GTX earnings analysis
What we found in GTX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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, supported by volumes, productivity, pricing and favorable mix. Liquidity remains solid despite cash falling to $158 million, as six-month operating cash flow reached $243 million, revolver availability was $630 million, and term-loan principal declined to $583 million. The filing itself does not provide quantitative earnings guidance, while noting ongoing inflation, FX and working-capital pressures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 7% to $976 million
- Q2 net sales rose $63 million, or 7%, year over year to $976 million. Growth was broad based across all verticals, with $15 million of favorable foreign-exchange impact.
- Gross margin expanded 190 basis points
- Gross margin expanded 190 basis points year over year to 21.7% from 19.8%, as gross profit increased $31 million to $212 million. Productivity contributed $8 million and price net of inflation pass-through contributed $8 million to gross profit.
- Net income rose 16% to $101 million
- Net income increased $14 million to $101 million and net-income margin improved to 10.3% from 9.5%. Adjusted EBIT rose $28 million to $152 million, driven by $16 million of higher volumes and $10 million of productivity.
- Commercial and aftermarket demand accelerated
- Commercial Vehicle/Industrial was the fastest major product line, increasing $18 million, or 10%, to $188 million, supported by China volume recovery and North American data-center genset demand. Aftermarket sales grew $8 million, or 8%, to $119 million.
- Operating cash flow rose and term debt declined
- Six-month operating cash flow increased $29 million year over year to $243 million. Term-loan principal fell $54 million from year-end to $583 million following a $50 million early repayment, while revolving-facility availability remained $630 million.
- Material capital returns continued
- The company returned $146 million to shareholders in the first half through $115 million of buybacks and $31 million of dividends; $135 million remained under the $250 million 2026 repurchase authorization at June 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Working capital constrained cash conversion
- Management reported $66 million of unfavorable working-capital changes in six-month operating cash flow, partly offsetting $32 million of higher net income net of non-cash charges and $63 million of favorable other-assets-and-liabilities changes.
- Inflation and FX remain margin headwinds
- Commodity, transportation and energy inflation reduced Q2 gross profit by $8 million, while unfavorable foreign-currency effects reduced Q2 Adjusted EBIT by $5 million.
- Risk factors unchanged; FX sensitivity is material
- No material changes were made to risk factors from the 2025 Form 10-K. However, the filing quantifies currency exposure: a hypothetical 10% adverse exchange-rate move could reduce fair value by $291 million at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 21.7%
- Segment
- Gasoline: $416 million, up $18 million (5%) year over year
- Segment
- Diesel: $235 million, up $18 million (8%) year over year
- Segment
- Commercial Vehicles / Industrial: $188 million, up $18 million (10%) year over year
- Segment
- Aftermarket: $119 million, up $8 million (8%) year over year
- Segment
- Other: $18 million, up $1 million year over year
What they said about what is next.
The 10-Q contains no quantitative revenue or EPS outlook. Management states that expected operating cash flows, term loans, $800 million of 2032 Senior Notes and the revolving facility should provide adequate liquidity for operations and strategic investments for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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