Garrett Motion beats Q3 sales estimates, raises full-year earnings outlook

Overview

• Garrett Motion 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

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 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: ID:nGNX8NHHHz

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