Oct. 25, 2025 at 12:44 PM ET6 min read

Garrett Motion Stock Soars as Q3 Results Exceed Expectations

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

A 12.69% rise in Garrett Motion Inc.’s stock signals strong investor confidence amid positive developments.

Key Highlights

  • Shares of Garrett Motion surged 19.1% following positive financial results, reflecting a marked rise to $14.89 in recent trading sessions.
  • The company achieved Q3 earnings per share of $0.38, which exceeded analysts’ expectations and significantly surpassed last year’s $0.24 per share.
  • Revenue for the quarter reached $902 million, beating the consensus forecast of $866.16 million, indicating robust business performance.
  • Stifel raised Garrett Motion’s price target to $20 after excellent Q3 figures and an optimistic future outlook, maintaining a Buy rating.
  • Increased share repurchases and a 33% rise in quarterly dividends underscore the firm’s confidence and strategic capital allocation.

Consumer Discretionary industry expert:

Analyst sentiment – positive

  1. Garrett Motion Inc. (GTX) is demonstrating a robust market position, evident through key financial metrics signaling operational efficiency. The company sustains a profitable margin structure, with an EBIT margin of 10.5% and a gross margin of 20.5%, complemented by a relatively attractive P/E ratio of 10.51. Despite challenges in negative book value per share and stockholder equity, its strong asset turnover of 1.5x and free cash flow generation hint at effective asset utilization. Recent revenue growth enhancing by 4.09% over five years reinforces the company’s trajectory toward sustained financial resilience. The cash flow activities depict a strategic allocation towards capital stock repurchase, demonstrating confidence in future earnings potential.

  2. Analysis of Garrett Motion’s stock price reveals a pronounced upward trend, with a strong recent rally seen in the trading week beginning October 23, 2025. The price surged from an open of $12.5 on October 20, 2025, to closing at $16.825 on October 24, 2025, signaling bullish sentiment. The move past psychological resistance levels at $15 establishes a new support zone. Traders should consider adopting a buy-on-dips strategy, targeting further upside past the recent peak of $17.1, with vigilant oversight on volume trends signifying sustained investor interest. Short-term resistance is anticipated around the $17 area, reflecting potential profit-taking.

  3. Recent developments underscore Garrett Motion’s favorable outlook, as Q3 results reported EPS of $0.38, surpassing estimates, alongside up-adjusted revenue guidance of $3.5B-$3.6B for 2025. Enhanced by strategic wins in new turbo and zero-emission platforms, these results affirm GTX’s competitiveness within both traditional and emerging vehicle markets. Analysts, like Stifel, have raised their price targets, affirming a bullish view supported by share gains and sector outperformance in the Consumer Discretionary benchmark. With current price action firmly above prior resistance and a raised dividend, GTX’s trajectory appears positive. It’s prudent to watch closely the $17.1-$20 resistance zone as a delineator of future momentum.

Candlestick Chart

More Breaking News

Weekly Update Oct 20 – Oct 24, 2025: On Saturday, October 25, 2025 Garrett Motion Inc stock [NASDAQ: GTX] is trending up by 12.69%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Garrett Motion’s recent earnings reflect strong financial momentum. In Q3 2025, the company posted robust revenue growth at $902 million, surpassing the anticipated $866.16 million. This upswing came alongside a notable rise in earnings per share from $0.24 in the previous year to $0.38 currently, attributing to effective cost management and operational efficiencies.

Key financial metrics highlight the company’s profitability, with an adjusted EBIT margin climbing to 14.7% and adjusted free cash flow hitting $107 million. This operational superiority is further evidenced by a significant $84 million in share buybacks, enhancing shareholder value. The tech firm’s bolstered dividend approach, with a 33% escalation starting in Q4, positions it optimistically within its sector. Such figures underline Garrett Motion’s prowess not only in current performance but also in future market positioning.

Conclusion

Garrett Motion’s impressive quarterly performance has propelled its stock into a favorable light among traders. With substantial earnings per share growth and a decisive revenue beat, the company’s relentless pursuit of technological advancements and strategic capital enhancements underscores its commitment to shareholder value. The boost in share repurchase and dividend distributions reveals a management confident in sustaining robust financial health.

As Garrett Motion navigates future market challenges, this strong Q3 showing establishes a promising precedent. Traders might consider capitalizing on this upward momentum, given the firm’s solid foundational metrics and future-oriented strategies. As Tim Bohen, lead trainer with StocksToTrade says, “For me, trading is more about managing risk than finding the next big mover.” This philosophy echoes what the financial community will be keenly observing—how the company exploits current industrial trends, potentially cementing its leadership in both traditional and cutting-edge automotive technologies.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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