Garrett Motion (GTX) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $976 million, up 7% year-over-year (5% at constant currency), with broad-based growth across all product lines and regions, especially gasoline, commercial, and industrial segments.

• Adjusted EBIT was $152 million (15.6% margin), up $28 million or 23% from Q2 2025, driven by volume, strong operating performance, and favorable mix.

• Net income for Q2 2026 was $101 million (10.3% margin), up from $87 million, reflecting higher gross profit and disciplined cost management.

• Multiple technology awards and new business wins in turbo, zero-emission, and e-powertrain applications across key regions, with expanding engagement in industrial and HVAC sectors.

• Raised full-year 2026 outlook due to robust first-half performance, positive product mix, and strong execution.

Financial highlights

• Gross profit for Q2 2026 was $212 million (21.7% margin), up from $181 million (19.8%) in Q2 2025.

• Adjusted Free Cash Flow totaled $122 million, with an 80% conversion rate.

• Total liquidity at quarter-end was $788 million, including $158 million in cash and $630 million undrawn credit.

• Net income margin for Q2 2026 was 10.3%; Adjusted EBITDA margin was 18.8%.

• Earnings per share (diluted) rose to $0.53 from $0.42 year-over-year.

Outlook and guidance

• Full-year 2026 outlook raised: net sales expected at $3.7–$3.9 billion (1%–7% constant currency growth), Adjusted EBIT of $560–$600 million (margin improvement), and Adjusted Free Cash Flow of $385–$475 million.

• Net income expected at $330–$360 million.

• Outlook reflects continued share gains, especially in commercial vehicle and industrial, despite softer light vehicle demand.

• Capital expenditures and R&D investment as a percentage of sales both reduced on stronger sales.

• Industry assumptions: light vehicle production down 2%–4%, commercial vehicle up 1%–2%, BEV penetration ~19%.