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Mar 31, 2025
Garrett Motion Q1 2025 Earnings Report
Reports First Quarter 2025 Financial Results; Wins First Major Series Production Award For Electric Motors
Key Takeaways
Garrett Motion reported a solid start to 2025 with strong first-quarter results despite a challenging industry environment, driven by outstanding operating performance and the positive impact of structural cost savings from 2024. Net sales decreased slightly, but gross profit and Adjusted EBIT margins improved. The company also secured its first major series production award for electric motors, highlighting progress in zero-emission technologies.
Net sales for Q1 2025 totaled $878 million, a 4% decrease on a reported basis compared to Q1 2024.
Net income for Q1 2025 was $62 million, with a Net income margin of 7.1%.
Adjusted EBIT totaled $131 million, resulting in an Adjusted EBIT margin of 14.9% for Q1 2025.
Garrett won its first major series production award for electric motors, with production expected to begin in 2027.
Revenue by Segment
Forward Guidance
Garrett Motion is reiterating its full-year 2025 outlook, anticipating net sales between $3.3 billion and $3.5 billion and Adjusted free cash flow between $300 million and $390 million. The outlook is based on expectations of a slight decline or flat light vehicle industry production and flat to slight growth in the commercial vehicle industry.
Positive Outlook
- Reiterating full-year outlook for net sales, Adjusted EBITDA, Adjusted EBIT, net cash provided by operating activities, and Adjusted free cash flow.
- Expecting price (net of pass-through) and productivity to offset inflation.
- Planning RD&E investment at 4.6% of sales, with over 50% on zero-emission technologies.
- Planning capital expenditures at 2.8% of sales, with over 25% on zero-emission technologies.
- Assuming direct tariff pass-through.
Challenges Ahead
- Expecting 2025 light vehicle industry production to be down 3% to flat versus 2024.
- Expecting 2025 commercial vehicle industry to be flat to +2% versus 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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