Gentherm (NASDAQ:THRM) Issues Earnings Results

Gentherm (NASDAQ:THRM) issued its quarterly earnings results on Thursday. The auto parts company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.19, FiscalAI reports. The firm had revenue of $404.94 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%.The company’s revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.54 earnings per share.

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 Trading Up 1.0%

NASDAQ THRM traded up $0.44 during trading on Friday, hitting $46.05. The company had a trading volume of 243,805 shares, compared to its average volume of 300,186. The company’s fifty day moving average is $35.19 and its 200-day moving average is $32.88. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 61.66 and a beta of 1.38. The company has a current ratio of 1.97, a quick ratio of 1.36 and a debt-to-equity ratio of 0.31. Gentherm has a one year low of $27.00 and a one year high of $48.35.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on THRM shares. Wall Street Zen upgraded Gentherm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, April 25th. Stifel Nicolaus set a $59.00 price target on shares of Gentherm and gave the stock a “buy” rating in a research note on Friday. JPMorgan Chase & Co. boosted their price objective on shares of Gentherm from $37.00 to $38.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Robert W. Baird upped their price objective on shares of Gentherm from $33.00 to $34.00 and gave the company a “neutral” rating in a research note on Friday, April 24th. Finally, Weiss Ratings raised shares of Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, May 8th. Two equities 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, the stock presently has an average rating of “Hold” and a consensus price target of $41.60.

Gentherm declared that its Board of Directors has approved a stock buyback program on Thursday, July 23rd that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the auto parts company to purchase up to 36.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Institutional Trading of Gentherm

Several institutional investors and hedge funds have recently bought and sold shares of THRM. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Gentherm by 5.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,613 shares of the auto parts company’s stock worth $2,904,000 after acquiring an additional 5,824 shares in the last quarter. Millennium Management LLC grew its stake in Gentherm by 93.4% in the first quarter. Millennium Management LLC now owns 155,617 shares of the auto parts company’s stock worth $4,161,000 after purchasing an additional 75,170 shares during the period. Jane Street Group LLC grew its stake in Gentherm by 389.2% in the first quarter. Jane Street Group LLC now owns 84,403 shares of the auto parts company’s stock worth $2,257,000 after purchasing an additional 67,150 shares during the period. JPMorgan Chase & Co. raised its holdings in Gentherm by 1.7% in the second quarter. JPMorgan Chase & Co. now owns 108,251 shares of the auto parts company’s stock worth $3,062,000 after purchasing an additional 1,850 shares in the last quarter. Finally, Hsbc Holdings PLC bought a new position in Gentherm in the second quarter worth $526,000. 97.13% of the stock is currently owned by hedge funds and other institutional investors.

Gentherm News Roundup

Here are the key news stories impacting Gentherm this week:

• Positive Sentiment: Gentherm beat Q2 estimates, posting $0.75 EPS on revenue of $404.94 million, both above consensus, with revenue up 11% year over year. Article Title
• Positive Sentiment: The company raised 2026 guidance and said second-quarter product revenue reached a record level, suggesting management sees continued momentum ahead. Article Title
• Positive Sentiment: Gentherm approved a new $400 million stock buyback program, which can support the share price by reducing share count and signaling that management believes the stock is undervalued. Article Title
• Positive Sentiment: The stock reached a new 52-week high after the earnings beat, reflecting strong investor confidence in the latest results. Article Title
• Neutral Sentiment: Recent earnings-call coverage highlighted growth opportunities, but also noted some margin pressure, which investors may continue to watch. Article Title

About Gentherm

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.