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Jun 30, 2022
Garrett Motion Q2 2022 Earnings Report
Garrett Motion's financial performance decreased due to lower sales volume, inflation, and unfavorable foreign exchange impacts, but was partially offset by productivity and customer pass-through agreements.
Key Takeaways
Garrett Motion Inc. reported a decrease in net sales by 8% on a GAAP basis, but was flat at constant currency. Net income totaled $85 million with a net income margin of 9.9%. Adjusted EBITDA totaled $138 million with an adjusted EBITDA margin of 16.1%. The company completed $212 million in prepayments, resulting in full redemption of Series B preferred stock and updated its full year 2022 outlook.
Net sales totaled $859 million, down 8% on a GAAP basis, flat at constant currency.
Net income totaled $85 million; Net income margin 9.9%.
Adjusted EBITDA totaled $138 million; Adjusted EBITDA margin of 16.1%.
Completed $212 million in prepayments resulting in full redemption of Series B preferred stock.
Forward Guidance
Garrett is providing the following outlook for the full year 2022 for certain GAAP and Non-GAAP financial measures.
Positive Outlook
- Global light vehicle auto production growth of 1% versus 2021
- Net sales (GAAP) $3.5 billion to $3.7 billion
- Net sales growth at constant currency (Non-GAAP) 5% to 10%
- Net income (GAAP) $290 million to $335 million
- Adjusted EBITDA (Non-GAAP) $530 million to $590 million
Challenges Ahead
- An exchange rate of 1.04 EUR to 1.00 USD
- Net cash provided by operating activities (GAAP) $405 million to $505 million
- Adjusted free cash flow (Non-GAAP) $330 million to $430 million
- Maintaining previous commitment of increased R&D investment in new technologies of approximately $18 million for the full year 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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