The following is a summary of the Garrett Motion Inc. (GTX) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Garrett Motion reported a strong adjusted EBITDA margin of 16.9%, up 40 basis points sequentially.

• Net sales decreased due to commodity deflation and softer vehicle production, with a 12% decline on a GAAP basis and 10% at constant currency.

• Adjusted free cash flow was healthy at $62 million for the quarter.

• Garrett Motion made significant progress on capital allocation, repaying debts and repurchasing $65 million in common stock.

Business Progress:

• Successfully issued $800 million of Senior Unsecured Notes and re-priced existing debt to save approximately $15 million annually in interest.

• Secured initial series production contract for fuel cell compressors in the commercial vehicle and industrial segments.

• Notable progress in e-Powertrain technology with predevelopment awards and the development of new designs for commercial vehicles.

• Won additional turbo program contracts for industrial applications, particularly in power generation and marine sectors.

Opportunities:

• Expansion into new zero-emission vehicle technologies and securing significant contracts in this emerging segment.

• Continued leadership and innovation in turbo technologies, catering to both existing and new industrial applications.

Risks:

• Volatility in global vehicle production volumes impacting sales, with specific softness in light and commercial vehicles.

• Commodity deflation impacting sales figures, although it is margin accretive.

More details: Garrett Motion IR

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