Garrett Motion Inc. (GTX) shares plummeted 11.95% during intraday trading on Thursday, marking a significant decline for the automotive technology company.
The sharp drop follows the company's release of its fourth-quarter and full-year 2025 financial results. While Garrett Motion reported Q4 net sales of $891 million, exceeding analyst expectations of $875.2 million and representing a 6% year-over-year increase, investors reacted negatively 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 appears to have fallen short of market expectations for stronger profit growth, overshadowing the positive quarterly sales performance and contributing to the stock's decline.