Garrett Motion Q3 sales rise on commercial vehicle demand
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
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(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.)