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PLYMOUTH, Mich. and ROLLE, Switzerland - Garrett Motion Inc. (NASDAQ: GTX), an automotive technology provider with a market capitalization of $2.4 billion, disclosed plans for a secondary public offering of 17 million shares held by affiliates of Oaktree Capital Management, Centerbridge Partners, and Cyrus Capital Partners. According to InvestingPro data, the stock is currently trading near its 52-week high of $12.09, having delivered an impressive 33% return year-to-date. The underwriters have a 30-day option to buy an additional 2.55 million shares from these entities.
The Selling Stockholders are set to receive all proceeds from the offering. Garrett Motion will not sell any shares nor receive proceeds from this offering, but has announced a concurrent repurchase of approximately 2 million shares of common stock, capped at a $25 million aggregate repurchase amount, as part of its $250 million share repurchase program. This aligns with one of several bullish indicators identified by InvestingPro, which notes management’s aggressive share buyback strategy.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are leading the offering, with several other financial institutions serving as joint bookrunners.
This offering is supported by a shelf registration statement and a preliminary prospectus supplement filed with the Securities and Exchange Commission, available for public review.
The company has stated that the offering and repurchase are subject to market conditions and other factors. This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer would be illegal prior to registration or qualification under the securities laws of any such state or jurisdiction.
Garrett Motion, with a history stretching over 70 years, is known for its innovations in the automotive sector, including turbocharging technologies that have contributed to reductions in engine size, fuel consumption, and CO2 emissions. The company is also developing solutions for Zero Emission Vehicles, including fuel cell compressors and electric propulsion systems. With a P/E ratio of 9.16 and annual revenue of $3.44 billion, the company maintains a "GREAT" financial health score according to InvestingPro, which offers comprehensive analysis and 8 additional key insights about GTX’s market position and growth potential through its Pro Research Report.
This news is based on a press release statement from Garrett Motion Inc.
In other recent news, Garrett Motion Inc. reported its fourth-quarter 2024 financial results, revealing a mixed performance. The company exceeded earnings per share (EPS) expectations with $0.47, surpassing the forecasted $0.31, marking a 51.6% positive surprise. However, revenue fell short, coming in at $844 million against the anticipated $905.5 million. Garrett Motion’s adjusted EBITDA for the quarter was $153 million, representing an 18.1% margin, showing an increase from the previous year. The company also announced a share repurchase of $296 million in 2024, reducing its share count by 13%.
In a separate development, Garrett Motion showcased its latest advancements at Auto Shanghai 2025, introducing its 3-in-1 E-Powertrain and E-Cooling Compressor technologies aimed at enhancing vehicle efficiency and sustainability. The company also highlighted its partnership with SinoTruk to co-develop a heavy-duty E-powertrain, with production expected to start by 2027. Analysts from Freedom Capital and BWS Financial have shown interest in Garrett’s strategic moves, particularly in its expansion within the Chinese market and the focus on zero-emission technologies. Despite challenges, Garrett Motion continues to focus on expanding its turbo technologies and electrification solutions.
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