Q2 2024 Earnings Summary
Reported on Jul 28, 2025 (Before Market Open)
Pre-Earnings Price$9.12Last close (Jul 24, 2024)
Post-Earnings Price$8.54Open (Jul 25, 2024)
Price Change
$-0.58(-6.36%)
- Strong zero-emission and hybrid positioning: Executives highlighted immediate participation in hybrid programs and significant progress in zero‑emission technologies, including predevelopment contracts and an expected $20 million generation from fuel cell compressors, positioning GTX well for future growth.
- Robust cost pass-through: Management emphasized a 100% pass-through of commodity cost declines, which helps protect margins from input cost volatility and supports stable financial performance even in a soft sales environment.
- Diverse customer base: GTX is effectively serving both global and local OEMs across key regions, enabling balanced exposure amid challenging market dynamics in China and Europe, which supports resilient revenue streams.
- Persistent regional weakness: Executives highlighted that China, Europe, and Korea are facing volatile demand and price wars, with minimal medium-term improvement expected, which could adversely impact revenue.
- Delayed revenue from new technologies: While the company is engaging in hybrid and zero-emission initiatives, the 3-year lag from program decision to production means that near-term compensation for core sales declines may be limited.
- Downside from commodity deflation and FX exposure: Lowering commodity prices are reducing net sales, and sensitivity to Asian currencies introduces additional uncertainty to revenue and margin performance.
Research analysts covering Garrett Motion.