Garrett Motion Inc

Latest Results (13.06.2024):

Revenue Decline

In the first quarter of 2024, Garrett Motion Inc. reported a decrease in net sales to $915 million, which is a 6% drop from the $970 million recorded in the same quarter of the previous year. This decline was primarily attributed to reduced demand in gasoline, diesel, and commercial vehicles, alongside pricing decreases net of inflation pass-through.

Net Income and Profitability

Garrett Motion Inc. experienced a decrease in net income during the first quarter of 2024, totaling $66 million compared to $81 million in the first quarter of 2023. The net income margin also decreased to 7.2% from 8.4% in the previous year, mainly due to lower gross profit and increased selling, general, and administrative expenses.

Adjusted EBITDA

The company's Adjusted EBITDA for the first quarter of 2024 was $151 million, a decrease from $168 million in the first quarter of 2023. The Adjusted EBITDA margin also saw a slight reduction to 16.5% from 17.3% year-over-year, reflecting challenges such as demand softness and unfavorable product mix, despite benefits from productivity and deflation in commodity costs.

Cash Flow and Share Repurchase

Garrett Motion Inc. generated $84 million in net cash from operating activities in the first quarter of 2024, a slight decrease from $92 million in the prior year's corresponding quarter. Additionally, the company actively returned value to shareholders by repurchasing $109 million of common stock during the quarter.

2024 Full Year Outlook

Garrett Motion Inc. has reiterated its full-year 2024 outlook, expecting net sales to remain flat on both a reported and constant currency basis at approximately $3.87 billion. The company anticipates a net income of $253 million and an Adjusted EBITDA of $620 million for the year, maintaining a strong focus on operational efficiency and shareholder value.