Garrett Motion Q4 Sales Rise 6% to $891M, Sees $3.6B–$3.8B FY26
Garrett Motion delivered Q4 net sales of $891M, up 6% YoY, and adjusted EPS of $0.42, ahead of estimates, with a 13.7% EBIT margin and $139M free cash flow. For FY26, it forecasts sales of $3.60B–$3.80B and adjusted EBIT of $520M–$570M on a light vehicle production decline of 1–3%.
1. Q4 Financial Results
Garrett Motion reported Q4 net sales of $891 million, up 6% year-over-year and above the $875 million consensus. Sales of commercial vehicles rose 9% and aftermarket sales climbed 4%, while adjusted EPS came in at $0.42 versus $0.36 estimate, with net income of $84 million and adjusted EBIT margin at 13.7%.
2. Cash Flow and Liquidity
Operating cash flow reached $99 million and adjusted free cash flow totaled $139 million, bolstering liquidity to $807 million, including $177 million in cash and equivalents.
3. Share Repurchase Program
The board authorized a new $250 million share repurchase program valid through December 2026, following $72 million of common stock repurchased in Q4.
4. FY26 Outlook
For FY26, the company forecasts sales of $3.60 billion to $3.80 billion, adjusted EBIT of $520 million to $570 million and adjusted free cash flow of $355 million to $455 million, with light vehicle production seen down 1–3%, commercial vehicle production up 1–2%, and EV penetration at 19%.