Garrett Motion Inc (NASDAQ:GTX) Surpasses Q3 2025 Earnings Estimates, Stock Soars

Garrett Motion Inc (NASDAQ:GTX) has reported financial results for the third quarter of 2025 that surpassed analyst expectations, prompting a significant positive reaction in its stock price during pre-market trading.

Earnings and Revenue Performance Versus Estimates

The company’s performance in the third quarter demonstrated clear operational strength, with both top and bottom-line results coming in ahead of market forecasts.

• Revenue: The company reported net sales of $902 million for the quarter, exceeding the analyst consensus estimate of approximately $871 million.
• Earnings Per Share (EPS): Garrett reported a diluted EPS of $0.38, which outperformed the estimated $0.32.

This earnings beat was complemented by strong year-over-year growth. Net sales increased by 9% on a reported basis, or 6% on a constant currency basis, compared to the third quarter of 2024. Net income saw a substantial rise to $77 million, up from $52 million in the prior year period.

Market Reaction and Shareholder Returns

The market responded favorably to the earnings surprise. In pre-market trading, the stock showed a notable increase of over 16%. This positive momentum is likely fueled not only by the earnings beat but also by several shareholder-friendly announcements made by the company.

• The Board of Directors declared an increased quarterly cash dividend of $0.08 per share, a 33% raise from the previous payout.
• The company executed a $50 million voluntary early repayment on its term loan, strengthening its balance sheet.
• During the quarter, Garrett repurchased $84 million of its common stock.

Updated Financial Outlook

Adding to the positive sentiment, management raised its financial outlook for the full year 2025. The revised guidance now anticipates stronger performance across key metrics compared to previous expectations.

• Net Sales: The midpoint of the sales outlook was raised to a range of $3.5 billion to $3.6 billion.
• Net Income: The net income forecast was increased to a range of $265 million to $295 million.
• Adjusted EBITDA: The guidance for Adjusted EBITDA was raised to a range of $610 million to $650 million.

This improved outlook, which reflects strong year-to-date performance and a more favorable industry forecast, suggests management has growing confidence in the company's trajectory for the remainder of the year.

Business Highlights and Strategic Positioning

Beyond the financial figures, the quarter was marked by significant business developments that underscore Garrett's strategic direction. The company secured multiple new turbocharger programs for light vehicles, including awards for range-extended electric vehicles. It also garnered over $40 million in expected lifetime revenue for turbochargers in data center backup power generation. Furthermore, the company noted growing interest in its E-Powertrain and E-Cooling technologies from both automotive and industrial customers, validating its two-pronged strategy of reinforcing turbocharging leadership while scaling its electrification and zero-emission technology portfolio.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can view more information on the GTX earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.