Garrett Motion (GTX) Beat Q2 Earnings Estimates, Is It Still 31% Undervalued?

Garrett Motion (GTX) came into focus after reporting Q2 FY26 earnings per share of 0.53, which topped expectations and prompted investors to reassess what the latest results might imply for future profitability.

Despite the earnings beat, Garrett Motion’s share price has drifted, with the stock down 26.68% over the past 90 days, while the year-to-date share price return sits at 47.99% and total shareholder return over five years has reached 264.39%, suggesting long term momentum remains strong even as short term sentiment has cooled.

Scan beyond Garrett Motion and see how it compares to a curated group of auto and industrial players screened for resilient financials in our list of solid balance sheet and fundamentals (24 results).

Garrett Motion now trades well below both analyst targets and one estimate of fair value, even after strong multi year returns. Is the market spotting real risks, or marking the stock down too far on caution alone?

Most Popular Narrative: 31% Undervalued

Garrett Motion is currently trading at $25.72 versus a widely followed fair value estimate of about $37.17. This frames the recent selloff as a potential valuation mismatch rather than a clean verdict on the business.

Ongoing innovation and proof-of-concept awards in zero-emission technologies (E-Powertrain, E-Cooling, and fuel cell compressors) and expansion in industrial/non-automotive end markets are positioning Garrett to capture higher-margin business opportunities and diversified growth, supporting both revenue and future margin expansion.

See why 14 investors see Garrett Motion as 31% undervalued.

Result: Fair Value of $37.17 (UNDERVALUED)

Still, Garrett Motion’s reliance on gasoline and diesel turbocharger demand, along with pressure from tariffs and currency swings, could unsettle that undervaluation story.

Find out about the key risks to this Garrett Motion narrative.

Next Steps

If this mix of concern and optimism around Garrett Motion feels familiar, use it as a prompt to move fast and build your own thesis using the 4 key rewards and 3 important warning signs.

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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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