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• Adjusted EBITDA (Q4 2024): $153 million, with a margin of 18.1%, up 280 basis points from Q4 2023.

• Adjusted Free Cash Flow (Q4 2024): $157 million.

• Share Repurchase (2024): $296 million, reducing share count by 13% compared to the end of 2023.

• Net Sales (Q4 2024): $844 million.

• Adjusted EBITDA (Full Year 2024): $598 million, with a margin of 17.2%.

• Adjusted Free Cash Flow (Full Year 2024): $358 million, representing a 60% conversion of adjusted EBITDA.

• Total Debt (End of 2024): $1.5 billion, reduced by $203 million from the prior year.

• Liquidity Position (End of 2024): $725 million.

• Net Income (2025 Outlook): $232 million.

• Adjusted EBITDA (2025 Outlook): $575 million.

• Adjusted EBIT (2025 Outlook): $457 million.

• Net Cash Provided by Operating Activities (2025 Outlook): $402 million.

• Adjusted Free Cash Flow (2025 Outlook): $345 million.

• Share Repurchase Program (2025): New $250 million authorized.

• Dividends (2025): $50 million planned, paid quarterly.

• Warning! GuruFocus has detected 6 Warning Signs with GTX.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Garrett Motion Inc (NASDAQ:GTX) delivered strong fourth-quarter results with an adjusted EBITDA of $153 million and a margin of 18.1%, an increase of 280 basis points compared to Q4 2023.

• The company generated $157 million of adjusted free cash flow in the quarter, allowing for significant share repurchases, reducing the share count by 13% by the end of 2024.

• Garrett Motion Inc (NASDAQ:GTX) secured new business wins across all applications, reinforcing its technology leadership and expanding its position in the US and China.

• The company continues to make progress in commercial vehicles and has secured new awards for marine and backup power applications, with production expected to start in 2026.

• Garrett Motion Inc (NASDAQ:GTX) is advancing its electrification solutions, with significant progress in fuel cell compressor portfolio and e-powertrain technologies, expecting first production awards by 2027.

Negative Points

• The company experienced softness in the light vehicle industry, particularly in Europe and China, impacting overall sales.

• There was a decline in diesel production primarily due to lower industry production in Europe, affecting Garrett Motion Inc (NASDAQ:GTX)'s performance.

• Foreign exchange fluctuations negatively impacted financial results, contributing to a $34 million headwind for the full year.

• Despite strong operational performance, the company faced volume declines and unfavorable product mix, which were partially offset by cost productivity measures.

• The 2025 outlook anticipates continued softness in the light vehicle industry, with adjusted EBITDA expected to remain flat when excluding foreign exchange impacts.