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

Gentherm (NASDAQ:THRM) issued its quarterly earnings data on Thursday. The auto parts company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.19, FiscalAI reports. The company had revenue of $416.17 million for the quarter, compared to analysts’ expectations of $382.90 million. Gentherm had a return on equity of 11.25% and a net margin of 1.47%.The firm’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same period in the previous year, the firm 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 Stock Up 22.1%

Shares of NASDAQ:THRM traded up $7.96 during trading on Thursday, reaching $44.01. The stock had a trading volume of 507,308 shares, compared to its average volume of 291,843. The company has a market capitalization of $1.35 billion, a P/E ratio of 58.32 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. The firm’s 50-day simple moving average is $34.91 and its 200 day simple moving average is $32.82. Gentherm has a one year low of $27.00 and a one year high of $43.84.

Institutional Trading of Gentherm

Several large investors have recently made changes to their positions in the business. Los Angeles Capital Management LLC acquired a new position in Gentherm during the fourth quarter valued at $35,000. Tower Research Capital LLC TRC grew its position in Gentherm by 232.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,154 shares of the auto parts company’s stock worth $89,000 after purchasing an additional 2,204 shares during the period. iSAM Funds UK Ltd purchased a new position in shares of Gentherm during the 3rd quarter valued at about $111,000. Quadrant Capital Group LLC purchased a new position in shares of Gentherm during the 3rd quarter valued at about $174,000. Finally, Bank of Montreal Can acquired a new position in shares of Gentherm in the 4th quarter valued at about $206,000. 97.13% of the stock is 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 with adjusted EPS of $0.75 versus $0.59 expected, while revenue of $416.2 million topped estimates of $382.9 million and increased 11% year over year.
• Positive Sentiment: The company raised its 2026 full-year revenue outlook to $1.6 billion-$1.7 billion, above the prior setup implied by analysts, suggesting continued demand strength.
• Positive Sentiment: Gentherm’s board approved a new stock buyback program of up to $400 million, a shareholder-friendly move that can support the stock.
• Positive Sentiment: The company also said it completed a strategic medical acquisition, expanding its product portfolio and customer channels, which could add longer-term growth opportunities. Gentherm Acquires Innovative Medical Equipment, LLC, Strengthening Medical Product Portfolio and Customer Channels
• Neutral Sentiment: Earlier earnings-snapshot reports reiterated the same beat on EPS and revenue, but did not add new material information beyond the quarterly results. Gentherm: Q2 Earnings Snapshot

Analyst Ratings Changes

THRM has been the topic of a number of research reports. Stifel Nicolaus raised their target price on shares of Gentherm from $38.00 to $44.00 and gave the stock a “buy” rating in a research report on Monday. Wall Street Zen upgraded Gentherm from a “buy” rating to a “strong-buy” rating in a report on Saturday, April 25th. Robert W. Baird lifted their price objective on Gentherm from $33.00 to $34.00 and gave the company a “neutral” rating in a report on Friday, April 24th. Weiss Ratings raised shares of Gentherm from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. raised their target price 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 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 a consensus 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.