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Garrett Motion Q3 sales rise on commercial vehicle demand

By Reuters News


Overview

  • US automotive tech firm's Q3 sales rose 3% yr/yr, a slight miss versus analyst expectations

  • Q3 adjusted EBITDA beat analyst expectations

  • Company approved new $250 mln share repurchase program for 2027


Outlook

  • Garrett reaffirms 2026 full-year net sales outlook of $3.75 bln to $3.85 bln

  • Company expects 2026 net income of $337 mln to $352 mln

  • Company expects 2026 light vehicle production to decline 2% to 4% from 2025


Result Drivers

  • COMMERCIAL VEHICLE & INDUSTRIAL DEMAND - Co said Q3 sales growth was driven by strong performance in commercial vehicle and industrial segments

  • DIESEL VEHICLES - Co attributed diesel sales increase to strong demand for light commercial vehicles and pickup trucks in Europe, Americas and India

  • AFTERMARKET PARTS - Higher demand for replacement parts in North America and Europe supported aftermarket sales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Miss*

$930 mln

$937 mln (5 Analysts)

Q3 Net Income

$97 mln

Q3 Adjusted EBITDA

Beat

$183 mln

$172.20 mln (5 Analysts)

Q3 Pretax Profit

Beat

$119 mln

$113.50 mln (2 Analysts)

Q3 Adjusted EBITDA Margin

19.70%

Q3 Gross Profit

$206 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Garrett Motion Inc. is $33.00, about 47.8% above its October 28 closing price of $22.33

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 28 - Ford Q3 revenue beats analyst estimates

  • Oct 28 - Dana Q3 sales rise 6%, beat analyst expectations

  • Oct 29 - BorgWarner beats Q3 adjusted EPS estimates, lifts 2026 outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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