Garrett Motion (GTX) Q1 2026 earnings summary

Executive summary

• Net sales reached $985 million in Q1 2026, up 12% year-over-year, with broad-based growth across all verticals and favorable currency impacts, outperforming the light vehicle industry.

• Net income rose to $95 million, with a net income margin of 9.6%, reflecting higher gross profit and lower expenses.

• Adjusted EBIT was $151 million (15.3% margin), up $20 million from the prior year, driven by strong volume conversion, favorable FX, and productivity improvements.

• Multiple new business wins in turbo, hybrid, and zero-emission technologies, including awards for E-Powertrain, E-Cooling, and battery energy storage systems in China and Europe.

• Returned over $100 million to shareholders through $87 million in share repurchases and $16 million in dividends.

Financial highlights

• Net sales increased by $107 million year-over-year, or 12% on a reported basis, with a $58 million favorable FX impact.

• Gross profit rose to $196 million, up from $179 million year-over-year, with a gross margin of 19.9%.

• Net income for Q1 2026 was $95 million, up from $62 million in Q1 2025, with net income margin improving to 9.6%.

• Adjusted EBIT reached $151 million (15.3% margin), up from $131 million (14.9% margin) in Q1 2025.

• Net cash provided by operating activities was $98 million, up from $56 million in Q1 2025.

Outlook and guidance

• Raised full-year 2026 outlook: net sales of $3.6–$3.9 billion, Adjusted EBIT of $520–$600 million, and Adjusted free cash flow of $355–$475 million.

• Net income guidance increased to $300–$360 million.

• Light vehicle production expected to decline 1–3%, commercial vehicle production to rise 1–2%.

• Maintained the low end of the outlook range due to macroeconomic and geopolitical uncertainties.

• R&D investment targeted at ~4.2% of sales; capital expenditures at ~2.5% of sales.