Gentherm (NASDAQ:THRM) Issues Earnings Results

Gentherm (NASDAQ:THRM) released its quarterly earnings data on Thursday. The auto parts company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.64 by ($0.15), FiscalAI reports. Gentherm had a net margin of 1.22% and a return on equity of 10.07%. The company had revenue of $382.79 million during the quarter, compared to the consensus estimate of $371.91 million. During the same quarter in the prior year, the company posted $0.29 earnings per share. The company’s revenue for the quarter was up 8.5% on a year-over-year basis.

Here are the key takeaways from Gentherm’s conference call:

• Gentherm plans to combine with Modine Performance Technologies (expected close by end of 2026), creating a ~$2.6B pro forma company with identified near-term run-rate synergies of ~$25M and a management target to scale to ~$3.5B revenue and >$500M earnings by 2030.
• Management validated its go‑beyond‑automotive strategy with a >$300M lifetime commercial funnel outside light vehicles and rapid wins in home & office, commercial vehicles, and powersports, including an immediate supply win with a global furniture brand.
• Gentherm submitted a 510(k) for the Thermafix patient warming/securement system, expects revenue from that product later this year, and projects medical revenue growth into the high‑teens as it refreshes the product roadmap.
• 2026 guidance calls for revenue of $1.5–$1.6B (≈+3% midpoint ex‑FX), Adjusted EBITDA of $175–$195M (≈12% margin midpoint), and adjusted free cash flow of $80–$100M; the company also provided a preliminary 2027 revenue outlook of ~$1.7B (+~10% vs. 2026 midpoint).
• 2025 Adjusted EBITDA fell to $175M (11–11.7% of sales) from 12.6% due to higher material costs, unfavorable mix and footprint realignment, and management expects footprint transitions to be a ~60bp profit drag in 2026.

Gentherm Price Performance

THRM opened at $34.11 on Friday. Gentherm has a one year low of $22.75 and a one year high of $39.48. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.92 and a quick ratio of 1.33. The company’s 50 day simple moving average is $35.58 and its 200-day simple moving average is $35.56. The stock has a market capitalization of $1.04 billion, a P/E ratio of 55.92 and a beta of 1.34.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Los Angeles Capital Management LLC acquired a new stake in shares of Gentherm in the 4th quarter valued at $35,000. Tower Research Capital LLC TRC boosted its holdings in Gentherm by 232.0% in the second quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company’s stock valued at $89,000 after acquiring an additional 2,204 shares during the last quarter. iSAM Funds UK Ltd bought a new position in Gentherm in the third quarter valued at about $111,000. Quadrant Capital Group LLC acquired a new stake in Gentherm in the third quarter worth about $174,000. Finally, State of Wyoming raised its holdings in Gentherm by 74.2% during the 2nd quarter. State of Wyoming now owns 6,752 shares of the auto parts company’s stock worth $191,000 after purchasing an additional 2,877 shares during the last quarter. Institutional investors and hedge funds own 97.13% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Wall Street Zen lowered Gentherm from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Roth Mkm reaffirmed a “buy” rating and issued a $44.00 target price on shares of Gentherm in a report on Friday, October 24th. Weiss Ratings cut shares of Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 9th. Finally, Robert W. Baird reduced their price target on shares of Gentherm from $42.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Gentherm has an average rating of “Hold” and a consensus price target of $41.00.

Gentherm News Summary

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Reported record 2025 product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x and secured $2.2B of automotive new business — management also issued 2026 product‑revenue guidance of $1.5B–$1.6B and a preliminary ~ $1.7B outlook for 2027, which supports growth expectations. Press Release
• Positive Sentiment: Some market commentators and outlets highlight the revenue beat and upbeat guidance as a catalyst for upside. Investing.com
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy rating (adds institutional endorsement and may help demand). Coverage Note (MSN summary)
• Positive Sentiment: Analyst/commentary pieces argue the company’s transformation and new product momentum support upgrades from some investors. Seeking Alpha
• Neutral Sentiment: Earnings call transcript and the investor slide deck are available for deeper detail on assumptions, FX exposure and margin drivers — useful for assessing the credibility of guidance and FY2026 assumptions. Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Short‑interest notes in the feed show inconsistent/zero values (likely data error) — no clear short pressure signal from these entries. (No reliable link provided)
• Negative Sentiment: GAAP profitability weakened: Q4 GAAP diluted EPS of $0.10 (FY GAAP diluted $0.59) and net income declined year‑over‑year — investors concerned about margin compression from higher material costs and footprint realignment. Press Release
• Negative Sentiment: Q4 adjusted EPS dynamic: the company reported adjusted EPS improvements but missed street GAAP/quarterly EPS consensus ($0.49 vs. estimate ~$0.64), which is a short‑term negative surprise for some investors. Zacks

Gentherm Company Profile

Gentherm Incorporated (NASDAQ: THRM) is a global developer and supplier of advanced thermal management technologies for automotive, specialty vehicle, medical, consumer and industrial markets. The company’s core focus lies in delivering integrated heating and cooling systems designed to enhance energy efficiency, comfort and safety across a wide range of applications. Gentherm’s product portfolio includes seat thermal systems, heated and ventilated seating surfaces, steering wheel heaters, battery thermal management solutions, and climate systems for electric vehicles.

In the automotive sector, Gentherm partners with leading original equipment manufacturers to engineer and manufacture high-performance thermal solutions that meet stringent industry demands for reduced weight, lower energy consumption and improved passenger comfort.