Garrett Motion Inc. (GTX) Bundle
A Brief History of Garrett Motion Inc.
Garrett Motion Inc. (GTX) has established itself as a key player in the automotive technology sector, particularly in turbocharging and zero-emission technologies. The company has faced various challenges and opportunities as it navigated the evolving automotive landscape.
Financial Performance Overview
As of September 30, 2024, Garrett Motion reported a net income of $52 million for the third quarter, a decrease from $57 million in the previous year. For the nine months ended September 30, 2024, net income was $182 million, down from $209 million in the same period of 2023.
Revenue Breakdown
In terms of revenue, the company experienced a decline in net sales. For the three months ended September 30, 2024, net sales were $826 million, down 14% from $960 million in the prior year. For the nine months, net sales totaled $2.631 billion, compared to $2.941 billion in 2023, marking an 11% decrease.
| Period | Net Sales (in millions) | Percentage Change |
|---|---|---|
| Q3 2024 | $826 | -14% |
| Q3 2023 | $960 | N/A |
| 9M 2024 | $2,631 | -11% |
| 9M 2023 | $2,941 | N/A |
Cost of Goods Sold and Gross Profit
For the three months ended September 30, 2024, Garrett Motion's cost of goods sold (COGS) was $660 million, down from $784 million in the previous year. This resulted in a gross profit of $166 million, compared to $176 million in Q3 2023. For the nine-month period, COGS totaled $2.108 billion, leading to a gross profit of $523 million.
| Period | COGS (in millions) | Gross Profit (in millions) |
|---|---|---|
| Q3 2024 | $660 | $166 |
| Q3 2023 | $784 | $176 |
| 9M 2024 | $2,108 | $523 |
| 9M 2023 | $2,374 | $567 |
Research and Development Investments
Garrett Motion has continued to invest in research and development (R&D), with expenses amounting to $10 million for the nine months ended September 30, 2024, reflecting the company's commitment to advancing zero-emission technologies.
Debt and Liquidity Position
As of September 30, 2024, Garrett Motion's total debt was approximately $2.257 billion, with $800 million in senior notes due in 2032. The company's cash and cash equivalents stood at $96 million, down from $259 million at the end of 2023.
| Category | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $96 |
| Total Debt | $2,257 |
| Senior Notes (2032) | $800 |
Market Challenges and Strategic Adjustments
The company has faced market challenges, particularly in the light vehicle sector, with notable softness in demand across gasoline and diesel applications. In response, Garrett Motion has adjusted its variable cost structure and implemented sustainable cost actions to enhance operational performance.
Share Repurchase Program
During the three months ended September 30, 2024, Garrett Motion repurchased $52 million of common stock, with a total of $226 million repurchased for the nine-month period. As of September 30, 2024, the company had $124 million remaining under its authorized share repurchase program.
Conclusion
Garrett Motion Inc. continues to navigate a complex market landscape while investing in future technologies and maintaining operational efficiency amid financial challenges.
A Who Owns Garrett Motion Inc. (GTX)
Major Shareholders
As of 2024, the ownership structure of Garrett Motion Inc. (GTX) is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional Investor |
| The Vanguard Group, Inc. | 8.7% | Institutional Investor |
| Wellington Management Group LLP | 6.3% | Institutional Investor |
| State Street Corporation | 5.1% | Institutional Investor |
| Other Institutional Investors | 30.4% | Institutional Investors |
| Individual and Retail Investors | 33.0% | Retail Investors |
Recent Changes in Ownership
In 2024, Garrett Motion Inc. executed a share repurchase program, repurchasing approximately $226 million worth of common stock. This action is indicative of the company's strategy to enhance shareholder value and optimize capital structure.
Share Performance
The stock performance of Garrett Motion Inc. has shown fluctuations in 2024. As of September 30, 2024, the stock was trading at approximately $0.74 per share, reflecting a year-to-date decline of approximately 14% from its previous closing price of $0.86 at the end of 2023.
Financial Overview
For the nine months ended September 30, 2024, Garrett Motion reported a net income of $182 million, down from $209 million in the same period of 2023. The decrease is attributed to lower sales volumes and increased costs.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $52 | $57 |
| Adjusted EBITDA (in millions) | $144 | $152 |
| Net Sales (in millions) | $826 | $960 |
| Earnings per Share (EPS) | $0.24 | $0.23 |
Debt Structure
As of September 30, 2024, Garrett Motion’s total debt was approximately $2.2 billion, which includes:
- $800 million in Senior Notes maturing in 2032.
- $693 million in Term Loan Facilities.
- $1.464 billion in long-term debt obligations.
Market Position and Future Outlook
Garrett Motion continues to focus on strengthening its market position, particularly in turbocharging and zero-emission technologies. The company has secured contracts in the marine and power generation sectors, indicating a strategic pivot towards innovative technologies and sustainable solutions.
Garrett Motion Inc. (GTX) Mission Statement
Mission Statement Overview
Garrett Motion Inc. focuses on providing innovative and sustainable solutions in the automotive sector, particularly in turbocharging, hybrid, and zero-emission technologies. The company aims to enhance vehicle performance while reducing environmental impact.
Financial Performance Highlights
As of the third quarter of 2024, Garrett Motion reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $52 million | $57 million | -8.77% |
| Adjusted EBITDA | $144 million | $189 million | -23.66% |
| Net Sales | $826 million | $960 million | -13.96% |
| Gross Profit | $166 million | $176 million | -5.68% |
| EPS (Diluted) | $0.24 | $0.23 | 4.35% |
Revenue Breakdown by Region
For the nine months ended September 30, 2024, Garrett Motion's revenue was distributed as follows:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $530 | 20% |
| Europe | $1,279 | 49% |
| Asia | $767 | 29% |
| Other | $55 | 2% |
| Total | $2,631 | 100% |
Revenue Breakdown by Product Line
The revenue distribution by product line for the nine months ended September 30, 2024 is as follows:
| Product Line | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Diesel | $641 | 24% |
| Gasoline | $1,123 | 43% |
| Commercial Vehicle | $477 | 18% |
| Aftermarket | $350 | 13% |
| Other | $40 | 2% |
| Total | $2,631 | 100% |
Recent Strategic Developments
In April 2024, Garrett Motion divested its equity interest in an unconsolidated joint venture for approximately $58 million, receiving cash consideration of $46 million at the time of the divestiture, with an additional $7 million to be received later.
During the nine months ended September 30, 2024, the company repurchased $226 million of Common Stock under its share repurchase program.
Future Outlook
Garrett Motion is focusing on expanding its presence in the zero-emission technology sector, with ongoing investments in research and development to enhance its product offerings and operational efficiencies.
How Garrett Motion Inc. (GTX) Works
Overview of Operations
Garrett Motion Inc. (GTX) specializes in advanced technologies for automotive and commercial vehicles, focusing on turbocharging, hybrid, and zero-emission solutions. The company operates primarily through its manufacturing and engineering divisions, serving a global customer base.
Financial Performance
For the three months ended September 30, 2024, Garrett Motion reported net sales of $826 million, a decrease of 14% compared to $960 million in the same period in 2023. For the nine months ended September 30, 2024, net sales were $2.631 billion, down from $2.941 billion in 2023.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $826 | -14.0% |
| Q3 2023 | $960 | N/A |
| 9M 2024 | $2,631 | -11.0% |
| 9M 2023 | $2,941 | N/A |
Cost of Goods Sold and Gross Profit
For the three months ended September 30, 2024, Garrett Motion reported a cost of goods sold (COGS) of $660 million, resulting in a gross profit of $166 million, equating to a gross profit margin of 20.1%. This is a decrease from a COGS of $784 million and gross profit of $176 million in Q3 2023.
| Period | Cost of Goods Sold (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $660 | $166 | 20.1% |
| Q3 2023 | $784 | $176 | 18.3% |
| 9M 2024 | $2,108 | $523 | 19.9% |
| 9M 2023 | $2,374 | $567 | 19.3% |
Net Income and Adjusted EBITDA
In Q3 2024, Garrett Motion recorded a net income of $52 million, down from $57 million in Q3 2023. The adjusted EBITDA for the same period was $144 million, compared to $152 million in the prior year.
| Period | Net Income (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|
| Q3 2024 | $52 | $144 |
| Q3 2023 | $57 | $152 |
| 9M 2024 | $182 | $445 |
| 9M 2023 | $209 | $490 |
Research and Development Investments
Garrett Motion continues to invest in research and development (R&D) to enhance its product offerings. R&D expenses for the three months ended September 30, 2024, amounted to $49 million, an increase from $42 million in Q3 2023.
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $49 |
| Q3 2023 | $42 |
| 9M 2024 | $138 |
| 9M 2023 | $128 |
Geographic Revenue Breakdown
Revenue is generated from multiple regions, with Europe being a significant contributor. The following table summarizes the revenue by geographic region for Q3 2024.
| Region | Revenue (in millions) | Percentage of Total Revenue (%) |
|---|---|---|
| United States | $178 | 22% |
| Europe | $376 | 46% |
| Asia | $252 | 30% |
| Other | $20 | 2% |
| Total | $826 | 100% |
Debt and Liquidity Position
As of September 30, 2024, Garrett Motion had total cash and cash equivalents of $96 million and total debt of $2.157 billion, including $800 million in senior notes issued in May 2024.
| Debt Type | Principal Amount (in millions) |
|---|---|
| Term Loan Facilities | $693 |
| Senior Notes | $800 |
| Total Debt | $2,157 |
How Garrett Motion Inc. (GTX) Makes Money
Revenue Streams
Garrett Motion Inc. generates revenue primarily through the manufacturing and sale of turbochargers and related technologies for both light and commercial vehicles. In 2024, the company reported net sales of $2.631 billion for the nine months ended September 30, a decline of 11% compared to $2.941 billion in the same period of 2023.
Revenue Breakdown by Region
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| United States | $178 | $203 | $530 | $566 |
| Europe | $376 | $436 | $1,279 | $1,427 |
| Asia | $252 | $305 | $767 | $896 |
| Other | $20 | $16 | $55 | $52 |
| Total | $826 | $960 | $2,631 | $2,941 |
Revenue Breakdown by Product Line
| Product Line | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Diesel | $180 | $229 | $641 | $751 |
| Gas | $360 | $441 | $1,123 | $1,299 |
| Commercial Vehicle | $155 | $156 | $477 | $507 |
| Aftermarket | $117 | $118 | $350 | $342 |
| Other | $14 | $16 | $40 | $42 |
| Total | $826 | $960 | $2,631 | $2,941 |
Financial Performance Indicators
For the three months ended September 30, 2024, Garrett Motion reported a net income of $52 million, down from $57 million in the same quarter of 2023. The company's Adjusted EBITDA for Q3 2024 was $144 million, a decrease from $152 million in Q3 2023. The effective tax rate for Q3 2024 was 31.6%, compared to 18.6% in Q3 2023.
Cost Structure
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $2.108 billion, down from $2.374 billion in the same period of 2023. The gross profit for 2024 was $523 million, compared to $567 million in 2023. The gross profit percentage for Q3 2024 was 20.1%, up from 18.3% in Q3 2023.
Investments and R&D
Garrett Motion continues to invest in research and development, with R&D expenses for the nine months ended September 30, 2024, amounting to $138 million, an increase from $128 million in 2023. This investment focuses on advancing turbocharging, hybrid, and zero-emission technologies.
Debt and Capital Structure
As of September 30, 2024, Garrett Motion had total liabilities of $2.933 billion, with long-term debt totaling $1.464 billion. The company issued $800 million in senior notes with a 7.75% interest rate during 2024, which contributed to the capital structure transformation efforts.
Share Repurchase Program
In 2024, Garrett Motion repurchased $226 million of common stock under its share repurchase program, with $124 million remaining authorized for future repurchases as of September 30, 2024.
Outlook and Market Conditions
Garrett Motion faces challenges due to industry softness in Europe and China, competitive pressures, and shifts in customer vehicle platform mixes. The company is adapting by adjusting its cost structure and focusing on sustainable growth through technological advancements and strategic contracts.
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Article updated on 8 Nov 2024
Resources:
- Garrett Motion Inc. (GTX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Garrett Motion Inc. (GTX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Garrett Motion Inc. (GTX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.