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Dec 31, 2022
Garrett Motion Q4 2022 Earnings Report
Reported a strong rebound across all regions and product lines, with net sales up 4% on a GAAP basis and 15% at constant currency. Adjusted EBITDA margin was 15.6%.
Key Takeaways
Garrett Motion reported fourth-quarter net sales of $898 million, a 4% increase on a GAAP basis and a 15% increase at constant currency. Net income was $112 million, with an adjusted EBITDA of $140 million. The company expects to profitably grow share of demand and generate strong free cash flow in 2023.
Net sales totaled $898 million, up 4% on a GAAP basis, up 15% at constant currency
Net income totaled $112 million; Net income margin 12.5%
Adjusted EBITDA totaled $140 million; Adjusted EBITDA margin of 15.6%
Net cash provided by operating activities totaled $137 million
Garrett Motion
Garrett Motion
Forward Guidance
Garrett is providing the following outlook for the full year 2023 for certain GAAP and Non-GAAP financial measures. Full Year 2023 OutlookNet sales (GAAP)$3.55 billion to $3.85 billion Net sales growth at constant currency (Non-GAAP)*+1% to +6%Net income (GAAP)$255 million to $300 million Adjusted EBITDA (Non-GAAP)*$555 million to $615 million Net cash provided by operating activities (GAAP)$390 million to $490 million Adjusted free cash flow (Non-GAAP)*$300 million to $400 million
Positive Outlook
- 2023 light vehicle industry production in line with 2022
- 2023 Euro/dollar assumption of 1.05 EUR to 1.00 USD flat to 2022
- R&D investment at 4.6% of sales in 2023 flat to 2022, >50% on electrification technologies
- Capital expenditures at 2.4% of sales, 20% into electrification technologies
- 2023 assumed volume of 14 million units reflecting share-of-demand increases