Garrett Motion Inc (GTX) Q3 2023 Earnings: Solid Performance Despite Challenges
Garrett Motion Inc (NASDAQ:GTX) reported Q3 2023 net sales of $960 million, a 2% increase on a reported basis.
The company's net income totaled $57 million, with a net income margin of 5.9%.
Garrett Motion Inc (NASDAQ:GTX) made an early debt repayment of $200 million and repurchased $161 million of common stock.
The company revised and narrowed its 2023 outlook range due to currency headwinds.
Garrett Motion Inc (NASDAQ:GTX), a leading automotive technology provider, released its financial results for Q3 2023 on October 24, 2023. Despite facing challenges from currency and product mix, the company managed to deliver solid financial results through productivity gains and operational excellence.
Financial Highlights
Garrett Motion Inc (NASDAQ:GTX) reported Q3 2023 net sales of $960 million, up 2% on a reported basis and down 1% at constant currency. The company's net income totaled $57 million, with a net income margin of 5.9%. Adjusted EBITDA totaled $152 million, with an adjusted EBITDA margin of 15.8%. Net cash provided by operating activities totaled $74 million, and adjusted free cash flow totaled $57 million.
Debt Repayment and Stock Repurchase
The company made an early debt repayment of $200 million and repurchased $161 million of its common stock. These actions align with the company's capital allocation priorities and demonstrate its commitment to enhancing shareholder value.
Performance Analysis
The increase in net sales was driven by foreign currency translational impacts and the ramp-up of new products in small gasoline engines applications. However, these increases were partially offset by unfavorable product mix from demand softness for diesel and commercial vehicle applications due to global macroeconomic conditions.
Outlook for 2023
Garrett Motion Inc (NASDAQ:GTX) revised and narrowed its 2023 outlook range due to currency headwinds. The company now expects net sales to be between $3.83 billion and $3.90 billion, and net income to be between $252 million and $272 million.
About Garrett Motion Inc (NASDAQ:GTX)
Garrett Motion Inc (NASDAQ:GTX) is a differentiated technology leader serving customers worldwide for more than 65 years with passenger vehicle, commercial vehicle, aftermarket replacement, and performance enhancement solutions. The company's cutting-edge technology enables vehicles to become cleaner, more efficient, and connected.
This article first appeared on GuruFocus.
