olivLaw · US equity research
Garrett Motion Inc. GTX
Motor Vehicle Parts & Accessories · SIC 3714 · Vertical: Motor Vehicle Parts & Accessories (SIC 3714)
Garrett Motion designs, manufactures and sells turbochargers, air and fluid compressors and high-speed electric motor technologies for automakers, industrial customers and the aftermarket. The company matters now because demand for emission-reduction technologies remains important, while fiscal 2025 net sales reached 3584 million USD and its push into fuel cell and electric traction compressors is ongoing.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Garrett Motion Inc. (GTX) stock was 19.77 USD (−4.81% on the day), with market capitalisation 3.6 bn USD, P/E 10.1 on diluted EPS of 1.95 USD over the last 12 months, dividend yield 1.62%, beta 1.15, 52-week range 15.64–36.23 USD. Latest reported quarter (Q3 2026): revenue of 930.0 m USD (+3.1% YoY), net income of 97.0 m USD (+26.0% YoY), diluted EPS 0.51 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 26.2
- oversold (≤ 30)
- Bollinger (20, 2)
- 19.17 – 27.08
- in the lower half of the band · %B 0.08 · band width 34.2%
- SMA 50 / 200
- 25.18 / 25.43
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -1.48 / -1.24
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −25.9% | −1.1% | −24.8 pp | — |
| 3 months | −37.1% | −0.5% | −36.6 pp | — |
| 6 months | −26.6% | +4.4% | −31.0 pp | — |
| Year to date | +13.4% | +12.3% | +1.1 pp | — |
| 1 year | +15.3% | +13.5% | +1.7 pp | −12.2% |
| 3 years | +165.0% | +76.4% | +88.6 pp | −3.9% |
| 5 years | +182.4% | +63.7% | +118.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 844.0 m | 878.0 m | 913.0 m | 902.0 m | 891.0 m | 985.0 m | 976.0 m | 930.0 m |
| Cost of revenue | 662.0 m | 699.0 m | 732.0 m | 716.0 m | 706.0 m | 789.0 m | 764.0 m | 724.0 m |
| Gross profit | 182.0 m | 179.0 m | 181.0 m | 186.0 m | 185.0 m | 196.0 m | 212.0 m | 206.0 m |
| SG&A | 62.0 m | 59.0 m | 59.0 m | 57.0 m | 65.0 m | 58.0 m | 63.0 m | 58.0 m |
| Pre-tax income | 99.0 m | 85.0 m | 102.0 m | 102.0 m | 103.0 m | 118.0 m | 126.0 m | 119.0 m |
| Income tax | -1.0 m | 23.0 m | 15.0 m | 25.0 m | 19.0 m | 23.0 m | 25.0 m | 22.0 m |
| Net income | 100.0 m | 62.0 m | 87.0 m | 77.0 m | 84.0 m | 95.0 m | 101.0 m | 97.0 m |
| Diluted EPS | 0.47 | 0.30 | 0.42 | 0.38 | 0.42 | 0.49 | 0.53 | 0.51 |
| Operating cash flow | 131.0 m | 56.0 m | 158.0 m ≈ | 100.0 m ≈ | 99.0 m | 98.0 m | 145.0 m ≈ | 135.0 m ≈ |
| Capex | 22.0 m | 26.0 m | 15.0 m | 10.0 m | 21.0 m | 29.0 m | 17.0 m | 15.0 m |
| Dividends paid | 0 | 12.0 m | 13.0 m | 11.0 m | 16.0 m | 16.0 m | 15.0 m | 15.0 m |
| Share repurchases | 70.0 m | 30.0 m | 22.0 m ≈ | 84.0 m ≈ | 72.0 m | 87.0 m | 28.0 m ≈ | 57.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 63 percentile of its own 27-quarter history (min 0.7, median 7.3, max 27.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.4 bn | 3.2 bn | 3.0 bn | 3.6 bn | 3.6 bn | 3.9 bn | 3.5 bn | 3.6 bn |
| Revenue YoY | +9.0% | −3.8% | −6.6% | +19.7% | −0.8% | +7.9% | −10.6% | +3.1% |
| Net income | 1.2 bn | 313.0 m | 80.0 m | 495.0 m | 390.0 m | 261.0 m | 282.0 m | 310.0 m |
| Net income YoY | unavailable | −74.0% | −74.4% | +518.8% | −21.2% | −33.1% | +8.0% | +9.9% |
| Diluted EPS | 16.21 | 4.12 | 1.05 | 1.56 | 0.75 | -0.31 | 1.26 | 1.52 |
| Diluted EPS YoY | unavailable | −74.6% | −74.5% | +48.6% | −51.9% | −141.3% | unavailable | +20.6% |
| net % | 35.7% | 9.6% | 2.6% | 13.6% | 10.8% | 6.7% | 8.1% | 8.6% |
| Free cash flow | 278.0 m | 140.0 m | -55.0 m | -382.0 m | 284.0 m | 382.0 m | 317.0 m | 341.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 177.0 m USD
- Financial debt
- 1.4 bn USD
- Net debt
- 1.2 bn USD
- Equity
- -802.0 m USD
- Total assets
- 2.4 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.97x
- ROE
- unavailable
- ROA
- 13.4%
- FCF margin
- 9.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.0 bn | 3.6 bn | 3.6 bn | 3.9 bn | 3.5 bn | 3.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 2.5 bn | 2.9 bn | 2.9 bn | 3.1 bn | 2.8 bn | 2.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 539.0 m | 707.0 m | 683.0 m | 756.0 m | 705.0 m | 731.0 m | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 260.0 m | 216.0 m | 216.0 m | 247.0 m | 240.0 m | 240.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 86.0 m | 92.0 m | 84.0 m | 90.0 m | 90.0 m | 99.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Interest expense | 79.0 m | 83.0 m | 8.0 m | 159.0 m | — | — | SEC (XBRL)· 15 Feb 2024verified |
| Pre-tax income | 119.0 m | 538.0 m | 496.0 m | 347.0 m | 343.0 m | 392.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | 39.0 m | 43.0 m | 106.0 m | 86.0 m | 61.0 m | 82.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | 80.0 m | 495.0 m | 390.0 m | 261.0 m | 282.0 m | 310.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | 1.05 | 1.56 | 0.75 | -0.31 | 1.26 | 1.52 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 76.1 m | 317.5 m | 65.1 m | 166.6 m | 224.1 m | 203.6 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividend per share | — | — | — | — | 0.06 | — | SEC (XBRL)· 20 Feb 2025verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 592.0 m | 423.0 m | 246.0 m | 259.0 m | 125.0 m | 177.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 235.0 m | 244.0 m | 270.0 m | 263.0 m | 286.0 m | 339.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 1.9 bn | 1.5 bn | 1.4 bn | 1.4 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 505.0 m | 485.0 m | 470.0 m | 477.0 m | 449.0 m | 462.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 193.0 m | 193.0 m | 193.0 m | 193.0 m | 193.0 m | 193.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 3.0 bn | 2.7 bn | 2.6 bn | 2.5 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 1.0 bn | 1.0 bn | 1.0 bn | 1.1 bn | 972.0 m | 1.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 0 | 7.0 m | 7.0 m | 7.0 m | 7.0 m | 7.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 1.1 bn | 1.2 bn | 1.1 bn | 1.6 bn | 1.5 bn | 1.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 1.8 bn | 1.5 bn | 1.4 bn | 1.4 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 5.3 bn | 3.2 bn | 2.8 bn | 3.3 bn | 2.9 bn | 3.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | -2.3 bn † | -468.0 m † | -116.0 m † | -735.0 m † | -673.0 m † | -802.0 m † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 25.0 m | -310.0 m | 375.0 m | 465.0 m | 408.0 m | 413.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 80.0 m | 72.0 m | 91.0 m | 83.0 m | 91.0 m | 72.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | -55.0 m ≈ | -382.0 m ≈ | 284.0 m ≈ | 382.0 m ≈ | 317.0 m ≈ | 341.0 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -80.0 m | -71.0 m | -91.0 m | -55.0 m | -14.0 m | -41.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 530.0 m | 139.0 m | -482.0 m | -403.0 m | -520.0 m | -326.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividends paid | 0 | 0 | 83.0 m | 42.0 m | 0 | 52.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 0 | 4.0 m | 0 | 213.0 m | 296.0 m | 208.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 79 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation95
- Balance sheet20
- Quality94
- Growth50
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 23.34 – 38.27 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E23.34 – 38.27 (Mid 29.39)18 companies used · median multiple 15.1x · quartiles 12.0x – 19.6xADNT, ALSN, ALV, APTV, ATMU, BWA, CAAS, DAN, DORM, GNTX, LCII, LEA, MGA, PATK, PHIN, SMP, STRT, VC
- Dividend discount (DDM)outside the aggregate0.79 – 1.06 (Mid 0.90)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 79/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.0% | 88 (vs peers) | 10% |
| FCF conversion · Quality | 104.8% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -0.2% | 0 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 26.5% | 100 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 20 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 10.1x | 90 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 10.8% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 8.4% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 15.7% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial20/100 · 1/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality94/100 · 2/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation95/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Garrett Motion Inc. (GTX). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 3.6 bn USD in 2025; YoY growth 3.1%; net margin 10.0%.
The estimated value range is 23.34–38.27 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 29.39 USD, the price of 19.77 USD leaves a potential of 48.7% (value / price − 1) and a margin of safety of 32.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 79/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 10.0%
- FCF conversion: 104.8%
- EPS CAGR 3Y: 26.5%
- P/E (TTM): 10.1x
- FCF yield: 10.8%
- Shareholder yield (distributions): 8.4%
- Payout ratio (FCF): 15.7%
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: -0.2%
- Current ratio: 1.0x
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Motor Vehicle Parts & Accessories (SIC 3714) · same industry (4-digit SIC) · compared with 34 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MGAMagna International Inc. | 18.4 bn | 22.4 | 6.9% | 2.0% | −1.9% | +34% / +22% |
| BWABorgwarner Inc. | 10.1 bn | 21.5 | 8.2% | 3.4% | +1.6% | +17% / +50% |
| ALSNAllison Transmission Holdings, Inc. | 9.9 bn | 17.4 | 29.7% | 11.1% | −6.7% | +36% / +125% |
| ALVAutoliv, Inc. | 9.0 bn | 15.1 | 24.8% | 5.6% | +4.1% | +7% / +21% |
| APTVAptiv PLC | 8.8 bn | 11.9 | 8.5% | 4.6% | +3.5% | −44% / −48% |
| LEALear Corp | 5.7 bn | 10.4 | 11.6% | 2.5% | −0.2% | +11% / −11% |
| MODModine Manufacturing Co | 5.2 bn | 41.3 | 11.4% | 3.6% | +23.1% | −39% / +100% |
| GNTXGentex Corporation | 4.4 bn | 11.0 | 16.4% | 15.5% | +9.6% | −9% / −32% |
| DORMDorman Products, Inc. | 4.2 bn | 21.2 | 13.3% | 9.3% | +6.0% | +8% / +98% |
| ATMUAtmus Filtration Technologies Inc. | 3.9 bn | 18.3 | 55.8% | 11.3% | +5.7% | −5% / +119% |
| GTXGarrett Motion Inc. | 3.6 bn | 10.1 | — | 10.0% | +3.1% | +15% / +165% |
| PATKPatrick Industries Inc | 2.7 bn | 20.1 | 13.0% | 3.7% | +6.3% | −22% / +55% |
| PHINPhinia Inc. | 2.6 bn | 14.5 | 12.2% | 5.2% | +2.4% | +33% / +181% |
| DANDana Incorporated | 2.6 bn | 2.4 | 71.4% | 14.6% | −3.0% | +6% / +80% |
| LCIILci Industries | 2.5 bn | 12.1 | 15.0% | 5.2% | +10.2% | −8% / −4% |
| VCVisteon Corp | 2.0 bn | 13.8 | 10.8% | 4.1% | −2.5% | −22% / −32% |
| THRMGentherm Incorporated | 1.6 bn | 105.3 | 1.3% | 0.6% | +2.9% | −13% / −32% |
| ADNTAdient plc | 1.3 bn | 28.5 | 2.7% | 0.3% | −1.0% | −12% / −47% |
| DCHDauch Corporation | 1.1 bn | — | -15.2% | -2.0% | −4.7% | −27% / −31% |
| SMPStandard Motor Products, Inc. | 1.0 bn | 15.1 | 9.9% | 3.8% | +22.4% | +22% / +28% |
| AEVAAeva Technologies, Inc. | 661.5 m | — | — | -150.1% | +99.4% | −15% / +240% |
| CPSCooper-Standard Holdings Inc. | 391.6 m | — | — | -2.0% | +0.4% | −29% / +24% |
| HLLYHolley Inc. | 351.6 m | 35.3 | 2.3% | 1.7% | +1.9% | −32% / −30% |
| KNDIKandi Technologies Group, Inc. | 287.8 m | — | -30.5% | -107.4% | −31.5% | −63% / −88% |
| STRTStrattec Security Corp | 258.5 m | 15.6 | 7.2% | 2.9% | +2.5% | −14% / +201% |
1- and 3-year price returns: for GTX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 11.66 Total return -40% · Per year -40% | 20.67 Total return 6% · Per year 6% | 31.20 Total return 60% · Per year 60% |
| 3 years | 10.28 Total return -44% · Per year -18% | 20.60 Total return 9% · Per year 3% | 34.28 Total return 80% · Per year 22% |
| 5 years | 9.06 Total return -49% · Per year -12% | 20.52 Total return 12% · Per year 2% | 37.67 Total return 102% · Per year 15% |
- Exit P/E± 5.15
- Net margin± 3.60
- Annual revenue growth± 3.10
- Annual dilution± 0.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Garrett Motion designs, manufactures and sells turbochargers, air and fluid compressors and high-speed electric motor technologies for automakers, industrial customers and the aftermarket. The company matters now because demand for emission-reduction technologies remains important, while fiscal 2025 net sales reached 3584 million USD 1 and its push into fuel cell and electric traction compressors is ongoing.
SWOT
Strengths
- Differentiated turbocharger technology, a large patent portfolio and an extensive team of engineers and research centres.
- Strong relationships with automakers worldwide, providing a stable base of customers and long-term programmes.
- Global low-cost manufacturing network with a focus on operational excellence, which supports margins.
Weaknesses
- High dependence on a few major customers, so losing one or a drop in a model's production has a material effect.
- Sales depend largely on internal combustion engines, exposing the company to rapid technological change.
- Constant customer pressure on prices could limit margins, especially when reductions are imposed over programme life.
Opportunities
- Growth in hybrids and supporting technologies for electric vehicles could expand demand for compressors and electric components.
- Data centre generators and industrial and marine applications offer a new growth area for large turbochargers.
- The aftermarket could grow as the installed base of turbocharged vehicles expands.
Threats
- Rapid adoption of battery electric vehicles could reduce long-term demand for turbochargers.
- Trade tensions, inflation and economic uncertainty in major regions could reduce vehicle output and demand for products.
- Competition from vertically integrated automakers and well-funded new entrants could affect market share.
Risks
- Dependence on major customershigh
A small number of customers generate a large share of sales, and programme changes, mergers or financial difficulties at those customers could affect results 1.
- Shift to battery electric vehicleshigh
If the transition accelerates faster than expected, demand for turbochargers could fall and investment in new technologies could be affected 1.
- Pricing pressure from customersmedium
Supply contracts with automakers include price reductions over the life of programmes, which could limit margins if costs do not fall in parallel 1.
- Geopolitical and trade exposuremedium
Large investments in China and India could produce losses if demand does not grow as expected or if trade tensions force operations to move 1.
- Regulatory and sustainability scrutinylow
Changes in emission policy could reduce demand for emission-reduction technologies, and sustainability expectations from customers and investors can add pressure 1.
Investment thesis
What would need to be true (bull case)
- Differentiated technology, relationships with automakers and a low-cost production network could support sales even as the market gradually changes 1.
- If industrial and data centre applications keep growing, the company could diversify revenue beyond automobiles 2.
- Available liquidity and the dividend programme point to a financial position that allows investment and capital returns 3.
What would break the thesis
- If battery electric vehicles spread faster than expected, demand for turbochargers could fall significantly 1.
- Dependence on a few large customers and continued price pressure could limit margins and flexibility 1.
- Investment in new technologies depends on profit from turbochargers, so lower demand could reduce the capacity to fund those projects 1.
What to watch
- Delivery against the full-year outlook for net sales and adjusted EBITQ3 2026
- Evolution of light vehicle production and battery electric vehicle penetration2026
- New awards for industrial applications, data centre generators and electric compressorsQ3 2026
- Level of debt and available liquidity in the next annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Garrett Motion is a technology leader in emission reduction and energy efficiency, designing, manufacturing and selling turbocharging, air and fluid compression and high-speed electric motor technologies for original equipment manufacturers and independent aftermarket distributors in mobility and industrial fields 1. The company says its technologies, such as high-speed motors, oil-free foil bearings and controls software, are hard for competitors to replicate and require sustained research, development and engineering investment 1. Garrett supplies more than 60 OEMs, and its top ten customers account for about 62% of net sales, making reliance on major customers a central feature of the business model 1.
Garrett's production is spread globally, with seven manufacturing facilities in China, India, Mexico, Brazil, Romania and Slovakia, and more than 89% of products were made in low-cost countries in 2025 1. The company has extended its turbocharger range to industrial and marine applications, including the Garrett MEG product for backup power generation for data centers 1. It also published second-quarter 2026 results with higher net sales and a raised full-year outlook 23.
The capital structure included total debt of 1386 million USD at June 30, 2026, alongside available liquidity of 788 million USD on the same date, giving flexibility for investment and the share repurchase programme 3. The company paid dividends in the second quarter and declared a new dividend for the third quarter, indicating a policy of returning capital to shareholders 2.
Segments
Market context
The company estimates the global OEM turbocharger industry at about 10 billion USD, and global turbocharger production stayed close to 50 million units in 2025 1. Automakers in regions with strict emission rules use turbochargers as a relatively cost-effective solution, but the long-term outlook depends on the pace of battery electric vehicle adoption 1.
For 2026, the company expects light vehicle production to fall and commercial vehicle production to rise modestly, with average light vehicle battery electric penetration around 19% 3. The outlook depends heavily on trade tensions, inflation in Europe and the evolution of China's economy 1.
Trends
- Tighter emission standardstailwind
Fuel economy and emission standards in the United States, the European Union, China, Japan and Korea increase pressure on automakers, and turbochargers help reduce engine size without sacrificing performance 1. If these standards stay in force, demand for emission-reduction technologies could support existing sales 1.
Competitive position
Garrett competes with independent regional and multi-regional turbocharger suppliers, as well as with vertically integrated internal business units of major OEMs 1. The company also names well-funded start-ups and larger competitors with greater financial resources 1.
Garrett's competitive edge rests on differentiated technology, close relationships with OEMs and a low-cost global manufacturing network 1. Customer price pressure, with negotiated reductions over the life of programmes, remains an important factor in the component supply sector 1.
- Independent regional and multi-regional turbocharger suppliers
Competitors named in the annual report without being identified by name in the sources reviewed.
- Internal business units of automakers
Vertically integrated divisions of automakers that make their own system components.
- Newer start-ups in electrification technologies
Well-funded entrants competing in electrification and zero-emission technology development.
- Larger competitors with greater financial resources
Companies of larger scale that may have broader financial and technological resources.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Garrett clinches Rose’s open House seat in TennesseeThe Hill · 04 Nov 2026 · EN
- 🇺🇸 🇮🇷 ⚡️ — Garrett Haake via X: “The President took no questions- as he was walk…Telegram — Intel Slava Z (pro-RU OSINT EN) · 02 Nov 2026 · EN
- Strong Results Lifted Garrett Motion (GTX) in Q2Yahoo Finance — News · 08 Sept 2026 · EN
- Garrett Motion’s (GTX) Vision: Shaping the Future of Sustainable MobilityYahoo Finance — News · 31 Aug 2026 · EN
- Keeping a Close Watch: Garrett Motion’s (GTX) Rising Share Price and Future ReturnsYahoo Finance — News · 27 Aug 2026 · EN
- IMMORTAL, noul album al lui David Garrett: „Muzica este cea mai apropiată de nemurire”Mediafax · 25 Jul 2026 · RO
- Huge NFL deals send Garrett to Rams, Brown to PatriotsThe Japan Times · 02 Jun 2026 · RO
- Peter Garrett to head independent inquiry into the Aukus submarine pactThe Guardian World · 01 Jun 2026 · RO
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report28 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report27 Jul 2026Departure or appointment of officers · Amendments to articles or bylaws · Financial statements and exhibits
- Current report01 Jun 2026Shareholder vote
- Current report20 May 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Garrett Motion Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Garrett Motion Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Garrett Motion Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.