The Bull Case For Garrett Motion (GTX) Could Change Following A New $250 Million Buyback Authorization

• In early December 2025, Garrett Motion Inc. announced that its Board had authorized a share repurchase program of up to US$250,000,000 of common shares, running through 2026 as part of a disciplined capital allocation framework.
• This buyback plan highlights management’s emphasis on balancing reinvestment in growth areas like electrification with returning capital to shareholders through reduced share count.
• We’ll now examine how this newly authorized US$250,000,000 buyback could reshape Garrett Motion’s investment narrative built around electrification and diversification.

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Garrett Motion Investment Narrative Recap

To own Garrett Motion, you need to believe the company can use its turbocharger cash flows to fund a credible shift toward electrification and diversified industrial applications. The new US$250,000,000 buyback supports that equity story but does not materially change the near term catalyst around execution in zero emission product lines, nor the key risk that internal combustion engine exposure remains high as EV adoption advances.

The most relevant recent development alongside this new authorization is the February 2025 capital return plan, which paired a US$50,000,000 annual dividend with an initial US$250,000,000 buyback for 2025. Taken together, these moves frame Garrett as a company trying to reward shareholders while still tackling the risk that its nascent electrified portfolio may not ramp quickly enough to offset eventual pressure on traditional turbo volumes.

But investors should also be aware of how margin pressure from an unfavorable sales mix could...

Read the full narrative on Garrett Motion (it's free!)

Garrett Motion's narrative projects $3.8 billion revenue and $339.1 million earnings by 2028. This requires 3.1% yearly revenue growth and an earnings increase of about $38.1 million from $301.0 million today.

Uncover how Garrett Motion's forecasts yield a $19.00 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community currently see fair value for Garrett Motion between US$19 and about US$36, showing how far opinions can stretch. When you set those views against the company’s heavy reliance on gasoline and diesel turbocharger demand, it becomes even more important to compare several perspectives on how the transition toward electrification could affect future performance.

Explore 2 other fair value estimates on Garrett Motion - why the stock might be worth just $19.00!

Build Your Own Garrett Motion Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Garrett Motion research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Garrett Motion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Garrett Motion's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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