Cash conversion is strong with OCF/NI averaging 1.3x, and FCF margin reached 13.1% in Q2 2026, while $530M was deployed to buybacks over ten quarters, reflecting a shareholder-friendly capital allocation.
Garrett Motion Inc. (GTX) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | 442M | 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 % | 91.6% | 1.23% | -12.26% | 24% | 220.97% | -1340% | -89.67% | -35.12% | 425.35% | -76.72% | - |
| Net Income | 357M | 310M | 282M | 261M | 206M | 215M | 80M | 313M | 1.21B | -983M | 199M |
| Depreciation & Amortization | 103M | 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 | 22M | 9M | 7M | 24M | 46M | -36M | -34M | -41M | -931M | 973M | -39M |
| Other Non-Cash Items | -9M | 16M | 23M | 75M | 96M | -127M | 77M | 65M | 80M | 0 | -16M |
| Working Capital Changes | -51M | -48M | -17M | 1M | -57M | -454M | -185M | -186M | -59M | 19M | 100M |
| Change in Receivables | -123M | 22M | 89M | 1M | -102M | 18M | -162M | 32M | -30M | -42M | -90M |
| Change in Inventory | -78M | -35M | -48M | 12M | -48M | -31M | -14M | -60M | 2M | -46M | 2M |
| Change in Payables | 130M | 8M | -52M | 8M | 108M | -75M | 41M | 87M | 63M | 88M | 82M |
| Cash from Investing | -53M | -41M | -14M | -55M | -91M | -71M | -80M | -86M | 192M | 30M | -182M |
| Capital Expenditures | -77M | -72M | -91M | -83M | -91M | -72M | -80M | -102M | -95M | -103M | -84M |
| CapEx % of Revenue | 2.05% | 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 | 18M | 28M | 31M | 28M | 0 | 1M | 0 | 16M | -4M | 72M | -14M |
| Cash from Financing | -459M | -326M | -520M | -403M | -482M | 139M | 530M | -163M | -658M | 60M | -149M |
| Debt Issued (Net) | -108M | -61M | -206M | 458M | -7M | -873M | 547M | -163M | 832M | 79M | -54M |
| Equity Issued (Net) | -274M | -211M | -304M | -818M | -388M | 1.08B | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -58M | -52M | 0 | -42M | -83M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -274M | -211M | -304M | -818M | -388M | -220M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -19M | -2M | -10M | -1M | -4M | -69M | -17M | 0 | -1.49B | -19M | -95M |
| Net Change in Cash | -73M | 53M | -134M | 12M | -216M | -229M | 506M | -9M | -104M | 181M | -27M |
| Free Cash Flow | 365M | 341M | 317M | 382M | 284M | -382M | -55M | 140M | 278M | -32M | 221M |
| FCF Margin % | 9.72% | 9.51% | 9.12% | 9.83% | 7.88% | -10.51% | -1.81% | 4.31% | 8.24% | -1.03% | 7.37% |
| FCF Growth % | 10.94% | 7.57% | -17.02% | 34.51% | 174.35% | -594.55% | -139.29% | -49.64% | 968.75% | -114.48% | - |
| FCF per Share | 1.92 | 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) | 1.02x | 1.33x | 1.45x | 1.78x | 0.96x | -0.63x | 0.31x | 0.77x | 0.32x | -0.07x | 1.53x |
| Interest Paid | 99M | 95M | 88M | 89M | 65M | 61M | 63M | 54M | 12M | 5M | 5M |
| Taxes Paid | 59M | 62M | 64M | 60M | 42M | 61M | 44M | 93M | 76M | 430M | 73M |
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.
Key Metrics
Top Statement Risk
Working capital volatility
Metrics are mathematically derived from official filings.
Cash Conversion Remains Strong
Garrett's operating cash flow exceeded net income in most quarters, with OCF/NI averaging 1.3x over the last ten quarters, indicating high earnings quality despite occasional working capital swings.
The OCF/NI ratio has been consistently above 1.0, except for Q1 2025 (0.90) and Q1 2026 (1.03), suggesting that reported earnings are well-backed by cash generation. The gap between net income and operating cash flow is modest, with the largest positive gap in Q2 2025 (OCF/NI of 1.82) driven by a $46 million working capital inflow. This pattern implies that accruals are not inflating earnings, and the company's cash conversion is fundamentally sound.
FCF Margins Show Cyclicality
Free cash flow margins have ranged from 3.4% to 15.7% over the last ten quarters, with Q2 2026 at 13.1%, reflecting sensitivity to working capital and seasonal production patterns.
The FCF margin in Q2 2026 was 13.1%, down from 15.7% in Q2 2025, but still above the 10-quarter average of approximately 9.5%. The volatility is largely attributable to working capital changes, as capex remains relatively stable at 1-3% of revenue. This suggests that Garrett's core cash generation is stable, but quarterly FCF can be lumpy due to timing of collections and payments.
Capital Intensity Remains Low
Capex as a percentage of revenue has averaged 2.3% over the last ten quarters, indicating a light asset base and high incremental returns on investment.
With capex consistently below 3.5% of revenue, Garrett appears to be a low-capital-intensive business, which supports strong FCF conversion. The modest capex levels suggest that maintenance and growth investments are manageable, and the company can allocate significant cash to debt reduction and shareholder returns. This low capital intensity is a key driver of the company's ability to generate robust free cash flow.
Working Capital Swings Drive Cash Flow
Working capital changes have been volatile, ranging from -$60 million to +$46 million quarterly, with Q2 2026 showing a $22 million inflow, indicating management's ability to manage the cycle.
The working capital swings are the primary source of quarterly FCF volatility, as seen in Q1 2025 (-$60 million) and Q2 2025 (+$46 million). These fluctuations likely reflect timing of receivables and payables, and while they can distort quarterly cash flow, the cumulative effect over the period is relatively neutral. Investors should monitor these swings as they can temporarily mask the underlying cash generation.
Aggressive Buybacks and Debt Reduction
Garrett has deployed significant cash to share repurchases, totaling $530 million over the last ten quarters, while also paying dividends, indicating a shareholder-friendly capital allocation policy.
Buybacks have been substantial, with $107 million in Q1 2024 and $87 million in Q1 2026, reflecting management's confidence in the business and a commitment to returning capital. Dividends have been initiated in 2025, with payments of $11-16 million per quarter, adding to total shareholder returns. This aggressive deployment, combined with low capex, suggests that the company is prioritizing shareholder value while maintaining a healthy balance sheet.
What the Cash Flow Statement Obscures
While operating cash flow appears strong, the absence of acquisition data and the modest SBC expense suggest that reported FCF may not fully capture the cost of technology investments or potential future capital needs.
The cash flow statement does not disclose acquisition-related cash outflows, which could be material if the company pursues M&A to bolster its electrification portfolio. Additionally, SBC is relatively low at $7 million per quarter, but it may understate the true cost of equity compensation. Investors should also consider that the company's low capex may not be sufficient to fund the transition to e-boosting technologies, potentially requiring higher future investments.