Garrett Motion Stock Skyrockets on Turbocharged Q3 Beat and EV Tech Push

23 October 2025

Key Facts: GTX stock closed near $12.50 on Oct 22, 2025 and then surged about 20% to roughly $15 on Oct 23, hitting a 52-week high ^[1] ^[2]. The jump followed a 9% jump in Q3 sales ($902M vs. $826M a year ago) and EPS of $0.38 (vs. $0.32 expected) ^[3]. Garrett raised its 2025 outlook, approved a 33% dividend hike to $0.08/share, and repurchased $84M in stock ^[4]. Analysts are largely bullish: consensus is a “Strong Buy” with an average 12‑month target around $16–$17 ^[5] ^[6]. Industry observers note Garrett’s focus on turbocharging and electrified boosting tech could keep growth momentum strong ^[7] ^[8].

Garrett Motion (NASDAQ: GTX) stunned investors with a powerful third-quarter performance that sent its stock surging. Late on Oct 22, Garrett’s shares were around $12.51 ^[9]. On Oct 23, after the market opened, the stock jumped over 20% (to about $15) as traders digested the results ^[10] ^[11]. This rally pushed GTX to a fresh 52-week high near $14.59 ^[12]. (By midday Oct 23 the stock traded around $15.00 ^[13].) Over the past week GTX has climbed sharply, driven by broad market strength and Garrett’s standout earnings report.

Garrett’s Q3 2025 results beat estimates comfortably. Revenue was $902 million, up 9% year-over-year (6% on a constant-currency basis) ^[14] – well above Wall Street’s ~$858M consensus. Adjusted EPS came in at $0.38, exceeding the ~$0.32 forecast ^[15]. Net income jumped to $77M from $52M a year ago ^[16]. CEO Olivier Rabiller hailed the quarter, noting “Garrett delivered another strong quarter in Q3, outperforming the industry, expanding our Adjusted EBIT margin to 14.7% and generating $107 million of adjusted free cash flow” ^[17]. The firm’s gross margin and adjusted EBIT margin both improved year-over-year (to 20.6% and 14.7%, respectively) ^[18], reflecting efficiency gains and sales mix.

Alongside the earnings beat, Garrett announced several shareholder-friendly moves. The Board raised the quarterly cash dividend 33% to $0.08 per share ^[19] – its first increase since 2022 – and approved an $84 million share buyback in Q3 ^[20]. It also paid down $50M of debt early ^[21] to strengthen the balance sheet. These actions boosted confidence. As MarketBeat noted, Garrett “topped Q3 expectations, raised outlook and dividend” in one swoop ^[22] ^[23].

Analyst and Investor Outlook: Wall Street is generally upbeat on GTX. For example, on Oct 20 Stifel reiterated a Buy rating with a one-year target of $16.06 – implying about a 29% upside from the pre-earnings price ^[24]. More broadly, StockAnalysis shows the three covering analysts all rate it a Strong Buy with an average target of $16.33 ^[25] (range $14–$18). StockAnalysis also highlights modest growth forecasts: revenue for FY2025 is expected around $3.55B (slightly above prior) and EPS near $1.37 ^[26], growing to ~3.61B/$1.50 in 2026. This implies that GTX’s current ~2.5B market cap is priced at roughly 9–10× forward earnings (below many peers), with a ~1.9% dividend yield ^[27]. The consensus “Strong Buy” and mid-teens price targets suggest many analysts expect continued gains, though a Deutsche Bank report did caution (as of Oct 21) that $14 would be a fair value ^[28].

Automotive Industry Context: Garrett Motion is a leading auto-tech supplier (spun out of Honeywell in 2018) specializing in turbochargers and emerging electric-boost systems. Its products include conventional and variable-geometry turbos, plus e-boost (electric turbo) and e-cooling units. The company serves passenger cars, trucks, and specialty vehicles worldwide ^[29]. In its Oct 23 release, Garrett emphasized new program awards for range-extended EVs and hybrids, including over $40M in expected lifetime revenue from turbochargers used in data-center backup power ^[30]. CEO Rabiller noted Garrett is “strengthening our global leadership in turbocharging, including plug-in hybrids and range-extended electric vehicles,” reflecting how the firm is balancing core ICE business with electrification ^[31]. Indeed, at Auto Shanghai 2025 Garrett unveiled a “3-in-1 E-Powertrain” and an “E-Cooling Compressor”, calling them “breakthrough technologies driving the future of zero-emission mobility” ^[32]. In short, Garrett’s strategy is to turbocharge today’s engines while ramping up next-gen EV components, and investors say that dual focus is resonating.

Expert Commentary: Market analysts point out that Garrett’s gains fit broader trends. The strong quarter “ignited investor confidence” and underscored Garrett’s “strategic resilience in a transforming automotive landscape,” one analysis noted ^[33]. Many agree the stock looks undervalued given its growth prospects. Even Jim Cramer (CNBC) recently added GTX to his watchlist, noting the company’s robust R&D and its play in electrification. On Seeking Alpha and analyst forums, the sentiment is largely positive; one noted GTX trades at a bargain valuation (forward P/E sub-10) for a company guiding to double-digit growth in 2026. No wonder Garrett’s rally was broad-based: after hours on Oct 22, ChartMill reported a ~16% pre-market jump ^[34], which continued into the trading day.

Forecast & Outlook: Looking ahead, Wall Street’s view is for continued moderate growth. With global auto production rebounding and strict emissions regs, demand for turbocharged and hybrid drivetrains remains strong. Garrett’s raised 2025 revenue guidance (midpoint now $3.55B) lines up with this trend. Assuming auto industry volumes remain flat-to-up 1–2% as management forecasts, analysts expect Garrett to post mid-single-digit sales growth next year. Several prominent firms have set one-year targets in the $16–18 range ^[35]. If the industry stays healthy and Garrett continues to win new contracts (particularly in Asia and emerging markets), many believe GTX could retest its high teens. For instance, BWS Financial recently maintained an $18 target, citing GTX’s unique e-turbo tech and improving markets ^[36].

Investors should note risks too: Garrett operates in cyclical auto markets, and an accelerated move to pure EVs (bypassing hybrids) could eventually slow demand for its turbo products. Indeed, some technical screens flag moderate debt levels and a low Altman Z-score, hinting at financial risk in a downturn. However, the overwhelming market reaction has been that Garrett is well-positioned today. As one strategist put it, GTX’s results “underscore the ongoing relevance of advanced internal combustion engines and… the accelerating importance of hybrid powertrains as a crucial bridge” ^[37].

Bottom Line: Garrett Motion’s stock is riding high after its octane-loaded Q3 report. The company beat estimates, boosted guidance/dividend, and reiterated its pivot into electrified turbo tech. Investors seeking growth in auto parts and EV-enabling tech are taking notice – analysts’ price targets in the mid-teens imply up to ~40% upside from pre-earnings levels ^[38] ^[39]. With a strong balance sheet, solid dividend, and leading R&D in e-boost systems, GTX looks set to benefit from both near-term recovery in auto production and the long-term shift to cleaner propulsion. Of course, the stock has already climbed sharply, so new investors should weigh near-term valuation; but for the moment, Garrett Motion seems to be firing on all cylinders.

Sources: Company press release and earnings report ^[40] ^[41]; financial news and analysis (Investing.com, Chartmill, StockAnalysis, MarketBeat) ^[42] ^[43]; market data (Reuters, Nasdaq) ^[44] ^[45]; industry reports on Garrett’s EV technologies ^[46] ^[47]. Each citation above corresponds to information drawn from that source.

Redefining zero-emission automotive technologies | Garrett - Advancing Motion

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CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

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Garrett Motion Stock Skyrockets on Turbocharged Q3 Beat and EV Tech Push

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