Q2 2024 Garrett Motion Inc Earnings Call Transcript
Key Points
- Garrett Motion Inc (GTX) reported a strong adjusted EBITDA margin of 16.9%, up 40 basis points sequentially.
- The company issued $800 million of senior unsecured notes at favorable interest rates, generating annual cash interest savings of approximately $15 million.
- Garrett Motion Inc (GTX) repurchased $65 million of common stock in Q2, bringing total repurchases in the first half of 2024 to $174 million.
- The company secured its first series production contract for its largest fuel cell application to date, indicating significant progress in zero-emission vehicle technologies.
- Garrett Motion Inc (GTX) ended the quarter with a strong liquidity position of $698 million, including $600 million of an upsized undrawn revolving credit facility.
- Reported net sales are continuing to trend down due to softer global industry trends across light and commercial vehicles.
- The company experienced a 12% decrease in net sales on a GAAP basis and 10% at constant currency, driven by industry softness across all verticals and regions.
- Commodity deflation resulted in an additional $30 million reduction in sales compared to Q2 last year.
- Garrett Motion Inc (GTX) saw an unfavorable impact of $80 million due to foreign exchange on a year-over-year basis.
- The company updated its 2024 outlook to reflect lower production in both light and commercial vehicle industries, implying a sales outlook of flat to slightly down in the second half of the year.
Hello. My name is Anthony, and I'll be your operator this morning. I would like to welcome everyone to the Garrett Motion second quarter 2024 financial results conference call. This call is being recorded and a replay will be available later today. After the company's presentation, there will be a Q&A session. I would now like to hand over the call to Eric bridge, Garrett's Head of Investor Relations.
Thank you, Anthony. Good day, and welcome, everyone. Thank you for attending the Garrett Motion Second Quarter 2024 financial results conference call. Before we begin, I would like to mention that today's presentation and earnings release are available on the IR section of our Garrett Motion website at investors.garrettmotion.com. There you will find links to our SEC filings, along with other important information about our company.
Turning to slide 2, we note that this presentation contains forward-looking statements within the meaning of the US federal securities laws. These statements represent
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