Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation

5. Garrett Motion Inc. (NASDAQ:GTX)

Garrett Motion Inc. is a manufacturer, designer, and seller of air and fluid compression, turbocharging, and high-speed electric motor technologies. The company serves original equipment manufacturers and distributors. It provides cutting-edge technology for industrial space and mobility.

The firm recently reported its Q4 2024 earnings, indicating an improved EBITDA margin of 18.1%, fueled by cost management and operational performance. The company also increased share repurchase activity by spending $70 million during the quarter.

Garrett reduced its total debt to $1.5 billion, aided by strong liquidity. For the full year, the company recorded enhanced adjusted EBITDA margin of 17.2%. As per the company’s provided outlook, it expects net sales of $3.4 billion in 2025. Adjusted free cash flow is anticipated to be $345 million with the adjusted EBITDA of $575 million.

The firm plans to assign more than half of its research and development expenditures to zero-emission technologies. This will increase its total research and development expenditures to 4.6% of sales. Management highlighted challenges from foreign exchange impacts, but pricing strategies and operational productivity are expected to minimize these challenges.