Garrett Motion Reports $282M Net Income, $3.475B Revenue for Fiscal Year 2024

Garrett Motion Inc. reported a net income of $282 million for the fiscal year ending December 31, 2024, a 8% increase from the previous year's net income of $261 million. The company's total revenue for 2024 was $3.475 billion, reflecting a decrease of 11% compared to $3.886 billion in 2023. This decline was attributed to soft demand across gasoline, diesel, and commercial vehicle applications, although aftermarket sales showed resilience with a slight increase. The company also noted a gross profit of $705 million, down from $756 million in 2023, resulting in a gross profit margin of 20.3%.

In terms of operational changes, Garrett Motion made significant strides in its strategic initiatives, including the divestiture of an equity interest in an unconsolidated joint venture for approximately $58 million, which resulted in a pre-tax gain of $27 million. The company also completed an offering of $800 million in Senior Unsecured Notes due 2032, which facilitated early debt repayments totaling $985 million on existing term loans. Additionally, Garrett's Board of Directors announced plans to declare and pay quarterly dividends totaling approximately $50 million in 2025, with the first dividend of $0.06 per share already declared.

Garrett Motion's customer base remains concentrated, with its top ten customers accounting for approximately 62% of net sales. The largest customer, Bayerische Motoren Werke AG (BMW), represented 12% of total sales in 2024. The company continues to focus on expanding its product offerings, particularly in zero-emission technologies, with over 50% of its research and development expenditures directed towards these initiatives in 2024. The company employed approximately 7,000 individuals globally, with a commitment to enhancing diversity and inclusion within its workforce.

Looking ahead, Garrett Motion anticipates steady demand for turbochargers in the short to medium term, driven by the increasing penetration of hybridized powertrains in response to stringent fuel efficiency and emissions standards. However, the company also acknowledges potential challenges, including geopolitical risks and the slower-than-expected development of electric vehicle infrastructure, which may impact the pace of adoption for battery electric vehicles. The company remains committed to leveraging its technological expertise to navigate these challenges and capitalize on emerging opportunities in the automotive sector.