Garrett Motion Inc. (NASDAQ:GTX) on Friday announced its first commercial production award for its breakthrough E-Cooling compressor, marking a key milestone in the company’s electrification strategy.
This partnership aims to enhance the efficiency and environmental responsibility of electric buses and trucks.
Chinese commercial vehicle HVAC leader Cling will integrate Garrett’s oil-free, foil bearing-based centrifugal compressor into its next-generation electric bus and truck platforms, with production slated to begin in 2027.
The high-speed compressor operates at more than 160,000 RPM and is up to 50% smaller and 30% lighter than traditional scroll compressors, while also delivering significantly lower noise levels. The design offers EV manufacturers a more energy-efficient thermal management solution that improves overall system performance and extends vehicle range.
Q4 Earnings Beat Expectations
The announcement accompanied a strong fourth-quarter earnings report. Garrett posted net sales of $891 million, up 6% year over year and ahead of analyst expectations of $875 million. Adjusted earnings per share came in at 42 cents, topping the 36 cents consensus estimate, while net income totaled $84 million for the quarter.
Commercial vehicle revenue rose 9% year over year, and aftermarket sales increased 4%, supported by favorable currency dynamics and stronger diesel demand.
On the cash flow front, Garrett generated $99 million in operating cash flow and $139 million in adjusted free cash flow during the quarter, ending with $807 million in available liquidity. The company repurchased $72 million of stock and authorized a new $250 million buyback program for 2026.
For the full year, Garrett guided revenue to $3.60 billion to $3.80 billion and adjusted free cash flow to $355 million to $455 million. CEO Olivier Rabiller highlighted the company’s expanding zero-emission portfolio as a central pillar of its long-term growth strategy.
Technical Analysis
Currently, the stock is trading 0.31% below its 20-day simple moving average (SMA) and 4.73% above its 100-day SMA, indicating a mixed short-term outlook while showing strength in the longer term. Over the past 12 months, shares have surged by 97.69%, and they are closer to their 52-week highs than to their lows, reflecting a strong upward trend.
The RSI is at 51.75, which is considered neutral territory, suggesting no immediate overbought or oversold conditions. Meanwhile, the MACD is at 0.6411, above its signal line at 0.5570, indicating bullish momentum for the stock.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating potential for continued upward movement if market conditions remain favorable.
- Key Resistance: $21.00
- Key Support: $18.00
Earnings & Analyst Outlook
Garrett Motion is slated to provide its next financial update on April 30, 2026.
- EPS Estimate: 41 cents (Up from 30 cents)
- Revenue Estimate: $873.72 million (Down from $878.00 million)
- Valuation: P/E of 12.4x (Indicates value opportunity)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $12.89. Recent analyst moves include:
- JP Morgan: Initiated with Overweight (Target $23.00) (Dec. 17, 2025)
- Stifel: Buy (Raises Target to $21.00) (Dec. 16, 2025)
- BWS Financial: Buy (Raises Target to $22.00) (Dec. 12, 2025)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Garrett Motion, highlighting its strengths and weaknesses compared to the broader market:
- Value: 40.68 — Trading at a steep premium relative to peers.
- Momentum: 94.7 — Stock is outperforming the broader market.
The Verdict: Garrett Motion’s Benzinga Edge signal reveals a strong momentum score, indicating the stock is currently outperforming the market. However, the value score suggests it may be trading at a premium, warranting caution for potential investors.
Top ETF Exposure
- Hartford Multifactor Small Cap ETF (NYSE:ROSC): 1.19% Weight
- SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL): 1.73% Weight
Significance: Because GTX carries meaningful weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
GTX Price Action: Garrett Motion shares were down 1.43% at $19.00 during premarket trading on Friday, according to Benzinga Pro data.
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