The EPS beat, margin expansion, and strong cash flow are positive, but revenue slightly missed consensus. The $250M buyback authorization and voluntary debt reduction signal confidence in cash generation. Watch for Q4 execution on the narrowed guidance range and any updates on the 2027 buyback pace.
Price Chart
Executive Summary
Garrett Motion reported Q3 2026 net sales of $930M (up 3% YoY, slightly below the $935.2M consensus) and GAAP diluted EPS of $0.51, above the $0.48 consensus. The company reaffirmed its 2026 mid-point outlook, announced a $250M share repurchase program for 2027, and executed a $50M voluntary early debt repayment. Net income rose 26% YoY to $97M, and adjusted EBIT margin expanded to 16.3% from 14.7%.
Key Financial Metrics
Key Facts
- Q3 2026 net sales of $930M, up 3% YoY (constant currency +3%)
- GAAP diluted EPS of $0.51 vs consensus $0.48 (beat)
- Net income of $97M, up 26% YoY from $77M
- Adjusted EBIT margin expanded to 16.3% from 14.7%
- Adjusted free cash flow of $136M, up 27% YoY
- Board approved a new $250M share repurchase program for 2027
- Executed $50M voluntary early debt repayment on Term Loan in October
- Reaffirmed 2026 full-year mid-point outlook; narrowed net sales guidance to $3.75B-$3.85B from $3.7B-$3.9B
- Net cash provided by operating activities of $135M, up 35% YoY
- Total liquidity of $841M as of September 30, 2026
Financial Impact
EPS beat of $0.03 (6.3%) on $930M revenue; net income up $20M YoY; adjusted EBIT up $19M YoY; free cash flow up $29M YoY
Segment Breakdown
| Segment | Growth |
|---|---|
| Gasoline | -5.0% |
| Diesel | +6.0% |
| Commercial Vehicle Industrial | +23.0% |
| Aftermarket | +6.0% |
| Other Sales | -37.0% |
Risk Factors
- Revenue growth of 3% is modest and slightly below consensus
- Gasoline segment sales declined 5% YoY on constant currency basis due to China softness
- Commodity, transportation and energy inflation of $18M pressured gross profit
- Unfavorable foreign currency impact of $7M on adjusted EBIT
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001735707-26-000033 |
| Document: gtx-20261029.htm | 0001735707-26-000033 |
| Document: 0001735707-26-000033-index-headers.html | 0001735707-26-000033 |
| Document: 0001735707-26-000033-index.html | 0001735707-26-000033 |
| Document: 0001735707-26-000033.txt | 0001735707-26-000033 |
| 8-K Data (Synthetic) | 0001735707-26-000033 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 1d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 29, 2026 1d ago | Press Release | $22.48 | awaiting T+5 | awaiting T+5 | $20.91 (−6.98%) |
Oct 28, 2026 2d ago | 8-K | $22.48 | awaiting T+5 | awaiting T+5 | $20.91 (−6.98%) |
Oct 27, 2026 3d ago | SC 13G/A | $22.33 | awaiting T+5 | awaiting T+5 | $20.91 (−6.36%) |
Oct 21, 2026 9d ago | Institutional Cluster | $22.00 $22.48 | ▲ +2.18% | ▲ +1.48% | $20.91 (−4.95%) |
Jul 29, 2026 13w ago | 8-K | $28.78 $31.41 | ▲ +9.14% | ▲ +3.61% | $20.91 (−27.35%) |
Jul 14, 2026 15w ago | Press Release | $31.68 $31.34 | ▼ −1.07% | ▲ +0.22% | $20.91 (−34.00%) |
Jun 16, 2026 19w ago | Insider Cluster | $33.76 $33.32 | ▼ −1.30% | ▼ −0.26% | $20.91 (−38.06%) |
Jun 9, 2026 20w ago | 3 | $31.98 $34.61 | ▲ +8.22% | ▲ +4.79% | $20.91 (−34.62%) |
Jun 8, 2026 20w ago | Insider Cluster | $32.81 $34.13 | ▲ +4.02% | ▲ +1.61% | $20.91 (−36.27%) |
US Market Status
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