Garrett Motion Inc. (GTX) AI Stock Analysis

Garrett Motion Inc. specializes in the design, manufacturing, and global distribution of turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers. Headquartered in Rolle, Switzerland, the company provides turbochargers for gasoline and diesel engines in light vehicles, alongside specialized products for commercial vehicles. Garrett Motion Inc. also delivers automotive software solutions that complement its hardware by optimizing engine performance and fuel economy to meet stringent industry standards. In addition to original equipment manufacturers, the company serves a broad customer base through an established aftermarket distributor network.

Garrett Motion grew revenue from $3.63B in FY2021 to $3.89B in FY2023, before a 10.6% decline in FY2024 to $3.48B. Revenue rebounded 3.1% in FY2025 to $3.58B, resulting in a 5-year revenue CAGR of 3.4% from FY2020 to FY2025. Gross margin expanded from 23.6% in FY2021 to 24.5% in FY2025, while net income reached $310.0M with diluted EPS of $1.57. In the trailing twelve months, revenue was $3.75B and net margin stood at 9.5%. For the latest quarter ending June 30, 2026, quarterly revenue grew 6.9% year-over-year, and quarterly earnings grew 26.2% year-over-year.

As of June 30, 2026, Garrett Motion held $158.0M in cash and short-term investments against total debt of $1.42B, resulting in net debt of $1.26B and total assets of $2.47B. Shareholders' equity was -$675.0M, and the current ratio was 1.00. In FY2025, operating cash flow stood at $413.0M and free cash flow reached $341.0M. Capital allocation in FY2025 included $72.0M in capital expenditures, $211.0M deployed toward share buybacks, and $52.0M paid in dividends.

Garrett Motion trades at a trailing P/E of 13.4x and a forward P/E of 11.7x, below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value to EBITDA multiple of 9.1x also trades below the peer group median of 11.1x, while its price-to-sales multiple of 1.2x stands above the peer median of 0.7x. The stock has delivered a 1-year return of 93.4% and a 5-year return of 252.5%, outperforming the S&P 500 benchmark returns of 16.8% and 83.0% over those same periods.

Garrett Motion pays a quarterly dividend with a forward annual dividend of $0.32, translating to a dividend yield of 1.31%. The company has paid dividends for 2 consecutive years, maintaining a payout ratio of 17.3%. Its last ex-dividend date was September 1, 2026, following FY2025 total dividends paid of $52.0M.

Wall Street coverage consists of 2 Strong Buy, 3 Buy, and 1 Hold ratings. The mean price target is $35.33, implying 44.6% upside over the last close of $24.44. Garrett Motion achieved 4 EPS beats over the last 4 quarters. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $3.82B and EPS of $2.06, representing 30.6% earnings growth. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Garrett Motion Inc. (GTX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GTX income statement, GTX balance sheet, GTX key metrics, GTX analyst forecast, GTX chart. See the GTX stock overview for the latest quote and news.