Garrett Motion (NYSE: GTX) reported Q1 EPS of $0.97, $0.12 better than the analyst estimate of $0.85. Revenue for the quarter came in at $835 million versus the consensus estimate of $843.11 million.

• Net sales totaled $835 million; down 8.7% reported and 3.2% organically*
• Net income increased 25.9% to $73 million
• Earnings per basic and diluted share were $0.98 and $0.97, respectively
• Adjusted EBITDA* decreased 10.2% to $159 million
• Adjusted EBITDA margin* was 19.0%
• Net debt* reduced by $40 million in the quarter to $1,392 million at March 31, 2019
• 2019 outlook unchanged

“We are off to a strong start in 2019,” said Olivier Rabiller, President and CEO. “During the first quarter, we maintained our attractive margin profile, thanks in part to our highly variable cost structure, amid challenging market conditions which began late last year and continued at the onset of 2019. We continue to achieve significant productivity gains while rebalancing our passenger vehicle portfolio as the percentage of gasoline sales climbed to 29% in the quarter, up 400 basis points from the prior year. In addition, we increased our aftermarket and commercial vehicle businesses to 33% of net sales, further mitigating the impact of short-term fluctuations in auto sales. Going forward, we expect modest improvement in global automotive demand and remain on track to meet our previously stated targets for the full year as we continue to deliver leading vehicle technologies for our global customers.”

2019 Outlook

Garrett’s previously stated outlook for the full year 2019 remains unchanged. The company anticipates between 2% and 4% in organic growth in net sales, and between $630 million and $650 million in Adjusted EBITDA, (compared to Adjusted EBITDA of $618 million in 2018 on a comparable basis) assuming current foreign exchange rates. Garrett is also targeting Adjusted Levered Free Cash Flow conversion in 2019 between 55% and 60%. The rebalancing of Garrett’s portfolio towards gasoline products continues and our gasoline business is expected to be at similar levels as diesel by the end of 2019.

For earnings history and earnings-related data on Garrett Motion (GTX) click here.