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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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