Garrett Motion (NASDAQ:GTX) Posts Earnings Results, Beats Estimates By $0.06 EPS

Garrett Motion (NASDAQ:GTX) issued its earnings results on Thursday. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.06, FiscalAI reports. The company had revenue of $930.00 million for the quarter. Garrett Motion had a net margin of 9.51% and a negative return on equity of 46.50%. The company’s quarterly revenue was up 3.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.38 earnings per share.

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

NASDAQ GTX traded down $1.59 during mid-day trading on Friday, hitting $20.89. The company’s stock had a trading volume of 1,466,571 shares, compared to its average volume of 2,721,880. The firm has a market capitalization of $3.90 billion, a P/E ratio of 11.50, a price-to-earnings-growth ratio of 0.67 and a beta of 0.83. Garrett Motion has a 52-week low of $15.54 and a 52-week high of $36.25. The stock’s fifty day simple moving average is $25.65 and its two-hundred day simple moving average is $25.33.

Garrett Motion Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued 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 1.5%. Garrett Motion’s payout ratio is presently 17.58%.

Trending Headlines about 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 versus the $0.45 consensus, up from $0.38 a year earlier. Revenue increased 3.1% year over year to $930 million, while adjusted EBIT reached $152 million, or a 16.3% margin. Garrett Motion Q3 earnings report
• Positive Sentiment: Shareholder returns were strengthened. Garrett announced a $250 million share-repurchase program for 2027 and declared a quarterly dividend of $0.08 per share, equivalent to $0.32 annually and a yield of approximately 1.4%. Garrett Motion Q3 results and buyback announcement
• Positive Sentiment: Industrial and new-technology demand remained encouraging. The company cited stronger-than-expected industrial growth, multiple turbocharger wins, and progress toward 2027 launches for electric powertrain and e-cooling products, including data-center cooling applications. Garrett Motion data-center cooling technology

Insider Activity at Garrett Motion

In related news, SVP Daniel Deiro sold 30,000 shares of the company’s stock in a transaction 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 directly owned 133,783 shares of the company’s stock, valued at approximately $3,572,006.10. This represents a 18.32% decrease in their position. The sale was disclosed in a document filed 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. Corporate insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Garrett Motion

Several hedge funds have recently modified their holdings of the stock. Persistent Asset Partners Ltd bought a new stake in Garrett Motion during the second quarter valued at $27,000. Root Financial Partners LLC acquired a new position in shares of Garrett Motion during the third quarter valued at $32,000. Signature Equity Partners LLC acquired a new stake in shares of Garrett Motion in the 3rd quarter worth about $35,000. Farther Finance Advisors LLC boosted its stake in Garrett Motion by 39.6% during the 3rd 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 during the period. Finally, Summit Securities Group LLC acquired a new stake in shares of Garrett Motion in the first quarter valued at approximately $60,000. 86.27% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

About Garrett Motion

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.