Garrett Motion (NASDAQ:GTX) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Garrett Motion (NASDAQ:GTX) released its quarterly earnings results on Wednesday. The company reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.46 by $0.07, FiscalAI reports. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The company had revenue of $976.00 million during the quarter. During the same period in the previous year, the company earned $0.42 earnings per share. Garrett Motion’s quarterly revenue was up 6.9% on a year-over-year basis.

Here are the key takeaways from Garrett Motion’s conference call:

• Strong second-quarter performance: Net sales rose 7% year over year to $976 million, while Adjusted EBIT increased 22% to a record $152 million, with margin expanding 200 basis points to 15.6%.
• Garrett generated $122 million of Adjusted Free Cash Flow, repaid $50 million of term debt, reduced net leverage to 1.8 times, and returned capital through $28 million of share repurchases and $15 million of dividends.
• Full-year 2026 guidance was raised: The company now expects approximately $3.8 billion of sales, $580 million of Adjusted EBIT at a 15.3% margin, and $430 million of Adjusted Free Cash Flow, with the EBIT outlook lifted by $20 million at the midpoint.
• Industrial demand is accelerating, particularly for power-generation turbochargers, with full-year industrial sales now expected to reach about $200 million versus roughly $100 million-plus previously anticipated; Garrett also secured new genset awards, including its first MEG200 data-center power-generation award.
• Management acknowledged softer light-vehicle production and continued macroeconomic and geopolitical uncertainty, although share gains and stronger commercial-vehicle and industrial demand are expected to offset much of the weakness. Zero-emission initiatives—including electric powertrain, e-cooling, and air-compressor programs—continue progressing, with initial data-center production expected between late 2027 and early 2028.

Garrett Motion Stock Performance

Shares of NASDAQ GTX opened at $28.78 on Thursday. Garrett Motion has a 52-week low of $12.26 and a 52-week high of $36.25. The firm has a market capitalization of $5.39 billion, a price-to-earnings ratio of 16.83, a PEG ratio of 0.89 and a beta of 0.78. The stock has a 50 day moving average price of $32.74 and a 200 day moving average price of $24.75.

Garrett Motion Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $0.08 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.1%. Garrett Motion’s payout ratio is presently 18.71%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. BWS Financial restated a “buy” rating and issued a $42.00 price target on shares of Garrett Motion in a research note on Monday, July 6th. Zacks Research downgraded Garrett Motion from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Freedom Capital downgraded Garrett Motion from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 4th. Stifel Nicolaus boosted their price target on Garrett Motion from $29.00 to $36.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. Finally, JPMorgan Chase & Co. lifted their target price on Garrett Motion from $30.00 to $33.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $37.80.

Key Stories Impacting Garrett Motion

Here are the key news stories impacting Garrett Motion this week:

• Positive Sentiment: Second-quarter earnings beat estimates: Garrett Motion reported adjusted earnings of $0.53 per share, compared with the $0.46 consensus estimate and $0.42 in the year-ago period. Revenue increased 6.9% year over year to $976 million. Garrett Motion Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Solid operating performance: Second-quarter net income was $101 million, adjusted EBIT reached $152 million with a 15.6% margin, and adjusted free cash flow totaled $122 million. Sales growth was driven by gains in passenger vehicles as well as strong commercial-vehicle and industrial demand. Garrett Motion Reports Strong Second Quarter 2026 Results
• Positive Sentiment: 2026 outlook increased: Management raised its full-year outlook and projected revenue of approximately $3.7 billion to $3.9 billion, broadly in line with the $3.8 billion analyst consensus. The higher forecast reinforces expectations for continued earnings momentum. Garrett Motion Q2 2026 Earnings Call Highlights
• Positive Sentiment: New business wins improve visibility: Garrett secured turbocharger programs in North America, China and India; multiple data-center genset awards; a commercial-vehicle e-powertrain development project with a Japanese truck maker; and an industrial air-compression production award. Garrett Motion Business Highlights
• Neutral Sentiment: Dividend declared: The company announced a quarterly dividend of $0.08 per share, payable September 15 to shareholders of record September 1. The annualized yield is approximately 1.1%, providing modest shareholder income but likely having limited effect on the stock relative to the earnings update.

Insider Transactions at Garrett Motion

In other Garrett Motion news, CFO Sean Deason sold 110,000 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $31.93, for a total value of $3,512,300.00. Following the completion of the sale, the chief financial officer directly owned 261,909 shares in the company, valued at approximately $8,362,754.37. This represents a 29.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Thierry Mabru sold 70,000 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $33.00, for a total value of $2,310,000.00. Following the transaction, the senior vice president directly owned 147,956 shares in the company, valued at $4,882,548. The trade was a 32.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 213,834 shares of company stock valued at $6,918,710. Company insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Garrett Motion

A number of large investors have recently modified their holdings of the business. Convergence Investment Partners LLC boosted its stake in shares of Garrett Motion by 0.9% in the first quarter. Convergence Investment Partners LLC now owns 45,952 shares of the company’s stock worth $835,000 after buying an additional 423 shares during the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Garrett Motion by 22.3% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,450 shares of the company’s stock valued at $63,000 after buying an additional 629 shares during the period. Baron Wealth Management LLC increased its holdings in shares of Garrett Motion by 3.3% during the 1st quarter. Baron Wealth Management LLC now owns 27,324 shares of the company’s stock worth $496,000 after buying an additional 878 shares during the last quarter. Global Retirement Partners LLC increased its holdings in shares of Garrett Motion by 156.7% during the 4th quarter. Global Retirement Partners LLC now owns 1,589 shares of the company’s stock worth $28,000 after buying an additional 970 shares during the last quarter. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its position in shares of Garrett Motion by 2.6% during the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 38,895 shares of the company’s stock valued at $707,000 after buying an additional 995 shares during the period. Hedge funds and other institutional investors own 86.27% of the company’s stock.

About Garrett Motion

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.