EarningsQ3 2026 Earnings Report
MX:GTX Q3 2026 EPS Results
Actual EPS$9.58
Consensus EPS$8.49
Beat/MissBeat by +$1.09
One Year Ago EPS$7.89
MX:GTX Q3 2026 Revenue Results
Actual Revenue$17.47B
Expected Revenue$17.57B
Beat/MissMissed by -$98.18M
YoY Revenue Growth+3.10%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:GTX Upcoming Earnings
Garrett Motion's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:GTX Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
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.
Healthy Free Cash Flow and Cash Conversion
Adjusted free cash flow was $136 million in the quarter, in line with full-year expectations, with an 89% earnings-to-cash conversion. The company said cash flow benefited from lower cash taxes due to the timing of tax refunds.
Commercial Vehicle and Industrial Growth
Commercial vehicle and industrial applications delivered 23% organic year-over-year growth, supported by continued demand. Industrial sales are expected to reach $230 million in 2026 and about $300 million in 2027, representing 30% organic growth in 2027, primarily from power generation applications.
Progress Across Turbo Technologies
Garrett launched a new high-volume E-Turbo with Mercedes, secured multiple light-vehicle wins including hybrid programs and China domestic and export programs, won several commercial-vehicle programs across all regions, and launched a new off-road turbo application for recreational vehicles with Polaris.
Industrial Power Generation Outperforming Expectations
Growth in existing power-generation programs accelerated and exceeded prior expectations. Management stated that industrial sales are already above the previously discussed $250 million level by next year, with current industrial sales mostly consisting of genset applications.
Zero-Emission Technology Validation and Launch Progress
Garrett completed multiple light-vehicle E-Powertrain proof-of-concept tests that validated the value of its high-speed architecture. Heavy-duty commercial-vehicle applications are progressing through testing and industrialization to support a 2027 launch, while industrial cooling testing remains on track for 2027 launches.
New Multistack E-Cooling Compressor Award
Garrett secured an industrial E-Cooling Compressor award with new customer Multistack. The relationship covers multiple products and use cases, with deliveries for products already announced and ramping up from 2027 expected to begin next year.
Positive HVAC Testing Results
Testing of the systems in the field with Trane confirmed expectations for performance benefits versus existing solutions. Management said it was extremely pleased with the test results, while noting that application, customer-program selection, product sizing, and introduction timing remain under review.
Favorable Mix Supports Margin Expansion
Management said existing large turbo products for industrial applications carry favorable margins and that the installed capacity and operating expertise are already in place. As industrial becomes a larger percentage of sales, the company expects the favorable mix impact to continue; HVAC margins were also described as very good, with additional margin expansion expected as those products ramp, particularly post-2030.
Strong Liquidity and Balance-Sheet Improvement
Garrett ended the quarter with $841 million of total liquidity, including $630 million of available revolver capacity and $211 million of unrestricted cash. The company made a voluntary $50 million term-loan repayment in October, bringing year-to-date repayments to $100 million. Net leverage declined to 1.66 times, debt was over 95% fixed and swapped into EUR, the all-in cash interest rate was approximately 5.5%, and there were no near-term debt maturities.
Continued Shareholder Returns and New Repurchase Authorization
Garrett paid $15 million in dividends and repurchased $57 million of common stock during the quarter, bringing year-to-date repurchases to $172 million. The board declared a fourth-quarter dividend of $0.08 per share, payable in December, and authorized a new $250 million share-repurchase program for 2027.
2026 Outlook Reaffirmed and Ranges Narrowed
The company reaffirmed its midpoint outlook for all metrics, with strong operating performance expected to offset foreign-exchange headwinds, primarily in the fourth quarter. The updated 2026 outlook midpoints are net sales of $3.8 billion, or 4% growth at constant currency; Adjusted EBIT of $580 million, or a 15.3% margin; and adjusted free cash flow of $430 million, representing 74% conversion.
Share Gains and Chinese Export Positioning
Management said Garrett is growing despite regional market variation, indicating that it is picking up share of demand, consistent with its stated strategy. The company is already generating sales from turbos used in Chinese vehicles exported today, has made significant progress with Chinese customers over the last two to three years, and said it is well-positioned to support exporters outside China.
Long-Term Strategy and Investment Framework
Garrett reiterated its strategy of leveraging differentiated technologies and its execution model to drive shareholder value. Management said it is accelerating launches of new E-Cooling Compressor sizes, including prototypes of very large compressors, while remaining aligned with the financial framework presented in May, including its margin and CapEx framework.
MX:GTX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed