Gentherm (NASDAQ:THRM) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Gentherm (NASDAQ:THRM) issued its earnings results on Thursday. The auto parts company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.19, FiscalAI reports. The business had revenue of $416.17 million during the quarter, compared to analyst estimates of $382.90 million. Gentherm had a return on equity of 11.25% and a net margin of 1.47%.Gentherm’s revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.54 EPS.

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 Price Performance

THRM stock traded up $7.35 during mid-day trading on Thursday, hitting $43.40. The company had a trading volume of 317,715 shares, compared to its average volume of 290,437. The company has a 50-day moving average price of $34.91 and a 200 day moving average price of $32.82. Gentherm has a 12-month low of $27.00 and a 12-month high of $43.05. The company has a market capitalization of $1.33 billion, a price-to-earnings ratio of 57.81 and a beta of 1.38. The company has a quick ratio of 1.36, a current ratio of 1.97 and a debt-to-equity ratio of 0.31.

Institutional Investors Weigh In On Gentherm

Hedge funds have recently bought and sold shares of the business. Bank of Montreal Can bought a new position in Gentherm during the fourth quarter valued at $206,000. Morningstar Investment Management LLC bought a new position in shares of Gentherm in the 3rd quarter valued at about $309,000. Caxton Associates LLP grew its position 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 acquiring an additional 372 shares in the last quarter. Boothbay Fund Management LLC purchased a new stake in Gentherm during the third quarter valued at approximately $248,000. Finally, Gamco Investors INC. ET AL purchased a new stake in Gentherm in the third quarter worth $272,000. Hedge funds and other institutional investors own 97.13% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on THRM. Wall Street Zen upgraded shares of Gentherm from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 25th. Weiss Ratings upgraded Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Robert W. Baird raised 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. Stifel Nicolaus boosted their price target on Gentherm from $38.00 to $44.00 and gave the company a “buy” rating in a research note on Monday. Finally, JPMorgan Chase & Co. upped their price target 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. Two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Gentherm has an average rating of “Hold” and an average 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.