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Garrett Gears Up to Report Q2 Results: Here's What to Expect
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Key Takeaways
GTX is set to report Q2 results with EPS of $0.37 and revenues of $918M, both up from year-ago levels.
Strong EV demand and program wins in China, Europe and North America support GTX's Q2 momentum.
Higher capex at 2.8% of sales in 2025 might pressure GTX's near-term cash flow despite long-term growth aims.
Garrett Motion Inc. (GTX - Free Report) is slated to release second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 37 cents and $918 million, respectively.
For the second quarter, the consensus estimate for Garrett’s earnings has moved up four cents in the past 30 days. Its bottom-line estimates imply 32.14% growth from the year-ago reported number.
The Zacks Consensus Estimate for GTX's quarterly revenues implies a year-over-year increase of 3.15%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 20.22%. This is depicted in the graph below:
In the first quarter of 2025, GTX’s adjusted EPS of 30 cents beat the Zacks Consensus Estimate of 29 cents and increased from 28 cents reported in the year-ago quarter. The company reported net sales of $878 million, which beat the Zacks Consensus Estimate of $843 million. The top line, however, fell 4% year over year.
Things to Note Ahead of GTX’s Q2 Results
Garrett has been experiencing growing demand for turbocharged range-extended EVs and plug-in hybrids. It has secured three new contracts in China and North America in this segment. The company has been also gaining new commercial vehicle program wins in Europe and China.
In the first quarter of 2025, Garrett improved its adjusted EBIT margin to 14.9%, up from 13.2% in the same period of 2024. This margin growth indicates the ongoing benefits of the strategic cost-saving measures implemented in 2024.
However, the company expects capital expenditure in 2025 to be 2.8% of sales, up from 2.6% of sales in 2024. While rising capital expenditure bodes well for the company’s long-term prospects, this is likely to hurt its cash flow in the near term.
Increased demand and new program wins, along with expanding EBIT margin, are likely to have boosted the company’s performance in the second quarter. Rising capex is likely to have hurt its cash flows.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Earnings Whispers for GTX
Our proven model does not conclusively predict an earnings beat for the automotive parts retailer for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
GTX’s Earnings ESP: GTX has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of GTX: It currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.
The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s EPS and revenues is pegged at $3.11 and $5.74 billion, respectively. Lear’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.98%.
Cummins Inc. (CMI - Free Report) has an Earnings ESP of +5.46% and a Zacks Rank of 3 at present. The company is set to release second-quarter 2025 results on Aug. 5.
The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $4.97 per share and $8.53 billion, respectively. CMI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 14.22%.
Rivian Automotive, Inc. (RIVN - Free Report) has an Earnings ESP of +5.82% and a Zacks Rank of 3 at present. The company is set to release second-quarter 2025 results on Aug. 5.
The Zacks Consensus Estimate for RIVN’s to-be-reported quarter’s loss and revenues is pegged at 66 cents per share and $1.28 billion, respectively. RIVN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 10.81%.
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Garrett Gears Up to Report Q2 Results: Here's What to Expect
Key Takeaways
Garrett Motion Inc. (GTX - Free Report) is slated to release second-quarter 2025 results on July 24, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 37 cents and $918 million, respectively.
For the second quarter, the consensus estimate for Garrett’s earnings has moved up four cents in the past 30 days. Its bottom-line estimates imply 32.14% growth from the year-ago reported number.
The Zacks Consensus Estimate for GTX's quarterly revenues implies a year-over-year increase of 3.15%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 20.22%. This is depicted in the graph below:
Garrett Motion Inc. Price and EPS Surprise
Garrett Motion Inc. price-eps-surprise | Garrett Motion Inc. Quote
GTX’s Q1 Highlights
In the first quarter of 2025, GTX’s adjusted EPS of 30 cents beat the Zacks Consensus Estimate of 29 cents and increased from 28 cents reported in the year-ago quarter. The company reported net sales of $878 million, which beat the Zacks Consensus Estimate of $843 million. The top line, however, fell 4% year over year.
Things to Note Ahead of GTX’s Q2 Results
Garrett has been experiencing growing demand for turbocharged range-extended EVs and plug-in hybrids. It has secured three new contracts in China and North America in this segment. The company has been also gaining new commercial vehicle program wins in Europe and China.
In the first quarter of 2025, Garrett improved its adjusted EBIT margin to 14.9%, up from 13.2% in the same period of 2024. This margin growth indicates the ongoing benefits of the strategic cost-saving measures implemented in 2024.
However, the company expects capital expenditure in 2025 to be 2.8% of sales, up from 2.6% of sales in 2024. While rising capital expenditure bodes well for the company’s long-term prospects, this is likely to hurt its cash flow in the near term.
Increased demand and new program wins, along with expanding EBIT margin, are likely to have boosted the company’s performance in the second quarter. Rising capex is likely to have hurt its cash flows.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Earnings Whispers for GTX
Our proven model does not conclusively predict an earnings beat for the automotive parts retailer for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
GTX’s Earnings ESP: GTX has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of GTX: It currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.
Lear Corporation (LEA - Free Report) has an Earnings ESP of +7.41% and a Zacks Rank of 3 at present. The company is set to release second-quarter 2025 results on July 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s EPS and revenues is pegged at $3.11 and $5.74 billion, respectively. Lear’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.98%.
Cummins Inc. (CMI - Free Report) has an Earnings ESP of +5.46% and a Zacks Rank of 3 at present. The company is set to release second-quarter 2025 results on Aug. 5.
The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $4.97 per share and $8.53 billion, respectively. CMI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 14.22%.
Rivian Automotive, Inc. (RIVN - Free Report) has an Earnings ESP of +5.82% and a Zacks Rank of 3 at present. The company is set to release second-quarter 2025 results on Aug. 5.
The Zacks Consensus Estimate for RIVN’s to-be-reported quarter’s loss and revenues is pegged at 66 cents per share and $1.28 billion, respectively. RIVN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 10.81%.