Garrett Motion exhibits strong cash conversion efficiency, consistently maintaining an OCF/NI ratio above 1.0, which has supported significant capital returns including quarterly share repurchases as high as $107.0 million in 2024Q1.
| Cash from Operations | 455M | 413M | 408M | 465M | 375M | -310M | 25M | 242M | 373M | 71M | 305M |
| Operating CF Margin % | - | 11.52% | 11.74% | 11.97% | 10.41% | -8.53% | 0.82% | 7.45% | 11.05% | 2.29% | 10.18% |
| Operating CF Growth % | 125.22% | 1.23% | -12.26% | 24% | 220.97% | -1340% | -89.67% | -35.12% | 425.35% | -76.72% | - |
| Net Income | 343M | 310M | 282M | 261M | 206M | 215M | 80M | 313M | 1.21B | -983M | 199M |
| Depreciation & Amortization | 102M | 99M | 90M | 90M | 84M | 92M | 87M | 73M | 77M | 62M | 61M |
| Stock-Based Compensation | 20M | 27M | 23M | 14M | 0 | 0 | 0 | 18M | 0 | 0 | 0 |
| Deferred Taxes | 8M | 9M | 7M | 24M | 46M | -36M | -34M | -41M | -931M | 973M | -39M |
| Other Non-Cash Items | -30M | 16M | 23M | 75M | 96M | -127M | 77M | 65M | 80M | 0 | -16M |
| Working Capital Changes | 12M | -48M | -17M | 1M | -57M | -454M | -185M | -186M | -59M | 19M | 100M |
| Change in Receivables | 78M | 22M | 89M | 1M | -102M | 18M | -162M | 32M | -30M | -42M | -90M |
| Change in Inventory | -43M | -35M | -48M | 12M | -48M | -31M | -14M | -60M | 2M | -46M | 2M |
| Change in Payables | 90M | 8M | -52M | 8M | 108M | -75M | 41M | 87M | 63M | 88M | 82M |
| Cash from Investing | -45M | -41M | -14M | -55M | -91M | -71M | -80M | -86M | 192M | 30M | -182M |
| Capital Expenditures | -46M | -72M | -91M | -83M | -91M | -72M | -80M | -102M | -95M | -103M | -84M |
| CapEx % of Revenue | 1.7% | 2.01% | 2.62% | 2.14% | 2.53% | 1.98% | 2.64% | 3.14% | 2.81% | 3.33% | 2.8% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2M | 28M | 31M | 28M | 0 | 1M | 0 | 16M | -4M | 72M | -14M |
| Cash from Financing | -400M | -326M | -520M | -403M | -482M | 139M | 530M | -163M | -658M | 60M | -149M |
| Debt Issued (Net) | -74M | -61M | -206M | 458M | -7M | -873M | 547M | -163M | 832M | 79M | -54M |
| Equity Issued (Net) | -181M | -211M | -304M | -818M | -388M | 1.08B | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -56M | -52M | 0 | -42M | -83M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -268M | -211M | -304M | -818M | -388M | -220M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -89M | -2M | -10M | -1M | -4M | -69M | -17M | 0 | -1.49B | -19M | -95M |
| Net Change in Cash | 13M | 53M | -134M | 12M | -216M | -229M | 506M | -9M | -104M | 181M | -27M |
| Free Cash Flow | 409M | 341M | 317M | 382M | 284M | -382M | -55M | 140M | 278M | -32M | 221M |
| FCF Margin % | 15.11% | 9.51% | 9.12% | 9.83% | 7.88% | -10.51% | -1.81% | 4.31% | 8.24% | -1.03% | 7.37% |
| FCF Growth % | 38.64% | 7.57% | -17.02% | 34.51% | 174.35% | -594.55% | -139.29% | -49.64% | 968.75% | -114.48% | - |
| FCF per Share | 2.12 | 1.67 | 1.41 | 2.29 | 4.36 | -5.48 | -0.72 | 1.84 | 3.74 | -0.42 | 2.91 |
| FCF Conversion (FCF/Net Income) | 1.19x | 1.33x | 1.45x | 1.78x | 0.96x | -0.63x | 0.31x | 0.77x | 0.32x | -0.07x | 1.53x |
| Interest Paid | 39M | 0 | 88M | 89M | 65M | 61M | 63M | 54M | 12M | 5M | 5M |
| Taxes Paid | 25M | 0 | 64M | 60M | 42M | 61M | 44M | 93M | 76M | 430M | 73M |
ICE powertrain transition timing
As reported in financial statements, Garrett Motion consistently demonstrates an OCF/NI ratio exceeding 1.0, with a peak of 2.63 in 2023Q4, suggesting that the company's reported net income is supported by strong underlying cash generation rather than aggressive accounting accruals or non-cash adjustments.
The consistent ability to convert net income into operating cash flow at a ratio above unity indicates that the company's earnings are of high quality. Investors should monitor whether this trend persists as the company navigates the transition toward hybrid technologies, as any sustained decline in this ratio could signal a deterioration in working capital efficiency.
Based on Garrett Motion's quarterly filings, free cash flow has remained consistently positive, reaching a high of $143.0 million in 2025Q2, which underscores the company's ability to fund its ongoing capital requirements while simultaneously supporting aggressive share repurchase programs despite cyclical automotive production headwinds.
The trajectory of free cash flow appears resilient, even when accounting for the inherent volatility of the automotive sector. This cash-generative profile provides management with the flexibility to continue deleveraging and returning capital to shareholders, which may be underappreciated by market participants focused solely on the terminal value of ICE-related assets.
According to recent SEC filings, Garrett Motion has maintained a disciplined capital expenditure profile, with CapEx/Revenue ratios generally oscillating between 1.1% and 3.5%, reflecting a strategy that prioritizes maintenance and targeted efficiency gains over speculative, large-scale capacity expansion in a maturing powertrain market.
The relatively low capital intensity suggests that the company's core turbocharging technology is well-established, requiring minimal incremental investment to maintain its competitive position. This capital-light approach is a critical driver of the company's robust free cash flow margins, allowing for sustained investment in R&D without compromising the balance sheet.
As evidenced by the quarterly cash flow data, Garrett Motion experiences significant swings in working capital, including a $60.0 million outflow in 2025Q1 followed by a $46.0 million inflow in 2025Q2, highlighting the company's sensitivity to OEM production schedules and inventory management cycles.
These fluctuations appear to be a byproduct of the company's just-in-time delivery model and the cyclical nature of its OEM customer base. While these swings are typical for the industry, they necessitate a cautious approach to short-term liquidity planning, as sudden shifts in OEM demand can rapidly alter the company's immediate cash position.
Based on reported figures, Garrett Motion has utilized a substantial portion of its free cash flow for share repurchases, with quarterly buybacks reaching as high as $107.0 million in 2024Q1, signaling management's confidence in the company's intrinsic value and its commitment to enhancing shareholder returns.
The prioritization of share repurchases over large-scale acquisitions suggests a management team that is focused on capital discipline and the reduction of share count. Investors should monitor whether this strategy continues to be viable if the automotive industry faces a more prolonged downturn or if R&D requirements for e-boosting technologies escalate unexpectedly.
Quick answers to the most common questions about buying GTX stock.
Garrett Motion Inc. (GTX) generated $413.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Garrett Motion Inc. (GTX) generated $341.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Garrett Motion Inc. (GTX) spent $72.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Garrett Motion Inc. (GTX) returned $52.0M to shareholders via cash dividends and spent $211.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.