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Garrett Motion Stock Looks Past Steady Q3 Earnings To Industrial Growth

Simply Wall St · 1d ago
  • Garrett Motion reported Q3 2026 results with US$930 million in sales and US$97 million in net income, reaffirmed full year guidance ranges, and announced a US$0.08 per share dividend alongside an expanded share repurchase program.
  • Industrial and data center cooling opportunities moved further into focus as Multistack selected Garrett Motion's oil free centrifugal compressors for next generation Asia Pacific data center platforms, highlighting traction outside core auto turbo programs.
  • This article examines how Garrett Motion's investment narrative is shaped by steady Q3 earnings alongside growing industrial and data center exposure.

Scan how Garrett Motion's steady Q3 earnings and expanding industrial exposure compare with other engineered industrials by reviewing a curated set of 19 high quality undiscovered gems.

Garrett Motion Investment Narrative Recap

To stay invested in Garrett Motion, you need to believe the business can steadily shift from a light vehicle turbo base toward higher value industrial, commercial vehicle and zero emission programs without losing earnings power. The Q3 print, with US$930 million in sales and US$97 million in net income, lines up with that story and keeps the focus on execution, not survival.

The near term swing factor is whether industrial and data center programs ramp smoothly while auto volumes stay choppy. The biggest risk is that newer e cooling and compressor lines, where first shipments are only expected from 2027, fail to scale fast enough to offset any sharper slowdown in internal combustion related demand.

The Multistack selection of Garrett Motion oil free centrifugal compressors for Asia Pacific data center cooling goes straight to that core thesis. It gives real customer backing to the idea that Garrett Motion has a path into HVAC and data center thermal management, not just a slide in an investor deck.

Operationally, this program now needs to move through design, validation and then volume production from the second half of 2027. Any slippage in timing or weaker than expected order flow would matter for the industrial and zero emission catalyst investors are watching, and would leave the company more exposed to the existing auto turbo cycle for longer.

Garrett Motion's current earnings of US$357.0 million are set against analyst expectations for US$4.3b in revenue and US$442.6 million in earnings by 2029. That outlook implies 4.7% yearly revenue growth and an earnings increase of about US$85.6 million compared to earnings today.

Uncover how Garrett Motion's fair value indicates a 67% potential upside to its current price before that gap starts to close.

NasdaqGS:GTX 1-Year Stock Price Chart
NasdaqGS:GTX 1-Year Stock Price Chart

Exploring Other Perspectives

Some of the most optimistic analysts focus on Garrett Motion’s share gains and compressor wins as the real story. Before this Q3 update, they were penciling in revenue of about US$4.3b and earnings near US$481.9 million by 2029. You can treat this as one energetic scenario and compare it with more cautious views yourself.

Explore 3 other Garrett Motion fair value estimates, including one that suggests as much as 151% upside from the current price.

The Verdict Is Yours

Don't just follow the ticker; dig into the data and build a conviction that's truly your own.

Looking for more investment ideas beyond Garrett Motion?

Once you have a handle on Garrett Motion, it can help to set it alongside a wider watchlist so you can see how other companies with different profiles measure up on quality, valuation and resilience.