Gentherm (NASDAQ:THRM) Issues Earnings Results

Gentherm (NASDAQ:THRM) released its earnings results on Thursday. The auto parts company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.19, FiscalAI reports. Gentherm had a return on equity of 11.25% and a net margin of 1.47%.The business had revenue of $416.17 million for the quarter, compared to the consensus estimate of $382.90 million. During the same quarter last year, the business posted $0.54 earnings per share. The business’s quarterly revenue was up 11.0% compared to the same quarter last year.

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

• Gentherm raised full-year 2026 guidance for revenue, adjusted EBITDA, and adjusted free cash flow after a strong first half. Management said it now expects revenue of about $1.6 billion at the midpoint, implying roughly 5% growth despite an expected decline in light vehicle production.
• Second-quarter results exceeded expectations, with revenue up 11% year over year to a quarterly record of $416 million and adjusted EPS rising 39% to $0.75. Automotive Climate and Comfort Solutions outperformed broader vehicle production, and the company said its auto new business awards totaled about $690 million in the quarter and more than $1 billion year to date.
• Management highlighted momentum beyond automotive, including new home and office wins and the FDA 510(k) clearance for ThermAffyx, a new medical product expected to begin initial sales in the third quarter. Gentherm also completed the acquisition of Innovative Medical Equipment (IME), which it sees as a strategic fit with strong cross-selling potential.
• Profitability improved operationally but was partially offset by one-time and timing-related headwinds. Adjusted EBITDA margin was 11.7%, down slightly year over year, due to inflation recovery timing, inventory reductions, and warranty accruals in automotive and medical; management said those warranty charges should not be viewed as a recurring run-rate issue.
• The Modine Performance Technologies merger remains on track, with closing now expected early in the fourth quarter. Gentherm said the combined company would be more diversified, could exceed $3.5 billion in revenue by 2030, and expects to generate over $1 billion of cumulative unlevered free cash flow through 2030.

Gentherm Stock Performance

Shares of THRM traded up $7.35 during trading hours on Thursday, reaching $43.40. 317,715 shares of the company traded hands, compared to its average volume of 290,437. Gentherm has a 1-year low of $27.00 and a 1-year high of $43.05. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.36 and a current ratio of 1.97. The stock has a market cap of $1.33 billion, a P/E ratio of 57.81 and a beta of 1.38. The stock’s fifty day moving average is $34.91 and its 200 day moving average is $32.82.

Institutional Trading of Gentherm

A number of large investors have recently bought and sold shares of THRM. Bank of Montreal Can bought a new stake in Gentherm in the fourth quarter valued at approximately $206,000. Morningstar Investment Management LLC bought a new position in Gentherm during the 3rd quarter worth approximately $309,000. Caxton Associates LLP increased its holdings in Gentherm by 4.7% in the third quarter. Caxton Associates LLP now owns 8,294 shares of the auto parts company’s stock worth $282,000 after purchasing an additional 372 shares in the last quarter. Boothbay Fund Management LLC bought a new stake in shares of Gentherm during the third quarter worth about $248,000. Finally, Gamco Investors INC. ET AL purchased a new stake in shares of Gentherm during the third quarter valued at approximately $272,000. 97.13% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

THRM has been the topic of several research analyst reports. Wall Street Zen raised Gentherm from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 25th. Stifel Nicolaus upped their price objective on shares of Gentherm from $38.00 to $44.00 and gave the company a “buy” rating in a research report on Monday. Robert W. Baird lifted their target price on Gentherm from $33.00 to $34.00 and gave the stock a “neutral” rating in a research report on Friday, April 24th. JPMorgan Chase & Co. boosted their price objective on shares of Gentherm from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. Finally, Weiss Ratings raised Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $38.60.

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.