Garrett Motion (NASDAQ:GTX) Reports Q3 2026 Net Sales of $930M and Announces $250M 2027 Share Repurchase Program

Sonal Goyal

30 October 2026 09:16 PM AEDT

Garrett Motion (NASDAQ:GTX) Reports Q3 2026 Net Sales of $930M and Announces $250M 2027 Share Repurchase Program

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Key Highlights

Q3 2026 net sales of $930 million, up 3% on a constant currency basis year over year.
Net income of $97 million, representing a Net Income Margin of 10.4%.
Adjusted EBIT of $152 million, with adjusted EBIT margin of 16.3%; net cash from operations of $135 million.
Announced $250 million share repurchase program for 2027; E-Powertrain and E-Cooling compressor on track for 2027 start of production.

Sales Growth Driven by Commercial Vehicle and Industrial

Garrett Motion Inc. (NASDAQ:GTX) reported Q3 2026 net sales of $930 million, a 3% increase on a constant currency basis versus the prior year. Growth was driven by strong performance in commercial vehicle and industrial end markets, which more than offset softer trends in light vehicle markets. The company also continued to secure new Business awards during the quarter, including multiple turbo wins across light vehicle programs for both China domestic and export applications.

In the commercial vehicle segment, Garrett secured several on- and off-highway applications across all geographic regions during the quarter. Industrial Demand above the company's previous expectations provided an additional positive surprise. These developments reflect the diversified end-market exposure that Garrett has developed across its turbocharger and other mobility technology product lines.

Profitability and Cash Generation

Net income was $97 million in Q3 2026, representing a net income margin of 10.4%. Adjusted EBIT reached $152 million, with an adjusted EBIT margin of 16.3%, reflecting disciplined cost management and pricing realization. Net cash provided by Operating Activities was $135 million, while adjusted free Cash Flow was $136 million, demonstrating strong cash conversion from the business.

The company reaffirmed its full-year 2026 guidance midpoint outlook across key financial metrics, indicating management confidence in the trajectory of the second half of the year. This guidance reaffirmation was paired with the announcement of a $250 million share repurchase program for 2027, reflecting the company's commitment to returning excess Capital to shareholders given its expected continued free cash flow generation.

Electrification Portfolio Progress

Garrett's E-Powertrain and E-Cooling compressor product lines remain on track for start of production in 2027. These products represent the company's expansion into electrification, addressing the thermal management and power delivery needs of battery electric and hybrid vehicle platforms. During Q3 2026, Garrett secured a production award for an industrial E-Cooling compressor in Asia.

The E-Cooling compressor technology is also advancing in Data Center applications, reflecting Garrett's oil-free centrifugal compressor technology finding new markets beyond traditional automotive. This Diversification into industrial cooling applications for data centers adds a longer-cycle growth vector to the company's technology portfolio.

Capital Allocation and 2027 Repurchase Program

The announced $250 million share repurchase program for 2027 underscores Garrett Motion's commitment to shareholder-friendly capital allocation alongside ongoing investments in the business. The program reflects the company's visibility into its free cash flow generation capacity over the medium term and its Balance Sheet optionality following post-emergence operational improvements.

Management maintained its focus on disciplined execution across all regions and end markets as the automotive cycle evolves, while positioning the company's electrification products for ramp in 2027 and beyond. Garrett's global Manufacturing and engineering footprint provides scale advantages in serving both established and emerging automotive markets.

Garrett Motion delivered consistent Q3 2026 results with $930 million in net sales, a 16.3% adjusted EBIT margin, and $136 million in adjusted free cash flow, while also announcing a $250 million 2027 share repurchase program. Commercial vehicle and industrial strength offset light vehicle headwinds, and the upcoming 2027 launch of E-Powertrain and E-Cooling products expands the company's Long-term Growth horizon.

What were Garrett Motion's Q3 2026 net sales?

Garrett Motion reported Q3 2026 net sales of $930 million, a 3% increase on a constant currency basis versus the prior year.

What was Garrett Motion's adjusted EBIT margin in Q3 2026?

Adjusted EBIT margin was 16.3% in Q3 2026, with adjusted EBIT of $152 million.

What share repurchase program did Garrett Motion announce?

Garrett Motion announced a $250 million share repurchase program for 2027, reflecting confidence in its forward free cash flow generation.

What electrification products is Garrett Motion launching?

Garrett Motion's E-Powertrain and E-Cooling compressor products remain on track for start of production in 2027, and the company secured an industrial E-Cooling compressor production award in Asia during Q3 2026.

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