Garrett Motion Inc. (GTX) shares fell 5.15% in pre-market trading on Thursday following the release of its fourth-quarter and full-year 2025 financial results.
The automotive technology company reported Q4 net sales of $891 million, exceeding the FactSet consensus estimate of $875.2 million and representing a 6% year-over-year increase. For the full year 2025, net sales reached $3.58 billion, a 3% increase from the previous year.
Despite the sales beat, the stock's decline appears driven by investor reaction to the company's forward guidance. For fiscal year 2026, Garrett Motion issued net income guidance of $295 million to $335 million, with the midpoint representing only modest growth compared to the $310 million reported for 2025. This outlook may have fallen short of market expectations for stronger profit growth, overshadowing the positive quarterly sales performance.