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Sep 30, 2024
Garrett Motion Q3 2024 Earnings Report
Garrett Motion reported solid financial performance in Q3 2024 amid industry softness and increased competitive pressure, while expanded adjusted EBITDA margin and generated adjusted free cash flow.
Key Takeaways
Garrett Motion's Q3 2024 net sales totaled $826 million, a 14% decrease year-over-year. Net income was $52 million with a margin of 6.3%. Adjusted EBITDA was $144 million, representing a 17.4% margin. The company generated $71 million in adjusted free cash flow and continued share repurchases.
Net sales totaled $826 million, down 14% on a reported and constant currency basis.
Net income totaled $52 million, with a net income margin of 6.3%.
Adjusted EBITDA totaled $144 million, with an adjusted EBITDA margin of 17.4%.
Adjusted free cash flow totaled $71 million.
Garrett Motion
Garrett Motion
Forward Guidance
Garrett is updating its outlook for the full year 2024 for certain GAAP and Non-GAAP financial measures.
Positive Outlook
- Net sales (GAAP) $3.40 billion to $3.50 billion
- Net sales growth at constant currency (Non-GAAP) -12% to -10%
- Net income (GAAP) $240 million to $255 million
- Adjusted EBITDA (Non-GAAP) $585 million to $605 million
- Adjusted free cash flow (Non-GAAP) $300 million to $350 million
Challenges Ahead
- 2024 light vehicle production down 3% vs. 2023
- 2024 commercial vehicle production down 1% including on- and off-highway
- RD&E of ~4.7% of sales, with greater than 50% on zero-emission technologies
- Capital expenditures ~2.5% of sales, with greater than 30% on zero-emission technologies
- Stable FX environment (EUR/$ at 1.08)