Why Garret Motion Stock Triumphed on Thursday

On Thursday, it seemed like smooth sailing for automotive technology firm Garrett Motion (GTX), as indicated by its stock performance. Investors showed their confidence in the company by pushing up its shares by over 3%. This surge was primarily due to Garrett’s impressive quarterly earnings report. Notably, this increase outpaced the minimal 0.1% growth of the S&P 500 index.

An accelerating bottom line

In a report released on Thursday, Garrett reported an improvement in crucial indicators during the second quarter. Although their net sales didn’t experience significant growth, they did see a rise of approximately 3% compared to the same period last year, amounting to $913 million. According to generally accepted accounting principles (GAAP), their net income significantly increased by nearly 36%, reaching $87 million. On an adjusted, per-share basis, their non-GAAP earnings jumped by 48% to $0.43.

Despite predictions suggesting a profit of $0.42, Garrett surpassed the projected adjusted net income by a significant margin, exceeding the expected total of $918 million.

In the company’s earnings report, Garrett credited its advancements to significant growth across several innovative product categories.

According to CEO Olivier Rabiller, the company has strengthened its position as a leader in turbocharging by securing over $1 billion worth of extensions for light vehicle programs while simultaneously progressing its zero-emission technologies. This advancement has led to new achievements in our e-powertrain, e-cooling, and fuel cell projects.

Loading widget...

Turbocharged guidance

Garrett is confident that the positive trend will persist, as they’ve boosted their revenue and profit projections for the entire year 2025. The company now anticipates net sales to range between $3.4 billion and $3.6 billion, an increase from the earlier forecast of $3.3 billion to $3.5 billion. They also expect GAAP net income to be within $233 million and $278 million, a rise from the previous estimate of $209 million to $254 million.

Read More

2025-07-25 01:03