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Garrett Motion
(NASDAQ:GTX)
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Rating:63Neutral
Price Target:
$30.00
▲(14.20% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by mixed fundamentals: strong current profitability and cash generation are offset by a high-risk balance-sheet structure (persistent negative equity and meaningful debt). The latest earnings call improves the outlook with raised guidance and strong margin/FCF execution, while technical indicators remain a notable near-term headwind due to weak momentum and the stock trading below key moving averages. Valuation is reasonable (P/E ~15.5) with a modest dividend yield.
Positive Factors
Raised guidance and margin execution
Higher full-year guidance after strong first-half results indicates effective execution, productivity gains and resilient pricing or mix. Sustained delivery would support earnings growth and demonstrate that Garrett can outperform softer vehicle volumes.
Negative Factors
Negative equity and significant debt
Persistent negative equity weakens financial flexibility and makes leverage harder to evaluate through conventional equity measures. Although debt has declined, the sizable obligation base leaves Garrett more exposed to downturns, refinancing needs and earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised guidance and margin execution
Higher full-year guidance after strong first-half results indicates effective execution, productivity gains and resilient pricing or mix. Sustained delivery would support earnings growth and demonstrate that Garrett can outperform softer vehicle volumes.
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
$5.05B
Dividend Yield1.09%
Average Volume (3M)2.49M
Price to Earnings (P/E)14.7
Beta (1Y)1.20
Revenue Growth8.47%
EPS Growth29.11%
CountryUS
Employees6,300
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
$37.75Price Target Upside43.70% 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:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported strong top-line growth, record adjusted EBIT and margin expansion, robust free cash flow with an 80% conversion rate, improved liquidity and balance sheet actions, active capital returns, and multiple product and technology wins (including industrial and zero-emission initiatives). The management raised full-year guidance across key metrics despite a softer light-vehicle industry backdrop and FX headwinds. Lowlights are primarily macro-related (softer light-vehicle demand, FX pressure, and timing of large industrial award contributions), but these were outweighed by operational execution, share gains, productivity improvements and technology momentum.Positive Updates
Revenue Growth
Net sales of $976 million in Q2, up $63 million year-over-year (7% reported, 5% constant currency). Company raised 2026 net sales midpoint to $3.8 billion, implying ~4% growth at constant currency.
Negative Updates
Softer Light Vehicle Industry and Lower H2 Volumes
Company updated industry outlook to reflect softer light vehicle demand and expects slightly lower light vehicle volumes in H2, though it expects to outperform the market via share gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $976 million in Q2, up $63 million year-over-year (7% reported, 5% constant currency). Company raised 2026 net sales midpoint to $3.8 billion, implying ~4% growth at constant currency.
Read all positive updates
Company Guidance
Garrett raised its 2026 outlook after a strong first half, now targeting full‑year net sales of about $3.8 billion (≈4% growth at constant currency), adjusted EBIT of $580 million (≈15.3% margin, guide range ~15.2–15.3%) and adjusted free cash flow of $430 million — a $20 million full‑year uplift to adjusted EBIT versus the prior midpoint. In Q2 the company reported net sales of $976 million (+7% reported, +5% cc), adjusted EBIT of $152 million (15.6% margin, +200 bps YoY with an ~80 bp FX headwind), adjusted free cash flow of $122 million (80% conversion), total liquidity of $788 million ($630 million revolver capacity, $158 million unrestricted cash), net leverage of 1.8x (down QoQ), a $50 million voluntary term‑loan repayment, $28 million of Q2 share repurchases (YTD $115m), $15 million of dividends paid (Q3 dividend declared at $0.08/share), and industrial turbo sales on pace to reach roughly $200 million for the year after >$80 million sold so far; currency assumptions were also updated to reflect a stronger USD versus the euro and management expects to outperform softer light‑vehicle industry volumes through mix and share gains.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
Neutral
26.27
Price Trends
30.99
Negative
29.06
Negative
23.48
Positive
Market Momentum
-1.22
Positive
40.78
Neutral
34.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTX, the sentiment is Neutral. The current price of 26.27 is below the 20-day moving average (MA) of 28.67, below the 50-day MA of 30.99, and above the 200-day MA of 23.48, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $6.14B | 11.47 | 10.90% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $10.63B | 20.37 | 27.88% | 0.92% | 37.56% | -28.71% | |
63 Neutral | $5.05B | 14.67 | -46.50% | 0.95% | 8.47% | 29.11% | |
63 Neutral | $2.77B | 18.03 | 9.71% | 1.23% | -1.13% | -47.30% | |
63 Neutral | $2.57B | 19.28 | 8.62% | 1.45% | 7.65% | 35.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $3.24B | -18.79 | -13.31% | 1.63% | -15.78% | -355.78% |
* Consumer Cyclical Sector Average
GTX
Garrett Motion
27.43
14.65
114.55%
ALSN
Allison Transmission Holdings
129.16
42.77
49.50%
DAN
Dana Incorporated
30.06
10.22
51.52%
LEA
Lear
123.57
16.37
15.27%
VC
Visteon
100.98
-21.77
-17.73%
PHIN
PHINIA Inc.
68.07
10.35
17.94%
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.