Garrett Motion Clocks 8% Revenue Growth In Q1, Reaffirms FY23 Outlook

Akanksha Bakshi
2 min read
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In this article:

  • Garrett Motion Inc (NASDAQ: GTX) reported first-quarter FY23 sales of $970 million, up 8% on a GAAP basis, up 13% at constant currency, beating the Street view of $922 million.

  • EPS was $0.13, compared to $0.15 a year ago, missing the estimate of $0.20.

  • "Garrett had an excellent start to the year with revenue growth that significantly outpaced the global light vehicle industry, driven by new product launches and program ramp-ups," stated Garrett President and CEO Olivier Rabiller.

  • Gross profit was $189 million compared to $175 million in 1Q22, with a gross profit margin of 19.5%, up by 10bps.

  • The increase in gross profit reflects higher sales volumes and inflation recoveries from customer pass-through agreements net of pricing reductions.

  • Net cash provided by operating activities totaled $92 million in the quarter compared to $73 million a year ago.

  • Adjusted EBITDA increased 15.1% Y/Y to $168 million, driven by higher volume, favorable product mix, improved productivity, and pass-through inflation net of pricing.

  • Adjusted EBITDA margin increased to 17.3% compared to 16.2% in 1Q22.

  • Adjusted free cash flow was $88 million versus $38 million in the first quarter of 2022.

  • As of March 31, 2023, Garrett had $766 million in available liquidity, including $291 million in cash and equivalents and $475 million of undrawn commitments under its revolving credit facility.

  • As of March 31, 2023, the debt outstanding totaled $1.193 billion.

  • Outlook FY23, reaffirmed: Garrett Motion sees net sales of $3.79 billion-$3.98 billion versus the estimate of $3.82 billion. Net Income of $231 million -$268 million

  • It expects an adjusted EBITDA of $585 million-$635 million. It sees Net cash provided by operating activities of $392 million-$492 million and Adjusted free cash flow of $315 million-$415 million.

  • Garrett's FY23 outlook expects 2023 light vehicle industry production at ~83Mu, 1% increase vs. 2022.

  • Also Read: Garrett Motion Simplifies Capital Structure By Converting To Single Class Of Common Stock

  • Price Action: GTX shares are trading lower by 0.12% at $8.18 premarket on Monday.

  • Photo Via Company

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This article Garrett Motion Clocks 8% Revenue Growth In Q1, Reaffirms FY23 Outlook originally appeared on Benzinga.com

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