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Dec 31, 2023
Garrett Motion Q4 2023 Earnings Report
Garrett Motion reported strong performance in 2023, driven by a solid fourth quarter, and issued its 2024 outlook.
Key Takeaways
Garrett Motion's Q4 2023 results showed a 5% increase in net sales to $945 million and a net income of $52 million. The company's adjusted EBITDA stood at $145 million. They also announced a new $350 million share repurchase program.
Net sales increased by 5% to $945 million, or 3% at constant currency.
Net income was $52 million, with a net income margin of 5.5%.
Adjusted EBITDA totaled $145 million, resulting in an adjusted EBITDA margin of 15.3%.
Adjusted free cash flow totaled $137 million.
Forward Guidance
Garrett anticipates delivering financial results in line with 2023, while increasing investment in innovation and zero emissions products, in an industry environment expected to be flat to down.
Positive Outlook
- Net sales of $3.80 billion to $3.95 billion.
- Net income of $230 million to $275 million.
- Adjusted EBITDA of $590 million to $650 million.
- Net cash provided by operating activities of $370 million to $470 million.
- Adjusted free cash flow of $325 million to $425 million.
Challenges Ahead
- 2024 light vehicle industry production flat to down 1% from 2023.
- 2024 commercial vehicle industry, including both on- and off-highway, up 2% from 2023.
- 2024 average light vehicle battery electric vehicle penetration of 15%.
- Euro/dollar assumption of 1.08 EUR to 1.00 USD.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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