GTX

It has been about a month since the last earnings report for Garrett Motion (GTX). Shares have lost about 11.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Garrett Motion due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Garrett Motion Inc. before we dive into how investors and analysts have reacted as of late. Garrett Motion reported second-quarter 2026 earnings of 53 cents per share, beating the Zacks Consensus Estimate of 46 cents by 15.2%. Earnings increased 26.2% from 42 cents in the year-ago quarter.Net sales rose 6.9% year over year to $976 million and surpassed the consensus estimate of $964 million by 1.2%. Growth across all product verticals, productivity gains and a favorable business mix supported the performance. Adjusted EBIT margin expanded 200 basis points to 15.6%. Net sales increased 7% on a reported basis and 5% at constant currency. The improvement reflected share-of-demand gains in passenger vehicles, stronger commercial vehicle and industrial demand, and higher aftermarket volumes.Gasoline sales advanced 5% year over year, including 3% growth at constant currency. New application launches and program ramp-ups in Europe, India and South America supported the category.Diesel sales increased 8%, or 6% at constant currency, driven by light commercial vehicle and pickup truck demand across Europe, Asia and South America, along with program ramp-ups in India.Commercial vehicle and industrial sales climbed 10% year over year on both reported and constant-currency bases. Strong on-highway demand in China following program launches and higher North American genset activity for data centers contributed to the increase. Industrial turbo sales exceeded $80 million during the first half. The business is now expected to generate about $200 million in full-year sales, supported by power-generation demand.Aftermarket sales rose 8%, or 7% excluding currency effects, as volumes improved in Europe, China and Australia. Gross profit increased to $212 million from $181 million. Gross margin improved to 21.7% from 19.8%. Higher sales volumes, productivity, pricing net of inflation pass-through, lower research, development and engineering costs, and favorable product mix more than offset commodity, transportation and energy inflation.Adjusted EBIT rose $28 million year over year to a record $152 million. Higher volumes contributed $16 million, productivity added $10 million and pricing net of inflation pass-through provided $8 million. These benefits were partly offset by $8 million of inflation-related costs and a $5 million unfavorable currency impact. Net income totaled $101 million, up from $87 million a year earlier, while net income margin increased to 10.3% from 9.5%. The improvement was mainly driven by higher gross profit and lower interest expense, partially offset by increased taxes, lower non-operating income and higher selling, general and administrative expenses.Net cash provided by operating activities was $145 million, compared with $158 million in the prior-year period. Adjusted free cash flow edged up to $122 million from $121 million, representing 80% conversion from adjusted EBIT. Garrett ended the quarter with $788 million of liquidity, including $158 million in unrestricted cash and $630 million of available revolver capacity. The company repurchased $28 million of common stock during the quarter, bringing year-to-date buybacks to $115 million. Garrett also paid $15 million in dividends, while its board declared a third-quarter dividend of 8 cents per share.GTX voluntarily repaid $50 million of term-loan debt during the quarter. Total debt principal declined to $1.39 billion from $1.44 billion at the end of 2025. The company had $135 million remaining under its share-repurchase authorization at quarter-end. The company secured multiple turbocharger awards, including a large North American light vehicle program and several commercial vehicle applications in China and India. It also won a major Garrett MEG award for data-center gensets and additional power-generation programs across multiple regions.Garrett began pre-development work on a commercial vehicle electric powertrain with a Japanese truck manufacturer. The company also secured a production award for industrial air compression using its centrifugal compressor technology and reported growing interest from heating, ventilation and air-conditioning manufacturers in its electric cooling solutions. Garrett now expects 2026 net sales of $3.7-$3.9 billion, compared with the previous range of $3.6-$3.9 billion. Constant-currency sales growth is projected between 1% and 7%, up from the earlier forecast of a 2% decline to 6% growth.Adjusted EBIT is anticipated between $560 million and $600 million versus the prior range of $520-$600 million. Adjusted free cash flow is forecast in the band of $385-$475 million compared with $355-$475 million previously. The revised outlook reflects first-half execution, a stronger product mix and continued productivity benefits, despite softer expected light vehicle production. It turns out, estimates review have trended upward during the past month. At this time, Garrett Motion has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Garrett Motion has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Garrett Motion is part of the Zacks Automotive - Original Equipment industry. Over the past month, QuantumScape Corporation (QS), a stock from the same industry, has gained 12.8%. The company reported its results for the quarter ended June 2026 more than a month ago. QuantumScape reported revenues of $0 million in the last reported quarter, representing a year-over-year change of 0%. EPS of -$0.16 for the same period compares with -$0.20 a year ago. QuantumScape is expected to post a loss of $0.18 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for QuantumScape. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garrett Motion Inc. (GTX) : Free Stock Analysis Report QuantumScape Corporation (QS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Garrett Motion Inc. GTX reported second-quarter 2026 earnings of 53 cents per share, beating the Zacks Consensus Estimate of 46 cents by 15.2%. Earnings increased 26.2% from 42 cents in the year-ago quarter. Net sales rose 6.9% year over year to $976 million and surpassed the consensus estimate of $964 million by 1.2%. Growth across all product verticals, productivity gains and a favorable business mix supported the performance. Adjusted EBIT margin expanded 200 basis points to 15.6%. GTX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Garrett Motion Inc. price-consensus-eps-surprise-chart | Garrett Motion Inc. Quote Net sales increased 7% on a reported basis and 5% at constant currency. The improvement reflected share-of-demand gains in passenger vehicles, stronger commercial vehicle and industrial demand, and higher aftermarket volumes. Gasoline sales advanced 5% year over year, including 3% growth at constant currency. New application launches and program ramp-ups in Europe, India and South America supported the category. Diesel sales increased 8%, or 6% at constant currency, driven by light commercial vehicle and pickup truck demand across Europe, Asia and South America, along with program ramp-ups in India. Commercial vehicle and industrial sales climbed 10% year over year on both reported and constant-currency bases. Strong on-highway demand in China following program launches and higher North American genset activity for data centers contributed to the increase. Industrial turbo sales exceeded $80 million during the first half. The business is now expected to generate about $200 million in full-year sales, supported by power-generation demand. Aftermarket sales rose 8%, or 7% excluding currency effects, as volumes improved in Europe, China and Australia. Gross profit increased to $212 million from $181 million. Gross margin improved to 21.7% from 19.8%. Higher sales volumes, productivity, pricing net of inflation pass-through, lower research, development and engineering costs, and favorable product mix more than offset commodity, transportation and energy inflation. Adjusted EBIT rose $28 million year over year to a record $152 million. Higher volumes contributed $16 million, productivity added $10 million and pricing net of inflation pass-through provided $8 million. These benefits were partly offset by $8 million of inflation-related costs and a $5 million unfavorable currency impact. Net income totaled $101 million, up from $87 million a year earlier, while net income margin increased to 10.3% from 9.5%. The improvement was mainly driven by higher gross profit and lower interest expense, partially offset by increased taxes, lower non-operating income and higher selling, general and administrative expenses. Net cash provided by operating activities was $145 million, compared with $158 million in the prior-year period. Adjusted free cash flow edged up to $122 million from $121 million, representing 80% conversion from adjusted EBIT. Garrett ended the quarter with $788 million of liquidity, including $158 million in unrestricted cash and $630 million of available revolver capacity. The company repurchased $28 million of common stock during the quarter, bringing year-to-date buybacks to $115 million. Garrett also paid $15 million in dividends, while its board declared a third-quarter dividend of 8 cents per share. GTX voluntarily repaid $50 million of term-loan debt during the quarter. Total debt principal declined to $1.39 billion from $1.44 billion at the end of 2025. The company had $135 million remaining under its share-repurchase authorization at quarter-end. The company secured multiple turbocharger awards, including a large North American light vehicle program and several commercial vehicle applications in China and India. It also won a major Garrett MEG award for data-center gensets and additional power-generation programs across multiple regions. Garrett began pre-development work on a commercial vehicle electric powertrain with a Japanese truck manufacturer. The company also secured a production award for industrial air compression using its centrifugal compressor technology and reported growing interest from heating, ventilation and air-conditioning manufacturers in its electric cooling solutions. Garrett now expects 2026 net sales of $3.7-$3.9 billion, compared with the previous range of $3.6-$3.9 billion. Constant-currency sales growth is projected between 1% and 7%, up from the earlier forecast of a 2% decline to 6% growth. Adjusted EBIT is anticipated between $560 million and $600 million versus the prior range of $520-$600 million. Adjusted free cash flow is forecast in the band of $385-$475 million compared with $355-$475 million previously. The revised outlook reflects first-half execution, a stronger product mix and continued productivity benefits, despite softer expected light vehicle production. General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected to be $12-$14 per share, up from the prior range of $11.50-$13.50. Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garrett Motion Inc. (GTX) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter 2026 Financial Highlights Net sales totaled $976 million, up 5% on a constant currency* basis vs prior year, driven by share of demand gains in passenger vehicles and strong performance in commercial vehicle and industrial Net income totaled $101 million; net income margin of 10.3% Adjusted EBIT* totaled $152 million; adjusted EBIT margin* of 15.6% Net cash provided by operating activities totaled $145 million Adjusted free cash flow* totaled $122 million Increased 2026 full-year outlook Second Quarter 2026 Business Highlights Secured multiple turbo wins, including a large light vehicle program in North America and several on- and off-highway commercial vehicle applications in China and India Won a major award for Garrett MEG used in gensets for data centers, along with several additional genset awards in different regions Kicked off pre-development of a commercial vehicle e- powertrain with a Japanese truck maker Secured a production award for industrial air compression, using Garrett’s centrifugal compressor technology PLYMOUTH, Mich. and ROLLE, Switzerland, July 29, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading automotive and industrial technology provider, today announced its financial results for the three months ended June 30, 2026. Additionally, the Company's Board of Directors declared a cash dividend of $0.08 per share of common stock, payable on September 15, 2026, to shareholders of record as of September 1, 2026. “Garrett delivered a strong second quarter, highlighting the power of our differentiated technology portfolio and continued share-of-demand gains,” said Olivier Rabiller, President and CEO of Garrett. “Net sales were $976 million, up 5% at constant currency, and adjusted EBIT margin expanded 200 basis points to 15.6%, driven by disciplined execution across the business. "We also secured multiple turbo wins in industrial for power generation, as well as in passenger and commercial vehicle, while advancing our e-compressor and e-powertrain offerings. Combined with strong profitability and cash generation, these results reinforce our confidence in Garrett’s long-term growth trajectory.” * See reconciliations to the nearest GAAP measures below. Results of Operations Net sales for the second quarter of 2026 were $976 million, representing an increase of 7% (including a favorable impact of $15 million or 2% due to foreign currency translation) compared with $913 million in the second quarter of 2025. This increase was driven by higher growth across all verticals. Gasoline growth was driven by new application launches and program ramp-ups in Europe, India and South America. Diesel growth was due to strong demand for light commercial vehicles and pickup trucks in Europe, Asia and South America and program ramp-ups in India. Commercial vehicle and industrial growth was driven by strong on-highway demand in China following program launches and North America Genset for data centers. Aftermarket volumes increased in Europe, China and Australia resulting in a favorable product mix. Cost of goods sold for the second quarter of 2026 increased to $764 million from $732 million in the second quarter of 2025, primarily driven by $35 million from higher sales volumes, $18 million of unfavorable product mix, $15 million from foreign currency impacts and $8 million from commodity, transportation and energy inflation. These increases were partially offset by $24 million productivity net of labor inflation and repositioning costs, $16 million of lower import tariffs and $4 million of lower RD&E costs. Gross profit totaled $212 million for the second quarter of 2026 as compared to $181 million in the second quarter of 2025, with a gross profit percentage for the second quarter of 2026 of 21.7% as compared to 19.8% in the second quarter of 2025. This increase in gross profit was driven by $16 million from higher sales volumes, $8 million productivity net of labor inflation and repositioning costs, $8 million of price net of inflation pass-through, $4 million of lower RD&E costs and $3 million of favorable product mix. These increases were partially offset by $8 million of commodity, transportation and energy inflation. Selling, general and administrative (“SG&A”) expenses for the second quarter of 2026 increased to $63 million from $59 million in the second quarter of 2025. This increase was driven by $3 million of higher personnel costs and $2 million of unfavorable foreign currency impact, partially offset by $1 million of lower bad debt expense. Other expense in the second quarter of 2026 was consistent with the the second quarter of 2025. Interest expense in the second quarter of 2026 was $24 million as compared to $25 million in the second quarter of 2025. This decrease was primarily due to $3 million in lower interest expense due to a different notional amount of debt outstanding during the period. In addition, we recorded offsetting net gains of $2 million on our interest derivatives in the current year, in comparison to net gains of $4 million in the prior year. Non-operating income for the second quarter of 2026 was $2 million as compared to $6 million in the second quarter of 2025, with the decrease driven by a decrease in foreign exchange transactional gains. Tax expense for the second quarter of 2026 was $25 million as compared to $15 million in the second quarter of 2025, primarily because of a decrease in U.S. taxes on international operations during 2026, the global mix of earnings from year-to-year, a one-time benefit related to the revaluation of deferred tax assets in China during 2025, and deductions related to employee share-based compensation during 2026. Net income for the second quarter of 2026 was $101 million as compared to $87 million in the second quarter of 2025 primarily driven by $31 million of increased gross profit and $1 million of lower interest expense, partially offset by $10 million of higher tax expense, $4 million of lower non-operating income and $4 million of higher SG&A expense. Net cash provided by operating activities totaled $145 million in the second quarter of 2026 as compared to $158 million in the second quarter of 2025, representing a decrease of $13 million. The decrease was primarily driven by $84 million of unfavorable impacts from working capital changes, partially offset by $60 million of favorable impacts from changes in other assets and liabilities and $11 million of higher net income net of non-cash charges. Non-GAAP Financial Measures Adjusted EBIT increased to $152 million in the second quarter of 2026 as compared to $124 million in the second quarter of 2025. The increase of $28 million was driven by $16 million from higher sales volumes, $10 million of higher productivity, $8 million of pricing net of inflation pass-through, $4 million of lower RD&E costs and $3 million of favorable product mix impact. This increase was partially offset by $8 million of commodity, transportation and energy inflation and $5 million unfavorable foreign currency impact. Adjusted free cash flow was $122 million in the second quarter of 2026 as compared to $121 million in the second quarter of 2025. The increase was driven by $30 million from other assets and liabilities, $28 million from higher Adjusted EBIT, $4 million from lower cash taxes and $1 million from higher depreciation, and were partially offset by $60 million of unfavorable impact from working capital (net of factoring) and $2 million of higher capital expenditures. Liquidity and Capital Resources As of June 30, 2026, Garrett had $788 million in available liquidity, including $158 million in unrestricted cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility. As of December 31, 2025, Garrett had $807 million in available liquidity, including $177 million in unrestricted cash and cash equivalents and $630 million of undrawn commitments under its revolving credit facility. As of June 30, 2026, total principal amount of debt outstanding was $1,386 million, compared to $1,439 million as of December 31, 2025. During the second quarter of 2026, we repurchased $28 million of our common stock under our authorized share repurchase program and we had remaining repurchase capacity of $135 million as of June 30, 2026. Full Year 2026 Outlook Garrett is providing the following outlook for the full year 2026 for certain GAAP and Non-GAAP financial measures. * See reconciliations to the nearest GAAP measures below. Garrett’s full year 2026 outlook, as of July 29, 2026, includes the following expectations: 2026 light vehicle industry production down 2% to 4% from 2025; 2026 commercial vehicle industry, including both on- and off-highway, up 1% to 2% from 2025; 2026 average light vehicle battery electric vehicle penetration of ~19%; 2026 Euro/dollar exchange rate of 1.16 USD (down from 1.17 in prior outlook) RD&E investment at ~4.1% of sales; Capital expenditures at ~2.4% of sales Conference Call Garrett will hold a conference call at 8:30 am EDT / 2:30 pm CET on Thursday, July 29, 2026, to discuss its results. To participate on the conference call, please dial +1-877-883-0383 (US) or +1-412-902-6506 (international) and use the passcode 7065303. The conference call will also be broadcast over the internet and include a slide presentation. To access the webcast and supporting material, please visit the investor relations section of the Garrett Motion website at http://investors.garrettmotion.com. A replay of the conference call will be available by dialing +1-855-669-9658 (US) or +1-412-317-0088 (international) using the access code 2467399. The webcast will also be archived on Garrett’s website. Forward-Looking Statements This communication and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar expressions. Forward-looking statements represent our current judgment about possible future activities, events, or developments that we intend, expect, project, believe, or anticipate will or may occur in the future. In making these statement, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future performance, events, or results, and actual performance, events, or results may differ materially from those envisaged by our forward-looking statements due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission, including risks related to the automotive industry, the competitive landscape and our ability to compete, and macroeconomic and geopolitical conditions, among others. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statement, except where we are expressly required to do so by law. Non-GAAP Financial Measures This communication includes the following non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”): Constant currency sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT margin, Adjusted EBITDA margin and Adjusted free cash flow. We believe these measures are useful to investors and management in understanding our ongoing operations and analysis of ongoing operating trends and are important indicators of operating performance because they exclude the effects of certain non-operating items, therefore making them more closely reflect our operational performance. Our calculation of these non-GAAP measures, including a reconciliation of such measures to the most closely related GAAP measure, are set forth in the Appendix to this presentation. These non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related GAAP measures. For additional information regarding our non-GAAP financial measures, see our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission.​ About Garrett Motion Inc. A differentiated technology leader, Garrett Motion has a 70-year history of innovation in the automotive sector (cars, trucks) and beyond (off-highway equipment, marine, power generators). Its well-recognized expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is committed to advancing turbo applications while leveraging its unique technology solutions, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for automotive and industrial applications. Garrett has six R&D centers, 13 manufacturing facilities and a team of more than 8,700 employees in more than 20 countries. For more information, please visit www.garrettmotion.com. Contacts:        INVESTOR RELATIONS        Cyril Grandjean        +1.734.392.5504        [email protected] CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED INTERIM BALANCE SHEETS Reconciliation of Net Income to Adjusted EBIT(1) and Adjusted EBITDA(1) Reconciliation of Constant Currency Sales % Change(1) Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow(1) Full Year 2026 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency Full Year 2026 Outlook Reconciliation of Net Income to Adjusted EBIT and Adjusted EBITDA *  Excludes the effects of marked-to-market fluctuations from our interest rate swap contracts Full Year 2026 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

Interested in Garrett Motion Inc.? Here are five stocks we like better. Garrett Motion reported strong second-quarter results: Sales rose 7% to $976 million, while adjusted EBIT increased to a record $152 million and margins expanded to 15.6% despite lower light-vehicle production. The company raised its 2026 outlook to $3.8 billion in sales, $580 million in adjusted EBIT and $430 million in adjusted free cash flow, citing strong first-half performance, favorable product mix and productivity gains. Garrett continued returning capital to shareholders through $28 million in share repurchases and $15 million in dividends, while advancing industrial turbocharger awards and zero-emission technologies targeting commercial vehicles, passenger cars and data centers. Garrett Motion Inc. Skids on Results: Is it Time to Buy the Dip? Garrett Motion (NASDAQ:GTX) reported higher second-quarter sales, record adjusted operating profit and expanded margins, citing growth across its light-vehicle, commercial-vehicle, industrial and aftermarket businesses. The company also raised its full-year 2026 outlook following what President and Chief Executive Officer Olivier Rabiller described as a strong first half. Second-quarter net sales totaled $976 million, up 7% from a year earlier on a reported basis and 5% at constant currency. Rabiller said the growth came despite lower light-vehicle production during the quarter, reflecting demand-share gains in light vehicles, a commercial-vehicle recovery and increased industrial demand. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Can Garrett Motion Turbocharge A Short Squeeze? “We delivered growth across all of our verticals,” Rabiller said, adding that the company had sold more than $80 million of turbos for industrial applications year to date. Garrett now expects industrial sales of about $200 million for the full year, with additional growth anticipated in the second half. Adjusted EBIT reached a record $152 million in the second quarter, up $28 million from the prior-year period. Adjusted EBIT margin rose 200 basis points year over year to 15.6%, including an 80-basis-point unfavorable foreign-exchange impact, according to Senior Vice President and Chief Financial Officer Sean Deason. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Deason attributed the improvement primarily to increased volumes across all business lines, favorable mix from commercial vehicle, industrial and aftermarket growth, and productivity actions. Operating performance contributed $14 million during the quarter as the company’s productivity measures continued to ramp up. Adjusted free cash flow was $122 million, representing an 80% conversion from adjusted EBIT. Garrett ended the quarter with total liquidity of $788 million, including $630 million of revolver capacity and $158 million of unrestricted cash. → Innovative ETF Strategies That Are Paying Off This Summer The company voluntarily repaid $50 million on its term loan during the quarter. Net leverage was 1.8 times, down sequentially, and Deason said Garrett has no near-term debt maturities. Garrett repurchased $28 million in common stock and paid $15 million in dividends during the second quarter. Year-to-date stock repurchases totaled $115 million under the company’s $250 million authorization. The board declared a third-quarter dividend of $0.08 per share, payable in September. Deason said the company’s capital-allocation framework targets returning roughly 75% of adjusted free cash flow to shareholders over time through dividends and repurchases, though the amount may vary with market conditions and other factors. Management raised its 2026 outlook across sales, adjusted EBIT and adjusted free cash flow. At the midpoint, the updated forecast calls for: Net sales of $3.8 billion, representing 4% constant-currency growth; Adjusted EBIT of $580 million; An adjusted EBIT margin of 15.3%; and Adjusted free cash flow of $430 million. Deason said the revised outlook reflects strong first-half results, a favorable mix trend and expected continued operating improvement. The company lowered its industry outlook for light-vehicle demand but expects share gains to help offset softer market conditions. The updated assumptions also reflect a stronger U.S. dollar relative to the euro. The revised full-year adjusted EBIT midpoint is $20 million above the prior outlook midpoint, driven by stronger product mix and operating performance, partly offset by foreign-currency headwinds. Garrett said it continued to win business across its turbocharger portfolio during the quarter, including multiple gasoline awards and a large North American program. It also secured several power-generation awards, including its first award for the MEG200 turbocharger for data-center power generation. Rabiller described the MEG200 as one of the largest turbochargers Garrett has produced. During the question-and-answer session, he said the newly announced award would not be a significant contributor to revenue in 2027, as large-engine development cycles typically take longer than a year. However, he said the company’s industrial sales growth reflects an accumulated pipeline of awards secured over recent years. On power generation, Rabiller said Garrett historically had a strong position in diesel applications and has gained share in natural-gas applications in recent years. He said demand for genset-related products is global and extends beyond data centers, citing broader energy needs, grid weaknesses and renewable-energy infrastructure. The company also reported progress in zero-emission technologies. Garrett began pre-development work on a commercial-vehicle electric powertrain solution with a Japanese truck manufacturer, while its passenger-vehicle high-speed E-Powertrain continued to generate positive testing results and feedback from original equipment manufacturers. Rabiller said Garrett is in active discussions with multiple HVAC manufacturers following its previously announced E-Cooling partnership. He said the company expects its first product shipments in 2027, with data-center-related production occurring between late 2027 and early 2028. Management said commercial-vehicle growth in the first half was supported by on-highway demand in China and by industrial applications, particularly larger turbochargers used in power-generation equipment. Rabiller said agricultural and construction-related off-highway demand remained in line with market observations. Deason said commercial-vehicle margins are generally stable across regions, while regional product mix can vary. He added that the company expects somewhat lower light-vehicle volumes in the second half but still anticipates outperforming the broader market and benefiting from a slightly improved mix. Rabiller said Garrett does not use short-term price reductions to gain vehicle-turbocharger volume, because turbocharger demand is tied to the number of vehicles produced. He said the company remains focused on internal costs, fixed costs, material costs and other profit-and-loss items, while acknowledging continued macroeconomic and geopolitical uncertainty. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Garrett Motion Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Garrett Motion (GTX) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.22%. A quarter ago, it was expected that this maker of vehicle turbocharging and electric-boosting gear would post earnings of $0.42 per share when it actually produced earnings of $0.49, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Garrett Motion, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $976 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.20%. This compares to year-ago revenues of $913 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Garrett Motion shares have added about 71.7% since the beginning of the year versus the S&P 500's gain of 8.5%. While Garrett Motion has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Garrett Motion was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $919.87 million in revenues for the coming quarter and $1.81 on $3.77 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, LCI (LCII), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This recreational vehicle parts supplier is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has been revised 4.2% lower over the last 30 days to the current level. LCI's revenues are expected to be $1.13 billion, up 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garrett Motion Inc. (GTX) : Free Stock Analysis Report LCI Industries (LCII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: $976 million, up 7% on a reported basis and 5% at constant currency. Adjusted EBIT: $152 million, with an adjusted EBIT margin of 15.6%. Adjusted Free Cash Flow: $122 million. Common Stock Repurchase: $28 million. Dividends Paid: $15 million. Total Liquidity: $788 million, including $630 million of available capacity under the revolver and $158 million of unrestricted cash. Net Leverage: 1.8 times, down from the prior quarter. 2026 Outlook: Net sales of $3.8 billion, adjusted EBIT of $580 million, and adjusted free cash flow of $430 million. Warning! GuruFocus has detected 3 Warning Sign with GTX. Is GTX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Garrett Motion Inc (NASDAQ:GTX) reported a strong quarter with net sales of $976 million, up 7% on a reported basis and 5% at constant currency. The company achieved a record adjusted EBIT of $152 million, with an adjusted EBIT margin of 15.6%. Garrett Motion Inc (NASDAQ:GTX) generated a healthy adjusted free cash flow of $122 million, demonstrating strong earnings to cash conversion. The company secured multiple gasoline awards and power generation awards, including the first award for the Garrett MEG200 turbo for data center power generation. Garrett Motion Inc (NASDAQ:GTX) raised its full-year outlook, reflecting strong first-half performance and a positive mix trend. The company noted a backdrop of lower light vehicle production, which could impact future growth. There is an unfavorable foreign currency impact of 80 basis points on the adjusted EBIT margin. The industry outlook has been updated to reflect softer light vehicle demand, which could affect future sales. The geopolitical situation and macroeconomic conditions remain uncertain, posing risks to future performance. Despite strong performance, the company remains cautious about the macroeconomic overlay and potential impacts on margins. Q: Can you provide insights on the timeline for improved order books in European Class 8 commercial vehicles and the outlook for off-highway in North America? A: Olivier Rabiller, President and CEO, explained that growth in commercial vehicles has been driven by on-highway demand in China, with Europe potentially balancing this in the second half. The growth in the first half was largely from industrial applications, and off-highway demand remains stable, particularly in construction and agriculture sectors. Q: With the downgrade in light vehicle industry outlook, what is driving the raised sales forecast, and are share gains sustainable? A: Olivier Rabiller noted that the strong performance in the first half is a key driver for the raised forecast. While cautious about macroeconomic conditions, the company is confident in translating first-half share gains into second-half performance, though they remain prudent about the geopolitical and macroeconomic environment. Q: Can you elaborate on the Genset Turbo Awards and their impact on future revenue? A: Olivier Rabiller stated that Garrett Motion has been gaining share in natural gas generators and is competitive in both diesel and gas. While significant revenue from new awards may not materialize immediately, the trajectory towards $200 million in industrial sales this year is promising, driven by accumulated applications over time. Q: What opportunities are being pursued with the e-compressor, and are there applications beyond cooling? A: Olivier Rabiller highlighted a range of applications for cooling compressors, from small industrial sites to large data centers. The company is exploring various industries for air compressors, leveraging their innovation process to match technology with industry needs, and is committed to expanding into new verticals. Q: How are you managing pricing and volume in light of weak areas in the light vehicle sector? A: Olivier Rabiller clarified that price reductions do not typically lead to increased volume in their industry, as the demand is tied to the capacity of customers to sell cars. The company focuses on maintaining performance and cost management to navigate the current market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Turbocharger technology company Garrett Motion (NYSE:GTX) will be reporting results this Wednesday before market open. Here’s what to expect. Garrett Motion beat analysts’ revenue expectations last quarter, reporting revenues of $985 million, up 12.2% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. Is Garrett Motion a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Garrett Motion’s revenue to grow 3.5% year on year, in line with the 2.6% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Garrett Motion has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Garrett Motion’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Sanmina reported revenues up 69.7%, topping estimates by 1.8%. Allegion traded up 9.6% following the results. Read our full analysis of Allegion’s results here and Sanmina’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Garrett Motion is down 12.2% during the same time and is heading into earnings with an average analyst price target of $35.67 (compared to the current share price of $30.81). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

The market expects Garrett Motion (GTX) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This maker of vehicle turbocharging and electric-boosting gear is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $964.39 million, up 5.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.27% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Garrett Motion, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.57%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Garrett Motion will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Garrett Motion would post earnings of $0.42 per share when it actually produced earnings of $0.49, delivering a surprise of +16.67%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Garrett Motion doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garrett Motion Inc. (GTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Garrett Motion (GTX) is back in focus after recent reports highlighted its consistent earnings surprises, including last quarter’s $0.49 per share result versus a $0.42 consensus estimate, and a positive Earnings ESP of +3.45%. See our latest analysis for Garrett Motion. The recent earnings surprise appears to have fed into sentiment, with Garrett Motion’s share price at $32.36 after a 3.25% 1 day and 59.10% 90 day share price return. The 1 year total shareholder return of 183.18% and 5 year total shareholder return of 393.73% highlight strong longer term compounding, despite a 30 day share price return that is down 5.71%. If Garrett Motion’s move has you thinking about what else could be setting up for the next leg, take a look at 35 power grid technology and infrastructure stocks After a run to $32.36 and with Garrett Motion trading below both analyst targets and some intrinsic value estimates, the gap between price and fair value ranges has become hard to ignore. So how wide is it really? Garrett Motion’s most followed narrative pegs fair value at $35.67, a premium to the recent $32.36 close, which puts the current discount firmly in focus. Read the complete narrative. Curious what sits behind that higher margin story for Garrett Motion, how revenue, earnings and the future profit multiple all tie together, and which single assumption really drives that $35.67 fair value estimate? Result: Fair Value of $35.67 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear pressure points for Garrett Motion, including reliance on internal combustion turbo sales and potential margin strain if higher margin programs ramp more slowly than expected. Find out about the key risks to this Garrett Motion narrative. If this mix of optimism and concern around Garrett Motion resonates with you, move quickly to review both sides of the story in the 3 key rewards and 3 important warning signs. If Garrett Motion has sharpened your focus, do not stop here. Broaden your watchlist with other focused stock ideas that could suit your style using targeted screeners. Target potential mispricings by scanning for companies that combine quality fundamentals with attractive valuations through the 50 high quality undervalued stocks. Prioritize stability and capital preservation by checking companies that score well on financial strength in the solid balance sheet and fundamentals stocks screener (48 results). Seek underfollowed opportunities with solid metrics by reviewing the screener containing 20 high quality undiscovered gems before others catch on. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GTX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]