Gentherm (NASDAQ:THRM) Posts Earnings Results, Misses Expectations By $0.15 EPS

Gentherm (NASDAQ:THRM) issued its quarterly earnings results on Thursday. The auto parts company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.15), FiscalAI reports. The firm had revenue of $382.79 million for the quarter, compared to analyst estimates of $371.91 million. Gentherm had a net margin of 2.08% and a return on equity of 9.55%. The company’s revenue was up 8.5% compared to the same quarter last year. During the same period last year, the company earned $0.29 EPS.

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 Stock Performance

Gentherm stock traded up $0.11 during trading hours on Thursday, hitting $31.02. The company had a trading volume of 202,587 shares, compared to its average volume of 255,940. The firm has a market cap of $946.58 million, a PE ratio of 31.02 and a beta of 1.34. The firm has a 50-day moving average of $35.77 and a 200 day moving average of $35.58. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.96 and a quick ratio of 1.33. Gentherm has a one year low of $22.75 and a one year high of $39.48.

Wall Street Analysts Forecast Growth

THRM has been the topic of a number of research reports. Wall Street Zen upgraded shares of Gentherm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 25th. Roth Mkm restated a “buy” rating and issued a $44.00 price objective on shares of Gentherm in a report on Friday, October 24th. Robert W. Baird set a $42.00 target price on shares of Gentherm in a report on Friday, October 24th. Finally, Weiss Ratings downgraded Gentherm from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $43.00.

Key Headlines Impacting Gentherm

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Reported record full-year product revenue of ~$1.5B, increased operating cash flow, reduced net leverage to ~0.2x, and gave 2026 product revenue guidance of $1.5B–$1.6B with a preliminary ~ $1.7B outlook for 2027 — this supports a constructive medium-term growth story. GlobeNewswire Release
• Positive Sentiment: Quarterly product revenue beat consensus (Q4 product revenue $382.8M vs. estimates ~ $371.9M) and management issued strong adjusted EBITDA / cash-flow guidance, which multiple outlets say supported a share rally. Investing.com
• Positive Sentiment: Freedom Capital Markets initiated coverage with a Buy and set a $41 price target, adding fresh analyst support after the results. MSN / Freedom Capital
• Neutral Sentiment: The company hosted the earnings call and released a full transcript with management comments on strategic initiatives (Modine combination, footprint realignment) — useful for modeling but not a near-term catalyst by itself. Yahoo Finance Transcript
• Neutral Sentiment: Brokerage consensus remains mixed; some services show a “Hold” consensus despite new coverage and price targets, reflecting differing views on near-term profitability vs. long-term growth. American Banking News
• Negative Sentiment: GAAP EPS disappointed: Q4 GAAP diluted EPS was $0.10 and reported EPS of $0.49 missed many sell‑side consensus figures (Zacks notes a miss vs. $0.57–$0.64 estimates), which raises near-term concern on profitability. Zacks
• Negative Sentiment: Margins and net income fell year-over-year (gross margin compression, full‑year net income decline), and adjusted EBITDA was slightly lower than prior year — these profitability headwinds are the primary risk to near-term multiples. Quiver / Release Summary

Institutional Trading of Gentherm

Large investors have recently modified their holdings of the stock. State of Tennessee Department of Treasury increased its position in Gentherm by 168.2% during the 4th quarter. State of Tennessee Department of Treasury now owns 31,933 shares of the auto parts company’s stock worth $1,161,000 after purchasing an additional 20,027 shares in the last quarter. Millennium Management LLC raised its holdings in Gentherm by 121.2% during the 4th quarter. Millennium Management LLC now owns 30,964 shares of the auto parts company’s stock worth $1,126,000 after purchasing an additional 16,965 shares during the last quarter. Man Group plc boosted its position in Gentherm by 153.4% during the fourth quarter. Man Group plc now owns 92,881 shares of the auto parts company’s stock valued at $3,378,000 after acquiring an additional 56,234 shares during the last quarter. Trexquant Investment LP boosted its position in shares of Gentherm by 158.9% during the 4th quarter. Trexquant Investment LP now owns 67,175 shares of the auto parts company’s stock valued at $2,443,000 after purchasing an additional 41,231 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its holdings in shares of Gentherm by 18.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 37,778 shares of the auto parts company’s stock worth $1,374,000 after buying an additional 5,792 shares in the last quarter. 97.13% of the stock is owned by institutional investors and hedge funds.

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.