Garrett Motion (GTX) Financials

Garrett Motion’s Q2 2026 results show continued improvement in profitability, even though revenue remains below the company’s Q2 2023 level. Revenue increased 6.9% year over year to $976 million, while gross profit rose to $212 million from $181 million in Q2 2025. Gross margin expanded to approximately 21.7%, compared with 19.8% a year earlier. Operating income increased 22.1% to $149 million, and net income rose 16.1% to $101 million, or $0.53 per diluted share.

The balance sheet remains highly leveraged, but debt reduction and cash generation are constructive. Garrett Motion generated $145 million of operating cash flow and approximately $128 million of cash flow after capital expenditures in Q2 2026. The company used $109 million to repay debt, $29 million for share repurchases and $15 million for dividends. Cash and equivalents increased to $158 million from $142 million at the end of Q1, although cash remains well below the $232 million reported in Q2 2025 and $478 million in Q2 2023.

Investors should also note that the provided historical figures include several restated periods, particularly in 2023 through 2025. Garrett Motion’s equity remained negative at -$675 million in Q2 2026, although this was an improvement from -$812 million in Q2 2025. The company’s current assets and current liabilities were nearly equal, underscoring the importance of maintaining consistent operating cash flow and continued debt reduction.

• Profitability is trending higher: Q2 2026 operating income increased to $149 million from $120 million in Q2 2025, while the operating margin improved from approximately 13.4% to 15.3%.
• Gross margins expanded: Gross profit grew faster than revenue, lifting gross margin to approximately 21.7% from 19.8% year over year and 19.9% in Q1 2026.
• Net income and earnings per share improved: Net income reached $101 million and diluted EPS increased to $0.53 from $0.42 in Q2 2025. The lower diluted share count also supported per-share results.
• Operating cash flow remains strong: Garrett Motion generated $145 million of operating cash flow in Q2 2026, more than covering its $17 million of capital expenditures and producing approximately $128 million of cash flow after capital spending.
• Debt declined sequentially and year over year: Total debt fell to approximately $1.37 billion in Q2 2026 from $1.47 billion in both Q1 2026 and Q2 2025, reflecting substantial debt repayments.
• Share repurchases reduced dilution: Basic weighted-average shares declined to 187.3 million in Q2 2026 from 202.7 million in Q2 2025 and 224.3 million in Q2 2024.
• Revenue growth is positive but uneven: Q2 revenue increased from $913 million in 2025 to $976 million in 2026, but remained below the $1.01 billion reported in Q2 2023.
• Cash generation is improving sequentially: Operating cash flow rose from $98 million in Q1 2026 to $145 million in Q2, but was below the $158 million generated in Q2 2025.
• Liquidity is tight: Current assets of $1.47 billion were only slightly above current liabilities of $1.467 billion, producing a current ratio of approximately 1.0.
• Negative shareholders’ equity remains a major risk: Total equity was -$675 million at the end of Q2 2026. Although improved from the prior year, the deficit reflects the company’s accumulated losses and sizable treasury-stock balance.