GTX - Garrett Motion raises FY2023 revenue outlook

2023-04-17 07:26:40 ET

Garrett Motion ( NASDAQ: GTX ) announced strong preliminary results for first quarter 2023 and updated outlook for FY2023.

Preliminary Q1 results expected as follows:

• Net sales of $970M (+8% Y/Y) vs. consensus of $922M (one analyst estimate).
• Net income of $81M, net income margin 8.4%.
• Adjusted EBITDA of $168M, Adjusted EBITDA margin of 17.3%.
• Cash provided by operating activities of $92M.
• Adjusted free cash flow of $88M.
• Cash and cash equivalents of $291M at quarter-end.
• Undrawn Revolving Credit Facility capacity of $475M at quarter-end.
• Total debt principal outstanding of $1.193B.

Updated FY2023 Outlook:

• Net sales of $3.79B to $3.98B raised from prior outlook of $3.55B to $3.85B.
• Net income (GAAP) of $231M to $268M vs. prior view of $255M to $300M.
• Adjusted EBITDA of $585M to $635M vs. previous guidance range of $555M to $615M.
• Net cash provided by operating activities of $392M to $492M vs. $390M to $490M.
• Adjusted free cash flow of $315M to $415M vs. prior guidance of $300M to $400M.
• Light vehicle industry production at ~83Mu, 1% increase vs. 2022, from flat vs. 2022 in prior guidance.
• 2023 €/$ assumption of 1.07, up 2 cents vs. 2022, from 1.05 in prior outlook.
• R&D investment at 4.4% of sales in 2023 flat to 2022, >50% on electrification technologies.
• Capital expenditures at 2.3% of sales, 20% into electrification technologies.

“Our strong first quarter results and increased 2023 outlook reflect our significant operating momentum as we continue to advance our business transformation, along with strong industry volumes in key regions, favorable foreign exchange, and robust cash flow generation. We are updating our outlook accordingly as we see some of the strength carrying into the next quarters. We remain focused on operational excellence, flexing our variable cost structure and maximizing cash flow generation,” said Garrett President and CEO, Olivier Rabiller.

The company will announce its first quarter earnings results on April 24, 2023, before markets open.

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