Garrett Motion (GTX) AI Stock Analysis

Garrett Motion

(NASDAQ:GTX)

Select Model

Rating:62Neutral

Price Target:$23.50▲(14.80% Upside)

Action:reiterated

Date:10/29/26

GTX scores as solid overall: strong cash generation and positive operational momentum (including reaffirmed/narrowed guidance and margin/FCF strength) support the rating, but this is meaningfully tempered by elevated balance-sheet risk from persistent negative equity and by weak current technical momentum.

Positive Factors

Strong Cash GenerationRobust operating and free cash flow gives Garrett meaningful capacity to fund product development, reduce debt, and return capital while supporting resilience through the automotive cycle. Healthy earnings-to-cash conversion also indicates that reported profitability is translating into usable financial resources.

Negative Factors

Strained Balance SheetPersistently negative equity and sizable debt reduce financial flexibility despite recent leverage improvement. This capital structure leaves Garrett more exposed to downturns, limits room for unexpected investment needs, and increases the importance of sustaining cash generation and disciplined debt reduction.

Garrett Motion Key Performance Indicators (KPIs)

Net Sales by GeographyBreaks 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.

Chart Insights

Europe has become the primary growth engine—its recent rebound accounts for most of Garrett’s topline momentum and underpins the company’s decision to raise mid/high 2026 guidance. Asia and the U.S. remain relatively flat, so further upside depends on European commercial‑vehicle and industrial wins (and emerging E‑Powertrain/compressor awards in China) converting to production. That geographic concentration increases sensitivity to regional production cycles and macro/geopolitical risk, which explains management’s continued caution at the low end of guidance.

Data provided by:

The Fly

Garrett Motion (GTX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.73B
Dividend Yield: 1.58%
Average Volume (3M): 3.00M
Price to Earnings (P/E): 10.1
Beta (1Y): 1.24
Revenue Growth: 6.93%
EPS Growth: 25.62%
Country: US
Employees: 6,300
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

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 manufacturers (...

How the Company Makes Money

Garrett Motion primarily makes money by selling turbochargers and related air management products to vehicle OEMs and, to a lesser extent, the aftermarket. Its core revenue stream is OE (original equipment) supply: Garrett wins platform/program award...

Garrett Motion Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-8.33%|Next Earnings Date:Feb 16, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Garrett reported solid third-quarter growth, significant Adjusted EBIT margin expansion, strong free cash flow, improved leverage, continued shareholder returns, multiple technology wins, and reaffirmed its 2026 outlook. The main challenges were foreign-exchange and tariff pass-through headwinds, declining Chinese domestic gasoline activity, and uncertainty around automotive markets and the timing of new industrial and HVAC program ramps, but these did not outweigh the reported operating momentum.

Positive Updates

Strong Third-Quarter Financial Performance

Net sales were $930 million, up 3% organically and up $28 million year over year, or 3% on both a reported and constant-currency basis. Adjusted EBIT was $152 million, with a 16.3% margin, up $19 million year over year and 160 basis points year over year, supported primarily by favorable product mix and a $13 million year-over-year operating performance improvement.

Negative Updates

Foreign-Exchange Headwinds

Foreign exchange created a 70-basis-point unfavorable impact on third-quarter Adjusted EBIT margin. Management expects foreign-exchange headwinds, primarily in the fourth quarter, to offset improvements from stronger operating performance in the full-year outlook.

Company Guidance

Garrett is reaffirming its midpoint outlook for all metrics and narrowing its guidance ranges across all measures, with 2026 midpoints of net sales of $3.8 billion, or 4% growth at constant currency, Adjusted EBIT of $580 million, equating to a 15.3% margin, and adjusted free cash flow of $430 million, representing a 74% conversion; strong operating performance and higher expectations for Adjusted EBIT and adjusted free cash flow are expected to be offset by foreign exchange headwinds, primarily in the fourth quarter. The company now expects industrial sales to reach $230 million this year and about $300 million in 2027, representing 30% organic growth.

Garrett Motion Financial Statement Overview

Summary

Profitability and cash flow are strong (TTM net margin ~9.5%, EBIT margin ~10.8%, and very healthy free cash flow), but the balance sheet is a major risk factor with persistently negative equity and sizable debt despite a downtrend in leverage.

Income Statement

72Positive

Balance Sheet

28Negative

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.78B	3.58B	3.48B	3.89B	3.60B	3.63B
Gross Profit	717.00M	878.00M	889.00M	908.00M	840.00M	859.00M
EBITDA	522.00M	596.00M	590.00M	597.00M	664.00M	724.00M
Net Income	377.00M	310.00M	282.00M	261.00M	390.00M	495.00M
Balance Sheet
Total Assets	2.53B	2.37B	2.28B	2.53B	2.64B	2.71B
Cash, Cash Equivalents and Short-Term Investments	211.00M	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	-618.00M	-802.00M	-673.00M	-735.00M	-116.00M	-468.00M
Cash Flow
Free Cash Flow	395.00M	341.00M	317.00M	382.00M	284.00M	-382.00M
Operating Cash Flow	477.00M	413.00M	408.00M	465.00M	375.00M	-310.00M
Investing Cash Flow	-60.00M	-41.00M	-14.00M	-55.00M	-91.00M	-71.00M
Financing Cash Flow	-435.00M	-326.00M	-520.00M	-403.00M	-482.00M	139.00M

Garrett Motion Technical Analysis

Technical Analysis SentimentNegative

Last Price20.47

Price Trends

50DMA25.41Negative

100DMA28.44Negative

200DMA25.32Negative

Market Momentum

MACD-1.37Positive

RSI24.46Positive

STOCH18.16Positive

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 20.47 is below the 20-day moving average (MA) of 23.69, below the 50-day MA of 25.41, and below the 200-day MA of 25.32, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 24.46 is Positive, neither overbought nor oversold. The STOCH value of 18.16 is Positive, 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.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Garrett Motion Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GTX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHIN	64Neutral	$2.26B	14.16	12.19%	1.65%	5.60%	125.39%
GTX	62Neutral	$3.86B	10.11	-52.43%	1.58%	6.93%	25.62%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BWA	60Neutral	$10.37B	21.65	8.61%	1.31%	0.42%	267.86%
VC	59Neutral	$1.81B	20.50	6.44%	1.84%	1.94%	-67.19%
DAN	55Neutral	$2.49B	-11.06	-16.24%	2.01%	-8.85%	-374.41%
APTV	52Neutral	$9.12B	42.12	2.41%	―	-5.40%	-75.68%

* Consumer Cyclical Sector Average

Performance Comparison

GTX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GTX	Garrett Motion, Inc.	20.22	3.01	17.47%
BWA	Borgwarner Inc	51.75	7.40	16.69%
DAN	Dana Incorporated	22.89	1.74	8.24%
APTV	Aptiv PLC	44.23	-26.60	-37.55%
VC	Visteon	76.05	-28.90	-27.54%
PHIN	PHINIA Inc.	70.79	18.24	34.71%

Garrett Motion Corporate Events

Business Operations and StrategyExecutive/Board Changes

Garrett Motion Director Resigns, Board Transitions Continue

Neutral

Oct 28, 2026

On October 26, 2026, Garrett Motion Inc. announced that Director Steven Tesoriere had resigned from its Board of Directors, effective at the close of business on October 28, 2026, ending a tenure that began in April 2021 when he joined as a designee...

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.

Date of analysis: Oct 29, 2026

Garrett Motion AI Stock Analysis