Loading...
•
Mar 31, 2021
Garrett Motion Q1 2021 Earnings Report
Garrett Motion's financial performance exceeded expectations, driven by strong sales momentum and operational efficiency.
Key Takeaways
Garrett Motion reported a strong start to 2021 with net sales of $997 million, a 33.8% increase year-over-year. The company's Adjusted EBITDA increased to $176 million, with an improved margin of 17.7%. Adjusted free cash flow more than doubled to $162 million.
Net sales totaled $997 million, up 33.8% reported and 25.6% at constant currency.
Net loss was $105 million; adjusted net income was $96 million.
Adjusted EBITDA increased to $176 million; adjusted EBITDA margin improved 320 basis points to 17.7%.
Adjusted free cash flow totaled $162 million; adjusted free cash flow conversion rate was 169%.
Forward Guidance
Garrett expects to emerge shortly from its financial restructuring with a new capital structure, reduced debt, and strong sponsorship to support its strategic vision.
Positive Outlook
- Increasing demand for Garrett’s differentiated technologies
- Proven track record in operational excellence
- Expanding in-house advanced engineering capabilities
- Investing in world-class turbo, electrification and software solutions
- New foundation will help solidify Garrett’s technology leadership and strengthen its operations over the long-term
Challenges Ahead
- Ongoing global pandemic
- Challenges remain
- Voluntary Filing Under Chapter 11
- Reorganization items - net totaling $174 million, representing professional service fees related to the Chapter 11 cases of which $79 million is related to the termination and expense reimbursement of the stalking horse bid.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...