Overview

* Garrett Motion ( GTX ) Q3 net sales rise 9% to $902 mln, beating analysts' expectations

* Adjusted EBITDA for Q3 beats estimates

* Company raises 2025 outlook, citing favorable industry conditions and YTD performance

Outlook

* Garrett raises 2025 net sales outlook to $3.5 bln-$3.6 bln

* Company expects 2025 adjusted EBITDA of $610 mln-$650 mln

* Garrett anticipates 2025 net income of $265 mln-$295 mln

Result Drivers

* HIGHER SALES VOLUMES - Increased demand for gasoline and diesel products drove higher sales volumes, contributing to revenue growth

* NEW CONTRACTS - Secured multiple commercial vehicle and industrial awards, including over $40 mln in lifetime revenue for gensets

* PRODUCTIVITY GAINS - Productivity improvements net of labor inflation contributed to increased gross profit

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $902 mln $868 mln

(1

Analyst)

Q3 Net $77 mln

Income

Q3 Beat $164 mln $151 mln

Adjusted (1

EBITDA Analyst)

Q3 18.20%

Adjusted

EBITDA

Margin

Q3 Gross $186 mln

Profit

Q3 $102 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

* Wall Street's median 12-month price target for Garrett Motion Inc ( GTX ) is $17.00, about 26.4% above its October 21 closing price of $12.52

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)