Auto tech provider Garrett Q2 net sales up, raises FY forecast
Overview
Auto tech provider Garrett Q2 2025 net sales rise 3% on favorable foreign currency impact
Adjusted EBITDA for Q2 misses consensus, driven by unfavorable product mix
Co raises full-year 2025 outlook, reflecting favorable foreign currency impacts
Outlook
Garrett Motion raises 2025 net sales outlook to $3.4 bln-$3.6 bln
Company expects 2025 adjusted EBITDA of $590 mln-$650 mln
Garrett sees 2025 net income between $233 mln and $278 mln
Company anticipates 2025 adjusted free cash flow of $330 mln-$410 mln
Result Drivers
FOREIGN CURRENCY IMPACT - Net sales increase driven by favorable foreign currency translation and import tariff recoveries
PRODUCT MIX CHALLENGE - Unfavorable product mix due to weaker demand for aftermarket sales and diesel products
PROGRAM EXTENSIONS - Secured over $1 bln in light vehicle turbo program extensions, reinforcing leadership in turbocharging
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $913 mln | $918 mln (1 Analyst) |
Q2 Net Income |
| $87 mln |
|
Q2 Adjusted EBITDA | Miss | $154 mln | $161 mln (1 Analyst) |
Q2 Adjusted EBITDA Margin |
| 16.9% |
|
Q2 Gross Profit |
| $181 mln |
|
Q2 Pretax Profit |
| $102 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
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 $14.00, about 15.8% above its July 23 closing price of $11.79
Press Release: ID:nGNX7SqlNf
Related Articles
Investing in Clean Energy
TradingKey - Not so long ago, clean energy was relegated to a niche, a corner for subsidies, early markets, and greens. Now it's at the center of global economic thought. Governments, business, and consumers are driving a structural transformation from fossil fuels to renewables. The roofs are toppe
Investing in Luxury & Experiential Consumption
Niche assets like data centers, logistics, healthcare, and cold storage thrive on structural drivers, not traditional property cycles Specialized real estate benefits from secular trends like digitalization, demographics, and supply chain innovation, making demand resilient and less cycle-sensitive
Oracle’s FY2026 Q1 Preview: Will OpenAI Contract Spark a Broadcom-Like Stock Surge?
TradingKey - As analysts raise targets and expectations, could Oracle’s stock replicate the post-earnings rally seen at Broadcom following its OpenAI-related contract announcement?
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
