Start here if you're new
what it is
Garrett Motion makes turbochargers and air-compression parts that help engines and electric systems run more efficiently.
how it gets paid
Last year Garrett Motion made $3.6B in revenue. Gasoline turbochargers was the main engine at $1.1B, or 40% of sales.
what just happened
Garrett posted $2.6B of revenue and missed EPS by 6.7%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
12.7x trailing p/e — the market's not buying it — or you found a deal
3.1% dividend yield — cash in your pocket every quarter
69.5% return on capital — a money-printing machine
xvary composite: 55/100 — below average
What they do
Garrett Motion makes turbochargers and air-compression parts that help engines and electric systems run more efficiently.
OEMs → carmakers → so what: Garrett gets designed into the vehicle before you buy it. The company has 6,700 employees and a 21.5% operating margin, so it runs lean for a parts supplier. Your replacement-parts channel keeps working when new-car builds slow.
How they make money
$3.6B
annual revenue
Gasoline turbochargers
$1.1B
+1.0%
Diesel turbochargers
$0.5B
4.0%
Aftermarket parts and services
$0.9B
+4.0%
Zero-emission and industrial technologies
$0.3B
+20.0%
The products that matter
turbocharging systems
Turbocharging
core revenue driver · within a $3.6B business
this is the legacy engine room. Garrett does not break out revenue here on this page, but the market still prices GTX around whether turbo demand holds up long enough to support that 12.0% net margin.
cash generator
air and fluid compression
Compression systems
industrial + mobility exposure
this bucket matters because it broadens the story beyond one component line. With $3.6B in total sales, any mix shift that keeps margins near the current 21.5% operating level matters more than a flashy product label.
mix shift watch
high-speed electric technology
Electric technologies
future offset to turbo risk
this is the part you watch if you worry about the combustion-engine runway. The page gives no revenue figure here, which tells you the investment case still rests on today's $3.6B business more than tomorrow's optionality.
prove it
Key numbers
12.7x
trailing p/e
You pay 12.7 years of earnings for one share. That only works if earnings stop shrinking.
3.1%
dividend yield
You get paid 3.1% a year to wait. That helps if the stock goes nowhere.
21.5%
operating margin
Garrett keeps 21.5 cents from each sales dollar before taxes and interest. That is healthy for a parts maker.
69.5%
return on capital
The business turns invested money into profit at 69.5%. That is why the market keeps paying attention.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $1.4B (28% of capital)
- net profit margin 12.0% — keeps 12 cents of every dollar in revenue
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in GTX 3 years ago → it's now worth $25,520.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Garrett posted $2.6B of revenue and missed EPS by 6.7%.
Revenue was up 219% vs. prior year, but EPS still came in at $0.42 versus $0.45 expected. Gross margin stayed thin at 7.0%.
$2.6B
revenue
$0.42
eps
7.0%
gross margin
the number that mattered
The 7.0% gross margin is the tell. Thin margins leave little room when sales or costs move against you.
-
garrett motion closed out 2025 with mixed results.
-
sales were modestly higher than our estimate and increased 6% compared to the previous-year tally.
-
the advance was largely driven by favorable foreign exchange rates, as the top line only increased 1% at constant currency.sales benefited from growth in global diesel and commercial vehicle verticals, although this was largely offset by declining volumes of gasoline applications in asia.
-
share earnings of $0.42 were lower than both our estimate and the prior-year tally of $0.47.the bottom line was pressured by an unfavorable product mix, tariff-related expenses, and elevated labor costs.
-
these factors more than offset a decrease in commodity, transportation, energy, and r&d costs.
source: company earnings report, 2026
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What could go wrong
the top risk is turbo demand shrinking faster than Garrett's newer electric and compression products can replace it.
high
combustion-engine exposure
Garrett still makes its money from hardware tied to traditional vehicle platforms. If those programs fade faster than expected, the current earning base takes the hit first.
Impact: it puts pressure on the $3.6B revenue base that supports today's 12.0% net margin.
med
$1.4B in long-term debt reduces your margin for error
A B+ balance sheet is workable. It is not bulletproof. If auto production slips, leverage feels larger fast.
Impact: debt equals 28% of capital, so a weaker cycle would pressure cash allocation between dividends, reinvestment, and debt reduction.
med
the market is still pricing a supplier, not a software company
GTX sells into vehicle and industrial demand. That means production cuts at customers flow through faster than investors like to admit.
Impact: a low 12.7x p/e is cheap for a reason. If volumes weaken, the multiple does not protect you by itself.
These risks all point at the same thing: GTX looks inexpensive because the market is questioning how long today's $3.6B revenue base and 12.0% margin profile hold up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
watch whether 12.0% net margin holds
That margin is the proof this is more than a commodity parts supplier. If it slips, the cheap-multiple argument gets weaker fast.
earnings
next report needs to defend the $4B revenue path
The page shows a FY2029 revenue estimate of $4B. Each quarter should tell you whether Garrett is moving toward that number or away from it.
flow
institutional buying streak
Net buying lasted 3 quarters. If that reverses while the stock sits near its high, sentiment can change faster than fundamentals.
product risk
electric technologies need to become a business, not a slide
The page gives no revenue number for Garrett's newer electric offering. That absence is the point. You are still underwriting the legacy engine room.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not view Garrett's earnings stream as smooth. The business is profitable. The path is still noisy.
risk rank
3
That puts GTX around the middle of the pack on risk. You are not buying a bunker stock, but you are not buying a balance-sheet accident either.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 147 buyers vs. 88 sellers in 4q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$8
$26
$19
current price
$17
target midpoint · 12% from current · 3-5yr high: $30 (+55% · 14% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive