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Sep 30, 2025
Garrett Motion Q3 2025 Earnings Report
Garrett Motion reported solid revenue and profit growth in Q3 2025, driven by higher demand in gasoline and diesel segments, favorable currency impacts, and improved operational efficiency.
Key Takeaways
Garrett Motion delivered strong third-quarter results with net sales up 9% year over year to $902 million and net income rising to $77 million. The company expanded its adjusted EBIT margin to 14.7% and adjusted EBITDA margin to 18.2%, supported by cost efficiencies and productivity gains. Free cash flow reached $107 million, enabling debt repayment and a dividend increase. Garrett also raised its full-year 2025 outlook.
Net sales increased 9% to $902 million, with 6% constant-currency growth.
Net income rose to $77 million, representing an 8.5% margin.
Adjusted EBIT reached $133 million, with a margin of 14.7%.
Generated $107 million in adjusted free cash flow and repurchased $84 million of shares.
Forward Guidance
Garrett Motion raised its 2025 midpoint outlook, now expecting net sales between $3.5 billion and $3.6 billion, net income between $265 million and $295 million, adjusted EBITDA between $610 million and $650 million, and adjusted free cash flow between $350 million and $420 million. The company anticipates stable demand across light and commercial vehicles with price and productivity gains offsetting inflation.
Positive Outlook
- Raised midpoint for full-year 2025 outlook.
- Expecting 1%–4% reported sales growth and up to 2% constant-currency growth.
- Higher profitability guidance with adjusted EBIT up to $530 million.
- Strong liquidity with $860 million available including $230 million in cash.
- Positive industry outlook for light and commercial vehicle markets.
Challenges Ahead
- Potential indirect impacts from global trade policies and inflation remain risks.
- Weaker aftermarket demand noted in Q3 2025.
- Unfavorable product mix affected gross margin improvement.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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