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Dec 31, 2024
Garrett Motion Q4 2024 Earnings Report
Garrett Motion reported a decline in revenue but improved profitability in Q4 2024.
Key Takeaways
Garrett Motion reported Q4 2024 revenue of $844 million, down 11% year-over-year, primarily due to lower diesel production volumes in Europe and weaker gasoline demand in China and North America. However, net income increased to $100 million, with a net income margin of 11.8%, driven by lower interest expenses and tax benefits. The company also generated strong free cash flow of $157 million and maintained solid operating performance.
Revenue decreased by 11% year-over-year to $844 million due to weak diesel and gasoline demand.
Net income increased to $100 million, benefiting from lower interest expenses and tax savings.
Gross profit margin improved to 21.6% from 20.0% in Q4 2023.
Adjusted free cash flow grew to $157 million, up from $137 million last year.
Garrett Motion
Garrett Motion
Garrett Motion Revenue by Segment
Revenue by Segment
Gasoline Revenue
CapyFin.comDiesel Revenue
CapyFin.comAftermarket Revenue
CapyFin.com Forward Guidance
Garrett Motion expects 2025 revenue between $3.3 billion and $3.5 billion, with a focus on expanding zero-emission technologies and commercial vehicle growth.
Positive Outlook
- Continued strong demand for turbocharger technology in hybrid and commercial vehicles.
- Expansion into zero-emission technologies, including fuel cell compressors.
- Expected commercial vehicle industry growth of up to 2% in 2025.
- Cost optimizations to enhance profitability despite industry headwinds.
- Launch of a new $250 million share repurchase program for 2025.
Challenges Ahead
- Projected light vehicle industry production decline of up to 3% in 2025.
- Headwinds from foreign exchange fluctuations and supply chain disruptions.
- Increased investments in R&D may impact short-term margins.
- Potential impact of US tariffs and trade restrictions not yet factored in.
- Uncertainty in global economic conditions could affect demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income