Garrett Motion Inc. (NASDAQ:GTX) Q3 2023 Earnings Call Transcript

Hamed Khorsand: And then on the zero emission side, how fast before it becomes a material contributor to sales? I know you’ve said about 2030. We’re something like six years away from that. So is there some, sort of, momentum that you’ll start showing in your numbers before then?

Olivier Rabiller: We are sticking to what we said before. But let me give you a little bit more colors. When you think about fuel cell compressors, we are in the full ramp up now. And next year, we’ll start to see the start of production of several programs. So to give you a flavor on that industry that is still emerging, we’re expecting in 2024 to be doing nearly $20 million of sales just on fuel cell compressors. And fuel cell compressor is obviously a product that is already getting mature in our portfolio. So that’s a little bit in advance versus what we see with the two other products that we have. But as we said before, we are currently pre-development. You need to have in mind that between pre-development and production, there is about four, five years before you start in production.

And therefore, that’s the reason why we said initially that we would look at 2027, 2028 to be the inflection point for revenue growth. But the point I’m giving you today and I think this is the first time we share that, is that already next year on the fuel cell compressor side will be nearly $20 million.

Hamed Khorsand: And my last question was, is it too early to talk about what the margin profile of the company would look like in 2024?

Sean Deason: Yes, I mean, we have our financial framework coming Hamed and we’re going to target hopefully around 16%, that’s our financial framework. We try to hold to that. It can deviate when you have commodities moving around like we’ve seen in the past and foreign exchange, but we’re still working through all of those assumptions at the moment.

Hamed Khorsand: Okay, thank you.

Eric Burge: Okay. Thank you, everybody. I appreciate who joined the call and we will hopefully see several of you at the Investor Day later today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.