff-related uncertainty.
Positive Factors
Strong free cash flow generation
TTM OCF of ~$455M and FCF ~$409M with ~19.9% FCF growth demonstrates durable cash generation. Reliable free cash provides funding for R&D, capex, dividends and buybacks, aiding deleveraging and strategic investment capacity through multi‑quarter cycles.
Negative Factors
Negative shareholders' equity
Persistent negative equity (~-$781M) is a structural balance sheet weakness. It limits financial flexibility, complicates large investments or acquisitions, increases refinancing and covenant risk, and creates unfavorable leverage optics that can constrain strategic options over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
TTM OCF of ~$455M and FCF ~$409M with ~19.9% FCF growth demonstrates durable cash generation. Reliable free cash provides funding for R&D, capex, dividends and buybacks, aiding deleveraging and strategic investment capacity through multi‑quarter cycles.
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
$6.13B
Dividend Yield1.49%
Average Volume (3M)3.05M
Price to Earnings (P/E)18.1
Beta (1Y)1.22
Revenue Growth7.36%
EPS Growth34.94%
CountryUS
Employees6,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.76
Shares Outstanding187,188,500
10 Day Avg. Volume2,952,116
30 Day Avg. Volume3,050,514
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 Cap1.22
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit8.33
Enterprise Value/Ebitda11.92
Forecast
1Y Price Target
$32.20Price Target Upside61.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.9
Revenue Forecast (FY)$3.79B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 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
62
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.69B | 3.58B | 3.48B | 3.89B | 3.60B | 3.63B |
| Gross Profit | 895.00M | 878.00M | 889.00M | 908.00M | 840.00M | 859.00M |
| EBITDA | 626.00M | 592.00M | 590.00M | 597.00M | 664.00M | 724.00M |
| Net Income | 343.00M | 310.00M | 282.00M | 261.00M | 390.00M | 495.00M |
Balance Sheet | ||||||
| Total Assets | 2.37B | 2.37B | 2.28B | 2.53B | 2.64B | 2.71B |
| Cash, Cash Equivalents and Short-Term Investments | 142.00M | 179.00M | 126.00M | 260.00M | 248.00M | 464.00M |
| Total Debt | 1.47B | 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 | -781.00M | -802.00M | -673.00M | -735.00M | -116.00M | -468.00M |
Cash Flow | ||||||
| Free Cash Flow | 380.00M | 341.00M | 317.00M | 382.00M | 284.00M | -382.00M |
| Operating Cash Flow | 455.00M | 413.00M | 408.00M | 465.00M | 375.00M | -310.00M |
| Investing Cash Flow | -45.00M | -41.00M | -14.00M | -55.00M | -91.00M | -71.00M |
| Financing Cash Flow | -400.00M | -326.00M | -520.00M | -403.00M | -482.00M | 139.00M |
Garrett Motion Technical Analysis
Positive
19.91
Price Trends
23.64
Positive
21.21
Positive
18.07
Positive
Market Momentum
2.90
Positive
72.26
Negative
78.81
Neutral
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 19.91 is below the 20-day moving average (MA) of 30.20, below the 50-day MA of 23.64, and above the 200-day MA of 18.07, indicating a bullish trend. The MACD of 2.90 indicates Positive momentum. The RSI at 72.26 is Negative, neither overbought nor oversold. The STOCH value of 78.81 is Neutral, 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 | $7.17B | 13.83 | 10.41% | 2.63% | 2.86% | 17.30% | |
74 Outperform | $3.16B | 19.20 | 11.08% | 0.57% | -2.04% | -43.19% | |
70 Outperform | $2.86B | 21.20 | 8.88% | 1.77% | 6.86% | 104.75% | |
68 Neutral | $6.13B | 18.08 | -42.77% | 1.49% | 7.36% | 34.94% | |
64 Neutral | $9.42B | 17.57 | 29.49% | 1.07% | 13.99% | -25.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.83B | -24.02 | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
GTX
Garrett Motion
32.76
22.71
225.84%
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118.29
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PHIN
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Garrett Motion Corporate Events
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.