Garrett Motion stock surges 3% on strong Q2 earnings, raises guidance for 2025.

Garrett Motion's stock rose 3% on Thursday, outperforming the S&P 500, after the company reported Q2 earnings with net sales up 3% YoY to $913mln and GAAP net income increasing 36% to $87mln. Non-GAAP EPS grew 48% to $0.43, beating the consensus estimate. Garrett attributed its gains to strong performance in turbocharging and zero-emission technologies, and raised its 2025 guidance for net sales and profitability.

Garrett Motion Inc. (GTX) reported robust financial results for the second quarter of 2025, with net sales increasing 3% year-over-year (YoY) to $913 million and GAAP net income rising 36% to $87 million. The company's non-GAAP EPS grew 48% to $0.43, surpassing the consensus estimate. These gains were attributed to strong performance in turbocharging and zero-emission technologies, with the company raising its 2025 guidance for net sales and profitability [1].

The company's adjusted EBIT margin stood at 13.6%, despite facing tariff-related challenges and an unfavorable sales mix. Garrett Motion secured over $1 billion in light vehicle program extensions, providing strong future revenue visibility. The company also continued to innovate in zero-emission technologies, securing significant awards and inaugurating a new R&D center in Wuhan, China [1].

Garrett Motion revised its full-year 2025 outlook, expecting net sales to range between $3.4 billion and $3.6 billion, up from its previous guidance of $3.3 billion to $3.5 billion. The company also raised its net income and adjusted EBIT projections [2]. The company's adjusted free cash flow for the first half of 2025 was $121 million, with a 62% conversion rate [1].

Despite the strong financial performance, Garrett Motion remains cautious about potential slowing demand and macroeconomic uncertainties. The company's stock rose 3% on Thursday, outperforming the S&P 500, following the earnings announcement [1].

References:
[1] https://www.gurufocus.com/news/3004552/garrett-motion-inc-gtx-q2-2025-earnings-call-highlights-strong-gasoline-turbo-sales-and-strategic-innovations-amid-challenges
[2] https://www.marketscreener.com/news/garrett-motion-inc-revises-earnings-guidance-for-the-full-year-of-2025-ce7c5cd3d08df623