10-Q · July 29, 2026
Garrett delivered broad-based Q2 growth, with revenue up 7% year over year to $976 million and gross margin up 190 basis points to 21.7%. Net income rose to $101 million and Adjusted EBIT increased to $152 million,…
Earnings analysis · 10-Q
GTX earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Garrett reported a mixed third quarter: revenue of $930 million declined sequentially but increased 3.1% year over year, while gross margin expanded to 22.2% and diluted EPS of $0.51 exceeded the $0.48 consensus…
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Garrett reported a mixed third quarter: revenue of $930 million declined sequentially but increased 3.1% year over year, while gross margin expanded to 22.2% and diluted EPS of $0.51 exceeded the $0.48 consensus estimate. Adjusted free cash flow improved to $136 million, and management maintained its 2026 outlook, including $3.75 billion-$3.85 billion of net sales and $410 million-$450 million of adjusted free cash flow. Foreign-exchange sensitivity and ongoing capital returns remain notable risks, although the filing disclosed no material changes to the 2025 Form 10-K risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.51
- Gross margin
- 22.2%
What stood out
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Revenue grew year over year
Third-quarter revenue was $930 million, down $46 million, or 4.7%, from $976 million in Q2 2026, but up $28 million, or 3.1%, from $902 million in Q3 2025.
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Gross margin reached 22.2%
Gross margin expanded to 22.2%, up 50 basis points from 21.7% in Q2 2026 and 160 basis points from 20.6% in Q3 2025.
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EPS beat estimates and rose year over year
Diluted EPS was $0.51, $0.03 above the $0.48 consensus estimate; EPS declined from $0.53 in Q2 2026 but increased from $0.38 in Q3 2025.
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Cash generation improved
Adjusted free cash flow was $136 million, up from $128 million in Q2 2026 and $90 million in Q3 2025, indicating improved cash conversion despite lower sequential revenue.
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Share repurchases continued
The company repurchased 2,001,878 shares during the quarter at an average price of $28.46, leaving $77,744,961 available under the $250 million 2026 authorization.
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Full-year outlook maintained
Management reaffirmed 2026 net sales guidance of $3.75 billion-$3.85 billion and adjusted free cash flow guidance of $410 million-$450 million.
What to watch
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Material foreign-exchange sensitivity
The filing estimates that a hypothetical 10% adverse currency-rate move would produce a $305 million loss in fair value on currency-sensitive financial instruments; the filing notes actual earnings exposure should be substantially lower because of hedging.
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Capital returned while liquidity matters
The company repurchased 2,001,878 shares for $57.0 million during the quarter based on the reported share count and $28.46 average price, while only $77,744,961 remained under the authorization, reducing financial flexibility.
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Litigation exposure remains
The filing states that there were no material changes to the risks disclosed in the 2025 Form 10-K, but legal proceedings remain capable of unfavorable outcomes; the company is involved in lawsuits and claims across areas including product liability, environmental matters, intellectual property, and contractual disputes.
Management's outlook
Management reaffirmed its 2026 full-year outlook: net sales of $3.75 billion-$3.85 billion, net income of $337 million-$352 million, Adjusted EBIT of $570 million-$590 million, operating cash flow of $460 million-$500 million, and adjusted free cash flow of $410 million-$450 million.
Earlier filings 2
10-Q · April 30, 2026
Garrett Motion (GTX) reported strong Q1 2026 results, with net sales reaching $985 million, up 12% from the prior period, while diluted EPS came in at $0.39. The company raised its full-year revenue guidance to between…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.