GTX (Garrett Motion Inc.) Financials & Analysis

■ Key Metrics

Revenue

$3.58B

Net Income

$310.0M

Gross Profit

$731.0M

Operating Cash Flow

$413.0M

Total Assets

$2.37B

Shareholders' Equity

$-802.0M

Long-Term Debt

$1.41B

Cash & Equiv

$177.0M

⚖ Investment Thesis

Bull Case

Investors may view this stock as an attractive opportunity due to the secular growth trend in electrification and hydrogen fuel cell technologies where Garrett Motion is expanding its product portfolio. The company's strong balance sheet with $179M in cash provides ample liquidity to fund R&D initiatives and weather industry downturns without needing dilutive financing. Recent share repurchases of $208M signal management's confidence in the stock's intrinsic value and commitment to maximizing shareholder capital returns.

Bear Case

Potential buyers should be wary of the company's negative shareholders equity of -$802M which suggests accumulated losses that could limit future growth options or dividend sustainability. Revenue volatility over the last five years, dropping from $3.89B in 2023 to $3.48B in 2024, indicates susceptibility to macroeconomic downturns and OEM production cuts. The heavy reliance on commercial trucking cycles means any slowdown in freight demand or logistics contraction could immediately depress order volumes for turbocharger systems.

◉ About Garrett Motion Inc.

Garrett Motion Inc. is a premier designer and manufacturer of turbocharger systems and electronic control units serving the automotive, commercial truck, and marine industries. The company leverages its extensive R&D capabilities to deliver high-efficiency powertrain components that meet evolving emissions regulations and fuel economy standards across global markets. With a strong presence in North America, Europe, and Asia-Pacific, Garrett Motion supplies critical technology to major Original Equipment Manufacturers (OEMs) and aftermarket distributors.

⚙ Analysis

Management Discussion

Management delivered solid operational performance in 2025, generating $310M in net profit and maintaining robust cash flow from operations of $413M despite a slight revenue contraction from the prior year. The company successfully deployed capital efficiently with $72M in expenditures while returning significant value to shareholders through $208M in buybacks and $52M in dividends. Operating leverage appears effective as operating profit of $392M aligns closely with pre-tax income, indicating healthy cost control relative to the $3.58B revenue base.

Industry Overview

The global automotive aftermarket and original equipment manufacturing sector is currently navigating a complex transition period defined by the shift toward electrification and stricter emissions regulations. This transition creates both challenges regarding legacy internal combustion engine sales and opportunities for high-margin components in hybrid powertrains and alternative fuel vehicles. Consolidation among smaller suppliers continues as OEMs demand fewer but larger strategic partners capable of providing integrated system solutions rather than individual parts.

☰ Financial Statements

Income Statement

Balance Sheet

Cash Flow

Metric	2022	2023	2024	2025
Revenue	$3.60B	$3.89B	$3.48B	$3.58B
Cost of Revenue	$2.92B	$3.13B	$2.77B	$2.85B
Gross Profit	$683.0M	$756.0M	$705.0M	$731.0M
Operating Expenses	$187.0M	$409.0M	$362.0M	$339.0M
Operating Income	$496.0M	$347.0M	$343.0M	$392.0M
G&A	$216.0M	$247.0M	$240.0M	$240.0M
Stock-Based Comp	$11.0M	$14.0M	$23.0M	$27.0M
D&A	$84.0M	$90.0M	$90.0M	$99.0M
Depreciation	$84.0M	$90.0M	$90.0M	$99.0M
Other OpEx	$-29.0M	$162.0M	$122.0M	$99.0M
Non-Operating Income	$0	$0	$0	$0
Interest Expense	$82.0M	$159.0M	—	—
Interest Income	$76.0M	$7.0M	$3.0M	$4.0M
Pre-Tax Income	$496.0M	$347.0M	$343.0M	$392.0M
Income Tax	$106.0M	$86.0M	$61.0M	$82.0M
Continuing Ops	$390.0M	$261.0M	$282.0M	$310.0M
Discontinued Ops	$0	$0	$0	$0
Net Income	$390.0M	$261.0M	$282.0M	$310.0M
Minority Interest	$0	$0	$0	$0
Net to Common	$390.0M	$261.0M	$282.0M	$310.0M

Metric	2022	2023	2024	2025
Current Assets	$1.43B	$1.41B	$1.19B	$1.32B
Cash & Equivalents	$246.0M	$259.0M	$125.0M	$177.0M
Inventory	$270.0M	$263.0M	$286.0M	$339.0M
Other Current Assets	$915.0M	$884.0M	$782.0M	$803.0M
Long-Term Assets	$1.21B	$1.12B	$1.08B	$1.05B
PP&E (Net)	$470.0M	$477.0M	$449.0M	$462.0M
Goodwill	$193.0M	$193.0M	$193.0M	$193.0M
Operating Leases	$44.0M	$40.0M	$52.0M	$49.0M
Other LT Assets	$499.0M	$411.0M	$389.0M	$344.0M
Total Assets	$2.64B	$2.53B	$2.28B	$2.37B
Current Liabilities	$1.38B	$1.37B	$1.28B	$1.36B
Accounts Payable	$1.05B	$1.07B	$972.0M	$1.06B
Current Debt	$7.0M	$7.0M	$7.0M	$7.0M
Current Leases	$9.0M	$9.0M	$11.0M	$13.0M
Deferred Revenue	$8.0M	$9.0M	$8.0M	$10.0M
Other Current Liab	$-59.0M	$-18.0M	$-31.0M	$-24.0M
Long-Term Liabilities	$1.38B	$1.89B	$1.67B	$1.81B
Long-Term Debt	$1.15B	$1.64B	$1.46B	$1.41B
LT Operating Leases	$36.0M	$33.0M	$42.0M	$38.0M
Other LT Liab	$95.0M	$113.0M	$86.0M	$267.0M
Total Liabilities	$2.75B	$3.26B	$2.95B	$3.17B
Shareholders' Equity	$-116.0M	$-735.0M	$-673.0M	$-802.0M
Paid-In Capital	$1.33B	$1.19B	$1.21B	$1.24B
Retained Earnings	$-1.49B	$-1.92B	$-1.65B	$-1.38B
AOCI	$36.0M	$-3.0M	$73.0M	$-138.0M
Total L&E	$2.64B	$2.53B	$2.28B	$2.37B

Metric	2022	2023	2024	2025
Net Income (CFO)	$390.0M	$261.0M	$282.0M	$310.0M
Non-Cash Adjustments	$-88.0M	$224.0M	$86.0M	$67.0M
Working Capital Changes	$73.0M	$-20.0M	$40.0M	$36.0M
Cash from Operations	$375.0M	$465.0M	$408.0M	$413.0M
Capital Expenditures	$91.0M	$83.0M	$91.0M	$72.0M
Cash from Investing	$-91.0M	$-55.0M	$-14.0M	$-41.0M
Share Buybacks	—	$213.0M	$296.0M	$208.0M
Dividends Paid	$83.0M	$42.0M	$0	$52.0M
Cash from Financing	$-482.0M	$-403.0M	$-520.0M	$-326.0M
FX Effect	$-18.0M	$5.0M	$-8.0M	$7.0M
Net Change in Cash	$-216.0M	$12.0M	$-134.0M	$53.0M
Beginning Cash	$464.0M	$248.0M	$260.0M	$126.0M
Ending Cash	$248.0M	$260.0M	$126.0M	$179.0M

Frequently Asked Questions

How does Garrett Motion Inc. make money?

The company's revenue streams are primarily driven by its core turbocharging business which supplies compressors to light-duty passenger vehicles and heavy-duty commercial trucks. A secondary segment includes emission control technologies such as exhaust gas recirculation systems and diesel particulate filters essential for meeting strict regulatory standards. The third stream encompasses electronic control units and software solutions that manage engine performance, fuel injection, and emissions aftertreatment systems across various vehicle platforms.

What are the main risks for GTX?

The company faces significant exposure to cyclical fluctuations in the global automotive industry which can lead to unpredictable demand shocks and inventory buildups at OEMs. Intense price competition from lower-cost manufacturers in emerging markets could erode gross margins if the firm cannot maintain its technological differentiation. Regulatory changes in emissions standards across different regions may require costly rapid redesigns of product lines that impact short-term profitability. Dependence on a limited number of large automotive customers creates concentration risk where lost business with one major OEM could materially affect revenue.

What is GTX's competitive advantage?

Garrett Motion possesses a deep proprietary technology stack in turbine aerodynamics and compressor design that creates high barriers to entry for competitors seeking similar efficiency levels. The firm benefits from long-term strategic partnerships with top-tier automotive OEMs that provide stable order books and early access to new platform developments. Its integrated manufacturing footprint combined with significant scale allows for superior cost management and rapid response to global supply chain disruptions.

Garrett Motion Inc.